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The Down Side Of Using Dropshippers In The eBay Auction Arena!


Ok, let me just say right up front that I am not against drop-shipping! I love the concept. If you are dealing with a particular wholesale drop-shipping distributor that is serving your eBay ambitions well, then hold onto that company with bonds of steel, for truly good drop-shippers are hard to find!

Drop-Shipping sounds like the utopian business model. No up front investment in inventory. You don't have to carry packages to the Post Office, United Parcel, or Fedex. All you have to do is set up your own business, auction, or retail website and advertise the products that the company provides. Once the orders come in, you forward it to the drop-shipper and they send the product directly to your customer.

But, the devil is always in the details. Dropshipping is best suited for a stand alone E-Commerce website, mail order, or catalog advertising venue. If you are considering using a wholesale drop shipper for your eBay auction, then you might want to take a step back and let me provide you with some "points to ponder."

Back ordered products..The reality is that drop-shipping companies run out of product and will be back ordered. eBay bidders purchase product in "real time." They are under the impression that the item you auction, is the item they bought, not a product that is subject to shortages.

One or two customers might be understanding about the situation, but most will not. If you happen to run out of product on a regular basis then your negative feedback rating will go through the roof, and your reputation will suffer.

One way to combat shortages is to buy a pallet of product in advance, and have the drop-shipper store it in their warehouse so that you are assured of an ample supply. This method sort of goes against the idea of Drop-Shipping (buying the product in advance) but if you are selling on eBay, you would be best served by employing this method.

Also, if possible, find a drop-shipper in your area, or within a comfortable traveling distance. If you run into any supply or shipping problems, then you could be on hand to visit the facility, should any shipping or logistic concerns arise.

Fees..Some dropshippers will charge you a sign up, or entry fee of about twenty five to fifty dollars just for the privilege of selling their product. You are also charged a "processing fee" for sending the product to your customer.

The "price for processing" can range anywhere from seven to twenty dollars per item, depending on the type of merchandise you are selling. These expenses, plus eBay fees, can take a big chunk out of your bottom line. Finding a product that can bring you a profit, as well as offseting these types of expenses, can be a delicate balancing act.

Circumventing your customers..While I do not believe that this is a pervasive practice among drop-shipping companies, anecdotal evidence has suggested that some unscrupulous enterprises can cut you out of the sales loop. They could they easily substitute your return address for their company logo, selling directly to your customers.

Market saturation..One of the largest wholesale drop-shippers in the county is the B&F System, BNFusa.com. A lot of eBayer's started selling their products, one in particular, called Giovanni Navarre leather jackets. At first, it was a profitable item. After a while, everyone started selling the same product. Too much of the same supply, creates market saturation, ultimately destroying profit potential for the seller.

The Giovanni Navarre leather jackets are still being sold on eBay today, but I doubt that they still provide a very profitable return for the seller. Even though B&F carries over 500 products in 14 different categories, they are intimately familiar to the eBay community. You could probably make a great profit from just about any B&F product if you were to sell them off line, and out of the auction arena.

When a company becomes too well known to the general public it becomes almost impossible to make money from products that have flooded the marketplace. In addition to finding a drop-shipper who is close to home, it might be a good idea to find a DS company that is not well known to the eBay market, or who's products have not been scattered all over cyberspace.

These days however, it is hard to find drop-shippers that will cater to the smaller seller. Most will find it more profitable to sell in volume than by the piece. The larger wholesale dropshipping distributors are used by retail catalog operations. To get involved with the larger operations, you would have to be doing a tremendous sales volume.

If you still want to pursue drop-shipping as a source of supply for your eBay auction, then I would suggest that you read other opinions, and become as educated as you can about the drop-shipping company you do business with.

A good and inexpensive start to finding drop-shipping companies is the Drop Shipping News: http://www.drop-shipping-news.com . Remember, when it comes to eBay auction selling, "own what you sell." Never leave customer service, or your feedback rating in the hands of other people!!

Robert C. Potter is a wholesale and retail surplus products specialist. He is the author of "The Ultimate Guide To Products For Resale!" Over 300 Wholesale & Surplus Supply Sources For eBay Auction Sellers, E-Commerce Websites, Flea Market Vendors, and Retail Store Owners! You can find his 160 page ebook at: http://www.productsforresale.com.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Wed. August / 05 / 2020

HiBid.com Auctions Topped $35 Million Last Week; Sports Cars, Gold Bullion, Farm Equipment, & More Up For Sale - Norfolk Daily News
HiBid.com Auctions Topped $35 Million Last Week; Sports Cars, Gold Bullion, Farm Equipment, & More Up For Sale  Norfolk Daily News

Clark County hosting government surplus vehicle, airport lost and found online auctions this week - KLAS - 8 News Now
Clark County hosting government surplus vehicle, airport lost and found online auctions this week  KLAS - 8 News Now

US offshore energy industry releases economic impact study of offshore wind auctions - WorldOil
US offshore energy industry releases economic impact study of offshore wind auctions  WorldOil

Online art auctions are luring new bidders to the market: rich millennials under lockdown - Business Insider - Business Insider
Online art auctions are luring new bidders to the market: rich millennials under lockdown - Business Insider  Business Insider

Terms for Nykredit's and Totalkredit's auctions - Nykredit Realkredit A/S - GlobeNewswire
Terms for Nykredit's and Totalkredit's auctions - Nykredit Realkredit A/S  GlobeNewswire

AUCTION PREVIEWS Tues, August 4th Real Estate Warsaw, NY Brozstek's - NNY360
AUCTION PREVIEWS Tues, August 4th Real Estate Warsaw, NY Brozstek's  NNY360

Hudson Successfully Auctions 22MW of Lumens' Operating Commercial Solar Projects - Business Wire
Hudson Successfully Auctions 22MW of Lumens' Operating Commercial Solar Projects  Business Wire

Houghton County Fair canceled; livestock shows, auctions, and drive-through food concessions to take place - WLUC
Houghton County Fair canceled; livestock shows, auctions, and drive-through food concessions to take place  WLUC

Sotheby’s Reports $2.5 Billion in Sales - The New York Times
Sotheby’s Reports $2.5 Billion in Sales  The New York Times

Paris Gibson Square Museum of Art kicks off online art auctions - KRTV Great Falls News
Paris Gibson Square Museum of Art kicks off online art auctions  KRTV Great Falls News

Mexico should hold no new oil auctions - presidential memo - Reuters Africa
Mexico should hold no new oil auctions - presidential memo  Reuters Africa

Big names coming to Woodland Park for art auction tonight - Colorado Springs Gazette
Big names coming to Woodland Park for art auction tonight  Colorado Springs Gazette

CM Russell Museum prepares for online art auction - KRTV Great Falls News
CM Russell Museum prepares for online art auction  KRTV Great Falls News

Michael Jordan's Ultra-Rare, Signed AJ1's For Auction, Could Sell For $600K - TMZ
Michael Jordan's Ultra-Rare, Signed AJ1's For Auction, Could Sell For $600K  TMZ

Positive Legacy Announces Auction For Back To School Program - JamBase
Positive Legacy Announces Auction For Back To School Program  JamBase

Community members offer alternative to fair auction | Journal-news - Martinsburg Journal
Community members offer alternative to fair auction | Journal-news  Martinsburg Journal

Rouble heads away from 3-month low ahead of OFZ bond auctions - Nasdaq
Rouble heads away from 3-month low ahead of OFZ bond auctions  Nasdaq

Kalamalka Lake Waterfront Retreat to Auction No Reserve via Concierge Auctions in Partnership with Century 21 - EIN News
Kalamalka Lake Waterfront Retreat to Auction No Reserve via Concierge Auctions in Partnership with Century 21  EIN News

Lightning Foundation to host online auctions, 50/50 raffles in playoffs - Official site of the Tampa Bay Lightning
Lightning Foundation to host online auctions, 50/50 raffles in playoffs  Official site of the Tampa Bay Lightning

Auctions Are Crimped as the Pandemic Forces Them Online - The New York Times
Auctions Are Crimped as the Pandemic Forces Them Online  The New York Times

Local News: Life Skills holds first ever online auction (8/5/20) - Le Mars Daily Sentinel
Local News: Life Skills holds first ever online auction (8/5/20)  Le Mars Daily Sentinel

Don't Call It A Summer Sale: Shapiro's July Auction Was Strong Across Categories - Antiques and the Arts Online
Don't Call It A Summer Sale: Shapiro's July Auction Was Strong Across Categories  Antiques and the Arts Online

Maryland Brush Co. industrial complex hits the auction block - Washington - Washington Business Journal
Maryland Brush Co. industrial complex hits the auction block - Washington  Washington Business Journal

Elvis' 'Sun Sessions' guitar sells for $1.3 million at auction - Commercial Appeal
Elvis' 'Sun Sessions' guitar sells for $1.3 million at auction  Commercial Appeal

Meghan Markle’s Favorite London Bakery Auctions Off the Cake She Enjoyed for Her Birthday Last Year - Us Weekly
Meghan Markle’s Favorite London Bakery Auctions Off the Cake She Enjoyed for Her Birthday Last Year  Us Weekly

This Gold Rolex Daytona Sold for $1.5 Million, Helping Sotheby’s Smash 3 Auction Records - Robb Report
This Gold Rolex Daytona Sold for $1.5 Million, Helping Sotheby’s Smash 3 Auction Records  Robb Report

HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions - Norfolk Daily News
HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions  Norfolk Daily News

Founders of YouTube and Restoration Hardware to auction historic Adirondack camp - newyorkupstate.com
Founders of YouTube and Restoration Hardware to auction historic Adirondack camp  newyorkupstate.com

Bid Garage Launches New Digital Vehicle Auction Platform with Collection of Highly Coveted Vehicles and Unique Buyer and Seller Features - PRNewswire
Bid Garage Launches New Digital Vehicle Auction Platform with Collection of Highly Coveted Vehicles and Unique Buyer and Seller Features  PRNewswire

Askov/Bruno Area Auction • Thursday, August 13th | Auctions - ECM Publishers
Askov/Bruno Area Auction • Thursday, August 13th | Auctions  ECM Publishers

NY Haiti Benefit Auction is on! Aug. 8 only, at new location - Penn Yan Chronicle-Express
NY Haiti Benefit Auction is on! Aug. 8 only, at new location  Penn Yan Chronicle-Express

Iron County Youth Livestock Council offers virtual livestock auction - WLUC
Iron County Youth Livestock Council offers virtual livestock auction  WLUC

Christie’s Online-Only Auction Features Artworks Influenced by Graffiti - Barron's
Christie’s Online-Only Auction Features Artworks Influenced by Graffiti  Barron's

Result of the auction of 0.25 per cent DGB 2022 and 0.50 per cent DGB 2029 - GlobeNewswire
Result of the auction of 0.25 per cent DGB 2022 and 0.50 per cent DGB 2029  GlobeNewswire

Marvel's 'Agents of SHIELD' Costumes and Props are Going Up for Auction This Fall - /FILM
Marvel's 'Agents of SHIELD' Costumes and Props are Going Up for Auction This Fall  /FILM

Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall - AZCentral
Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall  AZCentral

Auction of Point Lookout property and items to be held in Northport on Wednesday - WABI
Auction of Point Lookout property and items to be held in Northport on Wednesday  WABI

HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages - PRNewswire
HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages  PRNewswire

Grown Here at Home: Foothills Produce auction getting more popular in Rocky Mount - WDBJ7
Grown Here at Home: Foothills Produce auction getting more popular in Rocky Mount  WDBJ7

ABC 25 Local Lifestyles – WNIN Auction (08/04/20) - Eyewitness News (WEHT/WTVW)
ABC 25 Local Lifestyles – WNIN Auction (08/04/20)  Eyewitness News (WEHT/WTVW)

Need Fyre Festival merch? Feds auction mementos to benefit victims of fraudulent festival - MarketWatch
Need Fyre Festival merch? Feds auction mementos to benefit victims of fraudulent festival  MarketWatch

ABG Group to Be Stalking Horse at Brooks Brothers Auction - WWD
ABG Group to Be Stalking Horse at Brooks Brothers Auction  WWD

Pardue Grain Pulse and Grain Facility Goes to Auction - Powder Bulk Solids
Pardue Grain Pulse and Grain Facility Goes to Auction  Powder Bulk Solids

Marylou Whitney auction brings in $400K for charity - Times Union
Marylou Whitney auction brings in $400K for charity  Times Union

China to auction a further 20000 tonnes of frozen pork - The Pig Site
China to auction a further 20000 tonnes of frozen pork  The Pig Site

Auction Features 19th-Century Tall Case Clock Crafted & Built in NJ - TAPinto.net
Auction Features 19th-Century Tall Case Clock Crafted & Built in NJ  TAPinto.net

Coronavirus: Xenia Community Schools Hall of Honor, silent auction canceled - Dayton Daily News
Coronavirus: Xenia Community Schools Hall of Honor, silent auction canceled  Dayton Daily News

Brody: Excitement from a country auction - Winchester Sun - Winchester Sun
Brody: Excitement from a country auction - Winchester Sun  Winchester Sun

Maryland Brush Co. complex near Catonsville hits the auction block - Baltimore Business Journal
Maryland Brush Co. complex near Catonsville hits the auction block  Baltimore Business Journal

JCPenney Puts Its Original 1902 Store In Kemmerer, Wyoming Up For Auction - Forbes
JCPenney Puts Its Original 1902 Store In Kemmerer, Wyoming Up For Auction  Forbes

Auctions get creative as the pandemic forces them online - The New York Times
Auctions get creative as the pandemic forces them online  The New York Times

Vale church prepares to auction quilt, feed hundreds of bikers during the rally - Rapid City Journal
Vale church prepares to auction quilt, feed hundreds of bikers during the rally  Rapid City Journal

Site of former homeless camp draws just one bid at auction - West Hawaii Today
Site of former homeless camp draws just one bid at auction  West Hawaii Today

Over 1000 Pieces of Disney History Featured in Virtual Auction! - Inside the Magic
Over 1000 Pieces of Disney History Featured in Virtual Auction!  Inside the Magic

Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website - KLAS - 8 News Now
Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website  KLAS - 8 News Now

Marylou Whitney auction raises $400,000 for Backstretch Clinic - NEWS10 ABC
Marylou Whitney auction raises $400,000 for Backstretch Clinic  NEWS10 ABC

Low-number license place auction returns - Martha's Vineyard Times
Low-number license place auction returns  Martha's Vineyard Times

Christie’s New Auction Technique: The Global Gavel - The New York Times
Christie’s New Auction Technique: The Global Gavel  The New York Times

In different twist, York Revolution's 2020 jersey auction to honor 'Hometown Heroes' - York Dispatch
In different twist, York Revolution's 2020 jersey auction to honor 'Hometown Heroes'  York Dispatch

KAR Auction Services, Inc. Reports Second Quarter 2020 Financial Results - KPCnews.com
KAR Auction Services, Inc. Reports Second Quarter 2020 Financial Results  KPCnews.com

Auction houses adjust to online sales during pandemic - fox56.com
Auction houses adjust to online sales during pandemic  fox56.com

1965 Shelby Mustang Sells For A Record $3.85 Million At Mecum Auctions - Forbes
1965 Shelby Mustang Sells For A Record $3.85 Million At Mecum Auctions  Forbes

Wine Online: How the Multimillion-Dollar Wine Auction Circuit Is Going Virtual - Robb Report
Wine Online: How the Multimillion-Dollar Wine Auction Circuit Is Going Virtual  Robb Report

Worlds Most Expensive Mustang Sells at 2020 Mecum Auctions - Sports Car Digest
Worlds Most Expensive Mustang Sells at 2020 Mecum Auctions  Sports Car Digest

Pennsylvania cancels vehicle auction due to covid-19 - TribLIVE
Pennsylvania cancels vehicle auction due to covid-19  TribLIVE

Wanamaker's Releases Catalog for Second Online Auction - BloodHorse.com
Wanamaker's Releases Catalog for Second Online Auction  BloodHorse.com

Auction to Provide Livermore Students Access to Technology | Livermore News - Livermore Independent
Auction to Provide Livermore Students Access to Technology | Livermore News  Livermore Independent

Stack's Bowers Galleries August 2020 Las Vegas Auction Highlights - CoinNews.net
Stack's Bowers Galleries August 2020 Las Vegas Auction Highlights  CoinNews.net

Sony’s TriStar Wins Auction For Whitney Houston Biopic: Anthony McCarten Script, Stella Meghie Directs, Clive Davis & Estate Aboard - Deadline
Sony’s TriStar Wins Auction For Whitney Houston Biopic: Anthony McCarten Script, Stella Meghie Directs, Clive Davis & Estate Aboard  Deadline

Scotch Whisky Salvaged From 80-Year-Old Shipwreck Up for Auction - VinePair
Scotch Whisky Salvaged From 80-Year-Old Shipwreck Up for Auction  VinePair

Former Braking Point owner's replica movie cars sell at auction for almost half a million dollars | News, Sports, Jobs - Morning Journal News
Former Braking Point owner's replica movie cars sell at auction for almost half a million dollars | News, Sports, Jobs  Morning Journal News

JCPenney puts Kemmerer ‘Mother Store’ up for auction - Oil City News
JCPenney puts Kemmerer ‘Mother Store’ up for auction  Oil City News

US Embassy auction in Beijing raises speculation of 'scaling down' - Global Times
US Embassy auction in Beijing raises speculation of 'scaling down'  Global Times

Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000 - The Dallas Morning News
Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000  The Dallas Morning News

Somerville Brewing Permanently Closes, Assets to be Sold at Auction; Base Camp Folds - Brewbound.com
Somerville Brewing Permanently Closes, Assets to be Sold at Auction; Base Camp Folds  Brewbound.com

Innovating out of a problem: Carroll County Fair tries hybrid auction - Farm and Dairy
Innovating out of a problem: Carroll County Fair tries hybrid auction  Farm and Dairy

Banksy auctions refugee paintings for £2.2m to aid Bethlehem hospital - BBC News
Banksy auctions refugee paintings for £2.2m to aid Bethlehem hospital  BBC News

Sep 1 | Pence Gallery Art Auction 2020 | Davis, CA Patch - Patch.com
Sep 1 | Pence Gallery Art Auction 2020 | Davis, CA Patch  Patch.com

Victory Junction gets surprise donation from auction winner from All-star crash bumper - Asheboro Courier Tribune
Victory Junction gets surprise donation from auction winner from All-star crash bumper  Asheboro Courier Tribune

Parts of former midcoast corporate retreat to be sold at auction - NewsCenterMaine.com WCSH-WLBZ
Parts of former midcoast corporate retreat to be sold at auction  NewsCenterMaine.com WCSH-WLBZ

Tulsa Sheriff's Office Holding 2nd Foreclosure Auction Since Pandemic Began - News On 6
Tulsa Sheriff's Office Holding 2nd Foreclosure Auction Since Pandemic Began  News On 6

CBRS auction inches toward $600 million after round 8 - FierceWireless
CBRS auction inches toward $600 million after round 8  FierceWireless

Spotlight on Mint Error Coins in Month-Long Heritage Auction - CoinWeek
Spotlight on Mint Error Coins in Month-Long Heritage Auction  CoinWeek

200-plus animals are sold in auction – Sheridan Media - Sheridan Media
200-plus animals are sold in auction – Sheridan Media  Sheridan Media

Ceresco man auctions off expansive collection of rare steam engines - Lincoln Journal Star
Ceresco man auctions off expansive collection of rare steam engines  Lincoln Journal Star

Heritage Auction 1st Public Offering Since 1993 of Unique Speelman-White Uncut Sheets - CoinWeek
Heritage Auction 1st Public Offering Since 1993 of Unique Speelman-White Uncut Sheets  CoinWeek

Lend a Hand charity art auction moves forward with modifications amid pandemic - WDVM 25
Lend a Hand charity art auction moves forward with modifications amid pandemic  WDVM 25

City Hall's annual vehicle auction moves online due to COVID-19 pandemic - Argus Leader
City Hall's annual vehicle auction moves online due to COVID-19 pandemic  Argus Leader

Book Professionals Launch Auction to Fight Racism - Publishers Weekly
Book Professionals Launch Auction to Fight Racism  Publishers Weekly

Trenton Quarterback Club to hold player auction - kttn
Trenton Quarterback Club to hold player auction  kttn

$6.99M Highland Park home at 3204 Beverly Drive up for auction in August - Dallas Business Journal - Dallas Business Journal
$6.99M Highland Park home at 3204 Beverly Drive up for auction in August - Dallas Business Journal  Dallas Business Journal

Palmetto Animal League plans annual fundraising auction - Bluffton Today
Palmetto Animal League plans annual fundraising auction  Bluffton Today

Local auction houses feel impacts of coronavirus, turn to online sales - Wilkes-Barre Citizens Voice
Local auction houses feel impacts of coronavirus, turn to online sales  Wilkes-Barre Citizens Voice

Rembrandt self-portrait breaks record at virtual auction - CNN
Rembrandt self-portrait breaks record at virtual auction  CNN

Pony auction shatters records with $380,000-plus spent in online version - Delmarva Now
Pony auction shatters records with $380,000-plus spent in online version  Delmarva Now

Jimi Hendrix’s Electric Guitar Could Fetch More Than $50,000 at Auction - Barron's
Jimi Hendrix’s Electric Guitar Could Fetch More Than $50,000 at Auction  Barron's

A $3 Million Ferrari Tests a World Without the Pebble Beach Auctions - Bloomberg
A $3 Million Ferrari Tests a World Without the Pebble Beach Auctions  Bloomberg

Oscar Wilde’s ‘Confessions’ Could Fetch More than £40,000 at Auction - Barron's
Oscar Wilde’s ‘Confessions’ Could Fetch More than £40,000 at Auction  Barron's

Mecum's live Indy auction scores record sales of $74 million - The ClassicCars.com Journal
Mecum's live Indy auction scores record sales of $74 million  The ClassicCars.com Journal

Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020. - Artsy
Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020.  Artsy

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