Making use of auction sites like eBay, or pay-per-click advertising, or their own online stores, many marketers are now making a good living this way.
The benefit of dropshipping is of course that you only need to purchase inventory when you have already made a sale, and you don't have to handle stock at all. You, the marketer, can happily concentrate on advertising and selling, without having to take care of product fulfillment, packaging or shipping.
But the main problem marketers have is in finding a good wholesale dropshipper to use. (At the bottom of this article, we reveal the best way to locate reliable services.)
Particularly when using eBay or other online auction sites, it is essential to maintain your positive feedback, or customers will simply not buy from you. If the dropshipper you use for the products you are advertising does not have your item in stock, and there is a long delay in sending the product to the customer, then he or she will not be happy.
Look at it from the purchaser's point of view. Purchasers on eBay imagine that if you are advertising a product then you actually have it ready to mail to them when their bid is successful, and if it doesn't arrive, then you, the seller, must be to blame. You then get negative feedback, which is of course visible to other potential buyers. Your online business cannot stand much of that.
So it is essential to use only reliable and efficient dropshippers if you intend to sell successfully and consistently.
The other main problem with dropshipping is that you must be sure of the total cost to you of each item you are selling, before you start advertising it. This must include the shipping cost the dropshipper will add to the price you are charged. When you have the actual cost, you can then set a realistic minimum price for the item. You may be tempted to set a low price to compete with other advertisers on eBay, but there is no point selling an item only to break even or to make pennies per sale: your time is worth more than that.
Another thing to look for in a dropshipper is that they have a wide range of goods to sell, or get the latest products available to you quickly. One of the best ways to successfully market on online auction sites is to have new products up fast, before they are overexposed, so that customers will naturally come to you to bid and to buy.
So how do you locate a good wholesale dropshipper who is fast and reliable, who is clear about their prices, and who keeps up with what the market wants? Your best plan is to check what other marketers are saying about the wholesale services they actually use. Then you can be sure that you are selecting the best dropshipper for your preferred products.