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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 Tue. March / 19 / 2024

How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia - The New Yorker
How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia  The New Yorker

Easter egg gifted to child during WWII goes up for auction after it was preserved for 85 years - Fox Business
Easter egg gifted to child during WWII goes up for auction after it was preserved for 85 years  Fox Business

Kobe Bryant's LA Lakers NBA championship ring is up for auction - NBC Southern California
Kobe Bryant's LA Lakers NBA championship ring is up for auction  NBC Southern California

Kobe Bryant's Parents Face Backlash After Putting Championship Ring On The Auction Block - Yahoo Entertainment
Kobe Bryant's Parents Face Backlash After Putting Championship Ring On The Auction Block  Yahoo Entertainment

Kobe Bryant's 2000 NBA championship ring, originally gifted to his father, is for sale at auction - CBS Sports
Kobe Bryant's 2000 NBA championship ring, originally gifted to his father, is for sale at auction  CBS Sports

Delaware surplus auctions in March include boats, vehicles and tools - The News Journal
Delaware surplus auctions in March include boats, vehicles and tools  The News Journal

Monaco Car Auctions returns with L'Astarossa - the ultimate stable of prancing horses - Classic Driver
Monaco Car Auctions returns with L'Astarossa - the ultimate stable of prancing horses  Classic Driver

Tired of brackets? How to play NCAA Tournament survivor, Calcutta auctions and upset drafts - The Athletic
Tired of brackets? How to play NCAA Tournament survivor, Calcutta auctions and upset drafts  The Athletic

Jobs and Musk smash auction records ... and the auction isn't finished yet - New Atlas
Jobs and Musk smash auction records ... and the auction isn't finished yet  New Atlas

A Pinarello Dogma gifted to the pope by Egan Bernal is up for auction - Cyclingnews
A Pinarello Dogma gifted to the pope by Egan Bernal is up for auction  Cyclingnews

Another Cybertruck is at auction, bids past $150K with four days to go - Autoblog
Another Cybertruck is at auction, bids past $150K with four days to go  Autoblog

Judy Garland’s Recovered Ruby Slippers From ‘Wizard of Oz’ Going Up for Auction - Hollywood Reporter
Judy Garland’s Recovered Ruby Slippers From ‘Wizard of Oz’ Going Up for Auction  Hollywood Reporter

Norway's inaugural offshore wind auction continues Tuesday - Reuters
Norway's inaugural offshore wind auction continues Tuesday  Reuters

Weekly online auctions where you can buy and sell - ABC4.com
Weekly online auctions where you can buy and sell  ABC4.com

Planet Hollywood auction in Dallas to sell wood panel from "Titanic" - The Dallas Morning News
Planet Hollywood auction in Dallas to sell wood panel from "Titanic"  The Dallas Morning News

Watch Auctions Hit by Severe Downturn in 2023 - IDEX Online
Watch Auctions Hit by Severe Downturn in 2023  IDEX Online

ACV auctions director Eileen Kamerick sells over $216k in company stock By Investing.com - Investing.com
ACV auctions director Eileen Kamerick sells over $216k in company stock By Investing.com  Investing.com

Arizona Game and Fish Votes to Ban Big Game Auction Tags - GearJunkie
Arizona Game and Fish Votes to Ban Big Game Auction Tags  GearJunkie

'Wizard of Oz' ruby slippers stolen by retired mobster to hit auction after recovery - Fox Business
'Wizard of Oz' ruby slippers stolen by retired mobster to hit auction after recovery  Fox Business

Bid Like A Champ, Kobe Bryant's First Lakers NBA Ring on Auction Block, Dazzles with Family Legacy! - Hoodline
Bid Like A Champ, Kobe Bryant's First Lakers NBA Ring on Auction Block, Dazzles with Family Legacy!  Hoodline

Owners of Shiba Inu Behind Dogwifhat Meme Auctions NFT on Ethereum - Yahoo Finance
Owners of Shiba Inu Behind Dogwifhat Meme Auctions NFT on Ethereum  Yahoo Finance

2024 Houston Rodeo sets new records for attendance, auction sales | khou.com - KHOU.com
2024 Houston Rodeo sets new records for attendance, auction sales | khou.com  KHOU.com

Return of "The Russell" highlighted by $2.25 million sale - Great Falls Tribune
Return of "The Russell" highlighted by $2.25 million sale  Great Falls Tribune

Ancient Coins Featured in Robinson Auction - Numismatic News
Ancient Coins Featured in Robinson Auction  Numismatic News

2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players - The Athletic
2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players  The Athletic

Norway Launches Its First Offshore Wind Auction - OilPrice.com
Norway Launches Its First Offshore Wind Auction  OilPrice.com

Kobe Bryant’s 2000 Championship Ring up for Auction - Sportico
Kobe Bryant’s 2000 Championship Ring up for Auction  Sportico

Apartment complex goes on auction block in Kinloch, Missouri - KSDK.com
Apartment complex goes on auction block in Kinloch, Missouri  KSDK.com

Mecum Auction sales top $54 million mark in Glendale | Glendale Independent - Daily Independent
Mecum Auction sales top $54 million mark in Glendale | Glendale Independent  Daily Independent

Downtown Hot Springs buildings head for auction block - talkbusiness.net
Downtown Hot Springs buildings head for auction block  talkbusiness.net

Roadmap for Consigning Property At Auction - Wealth Management
Roadmap for Consigning Property At Auction  Wealth Management

Neil Gaiman Auctions Memorabilia in Irving, Raises $1M for Nonprofits - Dallas Observer
Neil Gaiman Auctions Memorabilia in Irving, Raises $1M for Nonprofits  Dallas Observer

Auction Block: Can You Really Sell A Small Law Firm? - Above the Law
Auction Block: Can You Really Sell A Small Law Firm?  Above the Law

F1 News: Former Champion Auctions Off Private Racing Car Collection Estimated At €21 Million - Sports Illustrated
F1 News: Former Champion Auctions Off Private Racing Car Collection Estimated At €21 Million  Sports Illustrated

Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction - Barron's
Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction  Barron's

Independent Director Of ACV Auctions Sold 100% Of Their Shares - Simply Wall St
Independent Director Of ACV Auctions Sold 100% Of Their Shares  Simply Wall St

6 Massachusetts students face charges for allegedly holding mock slave auctions on Snapchat - CBS Boston
6 Massachusetts students face charges for allegedly holding mock slave auctions on Snapchat  CBS Boston

Chicago club to auction off Monet painting - CBS News
Chicago club to auction off Monet painting  CBS News

Antiques Roadshow alum Reyne Hirsch buys Dallas Auction Gallery - The Dallas Morning News
Antiques Roadshow alum Reyne Hirsch buys Dallas Auction Gallery  The Dallas Morning News

LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction' - WLS-TV
LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction'  WLS-TV

Houston Livestock Show and Rodeo's 2024 junior auctions end with $1M steer sale, barrow record set - The Business Journals
Houston Livestock Show and Rodeo's 2024 junior auctions end with $1M steer sale, barrow record set  The Business Journals

6X6 AUCTION | Calendar | decaturdailydemocrat.com - Decatur Daily Democrat
6X6 AUCTION | Calendar | decaturdailydemocrat.com  Decatur Daily Democrat

'Streetworkers' Leads Eldred's Women In The Arts Auction - Antiques and the Arts Online
'Streetworkers' Leads Eldred's Women In The Arts Auction  Antiques and the Arts Online

Over $48000 Raised at 2024 Dairy's Foundation Auction - WTAQ
Over $48000 Raised at 2024 Dairy's Foundation Auction  WTAQ

What should I know about … the DREAMS Auction? - Wahpeton Daily News
What should I know about … the DREAMS Auction?  Wahpeton Daily News

The Extensive Collection: Andrew Jones Auctions honors Fritz and Lucy Jewett's wide-ranging pieces - LA Downtown News Online
The Extensive Collection: Andrew Jones Auctions honors Fritz and Lucy Jewett's wide-ranging pieces  LA Downtown News Online

Clash During Auctions, Man Killed in Nandyal - Deccan Chronicle
Clash During Auctions, Man Killed in Nandyal  Deccan Chronicle

Stolen slippers worn by 'Wizard Of Oz' star Judy Garland, to be returned to be auctioned off - The Economic Times
Stolen slippers worn by 'Wizard Of Oz' star Judy Garland, to be returned to be auctioned off  The Economic Times

PawSox murals from McCoy Stadium sold at auction - WPRI.com
PawSox murals from McCoy Stadium sold at auction  WPRI.com

Japan's 19th solar auction concludes with average final price of $0.034/kWh - pv magazine International
Japan's 19th solar auction concludes with average final price of $0.034/kWh  pv magazine International

Canada joins German hydrogen import auction scheme H2Global, but funding details not yet disclosed - Hydrogen Insight
Canada joins German hydrogen import auction scheme H2Global, but funding details not yet disclosed  Hydrogen Insight

Mass. investigators pursue charges against six 8th graders who allegedly created an online mock slave auction - WBUR News
Mass. investigators pursue charges against six 8th graders who allegedly created an online mock slave auction  WBUR News

The Pope's Pinarello Dogma F12 is up for auction - Global Cycling Network
The Pope's Pinarello Dogma F12 is up for auction  Global Cycling Network

Kobe Bryant’s Parents Face Backlash After Putting Championship Ring On The Auction Block - Vibe
Kobe Bryant’s Parents Face Backlash After Putting Championship Ring On The Auction Block  Vibe

Focus on Women | Fine Books & Collections - Fine Books & Collections Magazine
Focus on Women | Fine Books & Collections  Fine Books & Collections Magazine

How Washington's latest carbon auction impacts gas prices - MyNorthwest
How Washington's latest carbon auction impacts gas prices  MyNorthwest

Unitarian Universalists of Southern Delaware online auction fundraiser - Bay to Bay News
Unitarian Universalists of Southern Delaware online auction fundraiser  Bay to Bay News

'No Sales' Return to Farmland Auction Market, But Local Conditions Can Still Drive Strong Sales - DTN The Progressive Farmer
'No Sales' Return to Farmland Auction Market, But Local Conditions Can Still Drive Strong Sales  DTN The Progressive Farmer

Roby Dwi Antono’s Wide-Eyed Characters Have Soared at Auctions. But Will Speculation Sink His Market? - artnet News
Roby Dwi Antono’s Wide-Eyed Characters Have Soared at Auctions. But Will Speculation Sink His Market?  artnet News

Sports Auction 4 MACC: Bid on great sports items while fighting childhood cancer - TMJ4 News
Sports Auction 4 MACC: Bid on great sports items while fighting childhood cancer  TMJ4 News

Indiana Waterways Paintings at Auction May 4; New Project Set for 2026 - Muncie Journal
Indiana Waterways Paintings at Auction May 4; New Project Set for 2026  Muncie Journal

Kobe Bryant Had a 2000 NBA Championship Ring Made for His Father. Now It Could Be Yours. - Robb Report
Kobe Bryant Had a 2000 NBA Championship Ring Made for His Father. Now It Could Be Yours.  Robb Report

6 youths to be charged in Southwick racial bullying incident involving ‘mock slave auction' - NBC Boston
6 youths to be charged in Southwick racial bullying incident involving ‘mock slave auction'  NBC Boston

Goodwill auctions 14-karat gold Lego piece for over $18,000 - UPI News
Goodwill auctions 14-karat gold Lego piece for over $18,000  UPI News

Sullivan schools to try once again to auction surplus properties - Bristol Herald Courier
Sullivan schools to try once again to auction surplus properties  Bristol Herald Courier

Rockmill Brewery Headed to Auction; Brioso Barista Honored for Latte Art - Columbus Monthly
Rockmill Brewery Headed to Auction; Brioso Barista Honored for Latte Art  Columbus Monthly

Mayor Parker is now working with Sheriff Bilal to resume auctions of tax-delinquent properties - The Philadelphia Inquirer
Mayor Parker is now working with Sheriff Bilal to resume auctions of tax-delinquent properties  The Philadelphia Inquirer

6 Massachusetts teens charged in racial bullying incident with mock slave auction on Snapchat - NBC News
6 Massachusetts teens charged in racial bullying incident with mock slave auction on Snapchat  NBC News

2024 March Madness Calcutta Auction Pool Strategy, Tips & Picks: Teams to Buy & Sell in the NCAA Tournament - The Action Network
2024 March Madness Calcutta Auction Pool Strategy, Tips & Picks: Teams to Buy & Sell in the NCAA Tournament  The Action Network

Washington State’s emissions allowance program held its first auctions in 2023 - U.S. Energy Information Administration - EIA
Washington State’s emissions allowance program held its first auctions in 2023 - U.S. Energy Information Administration  EIA

Pattie Boyd, often in the shadow of her famous husbands, has put a trove of mementos up for auction - PBS NewsHour
Pattie Boyd, often in the shadow of her famous husbands, has put a trove of mementos up for auction  PBS NewsHour

Furry Friends hosts ‘Meow or Never’ auction fundraiser - The Reflector
Furry Friends hosts ‘Meow or Never’ auction fundraiser  The Reflector

Rockford IceHogs hold live jersey auction benefitting community fund - WIFR
Rockford IceHogs hold live jersey auction benefitting community fund  WIFR

A Closer Look at Art Auction Houses - Wealth Management
A Closer Look at Art Auction Houses  Wealth Management

Neil Gaiman Heritage Auction Raises Over 1 Million - ICv2
Neil Gaiman Heritage Auction Raises Over 1 Million  ICv2

Albemarle Plans to Auction Lithium With Aim of 'Fair' Price - Yahoo Finance
Albemarle Plans to Auction Lithium With Aim of 'Fair' Price  Yahoo Finance

The rarest US stamp is going up for auction. It’s expected to sell for millions - CNN
The rarest US stamp is going up for auction. It’s expected to sell for millions  CNN

Art auction in Cape Girardeau - KFVS
Art auction in Cape Girardeau  KFVS

Original Apple iPhone 4GB from 2007 auctions for huge price - Quartz
Original Apple iPhone 4GB from 2007 auctions for huge price  Quartz

Free Arts NYC: Silent Benefit Auction 2024 - Artsy
Free Arts NYC: Silent Benefit Auction 2024  Artsy

Antiques Roadshow alum buys Dallas Auction Gallery with bid on new generation - MSN
Antiques Roadshow alum buys Dallas Auction Gallery with bid on new generation  MSN

Quarter auction fundraiser set at MVVM - Miami Valley Today
Quarter auction fundraiser set at MVVM  Miami Valley Today

Grand champion steer ties for $1 million record at rodeo auction - Houston Chronicle
Grand champion steer ties for $1 million record at rodeo auction  Houston Chronicle

San Diego to auction off nearly 400 defaulted properties - CBS News 8
San Diego to auction off nearly 400 defaulted properties  CBS News 8

6 Students Charged For Racist Online Bullying, Mock Slave Auction - Chicago Defender
6 Students Charged For Racist Online Bullying, Mock Slave Auction  Chicago Defender

‘Vile’: 6 Massachusetts eighth graders charged for setting up ‘mock slave auction’ on Snapchat - Boston 25 News
‘Vile’: 6 Massachusetts eighth graders charged for setting up ‘mock slave auction’ on Snapchat  Boston 25 News

Neil Gaiman on the collectibles he's auctioning in Dallas - WFAA.com
Neil Gaiman on the collectibles he's auctioning in Dallas  WFAA.com

iHeart Dayton "Bid on Dayton" Auction! - iHeart
iHeart Dayton "Bid on Dayton" Auction!  iHeart

State-run auction scheme could incentivise CCS in Norway: report - Quantum Commodity Intelligence
State-run auction scheme could incentivise CCS in Norway: report  Quantum Commodity Intelligence

French Royal Menus, Darwin Presentation Copy, Christina Rossetti Letters: Auction Preview - Fine Books & Collections Magazine
French Royal Menus, Darwin Presentation Copy, Christina Rossetti Letters: Auction Preview  Fine Books & Collections Magazine

Memecoin Dogwifhat Photo Sells for $4.3M in NFT Auction - DailyCoin
Memecoin Dogwifhat Photo Sells for $4.3M in NFT Auction  DailyCoin

PrecisionHawk Bankruptcy auction – sUAS News – The Business of Drones - sUAS News
PrecisionHawk Bankruptcy auction – sUAS News – The Business of Drones  sUAS News

Vietnam 5G Spectrum Auction: Telecom Companies Bid for Licenses - Vietnam Briefing
Vietnam 5G Spectrum Auction: Telecom Companies Bid for Licenses  Vietnam Briefing

Spring for Amish people in Pennsylvania means 'mud sales,' from pitchforks to pies - The Associated Press
Spring for Amish people in Pennsylvania means 'mud sales,' from pitchforks to pies  The Associated Press

Exclusive: Weak bids in Citgo auction spurs Venezuela to pitch alternative pay plan - Reuters
Exclusive: Weak bids in Citgo auction spurs Venezuela to pitch alternative pay plan  Reuters

Elvis Presley's Cadillac, the Batmobile and the most expensive car sold at 2024 Mecum auction - The Arizona Republic
Elvis Presley's Cadillac, the Batmobile and the most expensive car sold at 2024 Mecum auction  The Arizona Republic

Benefit Auction Draws Hundreds | News, Sports, Jobs - The Inter-Mountain
Benefit Auction Draws Hundreds | News, Sports, Jobs  The Inter-Mountain

Rockford Icehogs hold live jersey auction benefitting their community fund - WIFR
Rockford Icehogs hold live jersey auction benefitting their community fund  WIFR

Neil Gaiman's Dallas auction of art and collectibles raises $1M - WFAA.com
Neil Gaiman's Dallas auction of art and collectibles raises $1M  WFAA.com

Judy Garland’s Ruby Slippers From The Wizard of Oz Stolen, Recovered, And Set For Auction - Times Now
Judy Garland’s Ruby Slippers From The Wizard of Oz Stolen, Recovered, And Set For Auction  Times Now

DA charges 6 Southwick 8th graders for conducting online ‘slave auction’ - MassLive.com
DA charges 6 Southwick 8th graders for conducting online ‘slave auction’  MassLive.com

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