Dodgy Dropshippers and How to Stop Them Wrecking Your eBay Business

Dropshipping is a fabulous basis for operating an eBay business.  But there is a potentially big problem to consider, namely that competition can be disproportionately higher using major big name dropshipping companies than using your own exclusive suppliers.  

These are the main problems confronting inexperienced sellers:

*  There are countless unscrupulous middlemen posing as dropshippers, who charge a fee to enter their site, where you’ll find poor quality products, highly priced, and available cheaper elsewhere.  Many so-called ‘Dropshippers’ earn purely from fees you’ll pay to enter their site, they are often hefty fees, and there’ll usually be additional high profits charge for products supplied to your customers.  Some also charge exorbitant handling fees and unrealistically high postage and packing costs.

*  The worst of these people are middlemen, sometimes wholesalers, who buy goods from other suppliers, often end-of-lines, damaged and inferior goods, which they pass on at a profit to those unfortunate enough to join their ‘Dropshipping Programme’.  That said, there are some very good wholesale and dropshipping resource sites available, which do charge a joining fee, but take no part in product sales or delivery.  These companies charge a joining fee based on their company having sourced and checked companies listed at their sites, they do a good job, it’s hard work which must be regularly maintained. 

*  Profit margins can be low for eBay sellers working with small dropshipping companies.  Typically the biggest discounts from manufacturers go to larger volume resellers and dropshippers who pass their discounts to you.  Using smaller dropshipping companies you might pay much more per unit of product than by contacting manufacturers direct.  Some manufacturers refuse to deal with individual resellers like ourselves but many will offer low volume quantities at wholesale price.  For a fast selling product it could be worthwhile buying small quantities from manufacturers direct.

*  Sadly, it’s a fact that many business owners care more about money than customer care and this can reflect badly for you, in the form of buyer complaints, poor quality products, long delays between customers paying and receiving their goods.  The onus is on you to take care of your business, and your customers, so be as careful picking dropshipping partners as you are planning all other aspects of your business.

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