Drop Ship? Pros and Cons
eBay Performance! Selling Success With Market Research & Product Sourcing” is a clear, readable, almost fool-proof guide to discovering what sells on eBay, obtaining viable product and selling it in an effective way.
The authors are experts in their fields: Robin Cowie is president of WorldWidebrands, for years an eBay licensed provider of wholesale merchandise contacts for eBay sellers and Jen Cano is vice president for HammerTap market research specializing in online businesses and their patterns.
On one hand, drop-shipping looks like entrepreneurial heaven. It offers the advantage of ordering as you sell — not needing to tie up money or space by stocking product, as well as avoiding the time-consuming process of packing and shipping orders.
It may be particularly useful for those starting out or trying a new product line who do not want to expend their own money on a new product without a proven sales record, the authors advise.
The downside is you must relinquish control — and some profit. If your wholesaler or manufacturer is tardy in shipping or is back ordered on an item that you have sold you’ll have disgruntled buyers who may turn to negative feedback or at least be hesitant to buy from you again.
Further, when you order items piecemeal, you will pay the highest wholesale price and a premium over actual shipping cost passed along for handling by the supplier.
Those considering drop shipping are advised to strongly establish the reliability of their source before committing to this business model.
Cowie and Cano tell us selling factors that maximize success rates again involve research, such as determining the best listing type (fixed or auction,) category, the best starting and ending day, time of day and duration for a sale, the most effective title words, starting price and listing features.
While research can answer some of these questions, experienced eBay sellers know that experimentation, better known as trial and error, are needed for others.
Photo by MSDesigns.
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