How Drop shipping works
When buyers have problems with sellers
or when they do not receive the goods listed, buyers can rate sellers negatively, usually leaving a comment to harm the sellers’ reputation or to warn other users about their bad experience, and even submit a claim for fraud. The importance of the rating system at
E-Bay is based on the fact that buyers can examine a seller’s feedback history.
In fact, new users are always encouraged to verify the seller’s history as a buyers’ protection practice. eBay’s feedback system protects buyers and sellers,
who can also reject a bid when a feedback rating is not enough for the seller’s expectations.
Another problem when a seller is involved in drop-shipping activities is that there is always a risk of getting drop shippers that already have too many sellers using their services.
This can be discouraging,
because the dreams of exceptional profits disappear when a considerable number of e-Bay’s users, are selling the same goods and seeking the same opportunities to capitalize on below-retail prices offered by the drop-shipper.
If the competition is high, the prices go down,
reducing the planned profit margins, and the lower the profits and the less affordable the drop-shipping activity. However, knowing the basics about drop-shipping,
many users feel attracted to becoming sellers and develop a retailer activity using the services of one or more drop-shippers.
If you are considering this possibility,
before doing anything, choose a product to sell. Deciding on a product is the first step towards any selling process.
Many people fail at this point because the belief that using the services of a drop-shipper, the items to sell are irrelevant, due to the fact that all items will be available at the wholesaler’s stock instead of you own.
Although there are many factors to take into consideration when it comes to selecting your first drop-shipping product, most retailers focus their attention on postal savings, selecting books,
CD’s or other easy to carry merchandise,
while others consider small items can cut costs, but there are usually more competitors selling the same items.
Drop shipping can deliver to your elaborated pieces of furniture,
so think care fully when choosing a product. Once you have determined what you want to sell, locate the distributor who will be in charge of drop shipping the merchandise for you to the end users.
This is easily achieved by doing a research using Google or any other of the major search engines.
However. there are special eBay Drop shipping tools created to help you find drop shippers in your area, nationwide or worldwide.