#5 - Out of stock Equals awful comments
Dropshippers regularly run out-of-inventory on famous items. which means after you sell the item on eBay and then visit your supplier to have the object dropshipped you study that the object is not in inventory. then you definately have to inform your buyer the terrible news and will usually get some horrific comments in go back. The eBay forums are full of sellers who've been destroyed by the terrible comments they obtained through attempting dropshipping. they may be additionally filled with lawsuits from shoppers who did now not obtain the object they ordered due to the fact the seller became the use of a dropshipper -- and after the sale knowledgeable the client that the item turned into no longer to be had.
#4- PayPal Will maintain Your funds
about a yr in the past, in January of 2008, eBay and PayPal issued some new policies. one among which is to put a maintain on price range. here is the quote from eBay's policy:
"In a small percentage of instances where it has been determined the danger of disappointed customers is better, PayPal may additionally delay release of the fee funds to the seller till the customer has left a fantastic comments or 21 days have surpassed without a dispute, declare, chargeback or reversal filed on that transaction."
Any new eBay supplier who tries the use of dropshipping as a technique for sourcing their merchandise will discover that they cannot get entry to their price range until after the product has arrived at their purchaser's door. This removes one of the maximum appealing aspects of dropshipping - the potential to sell a product after which use the purchaser's price to fund the purchase. With PayPal preserving your cash for 21 days this will not be feasible.
#3 - Direct from the source opposition
this is a relatively new phenomenon that has come about by way of the latest explosion of "direct from China" dropshippers. really placed, because of this a lot of those dropshipping corporations are clearly selling the items on eBay at once themselves. they're "double dipping". even as they provide a internet site to be able to dropship products for your eBay customers direct from China, they're additionally selling the identical products on eBay themselves. To witness this one simplest desires to appearance within the electronics category on eBay. among the listings have the object place display Hong Kong or some different vicinity in China. yes, the dropshippers themselves are competing with their customers.
#2 - profit Margin is underneath $0
That isn't an error. The earnings margin you will face while using dropshipping to promote on eBay is most often 0. nothing. Nada. In truth, the majority who first attempt using a dropshipper to supply their eBay merchandise come to be getting pissed off and crying "the charge my dropshipper is selling the product for is more than the price the product is selling for on eBay." And they are accurate. you notice wholesale is all approximately shopping for in amount. when you use dropshipping you're shopping for simply one of an item and can not count on a wholesale fee.
Now why paying a bit more for an item won't be a large deal if you're promoting it for pinnacle dollar at your local save, it is a massive deal while seeking to sell on eBay. eBay is an area human beings go to get a deal. They do not want to pay complete retail fee, and possibilities are they are able to find the item at a rock backside fee in the event that they just go searching eBay for a piece. because even if you can't promote an object for the lowest possible fee (because you're the usage of dropshipping), there are lots of other eBay dealers who can. So it's far genuine. The price you get from your dropship dealer will frequently be greater than the product sells for on eBay.
#1 - Dropshipping Does not paintings on eBay
thinking about the alternative 4 motives no longer to apply dropshipping while promoting on eBay this could seem obvious. And it ought to be! the bottom line is that dropshipping and eBay are a poisonous aggregate. even as eBay is the region to promote products to those who want a deal, dropshipping is the way to buy products at the very best possible "wholesale" fee. And, at the same time as your dropshipper may additionally provide lots of products -- they likely have hundreds of customers like your self who are also listing the gadgets on eBay. It actually would not work.
