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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. November / 20 / 2019

Jewish Group Condemns Nazi Auction in GermanyJewish Group Condemns Nazi Auction in Germany - The New York Times
Jewish Group Condemns Nazi Auction in GermanyJewish Group Condemns Nazi Auction in Germany  The New York Times

The Racket Serena Williams Smashed During the 2018 US Open Will Go Up for Auction - Observer
The Racket Serena Williams Smashed During the 2018 US Open Will Go Up for Auction  Observer

County switches to online property auctions - goskagit.com
County switches to online property auctions  goskagit.com

Signed Michael Jordan $5 check from game of pool in 1984 now up for auction - USA TODAY
Signed Michael Jordan $5 check from game of pool in 1984 now up for auction  USA TODAY

Ohio amusement park auctions unwanted historical items - Bellefontaine Examiner
Ohio amusement park auctions unwanted historical items  Bellefontaine Examiner

Cedar Point auctions unwanted historical items | Ohio | Journal Gazette - Fort Wayne Journal Gazette
Cedar Point auctions unwanted historical items | Ohio | Journal Gazette  Fort Wayne Journal Gazette

Editors' Picks: Looking Back At Five Under-The-Radar Lots From November's Geneva Auctions - HODINKEE
Editors' Picks: Looking Back At Five Under-The-Radar Lots From November's Geneva Auctions  HODINKEE

For Auctions, It’s ‘No Froth,’ but ‘Steady.’ That’s the New Normal. - The New York Times
For Auctions, It’s ‘No Froth,’ but ‘Steady.’ That’s the New Normal.  The New York Times

Ball boy who kept Serena Williams' broken U.S. Open racket sold it for $500—now it could go at auction for $50,000 - CNBC
Ball boy who kept Serena Williams' broken U.S. Open racket sold it for $500—now it could go at auction for $50,000  CNBC

Doris Day’s Estate Will Go Up for Auction in April - Hollywood Reporter
Doris Day’s Estate Will Go Up for Auction in April  Hollywood Reporter

Cedar Point Auctions Decades Of Unwanted Historical Items - CBS Pittsburgh
Cedar Point Auctions Decades Of Unwanted Historical Items  CBS Pittsburgh

Rubbermaid To Hold Industrial Auction of Virginia-Based Metal Fabrication Facility Equipment - Business Wire
Rubbermaid To Hold Industrial Auction of Virginia-Based Metal Fabrication Facility Equipment  Business Wire

Auction to benefit Marquette Regional History Center - UpperMichigansSource.com
Auction to benefit Marquette Regional History Center  UpperMichigansSource.com

Fall Art Auctions See Significant Declines - The New York Times
Fall Art Auctions See Significant Declines  The New York Times

Izzo's Hulk costume is up for auction - WILX-TV
Izzo's Hulk costume is up for auction  WILX-TV

Grand Forks County property auction sells most locations - Grand Forks Herald
Grand Forks County property auction sells most locations  Grand Forks Herald

Slow start to auction as hemp farmers hope for sales - NewsChannel5.com
Slow start to auction as hemp farmers hope for sales  NewsChannel5.com

Farmland Auctions: A Wild Day in Southeast South Dakota - Successful Farming
Farmland Auctions: A Wild Day in Southeast South Dakota  Successful Farming

Intelsat’s stock sinks again as Congress looks to ‘rake’ in revenue from 5G spectrum auction - MarketWatch
Intelsat’s stock sinks again as Congress looks to ‘rake’ in revenue from 5G spectrum auction  MarketWatch

'Stolen' Banksy statue pulled from auction - CNN
'Stolen' Banksy statue pulled from auction  CNN

Federal Communications Commission plans public C-band spectrum auction - Business Insider
Federal Communications Commission plans public C-band spectrum auction  Business Insider

Outlook on the World's Art Auction Market, 2019-2024 - Female Artists Gain Ground, Blockchain Finds Its Way Into the Art Market - ResearchAndMarkets.com - Business Wire
Outlook on the World's Art Auction Market, 2019-2024 - Female Artists Gain Ground, Blockchain Finds Its Way Into the Art Market - ResearchAndMarkets.com  Business Wire

‘Friends’ Props And Costumes To Hit Auction Block For Charity Marking Show’s 25th Anniversary - Deadline
‘Friends’ Props And Costumes To Hit Auction Block For Charity Marking Show’s 25th Anniversary  Deadline

The Supreme Box Logo Heads to Christie’s Auction House - GQ
The Supreme Box Logo Heads to Christie’s Auction House  GQ

France likely to delay 5G spectrum auction until March 2020: report - RCR Wireless News
France likely to delay 5G spectrum auction until March 2020: report  RCR Wireless News

Golf Course Items Up For Auction - Inside INdiana Business
Golf Course Items Up For Auction  Inside INdiana Business

Iconic dress Princess Diana wore to dance with John Travolta up for auction - USA TODAY
Iconic dress Princess Diana wore to dance with John Travolta up for auction  USA TODAY

Satellite operators lose battle for private C-band auction worth billions - SpaceNews
Satellite operators lose battle for private C-band auction worth billions  SpaceNews

Friends props, costumes, and studio reproductions headed to auction - Entertainment Weekly News
Friends props, costumes, and studio reproductions headed to auction  Entertainment Weekly News

'Friends' Props and Costumes Up for Auction to Benefit Charity - RADIO.COM
'Friends' Props and Costumes Up for Auction to Benefit Charity  RADIO.COM

Auction Blotter: Tschabalala Self’s 3,400% Return, Michael Armitage’s Big Debut, & More Market Sparks From New York’s Day Sales - artnet News
Auction Blotter: Tschabalala Self’s 3,400% Return, Michael Armitage’s Big Debut, & More Market Sparks From New York’s Day Sales  artnet News

Rare World War II 'escape kits' sold at auction - Fox News
Rare World War II 'escape kits' sold at auction  Fox News

France's 5G spectrum auction delayed to March 2020: sources - Reuters
France's 5G spectrum auction delayed to March 2020: sources  Reuters

Serena Williams' Broken Tennis Racket from Controversial 2018 U.S. Open Final Up for Auction - PEOPLE.com
Serena Williams' Broken Tennis Racket from Controversial 2018 U.S. Open Final Up for Auction  PEOPLE.com

Check made out to and signed by Michael Jordan from 1984 billiards bet at UNC goes up for auction - CBS Sports
Check made out to and signed by Michael Jordan from 1984 billiards bet at UNC goes up for auction  CBS Sports

Springfield's oldest restaurant goes on the auction block Friday - KY3
Springfield's oldest restaurant goes on the auction block Friday  KY3

World's largest hemp auction underway off at the Williamson County Expo - WATE 6 On Your Side
World's largest hemp auction underway off at the Williamson County Expo  WATE 6 On Your Side

Generators call on PJM to expedite delayed capacity auction, once new rules are set - Utility Dive
Generators call on PJM to expedite delayed capacity auction, once new rules are set  Utility Dive

Sold! Latest auction brings totals from Neil Armstrong's belongings to $14.69 million - The Cincinnati Enquirer
Sold! Latest auction brings totals from Neil Armstrong's belongings to $14.69 million  The Cincinnati Enquirer

'Friends' props and costumes to be auctioned - CNN
'Friends' props and costumes to be auctioned  CNN

2020 Might Just Be The Year Apps Finally Start To Embrace Real-Time Auctions - AdExchanger
2020 Might Just Be The Year Apps Finally Start To Embrace Real-Time Auctions  AdExchanger

Timberline Resort on auction block | News, Sports, Jobs - The Inter-Mountain
Timberline Resort on auction block | News, Sports, Jobs  The Inter-Mountain

Michael Jordan's Signed Check From 1982 Billiards Bet Up For Auction - TMZ
Michael Jordan's Signed Check From 1982 Billiards Bet Up For Auction  TMZ

Court Auction - CFSB Center - MSU GoRacers
Court Auction - CFSB Center  MSU GoRacers

From startup to $1.5B: ACV Auctions becomes Buffalo's first 'unicorn' - Buffalo News
From startup to $1.5B: ACV Auctions becomes Buffalo's first 'unicorn'  Buffalo News

$100 Million for a Painting? Not This Auction Week - The Wall Street Journal
$100 Million for a Painting? Not This Auction Week  The Wall Street Journal

Michael Hild’s Manchester properties go up for auction - WTVR CBS 6 News
Michael Hild’s Manchester properties go up for auction  WTVR CBS 6 News

Supreme Collection Expected to Generate Over $345,000 at Auction - WWD
Supreme Collection Expected to Generate Over $345,000 at Auction  WWD

This Season’s Auctions? The “Old Normal” Says Head of Citi Art Advisory - Forbes
This Season’s Auctions? The “Old Normal” Says Head of Citi Art Advisory  Forbes

Former ACV Auctions employees files legal complaint against company - Buffalo Business First - Buffalo Business First
Former ACV Auctions employees files legal complaint against company - Buffalo Business First  Buffalo Business First

Dress Worn By Princess Diana To Dance With John Travolta To Go Up For Auction - KLUV
Dress Worn By Princess Diana To Dance With John Travolta To Go Up For Auction  KLUV

Auction Houses Find Singular Works for Fall Sales - Barron's
Auction Houses Find Singular Works for Fall Sales  Barron's

SwiftCarbon auctions bike for mental health awareness - CyclingTips
SwiftCarbon auctions bike for mental health awareness  CyclingTips

Art Market 2019: NYC's Biggest Art Auction Sales To Tumble - Bloomberg
Art Market 2019: NYC's Biggest Art Auction Sales To Tumble  Bloomberg

Why Brazil's Oil Auctions Will Fail Again - OilPrice.com
Why Brazil's Oil Auctions Will Fail Again  OilPrice.com

Auction: Charles Manson's Bible, movie proposal, and Squeaky Fromme love letter - Washington Examiner
Auction: Charles Manson's Bible, movie proposal, and Squeaky Fromme love letter  Washington Examiner

2020 Naples Winter Wine Fest showcasing luxurious destination auctions - Wink News
2020 Naples Winter Wine Fest showcasing luxurious destination auctions  Wink News

Sotheby’s pulls ‘stolen’ Banksy sculpture The Drinker from auction - The Guardian
Sotheby’s pulls ‘stolen’ Banksy sculpture The Drinker from auction  The Guardian

Port of Kennewick auctions off portion land in Southridge area - NBC Right Now
Port of Kennewick auctions off portion land in Southridge area  NBC Right Now

Bidding was fast and furious at Cedar Point memorabilia auction - WKYC.com
Bidding was fast and furious at Cedar Point memorabilia auction  WKYC.com

About a dozen of Hilds' Manchester properties headed to auction - Richmond.com
About a dozen of Hilds' Manchester properties headed to auction  Richmond.com

Colleyville castle-style estate goes to auction - The Dallas Morning News
Colleyville castle-style estate goes to auction  The Dallas Morning News

10 most expensive Disneyland items in an auction featuring 1,500 theme park collectibles - The Mercury News
10 most expensive Disneyland items in an auction featuring 1,500 theme park collectibles  The Mercury News

ACV Auctions closes on $150 million in venture capital, the largest single round in Buffalo history - Buffalo Business First - Buffalo Business First
ACV Auctions closes on $150 million in venture capital, the largest single round in Buffalo history - Buffalo Business First  Buffalo Business First

This Beautiful Collection Of Motorcycles Is Headed To Auction - RideApart
This Beautiful Collection Of Motorcycles Is Headed To Auction  RideApart

Nevada treasurer, Clark County conducting auctions - Las Vegas Review-Journal
Nevada treasurer, Clark County conducting auctions  Las Vegas Review-Journal

Apple CFO Luca Maestri Auctions Lunch and Apple HQ Tour for Charity - MacRumors
Apple CFO Luca Maestri Auctions Lunch and Apple HQ Tour for Charity  MacRumors

Polish 2.5 GW solar and wind auction on December 5 - pv magazine International
Polish 2.5 GW solar and wind auction on December 5  pv magazine International

Kurt Cobain’s ‘Unplugged’ Sweater Sells for Record $334,000 at Auction - Rolling Stone
Kurt Cobain’s ‘Unplugged’ Sweater Sells for Record $334,000 at Auction  Rolling Stone

Mall's contents up for auction | Local News - Rutland Herald
Mall's contents up for auction | Local News  Rutland Herald

Wicked announces $25 orchestra level auction as it flies into Jacksonville - ActionNewsJax.com
Wicked announces $25 orchestra level auction as it flies into Jacksonville  ActionNewsJax.com

Timberline Four Seasons Resort to hit auction block this week - WDTV
Timberline Four Seasons Resort to hit auction block this week  WDTV

'Friends' iconic props and costumes are going up for auction - Business Insider
'Friends' iconic props and costumes are going up for auction  Business Insider

'Stolen' Banksy statue could get $1.3M at Sotheby's auction - New York Post
'Stolen' Banksy statue could get $1.3M at Sotheby's auction  New York Post

Xbox One, Jordan shoes among items up for auction by SAPD - KSAT 12
Xbox One, Jordan shoes among items up for auction by SAPD  KSAT 12

Group to hold anti-fracking rally ahead of scheduled auctions - News3LV
Group to hold anti-fracking rally ahead of scheduled auctions  News3LV

More than 1,500 rare pieces of Disney memorabilia headed to auction - WTHR
More than 1,500 rare pieces of Disney memorabilia headed to auction  WTHR

Wet, Wild Auction marks 40th anniversary of CBEC - MyEasternShoreMD
Wet, Wild Auction marks 40th anniversary of CBEC  MyEasternShoreMD

Riverside, Coffin golf course assets to be sold at auction - Indianapolis Business Journal
Riverside, Coffin golf course assets to be sold at auction  Indianapolis Business Journal

Tuscan-Style Estate in Texas To Hit Auction Block Next Month - Mansion Global
Tuscan-Style Estate in Texas To Hit Auction Block Next Month  Mansion Global

From Clunkers To Hidden Costs: History Of Deceptive Practices By Auto Auction Workers - CBS Chicago
From Clunkers To Hidden Costs: History Of Deceptive Practices By Auto Auction Workers  CBS Chicago

Jewelry auction will fund highway upgrade in Nayarit: AMLO - Mexico News Daily
Jewelry auction will fund highway upgrade in Nayarit: AMLO  Mexico News Daily

Companies pushing controversial 5G spectrum auction offer to give at least 30% of proceeds to U.S. Treasury - MarketWatch
Companies pushing controversial 5G spectrum auction offer to give at least 30% of proceeds to U.S. Treasury  MarketWatch

Cyberattack Takes Dallas-Based Heritage Auctions Offline - Dallas Observer
Cyberattack Takes Dallas-Based Heritage Auctions Offline  Dallas Observer

Slowdive Launch Charity Auction, Share New Version of “Golden Hair”: Listen - Pitchfork
Slowdive Launch Charity Auction, Share New Version of “Golden Hair”: Listen  Pitchfork

On C-Band Spectrum, Auction Speed Is All That Matters - Forbes
On C-Band Spectrum, Auction Speed Is All That Matters  Forbes

Christian Bale's GT40 from 'Ford v. Ferrari' is racing to the auction block - Fox News
Christian Bale's GT40 from 'Ford v. Ferrari' is racing to the auction block  Fox News

Auction house Phillips reveals Billionaires Row headquarters - New York Post
Auction house Phillips reveals Billionaires Row headquarters  New York Post

Friends' iconic costumes and props up for auction - digitalspy.com
Friends' iconic costumes and props up for auction  digitalspy.com

Wines at auction with Bolaffi and Slow Food Editore - Slow food
Wines at auction with Bolaffi and Slow Food Editore  Slow food

'Cursed' 1937 Cord 812 coming up for auction hides a political history - Fox News
'Cursed' 1937 Cord 812 coming up for auction hides a political history  Fox News

The Cure to auction off one of Robert Smith’s ‘Disintegration’ era shirts - NME Live
The Cure to auction off one of Robert Smith’s ‘Disintegration’ era shirts  NME Live

German Auction House Defends Selling Nazi Items, Including Hitler's Book - Newsweek
German Auction House Defends Selling Nazi Items, Including Hitler's Book  Newsweek

Who Won Auction Week? Here Are 13 Key Takeaways From New York’s Head-Spinning $1.1 Billion Fall Art Sales - artnet News
Who Won Auction Week? Here Are 13 Key Takeaways From New York’s Head-Spinning $1.1 Billion Fall Art Sales  artnet News

Fitness expert wants to shed his Hollywood home via auction - The Real Deal
Fitness expert wants to shed his Hollywood home via auction  The Real Deal

Hot Lots: 7 Tantalizingly Undervalued Artworks in New York’s Fall Auctions, According to the Experts - artnet News
Hot Lots: 7 Tantalizingly Undervalued Artworks in New York’s Fall Auctions, According to the Experts  artnet News

High Prices, Hidden Costs Discouraged Buyers at Brazil's Petroleum Auctions - The Rio Times
High Prices, Hidden Costs Discouraged Buyers at Brazil's Petroleum Auctions  The Rio Times

Dessert auction to benefit programs for sexual violence survivors - WABI
Dessert auction to benefit programs for sexual violence survivors  WABI

Miami County Salvation Army Benefit Auction a blessing - Miami County Republic
Miami County Salvation Army Benefit Auction a blessing  Miami County Republic

Last Saab 9-3 built nets nearly $48,000 at auction - Autoblog 日本版
Last Saab 9-3 built nets nearly $48,000 at auction  Autoblog 日本版

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