How Drop shipping works
E-Bay is the super trampoline for retailer sales.
Drop-shippers and retailers work hand in hand to sell at eBay. Retailers are only know as sellers, who usually bid on an item marked as new.
With the goal in mind to ship the item directly
from the drop shipper to the highest bidder. The seller’s profits come from the difference between the winning bid and the wholesale price offered by the drop-shipper, minus the selling fees from eBay.
In another modality or drop shipping practice,
Retailer can use private freight carriers to transport large volume of goods. These items are delivered from the manufacturer directly to a postal office closer to the location where the end recipients live..
Instead of deliver the selling orders directly to the drop-shipper, with the purpose to save time and postal costs.
Whichever the modality,
e-Bay has provided information showing that only less than .01% of all the site’s transactions result in a confirmed case of fraud.
In some of them, e-Bays argues that some of those complaints are related to end users discovering that they have purchased an item from a wholesaler and not from a retailer.
filling a claim because of the difference of prices, or due to a very few other deceptive practices.
Drop-shippers offer wholesaler prices indeed,
But retailers do not. The difference between a wholesaler price and the e-Bay’s listing price is the retailer’s profit. This cannot be considered defrauding the users,
however they are just lying a little bit when they say they have the goods in stock that they actually do not have. and do not send from their own location.
Genuine wholesale prices are never shown to the public by resellers,
but can be found if the end user has seen the item elsewhere and investigate. The best way to determine if drop shippers are legitimate wholesale suppliers is by paying attention to their tax identification number.
which is required within the dealer application.
Otherwise, established drop=shippers with wholesaler activities require either a Social Security number or a Federal Tax ID (EIN).
Furthermore, authentic drop-shippers will never
require membership fees to access their services,
so they will never offer full or partial refunds after a certain number of inventory purchases are made. Manufacturers, wholesalers, drop-shippers,
retailers and sellers are often mistakenly
confused because of their selling activity, but all of them use different practices aimed at different clientele.
Depending on the management,
drop-shipping profits can be immense for retailers, but as sellers, retailers have to rely on the professionalism and goodwill of the drop-shipper,
particularly when all the deals and businesses with them are made via the Internet. On this basis, there is always a risk to get a wrong item supplying a faulty product, or when the drop-shipper downright sends an incorrect one.
At e-Bay, the seller’s reputation is affected for the good or bad
because to the end buyer it does not make a difference whether the seller is a retailer or not. Buyers want to receive the goods that they paid for, and they want to receive exactly what is listed,
and not a similar product with the excuse of that the original is “out of stock”.
Due to a fraud prevention mechanism implemented by e-Bay, users have a feedback system where they can submit their experiences after purchasing any merchandise,
reflecting their un-satisfaction if their expectations were not fulfilled. As bidirectional feature, both the sellers and the buyers can submit feedback and rate one other.
The rating system is only available after every transaction . is made.
Buyers and sellers get a “positive”, “negative” or “neutral” rating. They can leave a short comment or remark regarding a particular bid,
when a buyer receives from a drop-shipper a product, which is not exactly that, was listed by the retailer.