My Experience with a Drop Shipping Company

I'm sure you've heard of drop shipping, and how many people have used it to make fortunes. Well as far as the fortune part I get a little skeptical. However, I'm sure in some cases it might be a worthy strategy to use at a certain stage of your business. Usually when you get started, because many people hype about it and make you believe that it is a magic formula. The reality is, commerce is still commerce, and they just added an "e" to it! By that I mean, that the same old principles of trade apply even online. Of course, ecommerce has changed the way we do business to an extent, but what it really changed was the medium of communication between buyers and sellers. In this article I want to share my experience with a drop ship type company that promised the dream most of us have, which is to be able to make money independently online and preferably from home. And here is how the story goes!

I was relatively new to ecommerce, and like many people now and at the time, I was excited about the possibilities that the web had to offer. I decided I wanted to sell online and create an extra stream of income besides my full time job. I researched the internet for suppliers to get me started. I was so amazed by the idea of drop shipping, because like many ideas that amaze people, it was easy and promised a lot. I decided I want to sell home decor items, and I started researching for a drop shipper that carries such products. I came across some products that I saw many websites are carrying. Many of them claimed to be wholesalers of this merchandise, but I knew that there is one company that is the main provider of this merchandise. I kept researching until I found the company, and I found out that they charged a fee to become a member and have access to their products at wholesale prices.

I have to admit, I was excited because I felt I found a good source of products to jump start my business. I decided to buy the membership, and I received a package from the company later that included a lot of marketing materials. I started to browse the company products, and I was interested in many of them. I decided to start listing my products on eBay and start making money. I listed some of the products and sold a few, but later came to realize that it is not worth the effort for a few reasons.

First, although the company had very good wholesale prices, I learned that tons of other sellers are using the same company and are competing with me. This created a cut throat environment in the marketplace. To the point that many sellers were selling almost at cost, or maybe were making a few bucks. In addition, the company had a drop shipping fee on orders under a certain amount, and that cut even more into my bottom-line. Second, as I ordered some of the products, I discovered that some of them didn't have decent quality. So, I decided to stop selling those products. I don't know about you, but personally, I wouldn't want to put effort into $2 and $3 profit margins. It would take me forever to make some decent money.

To be fair, I have to mention that the same products that were hard to sell on eBay did ok with face to face selling to neighbors and friends. But that defeats the whole idea of working with a drop shipper. I think if I tried a different sales channel such as swap meets and events, I might have been able to do better; I just didn't have the time and dedication for it. The point is, you have to consider alternatives and try different avenues and see if any of them will work.

Now, I just want to clarify that I'm not totally against the process of drop shipping, but I think there is a better way to approach it. Basically to drop ship products, you have an agreement with a wholesaler to drop ship directly to your customers after you purchase the products. To maximize your benefits from this, you should first find a real legit wholesale supplier that is willing to deal with you. Then you can start ordering and establishing some relationships with them first, and then maybe you can talk them into drop shipping your products for you. This is the right way to drop ship. Many people would just go to the obvious and easy choice of dealing with one of those wholesale scams out there.

In conclusion, I just wanted to share this experience with other people who are interested in selling online, maybe they will learn from it. Basically, here are a few advices, do your homework about your market and decide what you want to sell. Don't forget to establish yourself as a legit business before expecting more than scams. If possible, buy your products in bulk; this is the best price you can get from a supplier, because you are paying for it now. This gives you bargaining power and allows you to cut deals and to make money when you buy. And finally try to avoid highly competitive products and find yourself a niche, that's the best thing you can do for your business. As far as drop shipping products, leave it as a last option, and do it only if the numbers are right for you.

Best wishes for your online and drop shipping ventures

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