What YOU Must Know About The Advantages And Pitfalls Of Dropshipping

The following may be the most important information about dropshipping you will find.

Dropshipping can be a great way to get started with your online venture. Just be careful to make sure that you know the quality of the product your supplier offers, what their shipping policies are, and their reliability.

Your reputation is on the line with your customers, not the dropshippers reputation. You must be able to stand behind your product and service no matter what the source.

Make sure to order at least one of each of the items you would sell via the dropshipper. This gives you several things:

- It will show you the quality of the products. This is very important. You don't want to offer a product and have your customer receive something that is low quality or obviously not worth the money.

- It will show you what the packaging is like. How well is the product protected during the shipping process? Is it likely to break or arrive damaged due to inferior shipping or packaging?

- You can see first hand who they shipped through and how long it took for the item(s) to arrive.

There are many advantages to drop shipping.

1. When you are first starting out, capital may be an issue. With dropshipping you can get around that by selling the product first, collecting the money from your customer, buying from the dropshipper, and keeping the profit. Although your profit may not be as high as it would if you had purchased the products in bulk beforehand, it is still a profit that can get you started.

2. Another advantage is you don't have to have products stored around your house.

3. You don't have to worry about being stuck with inventory that you cannot sell. If a product doesn't sell, you can simply drop it from your offering and go on to other more sell-able products.

4. You can find and sell more items since you don't have the limitations of on-hand inventory.

If you are considering dropshipping to get yourself started you must also consider the *potential pitfalls*:

1. You will get a price break from a dropshipper, but it is often not as low as you could get from other avenues. Be careful to make sure that you have a product that is quality and the price point for you is one that will ensure a profit for you when sold. This is especially important if you will be selling via auctions. Auctions tend to sell new products for 25-30% below retail. If your price is not good enough, you could loose money on an auction.

2. Make sure that the dropshipper gives you a good shipping and handling fee. They have lots of shipping and get a very good price on it themselves. If shipping and handling is high, something is wrong.

3. Don't pay a 'fee' to do business with anyone. You are giving them business by buying product from them. If they want more money for your having the privilege of doing business with them, you know this is not a company that you want to even consider.

4. Find out how the dropshipper handles problems. If you have a customer return, how will they handle it. What kind of support will they give you.

5. Get references for the dropshipper. How long have they been in business and what is their financial standing? Check the Better Business Bureau. Google their company name to see if there are any complaints or problems you might need to know about before making the decision to do business with them.

If you are ready to make the dropshipping model your own, jump right in. Take these points into consideration, but don't let anything stop you. Be as informed as you can though, continue to learn and find out all you can about those you do business with.

The road to success is not always a smooth one. Can you avoid more of the pot holes, it makes the ride much more enjoyable?

Copyright (c) 2005, Melanie Burns -- All Rights Reserved Worldwide

Melanie Burns has passion and dedication to assisting You to make Your Internet Business a Success! Join the weekly "Abundant Success Online" newsletter, mailto:aso-subscribe@internet-business-how-to.com

(Permission to reprint this article in its entirety including byline, is expressing granted.)

---

Profitable Paper Piecing on eBay--Part 1

Why sell paper piecings on eBay?eBay is a great way to make a steady part-time or full-time income from a hobby that you love! Selling paper piecings... Read More

The Benefits of Buying and Selling Locally

Shop at a flea market in Oaxaca, Mexico. Trade with a vendor in London, England. Or sport your wares to collectors in Geneva, Switzerland. You can virtually... Read More

Buying At Auction: 6 Hints to Make You a Successful Bidder

Buying at auction, be it for stamps or coins, antiques or even cattle, can be one of the most exciting and profitable experiences possible. It can also... Read More

Save on EBay Fees with Free Image Hosting

Experienced sellers at online auction sites such as EBay will tell you that the single most effective tool of persuasion is a good image. Multiple images are... Read More

How to Market with Niche Auction Sites

Online auctions are big business. But they can be big headaches.During the past year, trading in online commerce was valued at $60 billion, according to *Business Standard."... Read More

How To Sell Internationally On eBay Without Risk

Many people just getting started on eBay have reservations when it comes to selling to International buyers. Possibly they've heard a few second-hand horror stories, or they... Read More

Game Theory, Nobel Prize, & Auctions - Auction Primer Series ? Part 1

William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:"Counterspeculation,... Read More

How to Survive the Jungles of Ebay Selling

Come with me, we are going to take a safari into the jungles of eBay selling, sometimes wrought with danger but most often rewarded with treasure.Beware of... Read More

Instructions on How to Put Picture on Ebay

Like many folks, you have heard of online auctions. Heck, even non-computer users have heard of Ebay. Everyone starts out as a bidder. The brave move on... Read More

Boosting Your EBay Auction Profits: Just Add Audio

According to a recent report, adding audio to your eBay auctions could increase bids by as much as 22% over auctions without audio.A recent trend showing up... Read More

What to Sell on eBay - 7 REAL Tips for Finding Successful Products

This question has become one for the ages. There are many answers to it, few of which will actually help you. Today we will give you 7... Read More

The Secret Of The Ebay Money Machine And How To Get Your Share

If you have all the money you need, then this information wont be of much use to you!If however, like most of us, there are times when... Read More

How To Save Franchise Fees and Set Up Your Own Ebay Drop Off Store

There has been a flood of publicity generated regarding the "Small Business Opportunity" being offered to would be internet entrepreneurs.The plan is for you to purchase a... Read More

How Professional Ebay Auction Templates Can Boost Your Ebay Sales

Do you like to sell on eBay ? It's easy and fun, isn't it ? In fact, it's one of the easiest online business you can start... Read More

A New Definition of Buyer Beware

"Who's Suzie?"My wife Katrina had been acting strangely ever since I had returned home from my Native American cultural class, not to mention the weird phone call... Read More

Effective Auction Listings - How To Create Them

Once you've created the best possible title for your item, you will move on to writing your auction description. Here, you have more space to give a... Read More

eBay Motors : Buy or Sell a Car on eBay

Are you having trouble finding a great deal on a car in your local area? Well, join the club. Using Online Bidding at eBay Motors can be... Read More

Tips on How to Profit from eBay Buy It Now Auction Listings

eBay is an online auction site so it stands to reason that most users will tend to auction off their items aiming to get a high price.The... Read More

Fundraising Ideas Using eBay

Have you thought of using the online auction site eBay as your next major fundraiser?I have, and it was a huge success!Like many other businesses the fundraising... Read More

eBay Auction Sellers Guide to Finding Hot Money Making Products

You might be one of the thousands of individuals who open a trading account with eBay and dream about making auction selling a full-time home-based business.However, before... Read More

How I Was Nearly Conned On Ebay

I am not sure how many people have had bad experiences on Ebay, I hope not too many. I was having a great time on there until... Read More

How To Profit Using eBays Saved Search Feature

Did you know that eBay will help you locate products you can buy cheap, then flip for a quick profit? No? Then listen up, because I am... Read More

Drop Shipping Your Way to Increased Profits

Drop shipping, for those who are unfamiliar with it, is a system whereby you promote the products of a particular manufacturer, take orders directly, and the manufacturer/source... Read More

Do You Pay Taxes On eBay Income?

Q: I read your last column about paying income tax on eBay sales if you are doing it as a business, but as someone who only sells... Read More

Free Auction Templates: How to Set Your Border Color With FOAM

If you have not heard of Foamtemplates.com yet, home of the "Free Online Auction Maker", now is a good time to get your feet wet. I am... Read More

How to Make Money from Internet Auctions

If your business is not using eBay and other Internet auctions, you could be missing out. Here are just a few ways of generating additional income, profits... Read More