Dirty Secrets of Dropshipping
I think one of the dirtiest dropshipping secrets that people who are new to ecommerce and finding products to sell online face is that with respect to eBay, dropshipping can be far to expensive to be profitable.
Don’t get me wrong, there are dropshipping warehouses providing a wide variety of goods at low cost, possibly even near or at wholesale prices. I mention what I call the “usual suspects” elsewhere, but I’ll make a short list again. By the way, I say “usual suspects” only because these are fairly well known:
megagoods.com
doba.com
dropshipdesign.com
bnfusa.com
iwdsc.com
ezdropshipper.com
The list above are examples of distributors who warehouse a variety of product lines, sell them at a discount to you, and dropship the products to your customers under your business name. You can make money with these programs, but probably not on eBay. Although these business strongly imply that they are wholesaler, they are not as they require no proof of your sales tax permit. They may offer good prices, but they are not true wholesale businesses. Dropship, yes; wholesale, no. Never expect to make a profit on eBay with them.
The next secret is that your best dropshipping contacts and accounts will be those that you arrange yourself. This is where you go to the trouble to either find the manufacturer of the product or products you want to sell and then establish dropshipping account if that is an option. This is the optimum situation because you are purchasing directly from the manufacturer. Very often, you will need to contact the manufacturer and find out who their authorized distributor is, go to them, and work out a price and dropshipping agreement.
Next, and this is not really a dirty secret, but a reputable online wholesale directory such as the Salehoo Global Directory of Wholesale Distributors can be of help.
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