How I Made A Fortune On Ebay Using Dropshippers… And Then Lost It All
My name is Kevin and I’m twenty four years old. This is the true story of how throughout the summer of 2001, I created $40,000 selling dropshipped product on ebay only to lose it all and finish up with $4,000 of debt. Read my cautionary tale to forestall yourself from making the identical mistakes that I made.
I first revealed regarding dropshipping back in June of 2001 a little after I started a not-thus-profitable business on eBay selling mobile phone accessories and such. I saw dropshipping as an all profit methodology of business. You do not obtain shipping. You do not purchase inventory. You primarily simply advertise the product on auction websites like eBay, take orders, collect the money, and pay the set quantity for every item to the dropshipper keeping the remaining amounts for yourself as profits. I currently understand that it’s solely that simple when you’re managing the right person.
I initial started dropshipping with a guy named Chris. I used to be selling Nike Air Jordans on eBay. I saw that Jordans are real popular on eBay and people pay huge amounts for them. I’ve seen some pairs opt for $1,000+. Chris solely charged me $67 a pair. So, I primarily just doubled the price and sold them on eBay for $134 a pair. I sold about 20 pairs of shoes among a week giving me a profit of $one,340. I suddenly became proud of the success I had because getting over $one,000 in an exceedingly week at the age of nineteen is pretty rare. Therefore, I needed to start putting up way more auctions so that I might build way more money. Unfortunately, this can be when Chris became unreliable. He never came back any of my e-mails and never got here online. And, he only had shipped half of the 20 orders I had. Thus, I decided that I required a replacement fast before I started to possess some unhappy customers on my hands.
This now brought me to dropshipper #2. I talked to the guy regarding the situation and he said that he would be ready to handle it. I paid him for the remaining ten orders I had left and he shipped the shoes off to my customers. I respected the very fact that he picked up right where my previous dropshipper had left off at and took care of business. Therefore, I assumed that this guy was all concerning business and was a terribly reliable and legitimate dropshipper. Thus, I started to place up more get it currently auctions and these shoes were selling faster than I could place them up for auction. This is the unbelievable part. I had sold 250 pairs of shoes in a matter of 4 days. I collected over $40,000 in four days. That’s $10,000 each day! This came as an amazement to me especially since I used to be solely 19 at the time. I’ve created some individuals’s yearly salaries in a very matter of only 4 days. Very little did I understand though that I used to be in over my head. I got a little too greedy and began to splurge on cash that wasn’t even mine however; shopping for clothes, shoes, and even put a $one,000 down payment on a new car. My dropshipper shipped my first 30 orders only to search out out that he had shipped off nothing but all wrong sizes and wrong colors. Therefore, I had a lot of complaining customers. Some even went straight to PayPal to complain inflicting PayPal to limit access to my account. So, currently I had over $forty,000 sitting in my PayPal account that I had completely no access to and over 200 orders that need to be shipped off. Thus, my only possibility was to refund everyone their cash back to get my PayPal account back to regular standing, which brought me to my next dilemma…
I spent virtually $four,000 of the $40,000 I assumed would be mine to keep. So currently, my Paypal balance was negative $4,000 and I needed to return up with that $4,000 fast before PayPal took legal action to get that money. I believed the only approach to urge me out of this mess was by the identical way that got me into this mess. This is often what brought me to dropshipper #3.
I stumbled upon a guy named Jarell. I found him through a legitimate business website so I made a decision to sell enough pairs of Jordans to create up the $4,000 and then I would call it quits as a result of this was an excessive amount of for someone therefore young. Everything went sleek and I was ready to form the $4,000 using my girlfriend’s PayPal account. Sadly, PayPal then restricted access to her account conjointly sorting out that she was linked to me. This then aggravated me as a result of currently I had 15 orders that I in no means might pay my supplier. If I had shipped to my customers it would bring a lot of complaints and negative feedback which was terribly unhealthy for business. That was then, this is now.
Once reviewing my whole expertise with dropshipping in hindsight, I realized all of the mistakes that I had made. For anyone who is trying into operating with dropshippers, please pay close attention.
1. Before going into business with somebody who is going to be dropshipping merchandise for you, be certain to urge to know the person extremely well. Don’t pass instinct. Have a few converstations with the person before you begin anything. Collect all ways of contact of the dropshipper for emergency contact.
2. I suggest that you do not begin off having the dropshipper ship the merchandise to your customers. Order a number of the merchandise for yourself and examine it completely before you go into business. I started to recieve e-mails from angry customers stating {that the} Jordans were of terrible quality after I was told by my dropshipper that they were of authentic quality.
3. Don’t bite off more than you’ll be able to chew. As stated previously, I sold 250 pairs of shoes in 4 days. Inside those four days, I had to house regarding 600-700 e-mails that is almost not possible for only one person to deal with that conjointly has school to worry about. Patience is that the key to success.
These were some of the mistakes that I made managing dropshipping. I had a worth to pay for my mistakes. I owed $four,000 to PayPal and I had a $two,000 eBay bill that I ended up working during the summer to pay off. My purpose in writing this is for everybody considering going into business with a dropshipper to require precautions and use the ideas I provided. I would conjointly like to mention that while I had a dangerous experience addressing dropshipping, that is not invariably the case. I recognize there are some individuals who have become successful and wealthy off of dropshipping.
5 years have passed since I began my journey in this industry. I finally did pay off all of my debts that summer and have created it my mission to teach and inform folks of the scammers out there waiting to ambush the inexperienced and naive. I wrote this text as a result of I don’t need anyone else to travel through the expertise that I did. There were times where I felt hopeless and bitter for falling into a lure that left me feeling depressed. Needless to say, I’ve got learned from my soul-crushing mistakes and currently make a good living selling on ebay.
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Drop Shipping: Myths Versus Truth
Because the concept of drop shipping is relatively new, most people know little about it, so they fill in the gaps with rumors and conjecture, resulting in misinformation of mythical proportions. Today we reveal a few falsehoods of the drop ship model and provide truthful revelations about how it can help your business.
Myth: Drop Shipping Equals Easy Money
Yes, it’s true that drop shipping can save you bundles of time by relegating the usual menial tasks of warehousing, pulling, packaging, and shipping products. But, like the tasks themselves, the role these items play in your overall business success are also relatively menial. Success requires hard work.
The truth is that even though drop shipping eases your workload in other areas, you still have to work hard to build, maintain, and grow your business.
Myth: All Drop Shippers Will Be Happy to Work With Me
Some wholesale suppliers will greet you with a handshake and warm smile… as long as you fit their mold of a good retailer. If you don’t fit a wholesaler’s mold they might still work with you, but place various restrictions on your account until you’ve grown into a higher-volume customer. These can include upfront fees, higher wholesale pricing, minimum monthly purchase requirements, and even non-refundable applications fees.
Myth: Profit Margins With Drop Ship Wholesalers Are Too Low to Be Worthwhile
It’s true that having items drop shipped results in higher product costs. But it’s far from a deal breaker. Many of the ‘net’s largest retailers use the drop ship model exclusively or at least to fulfill on a majority of customer orders.
Keep in mind that drop shipping, while filling a particular need for a particular type of business, is not a retailer’s cure all. Think of it as only a tool, one of many that are needed, that can help your retail business succeed.
The biggest myth about drop shipping is that it’s the answer to every retailer’s prayers. Before jumping in head first, be sure to examine your business model to ensure that drop shipping is a right fit for your needs. Whatever myths others spread, only you can say what is good or beneficial for your needs.
Want Better Pricing From Your Drop Ship Supplier?
If you’re already using drop shipping for your retail business, you’re already aware of some of its drawbacks. One of the most commonly alluded to negatives of drop shipping is product pricing. Smaller orders, increased shipments, and more headaches for the wholesaler all contribute to higher product costs.
But are there ways to get your wholesale products price down? In fact, there are. Try the following suggestions get your product pricing down.
Move More Product
You may believe that the only way to increase sales is by getting better pricing, but chances are your supplier will disagree. Your only real option is to find another way to improve sales.
All good marketers know that making the sale has less to do with price and more to do with presentation… and getting as many people as you can to look at your presentation.
If you’re already getting lots of traffic, but no sales, it may be time to consider a site redesign.
Pick Up the Phone
Getting the best price on your wholesale products requires constant contact with your suppliers to continually try and negotiate a better pricing tier. Top retailers hire people specifically for this task.
If you’re not in a position improve sales or hire a price negotiator, you might want to consider a third-party company that integrates drop ship suppliers for easy access.
Drop Ship Supplier Integrators
Two companies that work directly with drop ship suppliers, integrating them into a universally accessible system, include Doba and Commerce Hub. Both companies are able to negotiate top-tier pricing thanks to the combined-volume purchasing power of the retailers they work with.
One thing to be aware of with Doba is that, although they price products at cost, if you pay with a credit card, resulting in merchant fees, their costs go up — and therefore your costs go up. To prevent this, take advantage of Doba’s cash payment option which bypasses the merchant fees and gets you the true wholesale price.
You’ll find that Commerce Hub has a larger integration and, therefore, more products available. You’ll find, however, that Commerce Hub tends to work only with very high-volume retailers, not so much as policy, but as a result of their setup fees that are rumored to run several thousand dollars. Commerce Hub also charges a per-transaction fee. In other words, retailers pay a fee for every order placed.
These differences between the two companies affect who their target retailer is. Commerce Hub works only with very large, high-volume retailers while Doba focuses mainly on the small to medium-sized retailer or large retailers who don’t need the additional suppliers that Commerce Hub offers.
Which of these companies is right for you? Is working with a third-party integrated solution even a proper strategy for your business model? Only you can make that determination.
Buying And Selling Wholesale Disney Children’s Clothing Can Make Your Business More Profitable
No matter who you are and where you live in the world, you’ll be sure that the magic of Disney is something that has captivated us all. So if you are a reseller, how can you take advantage of the appeal that the big Disney brand has?
I know you’re aware that everything which bears the Disney mark, or even one of its characters, has been produced under license. Otherwise, it’s a knock off and is infringing Disney copyright. If you’re thinking of obtaining some Disney wholesale merchandise for kids, this is something you need to be well aware of as there are a lot of bad knockoff items out there.
The ideal way for you to get Disney wholesale clothing for kids is to go directly to a wholesale supplier that sells licensed merchandise. There really aren’t many of these places around, so it’s a great find when you do get one.
Your wholesale supplier will be able to provide you with a nice collection of items, like t-shirts, hats, sleepwear and bags – all Disney wholesale clothing for kids that they will just love!
Another option you may like to have is to find dropshippers who can directly deliver Disney products to your customers. This is a great timesaver for you, as it means that you don’t have to worry about picking, packing and shipping, which is often the most time consuming part of running an online retail store.
When you deal with dropshippers of Disney merchandise, you will be able to promote their items for sale to your customers, and once you make a sale, you will simply raise an order with the dropshipper who will deliver the merchandise straight to your customer.
Disney wholesale clothing for kids doesn’t just have to be all about Mickey and Minnie Mouse. Some of the biggest brands in the Disney Empire at the moment are High School Musical and Hannah Montana. If you can expand your services to include these brands, you’ll be on track to building a business with Disney wholesale goods which will appeal to a good range of ages.
In fact, if you decide to locate dropshippers who can supply you with Disney wholesale merchandise, you will realize how easy it is to make sales using a brand name. Customers feel secure buying brands that they can trust and that’s why if you can leverage off someone else’s name recognition, you are in for a much easier ride.
Of course you won’t be targeting your Disney wholesale clothing for kids just at the children. Parents and grandparents alike realize the attraction of this magical brand and are very likely to select their goods when choosing gifts for their loved ones. By offering great prices to your customers, they’ll be glad that they can buy their kids favorite characters while getting value for their money.
Your partnership with a wholesale supplier who can provide you with these high quality items is the key to your success in the online world. Once you’ve got that sorted, you can be sure that you’ll be sporting a bigger grin than the Cheshire Cat!
Wholesalers Can Increase eBay and Craigslist Profits
Wholesaling and dropshipping is on the increase on eBay and craigslist and it’s the time for you to get on the bandwagon. Tens of thousands of people are using wholesale sources to boost the income they make on eBay or craigslist and make a full-time income working minimum hours. However, many people are asking how can they get started in this?
While wholesalers have been around for a long time, they don’t promote themselves too much. They rely on people conducting research in order to find them, and generally will exclusively sell to businesses rather than members of the public. Wholesale suppliers are able to source quality products at low costs because of the volume of the products that they have. While a wholesaler may sell goods for $10, a retailer may sell it for $20, the wholesale source makes a profit on the cost of their product and the retailer makes a profit on the price of the wholesale.
If you’re an eBay or craigslist merchants, it is possible to locate a wholesale source who will provide you with the items that you would like to sell on either of these services. You’ll find that by acquiring items at wholesale prices you are able to offer your customers better prices while increasing turnover and also increasing your profits.
Unfortunately, not all wholesale suppliersare legitimate. You often come across companies who claim to be wholesalers who in actual fact are middlemen, these middlemen tack on a fee on the wholesale cost which can end up cutting into your bottom line. If you intend to obtain products from your wholesale supplier it’s important that you thoroughly research your market. Try to contact the company before making a purchase ask any questions you have up front, and always research their policies.
When you do find a wholesaler, you will have find a company that is able to supply the high quality items that you are looking for which will add to your bottom line.
Find Dropship Manufacturers the Easy Way
Looking for products wholesale to drop ship? I’ll show you how I’ve found various different products wholesale and the companies to drop ship them. Additionally, I’ll show you how dropshipping operates enabling you to better negotiate with your next wholesale dropshipper!
The business of product wholesale drop shipping is all about ensuring the supplier has a diverse number of (as in many) customers reducing their risk if one of their customers goes bankrupt! Moreover, product wholesalers drop ship mainly due to the fact it costs them absolutely nothing therefore why would they waste the time, hassle and expense to find their own customers when you are more then willing to approach them and share the profits?! As you can see, product wholesale drop shipping is a beneficial opportunity for both the buyer and seller and thus many companies are motivated to sell you their goods, under a drop ship model, at wholesale prices. This being said, you can find a dropshipper for any product assuming you know the manufacturer. Google the manufacturer’s site and see if they already have a drop shipping system in place, if they don’t, generate an e-mail using this template (customized for your needs of course):
To the sales department of XYZ Co., I believe your product XXX is an exceptional value and one that would suit my target market XXX perfectly! I am familiar with your products and am extremely interested in retailing for myself to my customers. I have been unable to locate a dropship program on your web site, I’m writing to enquire as to the possibility of our web sites partnering in a dropshipping arrangement as I am sure the outcome will be highly desireable for us both.
Hope to speak with you soon
Ryan – RyanPark.me
As you can see it’s hard for a manufacturer to turn down an opportunity which costs them nothing and I strongly recommend you try negotiating with them directly. If you don’t have all the time in the world (who does) and would still like access to a vast array of products wholesale drop shippers without the research and hassle, I would suggest joining a drop ship directory as this has been very successful for myself during times when I had no direct relationships with my manufacturers. Take the time to be careful of which directory you choose! The choice is critical as you may have found like I did, that many of these so called products wholesale drop ship prices are actually more expensive then retail prices! Most dropshipping directories are a scam, I went through many different programs and I refuse to name them in this article as they simply took my money and didn’t offer me anything in return! I use to be a member at 3 different dropship directories, however, I quickly left and became a member solely at SaleHoo due to their great interface and deep discounted prices. Keep in mind that joining SaleHoo is only the best option for those who are looking for easy access to a wide variety of products and manufacturers, if you’re looking for a specific product that’s hard to find, try the method I described above. So there you have it, drop shipping is a beneficial opportunity for both buyer and seller and as such if you are looking for a specific rare item attempt to contact the manufacturer, otherwise, click here to join SaleHoo’s extensive products wholesale drop ship directory.
Biography: the author is a professional businessman who’s launched many profitable online stores using dropshipping! If you’re looking for business advice, visit the other’s blog – business advice with character!
How to Get a Manufacturer to Dropship
Looking for products wholesale to drop ship? I’ll show you how I’ve found various different products wholesale and the companies to drop ship them. Moreover, I’ll explain how wholesale drop ship works so you can better negotiate with your next products wholesale drop ship supplier!
The business of product wholesale drop shipping is all about ensuring the supplier has a diverse number of (as in many) customers reducing their risk if one of their customers goes bankrupt! Moreover, product wholesalers drop ship mainly due to the fact it costs them absolutely nothing therefore why would they waste the time, hassle and expense to find their own customers when you are more then willing to approach them and share the profits?! As you can see, product wholesale drop shipping is a beneficial opportunity for both the buyer and seller and thus many companies are motivated to sell you their goods, under a drop ship model, at wholesale prices. This being said, by knowing the product’s manufacturer you can virtually dropship any product. Perform a search for the manufacturer’s domain and take a look around to see if they have established a drop shipping program already, if not, fire off an e-mail using the template below (customized as needed):
To XYZ Company., I believe your product XXX is an exceptional value and one that would suit my target market XXX perfectly! I am familiar with your products and am extremely interested in retailing for myself to my customers. I have been unable to locate a dropship program on your web site, I’m writing to enquire as to the possibility of our web sites partnering in a dropshipping arrangement as I am sure the outcome will be highly desireable for us both.
Eagerly awaiting your reply
Ryan – RyanPark.me
As you can see it’s hard for a manufacturer to turn down an opportunity which costs them nothing and I strongly recommend you try negotiating with them directly. If you don’t have all the time in the world (who does) and would still like access to a vast array of products wholesale drop shippers without the research and hassle, I would suggest joining a drop ship directory as this has been very successful for myself during times when I had no direct relationships with my manufacturers. You must take care with the directory you pick! The choice is critical as you may have found like I did, that many of these so called products wholesale drop ship prices are actually more expensive then retail prices! Most dropshipping directories are a scam, I went through many different programs and I refuse to name them in this article as they simply took my money and didn’t offer me anything in return! In the past I was a member of five different drop ship networks, however, I quickly dropped 4 of them and stayed with SaleHoo as it was the only one to offer true wholesale pricing and a great user-interrface. Keep in mind that joining SaleHoo is only the best option for those who are looking for easy access to a wide variety of products and manufacturers, if you’re looking for a specific product that’s hard to find, try the method I described above. So there you have it, drop shipping is a beneficial opportunity for both buyer and seller and as such if you are looking for a specific rare item attempt to contact the manufacturer, otherwise, click here to join SaleHoo’s extensive products wholesale drop ship directory.
Bio: the Author is a dropshipping expert who’s been in the industry for 7 years selling everything from performance parts to pet products! If you’re looking for business advice, visit the other’s blog – business advice with character!