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.

In The News:

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SGX seeks price limits on stock auctions after $41 bln flash crash  ReutersSingapore Exchange's regulatory unit is proposing imposing price limits for daily stock auctions to prevent incidents such as the $41 billion flash crash in ...
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Biotech unicorns first to go as Neil Woodford auctions assets off suspended fund — report  Endpoints NewsThe inability to meet redemptions — due to a high proportion of illiquid or unlisted assets that just worsened with an exodus of investors that shrunk the fund from ...
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U.S. Government Bond Auctions Show Weakness  The Wall Street JournalU.S. Treasury prices fell this week after investors submitted fewer bids than usual at a series of government bond auctions, underscoring the centrality of their ...
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Bangalore Metro to auction items left behind by commuters  The HinduA unique auction to be held in the city will see bidders hoping to lay their hands on helmets, lunch boxes and umbrellas, among other things. The Bangalore ...
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5G spectrum auctions might have a ‘buy now pay later’ scheme  Business Insider IndiaThe government has refused to make 5G spectrum cheaper on the recommendations of the Telecom Regulatory Authority of India (TRAI). The government is ...
Those Poor U.S. Bond Auctions Are Adding Up  BloombergBy any credible measure, the U.S. has become less creditworthy under President Donald Trump. Total debt outstanding has risen by $2 trillion to $22 trillion ...
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Elizabeth Taylor's Personal Effects Will Go to Auction  Architectural DigestBut first, Elizabeth Taylor's collection of jewelry, art, and decor items from her many homes will be on view aboard a luxury cruise ship.
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Art Collectors Get Picky at London Auctions  The Wall Street JournalSome trophy paintings went unsold at recent London sales, where collectors chased after lesser-known artists more than household names.
Mormon Gold, Planchet Error SBA Among Highlights of Heritage Auctions' World's Fair of Money Coin Auction  CoinWeekBy Lianna Spurrier for CoinWeek ..... In conjunction with the ANA World's Fair of Money in Chicago, Heritage will be holding an auction from August.
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Top 10 Most Expensive Car Auctions  Interesting EngineeringIf you don't think much about cars, there are some people out there who absolutely love them. As these ten of the most expensive cars ever sold at auction will ...
Nervous sellers jump the gun on auctions  The Australian Financial ReviewNervous sellers and buyers starved of options are striking deals soon after homes are listed for sale rather than risk going to auction in an unpredictable market.
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Elizabeth Taylor's Oscars dress among her items heading to auction  ReutersA gown worn to the 1974 Academy Awards and more than 1200 other items from the life of late actress Elizabeth Taylor will be offered for sale at an auction in ...
Mexico auctions drug lords' properties, raises $2.9 million  Deutsche WelleSprawling ranches and houses with escape tunnels seized from drug lords have gone under the hammer in Mexico's capital. Some of the properties, including ...
US Treasury yields tick higher as investors await Fed speeches, auctions  CNBCU.S. government debt yields rose Tuesday as investors awaited Fed speeches and a *fresh* batch of economic data. U.S. Markets Overview: Treasurys chart ...
'Blacks-only' municipal car auction sparks fury | The Mercury  Independent OnlineDurban - THE eThekwini Municipality has come under fire for its controversial decision to exclude Indians and coloureds from taking part in an official car auction ...
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The Derbyshire properties going for as little as £35,000 in upcoming auction  Derbyshire LiveFrom a former fish and chip shop to a historic Derbyshire cottage, there is plenty to whet your appetite in the forthcoming SDL Auctions Graham Penny sale.
The unexpected buyers returning to bid at auction in Melbourne and Sydney  Domain NewsThey\'re the kind of buyers who bid having only seen the property on auction day and they\'re coming back to buy at auctions.
Why India should delay its 5G spectrum auctions until 2020  Business InsiderA new report shed doubt on India's plan to start 5G spectrum auctions in 2019, instead targeting them for the second half of 2020.
Crown backs down and ‘refines’ plans for offshore wind auction  The GuardianThe Queen's property manager has bowed to criticism over its plans for the biggest offshore wind auction in a decade by agreeing to fairer terms for renewable ...
Broad Ripple site of Thr3e Wise Men up for auction  Indianapolis Business JournalThe business assets of Thr3e Wise Men microbrewery and restaurant's now-closed Broad Ripple location will be sold at auction next month, giving a new ...
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Gay Art Auctions: Does the Label Help or Hurt an Artist’s Market?  BloombergThree separate auctions are creating a new LGBTQ art category.
Brisbane auctions: Unique Queensland properties to draw huge auction crowd  Domain NewsOne of the most unusual properties to hit the market, possibly in the whole of Queensland, is expected to draw a huge crowd to its auction in Gympie on Sunday.
Sotheby's auction of rare sneakers nets more than $850,000  BBC NewsThe first major auction of sneakers nets $850000, with the last and rarest pair still up for grabs.
Aurora Pijuan auctions Miss International crown for Gem-Ver fishermen  RapplerMANILA, Philippines – Aurora Pijuan is auctioning off the Mikimoto crown she won in the 1970 Miss International pageant, and is giving the proceeds to the 22 ...
What Should Happen to Confederate Statues? A City Auctions One for $1.4 Million  The New York TimesThe debate over whether to remove Confederate monuments divided the country. The question of what to do with them next is just as complicated.
Low auction numbers and an overall sales rate of 37% at Barfoot & Thompson's auctions last week  Interest.co.nzAuction numbers ticked along on their winter lows at Barfoot & Thompson last week, with the agency marketing 70 residential properties for auction ...
Female Artists With African Backgrounds Are Winners at Phillips Auction in London  The New York TimesPaintings by Lynette Yiadom-Boakye and Marlene Dumas bring in double their estimates, as do others at Christie's and Sotheby's.
Pink Floyd's David Gilmour Auctions Off 126 Guitars and Raises $21 Million for Climate Change Battle  Good News NetworkEarlier this week, legendary Pink Floyd guitarist and songwriter David Gilmour auctioned off dozens of his guitars – and he sold them all so he could donate the ...
The First Internet Whisky Cask Auction Is About To Launch  ForbesIt's not the hardest thing in the world to get ahold of a cask full of whisky, though it might require a little digging. Distilleries, especially new ones, sometimes have ...
Ionia Free Fair 4-H auction sells 261 animals for $330,000  Greenville Daily NewsIONIA — Pioneer Construction owner Tim Schowalter couldn't resist a handwritten invitation from 8-year-old 4-H'er Vayda Woolston asking him to attend the ...
Broadband forum seeks lower 5G spectrum prices, change in auction design  Economic TimesThe broadband industry bodys comments mirror those of telcos and other associations who have protested against the regulators price points for upcoming 5G ...
Sotheby's Shareholders Attempt to Stop $2.7 Billion Purchase of Auction House by BidFair -  ARTnewsTwo Sotheby's shareholders have filed suit in New York, arguing that the company was not transparent about its $2.7 billion sale to BidFair.
Mexico auctions drug lords' properties to fund poor communities  BBC NewsMoney raised from the sale will benefit poor communities but only nine out of 27 properties sold.
Successful Rice County 4-H Livestock Auction  kdhlradio.comIt was a very successful Rice County 4-H Livestock Auction this morning. It began with a complementary buyers breakfast served by the Rice County 4-H at 8:30.
A guide to art market auctions: late June and early July  Financial TimesPostwar and Contemporary Art Christie's London, June 25-26. Prominent figures of 20th-century art such as Jean Dubuffet, Leon Kossoff and Philip Guston ...
India coal supply: PPA auctions could bridge a gap for stressed assets  Power TechnologyIndia coal supply: with more than 10GW of coal power plants sitting idle due to lack of fuel supply, a new PPA auction scheme could help bridge the gap.
David Gilmour puts his guitars up for auction, raises $21.5M for a climate change charity  USA TODAYAn auction of David Gilmour's guitars has raised a lot of “Money” — to combat climate change.
These original NASA tapes of Apollo 11 moon landing could get up to $2 million at auction  CNBCThree original NASA videotape recordings of the Apollo 11 moon landing are going to auction on Saturday at Sotheby's. The videos have the “sharpest” and ...
Star Wars toy sells for record-breaking $112,926 at central Pa. auction  PennLiveThe toy, a prototype Boba Fett action figure, was sold last week by Hake's Auctions of York during an online event.
Classic cars in Lincoln are going fast at this auction  KLKNFor all cart enthusiasts and those just browsing, the Lancaster event center is hosting a car auction in partnership with SG Auction this Friday and Saturday.
Melbourne auctions: One-bedroom East Melbourne dump soars $292,000 over reserve  Domain NewsA derelict one-bedroom apartment in East Melbourne with knockout views over the city smashed its reserve by $292,000 at a hot auction on Saturday.
Muted volumes, falling e-auction premiums likely to hurt Coal India  Business StandardCoal India (CIL) continues to trend lower on the bourses, down more than 13 per cent in July. Muted June quarter offtake, the start of a seasonally weak ...
40% of tea, worth ₹6.50 cr, unsold at Coonoor auction  BusinessLineThe falling trend in the last couple of months at the auctions of the Coonoor Tea Trade Association (CTTA) continued this week with the average price crashing ...
Marlon Brando Rolex Auction - Tag Heuer Monaco, Unimatic U1-SP  EsquireThe Apocalypse Now Rolex is one of three watches making history this week.
Cetic legend - Lisbon Lion goalscorer's boots sold for at auction for huge fee  The London EconomicFootball boots worn by Tommy Gemmell in Celtic's 1967 European Cup final win have sold for £18,000 at auction. The Adidas boots were bought by an ...
Volumes still low as auction clearances up  7NEWSAuction clearances are high in Sydney and Melbourne, according to preliminary numbers from CoreLogic, although volumes are down on previous years.
Ebony magazine’s legendary photo archive is up for auction  Los Angeles TimesThe photo archives of Ebony magazine, which span decades and contain some of the country's most iconic images of African American history, are scheduled to ...
Neil Armstrong’s passport and rare pink sapphires for auction this week  The Irish TimesSales results and forthcoming auctions.
300 classic cars, $4 million in expected sales – TV-like auto auction coming to Lincoln  Lincoln Journal StarThis won't be your typical Nebraska auto auction, with bidders shuffling from car to car inside a barn or across a bean field.
Cartier, Rolex, Gucci: jewelry and watches on the block in next auction  Mexico News DailyA 3-million-peso Piaget watch and a jewel-encrusted Montblanc fountain pen are among 153 lots of jewelry that will be auctioned July 26 in Mexico City.
Italy to hold first 500 MW renewables auction on September 30  pv magazine InternationalAccording to the new auction schedule approved by the Italian Ministry of Economic Development, three more renewables procurement exercises will be held ...
News 3 historic Great Lakes lighthouses will be up for auction 9:30 AM, Jul 18  WXYZ DetroitThree historic Great Lakes lighthouses that are owned by the federal government are going up for auction.
In auction Anderson Ranch Annual Art Auction: Benefit Auction 2019  ArtsyThe 39th Annual Art Auction is Anderson Ranch's largest community fundraiser of the year and a festive highlight of the summer season. Held at the historical ...
CoreLogic: Auctions "evidence that housing conditions are stabilising"  MacroBusinessCoreLogic recorded a strengthening trend in auction clearance rates over the June quarter – the last time the result was this strong was back in June 2018.

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