How to Find a Good Drop-Shipper for Your eBay Business - dummies

How to Find a Good Drop-Shipper for Your eBay Business

By Marsha Collier

Thousands of web companies are aching to help you set up your eBay business. Some of them are good solid companies with legitimate backgrounds, but others are just trying to get your money. These guys hope you don’t know what you’re doing; they’re betting you’ll be desperate enough to send them some cash to help you get your share of the (har, har) “millions to be made online.”

Consider the following when you’re choosing drop-shippers to work with:

  • Skepticism is healthy. When you come across websites that proclaim that they can drop-ship thousands of different products for you, think twice. Thousands? Not many stores carry thousands of items — if they do, they have vast square footage for storage and hundreds of thousands of dollars to invest in merchandise. Most drop-shipping services don’t.

    A much smaller offering of merchandise may indicate that the drop-shipper has the merchandise ready to ship and isn’t relying on ordering it from someone for you.

  • Look out for long lines of distribution. Drop-shippers are often middlemen who broker merchandise from several sources — for example, from other middlemen who buy from brokers (who in turn buy from manufacturers). The line of distribution can get even longer — which means that a slew of people are making a profit from your item before you even buy it “wholesale.”

    If even one other reseller gets the product directly from the distributor or (heaven forbid) the manufacturer, that competitor can easily beat your target selling price. If you’re considering doing business with drop-shippers, verify that they actually stock the merchandise they sell.