Highest ranked wholesale dropshipping source that has electronics, jewelry, apparel, gifts and more.
by Stuart Lisonbee
Drop shipping, like most things, has its pros and cons. Here are a few tips to help you minimize the cons, and take full advantage of all the pros of drop shipping.
To begin with, understand that with drop shipping you will lose some control over inventory and shipping. Thus, you should look for a drop shipper that has quick ship times and also maintains a high level of in-stock items.
Secondly, your pricing won't be as good as it would be if you were to buy in bulk. We're talking economics 101 here. It costs a wholesale supplier much more to address and ship small orders to a lot of different locations than it does to ship a very large order to a single location.
This doesn't mean that you won't be able to find items that you can get higher margins on (I've used drop shipping to sell items that garnered me up to 100% profit margins), but the odds of doing great margins is smaller.
Because of this, when I use drop shipping I try to focus more on margins as a dollar amount rather than as a percentage.
If I sell an item that has a cost to me of $10, and I sell it for $20 for a margin of 100%, I've made $10 on it. However, if I sell an item that has a cost to me of $500 for a measly 10% margin, then I've made $50, five times more than I did on the item that got me a 100% margin.
That's one of the great things about drop shipping: you don't need to worry so much about margins as a percentage because selling a high-priced item has no more risk in it than does selling a low-priced item.
Third, remember the key to satisfying your customers: under promise and over deliver. Take care of your customers! Don't just satisfy them, amaze them.
Finally, do your research. You will be required to do plenty of product research before finding products that will be successful for you.
At first, doing research will likely require several hours each day. But as you become more experienced, you'll be able to cut research time significantly. Personally, I am now able to find two or three dozen products—with just a couple hours of research—that have the potential to sell for good profits on eBay. Of the products I find, I'll begin listing those I feel have the highest potential (knowing which products work best for you takes time and experience as you "feel" your way into the process).
Once I've found a few products, or small niche, that works for me I'll continue selling those products, as well as similar products in the same niche, until they stop selling. Then I'll move on to another product niche.
The beauty of working with a drop shipper like Doba is the fact that they provide you access to so many suppliers (over 40 at the time of this writing and growing quickly) with a combined inventory of over 250,000 products. When your hot seller stops being hot, the next hot seller is as close as your Doba account.
About the Author:
Stuart Lisonbee is an eBay PowerSeller, eBay Certified Consultant,
and former eBay employee. He currently works for Doba, a drop ship
service provider. You are invited to reprint this article in your newsletter,
blog, or website provided that all content, including this signature, is
included and unchanged.
http://www.doba.com
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