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 © 2005, Melanie Burns -- All Rights Reserved Worldwide

Melanie Burns has passion and dedication to assistingYou 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.)

More Resources

How Pop-Culture Collectibles Can Increase Your Online Auction Profits
How Pop Culture collectibles can increase your Online Auction profitsWith the increasingly competitive environment for products to sell in the online auction arena, sellers are getting more creative as to the items they purchase for re-sale.While some of the Dutch Auction items that are frequently sold on eBay will always maintain their commodity status and always sell well, Pop Culture collectibles will usually generate a higher profit-per-item simply because of a combination of two forces.
The Drop Shipping Business
You have suddenly found the perfect business and you are all geared up to make lots of money. You have see the ads about Drop shipping and it sounds great.
Auction Sales - Keeping Customers You Worked So Hard To Get!
If you've studied business concepts you know that finding a customer can be the most expensive part of the sales process. Once you've got a customer why not maximize the money you've already invested in the effort?This time honored business concept certainly falls under the category of going the extra mile for a customer.
How To Sell On Ebay: Using Store Policies To Cement Your Credibility
In your quest to build credibility as an Ebay seller, few things are more important than creating and following consistent store policies. Doing so will provide your customers with an attractive buyingatmosphere, where they will feel safe making any transaction.
eBay - Tapping Into The Japanese Collector Market
If you owned a skateboard shop in your local mall would you put a big sign in the window saying "No Baggy Pants Allowed"? Of course not. If you did you would be eliminating 50% or more of your most avid potential customers.
E-bay Auctions: Sell Better, Spend Less Tip #1
Just about everyone alive today has heard of E Bay.com, but most people don't realize the sheer size and complexity of this Auction beast.
EBay: No Way?Yes Way (Ten Seller Themes)
Hearing that there are more than 1.2 million registered eBay users, that more than 25,000 members make five figure income as full time eBay entrepreneurs, and that more than 250,000 part timers make several thousand dollars a year of supplementary income from eBay enterprises would make anyone comment in disbelief with, "No Way".
eBay: Dont Believe All the Hype
Three billion dollars (that's billion with a "B") in revenues, 135 million users, millionaires all over the place at eBay! Yeah, eBaby!!!, to steal a line form another great author. (See "EBay: No Way?Yes Way (Ten Seller Themes) by Barbara Snyder M.
Target Potential Bidders With Laser Beam Precision!
When a potential bidder (customer) is looking at a specific auction you have listed, you can safely gamble that they are interested in that particular item. Now, if you have several things that are similar to that one item the person is looking at, it would be a good idea to let them know that you have other similiar items listed.
Five Ways To Detect Shill Bidders On eBay So That You Dont Pay Absurd Prices
There is as a lot of buzz about shill bidders on the eBay forums. But in actuality, shrill bidding isn't that common and is rather easily detected.
5 Reasons Why Playing Music On Your Auctions Is A Bummer Of An Idea
There are 147 million registered users on eBay, and tens of millions of those are desperately fighting to make sales on eBay. When trying to make their auction listings as powerful as possible, many sellers use ill-advised tactics.
How To Compete With Amazon.com
If you are selling online,here is the down side of our business..
The Quickest Way To Have A Product To Sell On The Internet
Creating a product from scratch that you can sell on the Internet will take some time to do.Writing a book, for example, can take weeks or months to complete.
Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace
In 1995, when Pierre Omidyar introduced an online business venue that was essentially a virtual garage sale with auction pricing, no one knew a retailing revolution was about to occur. That site became known as eBay, and it's hard to find someone today who hasn't at least heard about the popular online auction company.
Get Yourself A Piece of The eBay Pie
Ebay is without a doubt the greatest internet marketing phenomenon of all time. Millions of people log on every minute and every second there are hundreds of items listed, sold and bought, and of course money is made.
So, Can You Really Sell EBooks On EBay And Make Cold Hard Cash?
Selling eBooks on eBay, and making any worthwhile profit from doing so, is becoming more and more difficult.Gone are the days when you could sell someone else's books on eBay, and it's becoming considerably more difficult to sell ebooks that you might have written yourself or via Public Domain Publications.
How To Find Tons of Hot Items Selling On EBay ...In Less Than 10 Minutes
There are many ways to start a home business online, and few are easier than eBay - the world's largest online auction site. However, there is one critical condition - you have to know what to sell and how to sell it.
Are You an Ebay Shopper?
As I write this article, I am keeping an eye on an item on eBay. Do I have to keep an eye on it? No.
City Police Auctions of Personal Property and Autos
About City Police Departments AuctionsThe City Police Departments handle and store all evidence and property that is seized or found until it is needed for court, returned to its owner, or can be destroyed. Destruction, disposal, or return of property is determined by the property and evidence officer in accordance with federal, state, and local law.
Taxing Your eBay Profits
As a small business person-slash-advice columnist I dread the first quarter of the new year. Not because in my mind my own business fortunes start at zero again every January or because I have already dismissed every New Year's resolution I made when the clock rang out the New Year.

More Auction Information:

Related Articles

eBay The Mega Marketplace For Everyone
eBay is one of the world's largest market places with over 35 million visitors per day. That first sentence is worth repeating because I want you to realize that eBay gives you the ability to reach a customer base of millions and millions of people which is beneficial to you.
Image Hosting For Online Auctions
Use eBay picture service or host your own photos?If you use the eBay picture service, your first photo is free. But each additional picture will cost you $0.
Snipe Your Way to Auction Success
Bidding for a bargain is all part of the exciting eBay experience. But what can really disappoint is when you're all set to win that fantastic, gold plated gizmo and someone else just beats your bid in the very last minute.
When It Comes To eBay, Don't Follow The Herd
Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in.
How To Stop Ebay Buyers From Sniping Your Auction For Less Than Its True Value
There are many savvy eBay buyers who use automated bidding programs, which are referred to as sniping software. Sniping allows the eBay buyer to place an unseen bid in the last seconds of an eBay auction allowing them to win the ebay auction at a very low price if there was no reserve.
eBay Consignments: The Giant Opportunity Hiding on eBay (Part I)
More and more, people are becoming aware that they have potential cash sitting in their closets, attics, and basements. But not everyone has the time or the know-how to tap into it, so these items remain where they are or are given away.
What To Do After Your eBay Auction Closes
So your auction closes. Now what?Hopefully you made a sale or several sales.
Taxing Your eBay Profits
As a small business person-slash-advice columnist I dread the first quarter of the new year. Not because in my mind my own business fortunes start at zero again every January or because I have already dismissed every New Year's resolution I made when the clock rang out the New Year.
Start Selling On eBay - Getting Started On The Right Foot
You've started your own eBay business and, even though it's part time right now, you know it's going to become a huge success. You are able to see the day when you can set your own hours, set your own dress code and call your own shots.
E Bay.com HTML Auction Templates: Which is Best for Ebay Selling?
There are a plenty of free e bay.com free auction template services out there and I would like to help you find the service that will best suit your needs by comparing what i feel is the top two contenders.
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.
eBay: What Should I Sell?
There is an art to picking profitable products. It's not just what you want to sell but rather what will sell.
A WIN-WIN Scenario On eBay For Buyer/Sellers: Tips For Hunting Want It Now Postings
"Ask And You Shall Receive" Policy Works!You're one-of-a-kind baby clothes sat for the last month oneBay with no buyer. Why? Perhaps your item is sospecialized that buyers have a hard time finding you.
Top Secret Ebay Powerseller Technique: Classifieds Produce Auction Power
I was browsing through all of the classified sections, and stumbled on Wanted to Buy. I noticed that people were placing ads for items they wanted to purchase.
eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay
The Problem..
Mail Order: The Original Internet Still Going Strong
While the world continues to go catatonic over the Internet and its endless possibilities, there's another industry quietly going about its business, piling up profitable year after profitable year after profitable year. What industry is that? It's the mail order industry--or as I prefer to call it, "the original Internet!"Yes, long before the birth and explosion of the Internet, mail order shopping was a hugely popular and preferred method of doing business--and still is.
eBay - Tapping Into The Japanese Collector Market
If you owned a skateboard shop in your local mall would you put a big sign in the window saying "No Baggy Pants Allowed"? Of course not. If you did you would be eliminating 50% or more of your most avid potential customers.
eBay and Dropshipping - A Perfect Fit!
eBay and Dropshipping go together like a hand in a glove. As you read this article, right now, thousands of eBayers are running there own auction business.
Starting an eBay Home Business
Do I need to explain what eBay is?If 'Yes', where have you been living for the past 5 years? On Mars?EBay is the world's largest Internet auction site. There are a reported 30,000,000 users, but that number has probably increased in the time delay between me writing this article and you reading it.
Professional eBay Auctions Reap the Profits for Sellers
eBay offer an unbelievable amount of traffic for ANYONE wanting to sell on their auction site, so much so that millions of items are listed on it everyday. So with all this competition how do you make sure that your listing doesn't get lost amongst the rest and that customers keep coming back to you.