Each day I get individuals - http://Search.Usa.gov/search?affiliate=usagov&query=individuals asking me why dropshipping is not perfect - http://www.savethestudent.org/?s=perfect for eBay and every single day I give them the same summary of 5 reasons. So, I thought I would post it as an article and so everyone can learn. Allow me to share the 5 reasons eBay sellers must stay away from dropshipping (in reverse order).
#5 - Out of Stock Equals Bad Feedback
#5 - Out of Stock Equals Bad Feedback
Dropshippers often run out-of-stock on popular items. This means that after you sell the item on eBay after which go to your supplier to have the item dropshipped you learn the product isn't in stock. After this you need to tell the buyer of yours the terrible news and will often get some poor feedback of return. The eBay forums are filled with sellers who have been destroyed by the bad feedback they got by trying dropshipping. They are in addition filled with issues from customers who did not receive the item they ordered because the seller was using a dropshipper -- and after the sale informed the wholesale formula pdf ( click homepage - https://www.redmond-reporter.com/national-marketplace/the-wholesale-form... ) purchaser that the shoe was not accessible.
#4 - PayPal Will Hold The Funds of yours
#4 - PayPal Will Hold The Funds of yours
About a year ago, in January of 2008, eBay and PayPal issued some new policies. One of which may be to fit a HOLD on funds. Here is the quote from eBay's policy:
"In a small fraction of cases where it has been identified the risk of dissatisfied buyers is higher, PayPal may put off release of the payment funds to the seller till the purchaser has left a good feedback or perhaps twenty one days have passed without a dispute, claim, chargeback or perhaps reversal filed on that transaction."
Almost any brand new eBay seller who will try making use of dropshipping as a way for sourcing their goods will find that they can't access their money until after the product has come at their customer's door. This removes one of the more appealing areas of dropshipping - the potential to sell a product and then utilize the buyer's transaction to fund the purchase. With PayPal keeping your cash for twenty one days this will not be possible.
#3 - Direct from the cause Competition
#3 - Direct from the source Competition
#2 - Profit Margin is Below $0
#1 - Dropshipping Does not Focus on eBay