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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 Mon. August / 02 / 2021

Qantas auctions off two A380 lie-flat airplane seats - CNN
Qantas auctions off two A380 lie-flat airplane seats  CNN

Allen County Fair comes to a close, livestock auctions scheduled for Monday - WANE
Allen County Fair comes to a close, livestock auctions scheduled for Monday  WANE

Nearly 100 Parcels Of State-Managed Land Available Via Auction - WHMI
Nearly 100 Parcels Of State-Managed Land Available Via Auction  WHMI

County's online tax auction set for Aug. 3 - Sherman Denison Herald Democrat
County's online tax auction set for Aug. 3  Sherman Denison Herald Democrat

Popular Maquoketa livestock auction business finds new owners - telegraphherald.com
Popular Maquoketa livestock auction business finds new owners  telegraphherald.com

As Coca-Cola Auctions Its First NFT, More Brands Are Entering The Metaverse - Forbes
As Coca-Cola Auctions Its First NFT, More Brands Are Entering The Metaverse  Forbes

A slice of Princess Diana's wedding cake is going up for auction - CNN
A slice of Princess Diana's wedding cake is going up for auction  CNN

$42.5 Million Sold Last Week on HiBid.com, with Current Auctions Featuring Rare Coins, Online Retailer Returns, and Christmas in July - PRNewswire
$42.5 Million Sold Last Week on HiBid.com, with Current Auctions Featuring Rare Coins, Online Retailer Returns, and Christmas in July  PRNewswire

A Piece Of Princess Diana's Wedding Cake Is Up For Auction - NPR
A Piece Of Princess Diana's Wedding Cake Is Up For Auction  NPR

A look inside the high-stakes world of weirdly shaped Cheeto auctions - The A.V. Club
A look inside the high-stakes world of weirdly shaped Cheeto auctions  The A.V. Club

Alphonse Mucha steals the show at Poster Auctions International's Rare Posters Auction #84, July 20th - ArtfixDaily
Alphonse Mucha steals the show at Poster Auctions International's Rare Posters Auction #84, July 20th  ArtfixDaily

Goodwill, Heritage Auctions find treasure in video games - Fort Worth Business Press
Goodwill, Heritage Auctions find treasure in video games  Fort Worth Business Press

A bid for better tax auctions | News, Sports, Jobs - timesobserver.com
A bid for better tax auctions | News, Sports, Jobs  timesobserver.com

Bidders Spend a Record $400K at Chincoteague Pony Auction | Maryland News | US News - U.S. News & World Report
Bidders Spend a Record $400K at Chincoteague Pony Auction | Maryland News | US News  U.S. News & World Report

Preview of State Treasure office's unclaimed property auction set for Monday - The State Journal-Register
Preview of State Treasure office's unclaimed property auction set for Monday  The State Journal-Register

Monday Morning Brief for Aug. 2, 2021: Mint plans public auction - Coin World
Monday Morning Brief for Aug. 2, 2021: Mint plans public auction  Coin World

Viral Pakistani meme 'Friendship ended with Mudasir' auctions for $51000 - Dunya News
Viral Pakistani meme 'Friendship ended with Mudasir' auctions for $51000  Dunya News

WATCH NOW: DPA Auctions debuts new, state-of-the-art building in Fremont - Fremont Tribune
WATCH NOW: DPA Auctions debuts new, state-of-the-art building in Fremont  Fremont Tribune

JGB little changed ahead of 10-year auction - Reuters
JGB little changed ahead of 10-year auction  Reuters

Lake frontage, train depot among 97 Michigan properties available in DNR auctions - MLive.com
Lake frontage, train depot among 97 Michigan properties available in DNR auctions  MLive.com

Phillips Auction House Says It Pulled In More Than Half a Billion Dollars in the First Half of 2021, a 25 Percent Increase Over 2019 - artnet News
Phillips Auction House Says It Pulled In More Than Half a Billion Dollars in the First Half of 2021, a 25 Percent Increase Over 2019  artnet News

Encore to hold hat auction for CORE funding - Ashland Daily Press
Encore to hold hat auction for CORE funding  Ashland Daily Press

Best Online Coin Auctions of 2021 - Investopedia
Best Online Coin Auctions of 2021  Investopedia

Broadband Infrastructure Bill Draft: No FCC Auctions, No Symmetrical, $42.5B for Networks - Telecompetitor
Broadband Infrastructure Bill Draft: No FCC Auctions, No Symmetrical, $42.5B for Networks  Telecompetitor

NY auctions off stolen Corvette recovered in Rochester. Here's how much it fetched. - Democrat & Chronicle
NY auctions off stolen Corvette recovered in Rochester. Here's how much it fetched.  Democrat & Chronicle

Canada's spectrum auction raises record $7.2 bln as firms gear for high-speed internet - Reuters
Canada's spectrum auction raises record $7.2 bln as firms gear for high-speed internet  Reuters

Luxury Auction® Scheduled for Luxe Retreat in NY Lake Enclave that's Hosted Multiple US Presidents - PRNewswire
Luxury Auction® Scheduled for Luxe Retreat in NY Lake Enclave that's Hosted Multiple US Presidents  PRNewswire

The Overlooked Artistry of Maurice Whitman's Jumbo Comics, at Auction - Bleeding Cool News
The Overlooked Artistry of Maurice Whitman's Jumbo Comics, at Auction  Bleeding Cool News

The Mystery of Mr. Manhattan in EC's International Comics, at Auction - Bleeding Cool News
The Mystery of Mr. Manhattan in EC's International Comics, at Auction  Bleeding Cool News

Funseekers hold brown bag auction to generate funds - The Steubenville Herald-Star
Funseekers hold brown bag auction to generate funds  The Steubenville Herald-Star

1995 Jaguar XJ220 headed to auction, 1 of 4 painted Daytona Black - Motor Authority
1995 Jaguar XJ220 headed to auction, 1 of 4 painted Daytona Black  Motor Authority

Sotheby's Auctions 101-Carat Diamond, Will Accept Bitcoin, Ether - Bloomberg
Sotheby's Auctions 101-Carat Diamond, Will Accept Bitcoin, Ether  Bloomberg

2021 Fantasy Football QB Auction Values: Dollar projections, rankings for quarterbacks - Sporting News
2021 Fantasy Football QB Auction Values: Dollar projections, rankings for quarterbacks  Sporting News

Heritage Auctions Entertainment & Music Memorabilia Signature Auction - NBC 5 Dallas-Fort Worth
Heritage Auctions Entertainment & Music Memorabilia Signature Auction  NBC 5 Dallas-Fort Worth

U.S. Treasury auctions to provide demand 'gut check' as yields fall - Reuters
U.S. Treasury auctions to provide demand 'gut check' as yields fall  Reuters

DNR prepares to host auctions for 100 parcels of land - UpNorthLive.com
DNR prepares to host auctions for 100 parcels of land  UpNorthLive.com

Community Food Share sets Farm to Table, auction to boost services - Longmont Times-Call
Community Food Share sets Farm to Table, auction to boost services  Longmont Times-Call

HiBid Auctions Generate Nearly $36 Million Last Week, with Jewelry, Rare Coins, and Antique Auctions Now Underway - PRNewswire
HiBid Auctions Generate Nearly $36 Million Last Week, with Jewelry, Rare Coins, and Antique Auctions Now Underway  PRNewswire

Fair week ends with livestock auction - Seymour Tribune
Fair week ends with livestock auction  Seymour Tribune

Bill Russell to auction most of his prized NBA memorabilia - ESPN
Bill Russell to auction most of his prized NBA memorabilia  ESPN

A Senate Subcommittee and the Elusive Liberty Comics #12, at Auction - Bleeding Cool News
A Senate Subcommittee and the Elusive Liberty Comics #12, at Auction  Bleeding Cool News

Goldman, MST in PointsBet shortfall auction - The Australian Financial Review
Goldman, MST in PointsBet shortfall auction  The Australian Financial Review

For auction: Phillips Seafood mansion in Annapolis boasts 7 bedrooms, 8 baths, 1 secret tunnel; most expensive home available in Maryland - Baltimore Sun
For auction: Phillips Seafood mansion in Annapolis boasts 7 bedrooms, 8 baths, 1 secret tunnel; most expensive home available in Maryland  Baltimore Sun

10 Standout Auction Lots on Artsy This Week - Artsy
10 Standout Auction Lots on Artsy This Week  Artsy

Brew at the Zoo 25 silent auction features rock star guitars, animal art - syracuse.com
Brew at the Zoo 25 silent auction features rock star guitars, animal art  syracuse.com

The Return of Captain America in Avengers #4, Up for Auction - Bleeding Cool News
The Return of Captain America in Avengers #4, Up for Auction  Bleeding Cool News

Silicon Labs Announces Intention to Commence a Modified Dutch Auction Tender Offer to Purchase Up to $1.0 Billion of its Common Stock - PRNewswire
Silicon Labs Announces Intention to Commence a Modified Dutch Auction Tender Offer to Purchase Up to $1.0 Billion of its Common Stock  PRNewswire

Christie’s to auction Dallas billionaire Ed Cox’s impressionist paintings valued at $200M - The Dallas Morning News
Christie’s to auction Dallas billionaire Ed Cox’s impressionist paintings valued at $200M  The Dallas Morning News

UK Watchdog Is Mulling Auction Technologies' Acquisition of LiveAuctioneers - MarketWatch
UK Watchdog Is Mulling Auction Technologies' Acquisition of LiveAuctioneers  MarketWatch

Mecum Auctions coming to Orlando with 1,100 cars - Orlando Sentinel
Mecum Auctions coming to Orlando with 1,100 cars  Orlando Sentinel

The U.S. Had a Weak 30-Year Auction Because Long-Dated Bonds Look Pricey - Barron's
The U.S. Had a Weak 30-Year Auction Because Long-Dated Bonds Look Pricey  Barron's

Auction is on hold again for undeveloped Riverside Village lots - WRDW-TV
Auction is on hold again for undeveloped Riverside Village lots  WRDW-TV

Celtics legend Bill Russell to auction off prized memorabilia later this year - Boston.com
Celtics legend Bill Russell to auction off prized memorabilia later this year  Boston.com

Chernin Group-Backed Goldin Auctions Partners With Barstool Sports - Los Angeles Business Journal
Chernin Group-Backed Goldin Auctions Partners With Barstool Sports  Los Angeles Business Journal

The Antiheroic Debut of Doc Samson in Incredible Hulk #141, at Auction - Bleeding Cool News
The Antiheroic Debut of Doc Samson in Incredible Hulk #141, at Auction  Bleeding Cool News

At the Manheim Auto Auction, used-car prices rise to record highs - The Philadelphia Inquirer
At the Manheim Auto Auction, used-car prices rise to record highs  The Philadelphia Inquirer

12 spectacular motorcycles going to auction in Monterey Car Week 2021 - New Atlas
12 spectacular motorcycles going to auction in Monterey Car Week 2021  New Atlas

Town nixes zoning change needed to turn iconic N.J. drag strip into auction site - NJ.com
Town nixes zoning change needed to turn iconic N.J. drag strip into auction site  NJ.com

Selfridge Museum Auctions Warbird Rides to Fund New Aviation Education Center - The Aviationist
Selfridge Museum Auctions Warbird Rides to Fund New Aviation Education Center  The Aviationist

A Huge Collection of Bizarre, Rare Pianos Is Coming to Auction - Bloomberg
A Huge Collection of Bizarre, Rare Pianos Is Coming to Auction  Bloomberg

TREASURIES-Yields hold above five-month lows after solid auctions, before CPI - Reuters
TREASURIES-Yields hold above five-month lows after solid auctions, before CPI  Reuters

Auction of Washington Wines Hosts Annual Auction Plus a Virtual & Live Gala Aug. 10–16 - 425magazine.com
Auction of Washington Wines Hosts Annual Auction Plus a Virtual & Live Gala Aug. 10–16  425magazine.com

Maximizing farm values through auction sales – AgriNews - Agri News
Maximizing farm values through auction sales – AgriNews  Agri News

Ohtani All-Star jersey sets auction record - MLB.com
Ohtani All-Star jersey sets auction record  MLB.com

Remember That Pristine 1995 MkIV Toyota Supra Up For Auction? It Sold For An Absurd $201k - CarScoops
Remember That Pristine 1995 MkIV Toyota Supra Up For Auction? It Sold For An Absurd $201k  CarScoops

Nearly 100 parcels of Michigan land up for auction in August, September - WZZM13.com
Nearly 100 parcels of Michigan land up for auction in August, September  WZZM13.com

Traverse City Police Dept. auctions off lost and found items - UpNorthLive.com
Traverse City Police Dept. auctions off lost and found items  UpNorthLive.com

Off-Roading-Modified 2007 BMW Z4 M Listed for Auction on Bring a Trailer - Car and Driver
Off-Roading-Modified 2007 BMW Z4 M Listed for Auction on Bring a Trailer  Car and Driver

Star Wars Kanan #1 CGC Copy On Auction At Heritage Auctions - Bleeding Cool News
Star Wars Kanan #1 CGC Copy On Auction At Heritage Auctions  Bleeding Cool News

Neal Schon’s 1959 Gibson Les Paul Standard sells for $350,000 in mammoth online auction - Guitar World
Neal Schon’s 1959 Gibson Les Paul Standard sells for $350,000 in mammoth online auction  Guitar World

The Colt Revolver That Killed Billy the Kid Is Headed to Auction This Month - Maxim
The Colt Revolver That Killed Billy the Kid Is Headed to Auction This Month  Maxim

Incredible and iconic 1970 Porsche 917 K race car heads to auction - SlashGear
Incredible and iconic 1970 Porsche 917 K race car heads to auction  SlashGear

Auction Calendar: July 16, 2021 - Wisconsin State Farmer
Auction Calendar: July 16, 2021  Wisconsin State Farmer

Amazing Spider-Man #361 First Carnage Set To Break Records At Auction - Bleeding Cool News
Amazing Spider-Man #361 First Carnage Set To Break Records At Auction  Bleeding Cool News

USA Today Ventures partners with Russo and Steele auctions - RACER
USA Today Ventures partners with Russo and Steele auctions  RACER

Pilbara Minerals' first spodumene platform auction concludes at $1250/dmt FOB Port Hedland - S&P Global
Pilbara Minerals' first spodumene platform auction concludes at $1250/dmt FOB Port Hedland  S&P Global

New auction company at Lake Anna | Local | thecentralvirginian.com - The Central Virginian
New auction company at Lake Anna | Local | thecentralvirginian.com  The Central Virginian

World record for most expensive video game auction is now $1.56 million [Updated] - Ars Technica
World record for most expensive video game auction is now $1.56 million [Updated]  Ars Technica

Hot housing market evident at Harris County's foreclosure auctions - Houston Chronicle
Hot housing market evident at Harris County's foreclosure auctions  Houston Chronicle

Jewish artifacts taken by Nazis in Holocaust seized at New York auction house, feds say - USA TODAY
Jewish artifacts taken by Nazis in Holocaust seized at New York auction house, feds say  USA TODAY

Windows from historic Vicksburg Jewish temple up for auction - The Vicksburg Post - Vicksburg Post
Windows from historic Vicksburg Jewish temple up for auction - The Vicksburg Post  Vicksburg Post

Colombia unveils renewable energy auction schedule - BNamericas English
Colombia unveils renewable energy auction schedule  BNamericas English

Step Inside an Antique-Studded D.C. Apartment, Where Auction Finds Abound - Architectural Digest
Step Inside an Antique-Studded D.C. Apartment, Where Auction Finds Abound  Architectural Digest

The Gun That Killed Billy The Kid Is Going Up For Auction. Starting Bid: $2 Million - NPR
The Gun That Killed Billy The Kid Is Going Up For Auction. Starting Bid: $2 Million  NPR

Canadian 5G auction raises competition questions, again - Telecoms.com
Canadian 5G auction raises competition questions, again  Telecoms.com

Auction Sales Rebound to Pre-Pandemic Levels with Boost from Asia: Report - ARTnews
Auction Sales Rebound to Pre-Pandemic Levels with Boost from Asia: Report  ARTnews

Steve Jobs' 1973 job application is up for auction as an NFT - CNBC
Steve Jobs' 1973 job application is up for auction as an NFT  CNBC

Steve Jobs' job application auction offers real versus NFT comparison - New Atlas
Steve Jobs' job application auction offers real versus NFT comparison  New Atlas

Super Mario 64's Record-Breaking Sale Stuns Industry Experts - NPR
Super Mario 64's Record-Breaking Sale Stuns Industry Experts  NPR

Sisters auction off pigs at the Eau Claire County Fair - WEAU
Sisters auction off pigs at the Eau Claire County Fair  WEAU

Arrowhead projected to go for $20k at Ashland auction reminds locals to check their collection - Ashland Source
Arrowhead projected to go for $20k at Ashland auction reminds locals to check their collection  Ashland Source

Fair's animal auction brings in more than $1.2 million for 4-H'ers - Goshen News
Fair's animal auction brings in more than $1.2 million for 4-H'ers  Goshen News

Did the Bouchard Tug and Barge Auction Achieve the Right Prices? - The Maritime Executive
Did the Bouchard Tug and Barge Auction Achieve the Right Prices?  The Maritime Executive

Princess Diana’s Childhood Bike Is Going Up for Auction - Vanity Fair
Princess Diana’s Childhood Bike Is Going Up for Auction  Vanity Fair

Coca-Cola Auctions Its First-Ever NFT Collectibles on International Friendship Day - The Tokenizer
Coca-Cola Auctions Its First-Ever NFT Collectibles on International Friendship Day  The Tokenizer

352 Lightness Dr., Auburn | Auction Sales | oanow.com - Opelika Auburn News
352 Lightness Dr., Auburn | Auction Sales | oanow.com  Opelika Auburn News

Auction Dilemma: Morgan 3 Wheeler Vs. Polaris Slingshot - HotCars
Auction Dilemma: Morgan 3 Wheeler Vs. Polaris Slingshot  HotCars

Fair closes with in-person auction, champion showcase - Springfield News Sun
Fair closes with in-person auction, champion showcase  Springfield News Sun

Seized San Antonio properties allegedly tied to former Mexican governor heading to auction block - San Antonio Express-News
Seized San Antonio properties allegedly tied to former Mexican governor heading to auction block  San Antonio Express-News

Auburn reacts to planned sports complex; ACD festival still on - WANE
Auburn reacts to planned sports complex; ACD festival still on  WANE

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