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The Down Side Of Using Dropshippers In The eBay Auction Arena!


Ok, let me just say right up front that I am not against drop-shipping! I love the concept. If you are dealing with a particular wholesale drop-shipping distributor that is serving your eBay ambitions well, then hold onto that company with bonds of steel, for truly good drop-shippers are hard to find!

Drop-Shipping sounds like the utopian business model. No up front investment in inventory. You don't have to carry packages to the Post Office, United Parcel, or Fedex. All you have to do is set up your own business, auction, or retail website and advertise the products that the company provides. Once the orders come in, you forward it to the drop-shipper and they send the product directly to your customer.

But, the devil is always in the details. Dropshipping is best suited for a stand alone E-Commerce website, mail order, or catalog advertising venue. If you are considering using a wholesale drop shipper for your eBay auction, then you might want to take a step back and let me provide you with some "points to ponder."

Back ordered products..The reality is that drop-shipping companies run out of product and will be back ordered. eBay bidders purchase product in "real time." They are under the impression that the item you auction, is the item they bought, not a product that is subject to shortages.

One or two customers might be understanding about the situation, but most will not. If you happen to run out of product on a regular basis then your negative feedback rating will go through the roof, and your reputation will suffer.

One way to combat shortages is to buy a pallet of product in advance, and have the drop-shipper store it in their warehouse so that you are assured of an ample supply. This method sort of goes against the idea of Drop-Shipping (buying the product in advance) but if you are selling on eBay, you would be best served by employing this method.

Also, if possible, find a drop-shipper in your area, or within a comfortable traveling distance. If you run into any supply or shipping problems, then you could be on hand to visit the facility, should any shipping or logistic concerns arise.

Fees..Some dropshippers will charge you a sign up, or entry fee of about twenty five to fifty dollars just for the privilege of selling their product. You are also charged a "processing fee" for sending the product to your customer.

The "price for processing" can range anywhere from seven to twenty dollars per item, depending on the type of merchandise you are selling. These expenses, plus eBay fees, can take a big chunk out of your bottom line. Finding a product that can bring you a profit, as well as offseting these types of expenses, can be a delicate balancing act.

Circumventing your customers..While I do not believe that this is a pervasive practice among drop-shipping companies, anecdotal evidence has suggested that some unscrupulous enterprises can cut you out of the sales loop. They could they easily substitute your return address for their company logo, selling directly to your customers.

Market saturation..One of the largest wholesale drop-shippers in the county is the B&F System, BNFusa.com. A lot of eBayer's started selling their products, one in particular, called Giovanni Navarre leather jackets. At first, it was a profitable item. After a while, everyone started selling the same product. Too much of the same supply, creates market saturation, ultimately destroying profit potential for the seller.

The Giovanni Navarre leather jackets are still being sold on eBay today, but I doubt that they still provide a very profitable return for the seller. Even though B&F carries over 500 products in 14 different categories, they are intimately familiar to the eBay community. You could probably make a great profit from just about any B&F product if you were to sell them off line, and out of the auction arena.

When a company becomes too well known to the general public it becomes almost impossible to make money from products that have flooded the marketplace. In addition to finding a drop-shipper who is close to home, it might be a good idea to find a DS company that is not well known to the eBay market, or who's products have not been scattered all over cyberspace.

These days however, it is hard to find drop-shippers that will cater to the smaller seller. Most will find it more profitable to sell in volume than by the piece. The larger wholesale dropshipping distributors are used by retail catalog operations. To get involved with the larger operations, you would have to be doing a tremendous sales volume.

If you still want to pursue drop-shipping as a source of supply for your eBay auction, then I would suggest that you read other opinions, and become as educated as you can about the drop-shipping company you do business with.

A good and inexpensive start to finding drop-shipping companies is the Drop Shipping News: http://www.drop-shipping-news.com . Remember, when it comes to eBay auction selling, "own what you sell." Never leave customer service, or your feedback rating in the hands of other people!!

Robert C. Potter is a wholesale and retail surplus products specialist. He is the author of "The Ultimate Guide To Products For Resale!" Over 300 Wholesale & Surplus Supply Sources For eBay Auction Sellers, E-Commerce Websites, Flea Market Vendors, and Retail Store Owners! You can find his 160 page ebook at: http://www.productsforresale.com.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Thu. August / 18 / 2022

DNR hosts confiscated equipment auctions | Community | hometownsource.com - ECM Publishers
DNR hosts confiscated equipment auctions | Community | hometownsource.com  ECM Publishers

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Court allows pause on drilling auctions, but climate law may not  Energy News Network

Zoo auctions orangutan art as NFTs, $550 starting bid for first-of-its-kind conversation effort - Fortune
Zoo auctions orangutan art as NFTs, $550 starting bid for first-of-its-kind conversation effort  Fortune

New Chile power auctions needed to meet dema... - BNamericas English
New Chile power auctions needed to meet dema...  BNamericas English

Children's remains found in suitcases bought by family at auction, New Zealand police say - CNN
Children's remains found in suitcases bought by family at auction, New Zealand police say  CNN

1974 Bricklin SV-1 Is Our Bring a Trailer Auction Pick of the Day - Car and Driver
1974 Bricklin SV-1 Is Our Bring a Trailer Auction Pick of the Day  Car and Driver

Tax Compliance: Understanding Tax Issues With Auctions - Tax Authorities - United States - Mondaq
Tax Compliance: Understanding Tax Issues With Auctions - Tax Authorities - United States  Mondaq

Will The Spring Case Tourbillon Become The Most Expensive George Daniels Watch Of All Time? - HODINKEE
Will The Spring Case Tourbillon Become The Most Expensive George Daniels Watch Of All Time?  HODINKEE

Memorabilia of legendary L.A. athletes included in massive auction - KTLA Los Angeles
Memorabilia of legendary L.A. athletes included in massive auction  KTLA Los Angeles

Sullivan Auctioneers and BigIron Auctions together allow for growth in online auction market - Geneseo Republic
Sullivan Auctioneers and BigIron Auctions together allow for growth in online auction market  Geneseo Republic

Imperial Palace Casino Equipment Heads To Court-ordered Auction To Cover Debts - Casino.Org News
Imperial Palace Casino Equipment Heads To Court-ordered Auction To Cover Debts  Casino.Org News

This Crocker Could Be the Most Expensive Motorcycle to Sell at Auction - Robb Report
This Crocker Could Be the Most Expensive Motorcycle to Sell at Auction  Robb Report

Idaho auctions 10 Priest Lake lots for $24,542,000 - Local News 8 - LocalNews8.com
Idaho auctions 10 Priest Lake lots for $24,542,000 - Local News 8  LocalNews8.com

Silverstone Auctions Princess Diana Ford Escort Auction - HYPEBEAST
Silverstone Auctions Princess Diana Ford Escort Auction  HYPEBEAST

Buffalo Trace Is Auctioning Off Coveted Whiskeys to Help Victims of the Kentucky Floods - Robb Report
Buffalo Trace Is Auctioning Off Coveted Whiskeys to Help Victims of the Kentucky Floods  Robb Report

Exceptional 1797 Half Dollar in Stack's Bowers Showcase Auction - CoinWeek
Exceptional 1797 Half Dollar in Stack's Bowers Showcase Auction  CoinWeek

Ferrari Dominates the Most Expensive Cars Sold at Car Auctions - MotorBiscuit
Ferrari Dominates the Most Expensive Cars Sold at Car Auctions  MotorBiscuit

DR Congo Opens Up Oil Auctions to Crypto and Carbon Firms - The Motley Fool
DR Congo Opens Up Oil Auctions to Crypto and Carbon Firms  The Motley Fool

PRESS RELEASE: Surplus Auction for the City of Beaumont Starts Tomorrow – Anyone Can Bid - City of Beaumont, Texas (.gov)
PRESS RELEASE: Surplus Auction for the City of Beaumont Starts Tomorrow – Anyone Can Bid  City of Beaumont, Texas (.gov)

Sotheby's to Sell NFT Jewelry Item at Upcoming Auction - JCK
Sotheby's to Sell NFT Jewelry Item at Upcoming Auction  JCK

August 19, 2022: Auction Calendar - Wisconsin State Farmer
August 19, 2022: Auction Calendar  Wisconsin State Farmer

Parting With a Lifetime’s Collection: Legard Farm Auction Showcases Farming History - Loudoun Now
Parting With a Lifetime’s Collection: Legard Farm Auction Showcases Farming History  Loudoun Now

Frank Frazetta Covers Ghost Rider on Tim Holt #17, Up for Auction - Bleeding Cool News
Frank Frazetta Covers Ghost Rider on Tim Holt #17, Up for Auction  Bleeding Cool News

Catawiki Holds Exclusive Auctions Week - Fine Books & Collections Magazine
Catawiki Holds Exclusive Auctions Week  Fine Books & Collections Magazine

The car with Paul Newman's name on it is up for auction - SFGATE
The car with Paul Newman's name on it is up for auction  SFGATE

Magic: The Gathering - Arcane Wizardry Deck On Auction At Heritage - Bleeding Cool News
Magic: The Gathering - Arcane Wizardry Deck On Auction At Heritage  Bleeding Cool News

New England Auto Auction™ Explodes into Two Days of Rare and Collectible Vehicles Crossing the Block - PenBayPilot.com
New England Auto Auction™ Explodes into Two Days of Rare and Collectible Vehicles Crossing the Block  PenBayPilot.com

LUV Institute to celebrate 10-year anniversary with Parade of Hearts auction this weekend - CBS Chicago
LUV Institute to celebrate 10-year anniversary with Parade of Hearts auction this weekend  CBS Chicago

She bought a house on a fledgling auction site. Now she faces over $100K in repairs - CBC.ca
She bought a house on a fledgling auction site. Now she faces over $100K in repairs  CBC.ca

Online Watch Auctions Go Deeper Into Luxury Territory - The New York Times
Online Watch Auctions Go Deeper Into Luxury Territory  The New York Times

Elite Carson City Coins Offered at Heritage Auctions August 22-28 - CoinWeek
Elite Carson City Coins Offered at Heritage Auctions August 22-28  CoinWeek

M&M assets to be sold at auction - Vertikal.net
M&M assets to be sold at auction  Vertikal.net

Auction Draft Strategy for 2022 Fantasy Football - fantraxhq.com
Auction Draft Strategy for 2022 Fantasy Football  fantraxhq.com

Manor Estate in Exclusive River Oaks, Houston to Auction via Sotheby's Concierge Auctions - EIN News
Manor Estate in Exclusive River Oaks, Houston to Auction via Sotheby's Concierge Auctions  EIN News

Auction of Washington Wines raises $4m - decanter.com
Auction of Washington Wines raises $4m  decanter.com

New faces including at Catherine Southon Auctioneers, Olympia Auctions and LAPADA - antiquestradegazette.com
New faces including at Catherine Southon Auctioneers, Olympia Auctions and LAPADA  antiquestradegazette.com

Jackson, Wyoming Estate Bordering the National Elk Refuge to Auction with No Reserve via Sotheby’s Concierge - EIN News
Jackson, Wyoming Estate Bordering the National Elk Refuge to Auction with No Reserve via Sotheby’s Concierge  EIN News

Hitler's watch sells for $1.1 million at Alexander Historical Auctions - The Washington Post
Hitler's watch sells for $1.1 million at Alexander Historical Auctions  The Washington Post

BoG to boost foreign exchange auctions through mining, foreign oil firms - GhanaWeb
BoG to boost foreign exchange auctions through mining, foreign oil firms  GhanaWeb

COSL announces Independence County tax auction results | News | guardonline.com - Guard Online
COSL announces Independence County tax auction results | News | guardonline.com  Guard Online

Brooklyn's Weekly Foreclosure Auctions: Who Goes and Why? - Curbed
Brooklyn's Weekly Foreclosure Auctions: Who Goes and Why?  Curbed

Christiansburg auction company sells ‘holy grail’ of firearms - WDBJ
Christiansburg auction company sells ‘holy grail’ of firearms  WDBJ

What to Know About a Car Auction | Chase - Chase News & Stories
What to Know About a Car Auction | Chase  Chase News & Stories

Brazil cancels A-6 energy tender, might postpone backup auction - BNamericas English
Brazil cancels A-6 energy tender, might postpone backup auction  BNamericas English

The Chemung County real estate auction wrapped up today, here’s what sold - WETM - MyTwinTiers.com
The Chemung County real estate auction wrapped up today, here’s what sold  WETM - MyTwinTiers.com

Online auction will feature rare personal items and never-seen photos of NYC stars and icons - 6Sqft
Online auction will feature rare personal items and never-seen photos of NYC stars and icons  6Sqft

Aveda founder Horst Rechelbacher's art collection heading to auction - Minneapolis / St. Paul Business Journal - The Business Journals
Aveda founder Horst Rechelbacher's art collection heading to auction - Minneapolis / St. Paul Business Journal  The Business Journals

ODOT to hold auction for land in Henry County - Defiance Crescent News
ODOT to hold auction for land in Henry County  Defiance Crescent News

RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS - GlobeNewswire
RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS  GlobeNewswire

Arlington International Racecourse to Hold a Series of Auctions - NBC Chicago
Arlington International Racecourse to Hold a Series of Auctions  NBC Chicago

Southport Fireman's Auction - Boothbay Register
Southport Fireman's Auction  Boothbay Register

Former NBA player Slava Medvedenko auctions championship rings for Ukraine - NBA.com
Former NBA player Slava Medvedenko auctions championship rings for Ukraine  NBA.com

Unique Peoria recreational complex is up for auction. Here are details - Peoria Journal Star
Unique Peoria recreational complex is up for auction. Here are details  Peoria Journal Star

The Art That Inspired Joan Didion Goes to Auction - Hyperallergic
The Art That Inspired Joan Didion Goes to Auction  Hyperallergic

Why Mecum Auctions at the Pa. Farm Show Complex is a ‘rock concert’ for car collectors - PennLive
Why Mecum Auctions at the Pa. Farm Show Complex is a ‘rock concert’ for car collectors  PennLive

Ferrari 288 GTO, an '80s icon, heads to auction - Motor Authority
Ferrari 288 GTO, an '80s icon, heads to auction  Motor Authority

ACV Auctions has hit a speed bump, but its CEO remains cautiously optimistic - Buffalo News
ACV Auctions has hit a speed bump, but its CEO remains cautiously optimistic  Buffalo News

$121m Bonds Sold in Tuesday Auction - Financial Tribune
$121m Bonds Sold in Tuesday Auction  Financial Tribune

KAR Auction Services, Inc -- Moody's upgrades KAR's ratings, corporate family rating at B1; outlook stable - Yahoo Finance
KAR Auction Services, Inc -- Moody's upgrades KAR's ratings, corporate family rating at B1; outlook stable  Yahoo Finance

Hitler's Watch Sells for $1.1 Million at Controversial Auction - Smithsonian Magazine
Hitler's Watch Sells for $1.1 Million at Controversial Auction  Smithsonian Magazine

OpenSea is now hosting a Nakagin Capsule model NFT auction - Archinect
OpenSea is now hosting a Nakagin Capsule model NFT auction  Archinect

Mecum Auctions sets new record for event in Harrisburg - WGAL Susquehanna Valley Pa.
Mecum Auctions sets new record for event in Harrisburg  WGAL Susquehanna Valley Pa.

Daredevil's Takeover of Silver Streak Comics, Up for Auction - Bleeding Cool News
Daredevil's Takeover of Silver Streak Comics, Up for Auction  Bleeding Cool News

Pokémon Pinball In English For Auction Over At Heritage Auctions - Bleeding Cool News
Pokémon Pinball In English For Auction Over At Heritage Auctions  Bleeding Cool News

Here Are the 15 Most Expensive Artworks Sold at Auction Around the World in July 2022 - artnet News
Here Are the 15 Most Expensive Artworks Sold at Auction Around the World in July 2022  artnet News

Twenty-Year Bond Auction Attracts Well Below Average Demand - Nasdaq
Twenty-Year Bond Auction Attracts Well Below Average Demand  Nasdaq

COSL announces Jackson County tax auction results | Newport | jonesborosun.com - Jonesboro Sun
COSL announces Jackson County tax auction results | Newport | jonesborosun.com  Jonesboro Sun

Newman/Haas Racing Is Selling 42 Indy Cars at One Big Auction Oct. 29 - autoweek.com
Newman/Haas Racing Is Selling 42 Indy Cars at One Big Auction Oct. 29  autoweek.com

FirstEnergy Ohio Utilities' Competitive Bidding Process Auction: Information Session for Prospective Bidders on Wednesday, August 17, 2022 - Business Wire
FirstEnergy Ohio Utilities' Competitive Bidding Process Auction: Information Session for Prospective Bidders on Wednesday, August 17, 2022  Business Wire

Kirk Gibson hosting golf outing and auction to benefit foundation for Parkinson's - WXYZ 7 Action News Detroit
Kirk Gibson hosting golf outing and auction to benefit foundation for Parkinson's  WXYZ 7 Action News Detroit

Online property auction in Seneca County begins Friday - Finger Lakes Times
Online property auction in Seneca County begins Friday  Finger Lakes Times

Machinery Auction Merger: BigIron Auctions Acquires Sullivan Auctioneers LLC - Agweb Powered by Farm Journal
Machinery Auction Merger: BigIron Auctions Acquires Sullivan Auctioneers LLC  Agweb Powered by Farm Journal

STORAGE AUCTIONS - Columbia Star
STORAGE AUCTIONS  Columbia Star

Warren Buffett’s art auction benefits Girls, Inc. - WOWT
Warren Buffett’s art auction benefits Girls, Inc.  WOWT

Credit committee lists 8 bonds eligible for Russia CDS payout auction - Reuters
Credit committee lists 8 bonds eligible for Russia CDS payout auction  Reuters

Senators’ new bill expands meat processing to auctions - AGDAILY
Senators’ new bill expands meat processing to auctions  AGDAILY

U.S. launches new 5G mid-band wireless spectrum auction - Reuters
U.S. launches new 5G mid-band wireless spectrum auction  Reuters

Italian painting in auction features collector of Roman ancients - Coin World
Italian painting in auction features collector of Roman ancients  Coin World

HiBid.com Auctions Range from Vintage Comic Books to Gold Bullion Following a $33.4 Million Week - PR Newswire
HiBid.com Auctions Range from Vintage Comic Books to Gold Bullion Following a $33.4 Million Week  PR Newswire

ESAC announces 3rd Annual ArtSquared Online Auction - Fox 10 News
ESAC announces 3rd Annual ArtSquared Online Auction  Fox 10 News

Rowley Auctions accepting consignments for upcoming auction - upnorthvoice.com - Up North Voice
Rowley Auctions accepting consignments for upcoming auction - upnorthvoice.com  Up North Voice

Mint 1952 Mickey Mantle card could fetch record price at auction - ESPN
Mint 1952 Mickey Mantle card could fetch record price at auction  ESPN

Branch County Fair auctions bring in nearly $427900 - WTVB
Branch County Fair auctions bring in nearly $427900  WTVB

Kobe Bryant's Ukrainian teammate auctions championship rings at $200,000 for rebuilding efforts - The Sportsrush
Kobe Bryant's Ukrainian teammate auctions championship rings at $200,000 for rebuilding efforts  The Sportsrush

July 22, 2022: Auction Calendar - Wisconsin State Farmer
July 22, 2022: Auction Calendar  Wisconsin State Farmer

New Sandhills Global Market Reports Show Growing Gap Between Asking and Auction Values Across Equipment and Truck Markets - PR Newswire
New Sandhills Global Market Reports Show Growing Gap Between Asking and Auction Values Across Equipment and Truck Markets  PR Newswire

Eastgate Mall sold at auction - FOX19
Eastgate Mall sold at auction  FOX19

ELITE AUCTIONS Announces August 19 Auction of Historic Mansion & Local Landmark in Suffolk, VA - PR Web
ELITE AUCTIONS Announces August 19 Auction of Historic Mansion & Local Landmark in Suffolk, VA  PR Web

Hotels Continue to Lead CMBS Loan Auctions - Commercial Observer
Hotels Continue to Lead CMBS Loan Auctions  Commercial Observer

Oakland, Macomb county foreclosure auctions move online - Crain's Detroit Business
Oakland, Macomb county foreclosure auctions move online  Crain's Detroit Business

Detroit police auctioning off cars, trucks, RV, and more -- See the auction schedule here - FOX 2 Detroit
Detroit police auctioning off cars, trucks, RV, and more -- See the auction schedule here  FOX 2 Detroit

The Drawing Center 2022 Benefit Auction Art New York - HYPEBEAST
The Drawing Center 2022 Benefit Auction Art New York  HYPEBEAST

Enormous Livestock Auction In Erie County This Weekend - wyrk.com
Enormous Livestock Auction In Erie County This Weekend  wyrk.com

From pit lane to the press, broadcast booth to auction block, Steve Matchett can tell a world of stories. - Monterey County Weekly
From pit lane to the press, broadcast booth to auction block, Steve Matchett can tell a world of stories.  Monterey County Weekly

Sherwood house on 20 acres sells for $482,820, $2 over the lowest possible bid in IRS auction - OregonLive
Sherwood house on 20 acres sells for $482,820, $2 over the lowest possible bid in IRS auction  OregonLive

Skeleton of a Gorgosaurus Sells at Auction for $6.1 Million - The New York Times
Skeleton of a Gorgosaurus Sells at Auction for $6.1 Million  The New York Times

Long-lost Elvis Presley jewelry heads to auction - CNN
Long-lost Elvis Presley jewelry heads to auction  CNN

Shocker Softball Dinner & Auction Set for Sept. 24 - GoShockers.com
Shocker Softball Dinner & Auction Set for Sept. 24  GoShockers.com

Art center seeking pieces for upcoming auction - Kenai Peninsula Online
Art center seeking pieces for upcoming auction  Kenai Peninsula Online

Taiwan plans 100MW floating offshore wind auction - Windpower Monthly
Taiwan plans 100MW floating offshore wind auction  Windpower Monthly

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