Ecommerce Drop-shipping For Small eBay and Amazon Sellers

This post was written by admin on March 19, 2012
Posted Under: eCommerce Drop Shipping

Small eBay and Amazon sellers comprise a good majority of eCommerce drop-shippers and for good reason, they often earn outstanding net salaries.

Finding good drop-shippers that will work with small eBay and Amazon sellers can sometimes be a problem area.

Small eBay and Amazon sellers are at the mercy of the drop-shippers who have total control of the packaging and shipping of products that are sold.

A poor or unresponsive drop-shipper can quickly create a negative influence with your buyers when they don’t perform as promised.

Your customer satisfaction ratings on eBay and Amazon can be adversely affected to the point of having your account suspended or even closed by poor drop-shipping service.

You will quickly discover that your customers will place the blame on you, not the drop-shipper when a service problem arises.

Selling items which are not in stock also becomes a problem with small eBay and Amazon sellers when drop-shippers don’t advise you of correct inventory levels.

The disadvantage of lack of control for small eBay and Amazon sellers is more than offset by the advantages.

The elimination of risk, the variety of products that are available to sell, the fact that no up front inventory investment is required and the fact that there are relatively no credit restrictions required for the purchase of inventory all make drop-shipping extremely appealing to small eBay and Amazon sellers.

There are basically two different types of drop-shippers.

  • Drop-ship warehouse companies also known as aggregators, are the ones you see advertising online offering literally millions of brand name products for sale on the Internet.

    Drop-ship warehouse companies are basically middlemen who set up websites with items that are stocked in real wholesale company warehouses.  They do not actually have any products stocked in their own warehouses.

    These companies make their money from membership and handling fees.

    When you place an order with them, they place an order with the actual wholesaler and either mark up the cost of the item or charge you a fee for “handling”.

    You will find that the items that drop-ship warehouse companies generally offer for sale are already on eBay and Amazon, at or about the same price you can purchase them for from the warehouse company.

    Needless to say, it’s difficult making any serious profit dealing with aggregators.

  • Manufacturers and master distributors who drop-ship, actually warehouse their products and will generally offer you the lowest possible price for the product.

    Contrary to popular opinion, there are hundreds to thousands of manufacturers who will drop-ship for small eBay and Amazon sellers.

    Dealing directly with manufacturers and their master distributors will earn you higher net salaries and provide you with a more reliable inventory status, shipping schedule and better service.

Attending wholesale trade shows or just performing an in depth Google search will provide you with a list of manufacturers along with their master distributors.

To make the most money on eBay, Amazon or your web site, be sure to weed out the middlemen and deal only with legitimate manufacturers.

Ecommerce drop-shipping for small eBay and Amazon sellers is still a great way to earn a substantial net salary when you choose the right drop-shipper.

Reader Comments

Good article a lot of useful tips on there for people who just starting out it easy to understand and easy to follow Thank for sharing.

Written By SalenaG.Bryan on December 13th, 2014 @ 9:54 am

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