If you need a reliable, affordable source of products to sell on eBay, drop shipping is an option that makes sense on several levels. For starters, you gain access to wholesale prices which means you get a bigger slice of profits. In addition, wholesale distributors that offer drop shipping ship their products directly to your customers. This eliminates shipping hassles and storage requirements. What's not to love?
Joining a Network Means Access to Wholesale Distributors
However, finding that reliable source of wholesale electronics suppliers and distributors isn't always easy, especially for home-based business owners. Wholesale distributors don't generally cater to small retailers. That's where joining a drop shipping network can become beneficial. Drop shipping networks have established relationships with wholesale distributors that their members can tap into. Instead of creating small contracts with individual entrepreneurs, wholesale distributors enter into larger agreements with drop shipping networks. In short, the network has collective buying power whereas individual retailers do not.
By choosing a drop shipping network such as Doba.com, you no longer need to find wholesale electronics suppliers on your, set up and negotiate a contract (providing the wholesale distributor will even meet with you), negotiate fees and prices, meet the wholesale distributor's retailer qualifications, and learn the distributor's drop shipping processes. Instead, drop shipping networks provide members with access to dozens, if not hundreds of wholesalers. The pricing, fees, and contracts have been pre-negotiated. In addition, you don't need to meet minimum requirements as you might when attempting to set up a deal on your own. Finally, the process for purchasing and shipping products will be consistent because you will use the network's process regardless of which wholesale distributors you use through the network.
Joining a Network Means Fewer Hassles and Costs
If you've been selling physical products on eBay or other online sites, you're likely familiar with the hassles and costs associated with purchasing, storing, and shipping physical products. If you're not familiar with these hassles, consider this example: You've discovered a hot product to sell on eBay. It's available at your local big box store for $100. It takes you an hour to drive to the store, buy three of these items, and return home. You've spent $300 so far and an hour of your time. Now, you must store these items in your home until they sell. You sell them for $130 plus tax and shipping for a profit of $90 (not counting that one hour of your time). Now, you need to buy boxes, pack the products, and ship them. It takes you another hour and costs you about $10 in shipping supplies. Now your profit goes down to $80 and you've lost another hour. But, at least you've sold the items. Had they not sold, you'd be out $300 and they'd be taking up valuable storage space.
With drop shipping, you pay wholesale distributors only after collecting a higher payment from your customer. Since you're paying a wholesale price, you have a larger potential profit. For example, you may sell the same item as in the example above for $130; however, if your wholesale price was $85 instead of $100, you'd earn a larger profit. Once you place the order, the wholesale distributor then packages and ships the product directly to your customer. Not only can you potentially earn a larger profit, you no longer have a large time investment. Plus, you don't need to store items.
Join a drop shipping network such as Doba.com, get easy access to wholesale distributors, and experience a better way to sell physical products online.
Brett is the author of this article on gaining easy access to wholesale distributors with drop shipping. If you're looking to start an eCommerce store he advises his readers to get started quickly with the help of drop ship products.