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wondering if anyone had experience with joining one of those companies that have stores on ebay?

2007-08-01 01:50:42 · 2 answers · asked by toolate 3 in Business & Finance Other - Business & Finance

2 answers

Not a week goes by without someone asking me about Drop Shippers. Drop Shippers are a good way to go if you don’t mind the business of being in business. What I mean is that you need to consider several things about Drop Shippers.

First, You are not the only customer of the Drop Shipper. You are not among an elite group of 20-50 sellers either. The company couldn’t stay in business with just 20-50 clients. This means that you are selling the same items as hundreds to several thousands of other Ebay sellers. Each of you is hoping for the same sales and probably the same clients – and you all bought the same item for the same price.

Second, if you do actually end up making a sale, there is no guarantee that the Drop Shipping company will have your item in stock when you go to order it and they are not obligated to get the item back in stock just for your one customer, either. You and your customer can end up waiting 6 – 8 weeks or more! In fact, it may end up that you are forced to refund the customer’s money just because the Drop Shipper oversold and didn’t have it in stock when YOU needed it.

This happens because of a simple law. The FTC (Federal Trade Commission) has a rule which says that an item must be mailed within 30 day of PAYMENT. (Ebay subscribes to this rule also, so it's good to know the law on this.) BUT here is the twist: YOUR customer pays you before you put the order in at the Drop Shipper, and therefore you are held to the 30 day rule. THE DROP SHIPPER does not charge you and does not get paid by you until they ship the item out! Because of this, they are not held by the 30 day rule. Their restocking will go at their own pace, and at their own schedule, regardless of your situation. I’m not saying this WILL happen, but it does happen and more often than Drop Shippers will admit.

It's important to realize that the Drop shipper couldn't care less if you make money or not. They only care if THEY make money so why deal with a company that CHARGES you to buy from them? Does Walmart charge you to walk in the door? Membership clubs of this sort charge fees of this sort only to get your money, not to make you money.

2007-08-01 01:58:40 · answer #1 · answered by Marvinator 7 · 0 0

There are a ton of companies out there doing the same sort of thing. The problem is, a lot of times they contact the people you sell to and try to get them to buy their subscription. This means less chance for repeat business for you.
If you do decide to use a service like that, make the best of it. Put your stuff in other places in addition to ebay. Websites like http://www.whyabe.com that give you free small stores, and do not charge you any fees. That way you can maximize the $40 subscription with Doba.

2007-08-01 08:56:34 · answer #2 · answered by Strategic Sourcing Expert 4 · 0 0

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