Thursday, July 30, 2009

Sorting Through the Dropship Suppliers

There are many challenges associated with getting started down the path to dropshipping. One of the biggest challenges is locating the reputable and reliable dropship companies to do business with. The industry has many shady scam artists and here one day gone the next players. The only goal for these dishonest folks is to do everything possible to benefit as much as possible from unwary people who are just trying to make money selling on eBay without being required to invest huge sums of money to get started. If you are considering dropshipping be extremely cautious. Investigate. Be alert and suspicious. Take your time before you decide on the dropship company to supply you products.

First the good news; there are some dropshippers that have already been 'approved' by eBay. Now the bad news. Virtually everything they have to offer is already being sold on eBay by many other sellers. You'll find the way to success is to do the legwork and investigation to locate your own dropship suppliers. Your only other option is to plan on big-time competition and the smallest of profits - if there are profits at all.

If your plan is to use a dropship supplier for your business, you'll soon discover there is a great deal of difference between dropship suppliers. This will be true even when you are looking at exactly the same items. Your job is to make no assumptions. It is to thoroughly investigate every potential dropship supplier before making any decisions about working with one.

Once you've located a prospective dropship supplier to work with you, start asking questions. How long has the company been in business? How long has the company been doing dropshipping? While you may be willing to deal with a company in a dropship relationship, it's important to know if they have experience, or if working with you will be their first dropship experience. If you are the first to work with a company there is the potential for you to make money selling on eBay. However there are also some very real risks to be considered. It is important to go into the relationship knowing those risks are there, and to monitor and stay in control of every transaction.

Complete your investigation with each prospective dropship supplier before making any decisions. Be direct and to-the-point in your questioning. Typically it is the company that provides quick, professional answers that will do the same should an issue arise in the dropship process. Make sure you have an accurate understanding of exactly what products are available for dropshipping, the costs involved and the timeliness of shipment that can be expected. Start carefully to double-check that performance is as expected. Then build your relationship and business with the company as they demonstrate their good performance can be maintained. That's how you will make money selling on eBay using a dropship supplier.

To Your eBay Success!

Find out more about dropshipping.

Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.

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