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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 Fri. March / 29 / 2024

Titanic prop that saved Rose and sparked debate fetches $700k at auction - NPR
  1. Titanic prop that saved Rose and sparked debate fetches $700k at auction  NPR
  2. This controversial "Titanic" prop has spawned decades of debate — and it just sold for $700,000  CBS News
  3. The ‘Titanic’ Door That Could’ve Saved Jack Just Fetched $718,750 at Auction  Robb Report

Karl Lagerfeld’s final residence sells for $10.81M at auction - New York Post
Karl Lagerfeld’s final residence sells for $10.81M at auction  New York Post

Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction - CNN
Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction  CNN

Meissner's Auction House petroliana auctions draw collectors - Times Union
Meissner's Auction House petroliana auctions draw collectors  Times Union

Report: NFL will auction 2024 Christmas games - NBC Sports
Report: NFL will auction 2024 Christmas games  NBC Sports

Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza - Variety
Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza  Variety

NBA Star Ben Simmons' $17.5 Million Los Angeles Mansion Heads To Auction - Forbes
NBA Star Ben Simmons' $17.5 Million Los Angeles Mansion Heads To Auction  Forbes

Treasury Auctions Attract Better Demand. This Is What Has Changed. - Barron's
Treasury Auctions Attract Better Demand. This Is What Has Changed.  Barron's

Sotheby's Auction Warhol Basquiat Untitled 1984 Art - HYPEBEAST
Sotheby's Auction Warhol Basquiat Untitled 1984 Art  HYPEBEAST

Chenango County auction businessman arrested on arson, fraud charges - WBNG
Chenango County auction businessman arrested on arson, fraud charges  WBNG

J Martin Auctions LLC | Ads to Go | fltimes.com - Finger Lakes Times
J Martin Auctions LLC | Ads to Go | fltimes.com  Finger Lakes Times

Helen Lafrance artwork for auction | - WPSD Local 6
Helen Lafrance artwork for auction |  WPSD Local 6

Dave auctions the blazer off his back; raises $1000 for Hastings Public Schools Foundation - NTV
Dave auctions the blazer off his back; raises $1000 for Hastings Public Schools Foundation  NTV

Elite Auctions offers 6.7-acre property Summit at Silverleaf - Daily Independent
Elite Auctions offers 6.7-acre property Summit at Silverleaf  Daily Independent

Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics - University of Hawaii Athletics
Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics  University of Hawaii Athletics

Superman’s Debut Issue Could Set a Comic Book Record at Auction - Barron's
Superman’s Debut Issue Could Set a Comic Book Record at Auction  Barron's

The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction - artnet News
The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction  artnet News

ACV Auctions supporting women leadership - Buffalo News
ACV Auctions supporting women leadership  Buffalo News

Infamous 'Titanic' door sells for staggering €663000 at auction - Euronews
Infamous 'Titanic' door sells for staggering €663000 at auction  Euronews

'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750 - The New York Times
'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750  The New York Times

Scuba diver finds Barbie in river, viral doll now up for auction - WVTM13 Birmingham
Scuba diver finds Barbie in river, viral doll now up for auction  WVTM13 Birmingham

Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000 - USA TODAY
Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000  USA TODAY

Local preservation group looks to keep Helen LaFrance's artwork to sell at auction local - WPSD Local 6
Local preservation group looks to keep Helen LaFrance's artwork to sell at auction local  WPSD Local 6

Infamous 'Titanic' Wood Panel Fetches Thousands at Auction - Entrepreneur
Infamous 'Titanic' Wood Panel Fetches Thousands at Auction  Entrepreneur

Junior Livestock and Poultry Auction takes place - 12newsnow.com KBMT-KJAC
Junior Livestock and Poultry Auction takes place  12newsnow.com KBMT-KJAC

'Titanic' prop door sold for over $700,000 – Deseret News - Deseret News
'Titanic' prop door sold for over $700,000 – Deseret News  Deseret News

‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction - ARTnews
‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction  ARTnews

Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston - Auto Remarketing
Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston  Auto Remarketing

NFL Christmas Day Games to Come Up for Auction - Front Office Sports
NFL Christmas Day Games to Come Up for Auction  Front Office Sports

Motorsports Hall of Fame of America launches major auction fundraising campaign with Lunch with GM President Mark ... - RACER
Motorsports Hall of Fame of America launches major auction fundraising campaign with Lunch with GM President Mark ...  RACER

Local Players Dominate Brazil $3.6 Billion-Power Line Auction - Bloomberg
Local Players Dominate Brazil $3.6 Billion-Power Line Auction  Bloomberg

Ponte Vedra Beach home sells for over $7.5 million in auction - ActionNewsJax.com
Ponte Vedra Beach home sells for over $7.5 million in auction  ActionNewsJax.com

April's abandoned and court-forfeited vehicle auction this Tuesday - Wyo4News
April's abandoned and court-forfeited vehicle auction this Tuesday  Wyo4News

More Outperformance as Treasuries Fret Over Auctions - Mortgage News Daily
More Outperformance as Treasuries Fret Over Auctions  Mortgage News Daily

Bedtime stories with Tilda Swinton and tea with Joseph Quinn on auction for Gaza - Euronews
Bedtime stories with Tilda Swinton and tea with Joseph Quinn on auction for Gaza  Euronews

Wisconsin coin collection fetches almost $900,000 at auction | Top Stories | wkow.com - WKOW
Wisconsin coin collection fetches almost $900,000 at auction | Top Stories | wkow.com  WKOW

Rare Babe Ruth rookie card from 1916 — once a store freebie — could fetch $500K at auction - New York Post
Rare Babe Ruth rookie card from 1916 — once a store freebie — could fetch $500K at auction  New York Post

Iconic 'Titanic' Door Just Sold for $718,750 at Auction - My Modern Met
Iconic 'Titanic' Door Just Sold for $718,750 at Auction  My Modern Met

Stack's Bowers & Ponterio Offers Eclectic Spring Hong Kong Auction Full of Rarities - Greysheet Daily News
Stack's Bowers & Ponterio Offers Eclectic Spring Hong Kong Auction Full of Rarities  Greysheet Daily News

Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000 - Barron's
Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000  Barron's

Sotheby's Doubles Down on Athletic Collectibles With 'Sports Week' Auctions - Investopedia
Sotheby's Doubles Down on Athletic Collectibles With 'Sports Week' Auctions  Investopedia

‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K - The Washington Post
‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K  The Washington Post

Unclaimed property auction scheduled for March 27 - CBS News
Unclaimed property auction scheduled for March 27  CBS News

Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent - Daily Independent
Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent  Daily Independent

The Now Evening Auction at Sothebys Hong Kong on artnet - Artnet
The Now Evening Auction at Sothebys Hong Kong on artnet  Artnet

Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat - Observer
Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat  Observer

Controversial 'Titanic' Prop Door Sells For $700K At Auction - The Daily Wire
Controversial 'Titanic' Prop Door Sells For $700K At Auction  The Daily Wire

6X9 AUCTION | | decaturdailydemocrat.com - Decatur Daily Democrat
6X9 AUCTION | | decaturdailydemocrat.com  Decatur Daily Democrat

Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million - The New York Times
Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million  The New York Times

How you can get Gordie Howe memorabilia in online charity auction - Detroit Free Press
How you can get Gordie Howe memorabilia in online charity auction  Detroit Free Press

Large Collection of St. Louis Neon Signs and Memorabilia to be Sold at Auction - nextstl.com
Large Collection of St. Louis Neon Signs and Memorabilia to be Sold at Auction  nextstl.com

Lady Gaga, Amy Winehouse, Martin Luther King Jr.’s Letters to Tony Bennett Being Offered at Auction - Variety
Lady Gaga, Amy Winehouse, Martin Luther King Jr.’s Letters to Tony Bennett Being Offered at Auction  Variety

A Gorgeous Lexus LFA With Only 268 Miles Is Up for Grabs - Robb Report
A Gorgeous Lexus LFA With Only 268 Miles Is Up for Grabs  Robb Report

Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record - Jacksonville Daily Record
Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record  Jacksonville Daily Record

Central Business District Property Going Up for Auction - Biz New Orleans
Central Business District Property Going Up for Auction  Biz New Orleans

Nigeria's central bank auctions one-year bill at high yield to draw investors - TradingView
Nigeria's central bank auctions one-year bill at high yield to draw investors  TradingView

Pickens Auctions Annual Spring 24 Equipment Sale at Payne County Expo Center - Visit Stillwater, Oklahoma
Pickens Auctions Annual Spring 24 Equipment Sale at Payne County Expo Center  Visit Stillwater, Oklahoma

'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount - New York Post
'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount  New York Post

Refiner Citgo set to open data room for bidders tied to court auction - Reuters
Refiner Citgo set to open data room for bidders tied to court auction  Reuters

This controversial ‘Titanic’ prop sold for more than $700,000 at a memorabilia auction - CNN
This controversial ‘Titanic’ prop sold for more than $700,000 at a memorabilia auction  CNN

Infamous 'Titanic' floating door sells for more than $700000 in Texas - Chron
Infamous 'Titanic' floating door sells for more than $700000 in Texas  Chron

Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K - KATU
Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K  KATU

Tiki Hideaway Auction Boys & Girls Club of Santa Clarita Valley - Magazine of Santa Clarita
Tiki Hideaway Auction Boys & Girls Club of Santa Clarita Valley  Magazine of Santa Clarita

Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It? - The Business of Fashion
Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It?  The Business of Fashion

Bradford Council-owned Thornton Cemetery lodge sold at auction - BBC.com
Bradford Council-owned Thornton Cemetery lodge sold at auction  BBC.com

Controversial 'Titanic' door sells for over $700K at auction - New York Daily News
Controversial 'Titanic' door sells for over $700K at auction  New York Daily News

Diamonds Smash Estimates at Sotheby's Paris Auction - Rapaport
Diamonds Smash Estimates at Sotheby's Paris Auction  Rapaport

Wood panel from Titanic fetches more than $700k at Dallas auction - The Dallas Morning News
Wood panel from Titanic fetches more than $700k at Dallas auction  The Dallas Morning News

BTG fund wins Brazil power transmission auction's largest project - Nasdaq
BTG fund wins Brazil power transmission auction's largest project  Nasdaq

Disney concept art, audio-animatronics available for bidding during upcoming auction - KTLA Los Angeles
Disney concept art, audio-animatronics available for bidding during upcoming auction  KTLA Los Angeles

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

Copy Of Ken and Roberta Williams' Mystery House Set To Fetch Thousands At Auction - Time Extension
Copy Of Ken and Roberta Williams' Mystery House Set To Fetch Thousands At Auction  Time Extension

Treasury Auction Relief Rally and Month-End Support - Mortgage News Daily
Treasury Auction Relief Rally and Month-End Support  Mortgage News Daily

'Titanic' door sells for over $700k at auction - Entertainment Weekly News
'Titanic' door sells for over $700k at auction  Entertainment Weekly News

Young auctioneer continues family legacy – The Daily Texan - The Daily Texan
Young auctioneer continues family legacy – The Daily Texan  The Daily Texan

Letters from five former presidents to Tony Bennett are going up for auction - The Hill
Letters from five former presidents to Tony Bennett are going up for auction  The Hill

Mixed Performance. Data Hurt. Auction Helped. Little Changed - Mortgage News Daily
Mixed Performance. Data Hurt. Auction Helped. Little Changed  Mortgage News Daily

1981 BMW M1 Could Fetch $550,000 at Auction - BMWBLOG
1981 BMW M1 Could Fetch $550,000 at Auction  BMWBLOG

Titanic 'door' prop that kept Rose alive sells for $718,750 - BBC.com
Titanic 'door' prop that kept Rose alive sells for $718,750  BBC.com

Tony Bennett Auction To Feature Cartier, Rolex Watches - HODINKEE
Tony Bennett Auction To Feature Cartier, Rolex Watches  HODINKEE

Artworks stored at taxpayer expense heads to auction block - The Houston Landing
Artworks stored at taxpayer expense heads to auction block  The Houston Landing

Raleigh land linked to subdivision plans sold in foreclosure auction - Triangle Business Journal - The Business Journals
Raleigh land linked to subdivision plans sold in foreclosure auction - Triangle Business Journal  The Business Journals

Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block - Observer
Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block  Observer

Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction - NME
Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction  NME

Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto - TAPinto.net
Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto  TAPinto.net

G-Dragon's mixed media art piece 'Youth is Flower' pulled from auction per the artist's request - allkpop
G-Dragon's mixed media art piece 'Youth is Flower' pulled from auction per the artist's request  allkpop

Behind the scenes of Pennsylvania’s Treasury vault auction - ABC27
Behind the scenes of Pennsylvania’s Treasury vault auction  ABC27

One of Michael Jackson's iconic 'Thriller' jackets is up for auction - NME
One of Michael Jackson's iconic 'Thriller' jackets is up for auction  NME

Tomb near Marilyn Monroe, Hugh Hefner up at auction - Washington Times
Tomb near Marilyn Monroe, Hugh Hefner up at auction  Washington Times

SOLD! 230-acre Iowa century farm brings nearly $4 million at auction - Successful Farming
SOLD! 230-acre Iowa century farm brings nearly $4 million at auction  Successful Farming

TMCS purse auction raises funds for Lunch On Us program - Miami Valley Today
TMCS purse auction raises funds for Lunch On Us program  Miami Valley Today

Chile launches first transmission auction of 2024 - BNamericas English
Chile launches first transmission auction of 2024  BNamericas English

JM Wood Holds Spring 2024 Auction in Montgomery, Alabama : CEG - Construction Equipment Guide
JM Wood Holds Spring 2024 Auction in Montgomery, Alabama : CEG  Construction Equipment Guide

Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME - TIME
Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME  TIME

‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction - Rolling Stone
‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction  Rolling Stone

Auction Calendar 3-29-24 - AgUpdate
Auction Calendar 3-29-24  AgUpdate

Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction - HYPEBEAST
Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction  HYPEBEAST

CBI auctions +$254 million in forex on Thursday - Shafaq News - Shafaq News
CBI auctions +$254 million in forex on Thursday - Shafaq News  Shafaq News

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