Drop shipping has been around for years. We are most aware of it with Overstock.com.
Thousands of items from many different companies all in one place. But do you pay attention to the details?
Overstock has warehouses in the US now with their inventory being their top selling items.
But if you look at the details for most items you will see it is shipping from a company.
Notice – Manufacturer Website Address. http://www.tcl.com
Now click on that link to see where it goes. It is a website in China. That is the number one way to get the lowest prices possible on items – suppliers in China. Although if you look around their website you see the prices are retail. Overstock is in a deal with them to get wholesale prices and sell on their site at a markup. Win – win.
You will see people talking about World Wide Brands, Doba and Salehoo when searching for information on wholesalers. But it all comes down to this. You pay a one time fee for lifetime access OR a monthly fee to deal with their lists of wholesale drop shippers. You need to read the fine print on these sites.
This is taken 12/20/15 with the profit listed as $17.56. What they don’t show in the picture is how much their dropshipping fee is AND how much their shipping costs are. Don’t forget the upfront cost ($299 for Worldwide Brands and a monthly fee for both Salehoo and Doba). Plus you have to research what others are selling it for and stay competitive. So the profit is actually much lower.
Ebay is where you can sell a lot of your product through dropshipping if you do not have a website. If you do that then you also have to figure in eBay and Paypal fees. Bottom line, do your research before posting a product if you decide to try it out first with these companies to test the waters. You don’t want to sell an item for less than it is costing you after all fees are factored in.
The bulk of consumer goods come from overseas so you should start your search with – dropship china – to find the product at much lower prices.
You should not put “all your eggs in one basket” though. Search for manufacturers who actually make the products you are interested in. Buy in bulk also. If you don’t have a lot of space, keep it small. Buy bulk items that are small volume, low weight and high value so you do not overwhelm your space.
Sourcing Amazon on Ebay – Don’t fall for this. You will get your accounts suspended, one or both. Plus if you post Amazon affiliate items on eBay, Amazon now puts packing list saying Amazon in their packages. So customers will know they went through you > to Amazon > to seller. You’ll be lucky if you don’t get bad reviews on eBay.
Some of the lesser known sites included Tradekey.com and GlobalSources.com. These list manufacturers and suppliers, free to sign up, but most are bulk sellers so these may be for down the line when you have money and space for inventory.
Through searches you should locate B2B websites. This is where you will find wholesalers and dropshippers.
Exporters India http://www.exportersindia.com/ claims they are the “Largest Searchable B2B Marketplace”. A hot seller for importing is the wholesale designer handbags but you have to check quality and if it is ripping off the designers so be careful.
But as with all websites, read the fine print. Find products you like and contact the manufacturer directly. Exporters India have a large collection of companies they work with for importing for you and in the product details it includes manufacturer name at the end of the addess where product is found – Example:
Dog Leash – YKIndustries
Then contact manufacturer directly to get the best price. Until you know your way around importing you may want to test it out first by buying from an exporter and branch out with import/export after you have some experience with it.
Start small using dropshipping and sell on eBay, Amazon or your website.
Also search eBay, Amazon, Alibaba and auction sites for low priced products in your niche to resell. For more detailed information you can use this resource, Dropshipping and eCommerce, that I used originally until I decided I do not have the funds for inventory. I did sign up with Salehoo to sell products on ebay but I will need to wait until I am more liquid to branch into this field.
If you have any questions or comments or you would like to offer your own personal review or feedback please share your thoughts within the comment form at the very bottom of this page.