Dropshipping is very appealing for many eBay sellers; however, it’s not always realistic. But first of all, what is dropshipping?
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Dropshipping something is when the product distributor does all the shipping for you. Rather than you having to order stock in bulk, that stock will remain with the distributor. When you make a sale, you simply send an email to the distributor and they’ll pack the product and send it directly to your customer with your company label on the outside of the box.
Dropshipping is a really popular option with eBay sellers because it takes a ton of the hardest work out of selling on eBay. However, there are some downsides to dropshipping, particularly for new ebay sellers.
Review this list of pros and cons of dropshipping so you can make the right choice for your eBay business:
Dropshipping Pros
- No storage room required
You don’t have to stock up any room in your house with products and packing-materials! This is especially useful if you’re selling huge things like as furniture, kit sets, and the like.
- No shipping-costs getting your stuff delivered from the distributor
With dropshipping you don’t have to pay a carrier to bring the load from the distributor to your own storage area, which means big savings over time.
- You can spend more time on other parts of your eBay business
You don’t have to organize packing and postage. Neither do you have to drive to the post office everyday to mail your packages. This obviously will give you a huge increase in time to spend on other things like marketing and communicating with your customers.
- No packing necessary
You save some time, money, and space by not having to order packaging materials.
Dropshipping Cons
- Can be expensive
You have to pay for the cost of the materials and labor involved in dropshipping. Usually this is between two and five dollars per item. Many new ebay sellers find that the costs of dropshipping significantly reduce their profits and sometimes nullify the whole thing. This is the biggest reason why dropshipping is not a viable option for many eBay sellers.
- You’re still responsible for any shipping problems
You’ll get the blame for anything that goes wrong with the shipping process even though it’s technically out of your control. If the item arrived damaged, or there was a shipping delay, it will appear to be your fault.
- Difficult to find a distributor who will do it, and do a good job
Many distributors will not dropship because of the extra paperwork involved, plus keeping watch on quality standards to make sure your products are being packed properly.
- Low stock-levels may produce unhappy customers
Your dropshipper won’t necessarily let you know when they’re running low on stock. If they run out and have to do a backorder, you might spend a bunch of time dealing with a bunch of impatient customers.
Conclusion
Again, dropshipping is very appealing for many eBay sellers; however, it’s not always realistic. Despite the hassle, “doing-it-yourself” can be a more sensible option financially, especially for new eBay sellers.
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