Starting up a drop shipping business

[emaill337]

Hey, I am new to the forums doing some researching on drop shipping. Is starting out as a drop shipper a good business move?

Since I am, just starting out I thought I could use a drop shipper and avoid inventory costs. Do people use drop shipping long term or is drop shipping more of a short-term solution?

[MICROmud]

Drop shipping is a good first step for traders. As you said, you do not have to worry abbot inventory since there will be no need to stock merchandise. It is also a lower MOQ.

In terms of long term and short-term business solutions, I would put drop shipping in the short-term category. Traders buy and sell wholesale because that is where they make the most profit.

Drop shippers charge more for those items as opposed to buying in bulk. Meaning the longer, you stick to drop shipping the less money you are going to earn.

[O_OWHISPER]

Yes, starting out as a trader, I think drop shipping is a good solution. Drop shipping is a good way to build up suppliers, customers and experience.

When I first started trading I only used drop shipping and now I have learned how to handle inventory, stock and dealing with wholesalers.

I occasionally drop ship accessory items (headphones i.e.) but I do not think it makes long-term business sense to rely on drop shipping discounts to earn you a profit.

[emaill337]

Using drop shipping as a beginning to a business is how I have understood it.

Though I do see the benefits of using a drop shipper for the longer term, I do not think I would want to use one as my main supplier.

Am I wrong in saying that or do I actually understand it?

[Kittenn00b]

No, you seem to have understood it :) Drop shipping is great but the price is not as low as it would be for a wholesale/bulk order.

Remember to focus on the drop shipper's inventory and make sure it is updated regularly. You do not want to sell an item they do not have in stock.

[emaill337]

How do I get the drop shipper to give me a copy of the inventory?

[MICROmud]

Some drop shippers ask you to register (this may include a fee). Upon registration you will have access to their inventory sheet.

Are you selling on eBay or any other ecommerce website?

[emaill337]

I am going to use eBay for now while I develop my own ecommerce website.

[MICROmud]

If you are still selling drop ship items by the time your website is designed, ask the supplier for automatic updates.

Whenever a customer orders from your website, it would be reflected instantly in the drop shipper's inventory, which can help you avoid a situation where an order was made for an unavailable item.

[coolio0234]

Starting with eBay and a dropshipper is good though it does limit what you can sell.

Not every item is available for drop shipping so do your research first.

[O_OWHISPER]

Yes, item availability is one of the negatives against drop shipping. Suppliers know that they can get more with a bulk order so they do not make all items available via drop ship.

[emaill337]

I am searching for drop shippers currently and believe I have found a couple to try. How do I know which drop shipper to use?

[coolio0234]

I Google every supplier I want to use. Search by their company name and see if there are any mentions of a scam, bad orders or customer complaints.

[MICROmud]

Google and Bing are of course reputable search engines that may help you learn more about a supplier.

Once you find a drop shipper you like, you can see if they have been reviewed on the forum. You may even want to start a thread saying "has anyone used X company before?"

[Fox_idiot]

Awesome tips on drop shipping on this thread!

[emaill337]

Thanks everyone for the tips. I may be back with a new thread asking about specific drop shippers shortly. :)