A eBay Drop Shipper’s Web Log

Making Money on eBay with Drop Shipping

Posts Tagged ‘drop ship’

Will My eBay Success Last Forever?

Posted by dropshipebayer on May 15, 2008

My eBay success has me terrified!  Why you might ask?  Because now after many months I am really nearing the point where quitting my real job looks like a possibility.

I have been using the methods from the Drop Shipping Sucks guy, Chris, for months now and it is to the point where I really have convinced myself that I am a pro.  But am I just fooling myself?

My eBay feedback just today hit the 600 mark.  The point when I told myself that if I was making over $400/wk I would consider quitting my job.  But, $400/wk is not enough really.  Right now I am used to $350 – $400/wk from eBay but also another $512/wk from my job.  If I stop working my job now I will lose $512 AND my benefits.

However, if I do not quit now I am not sure how much further I can take my eBay business.  I am trying to find as much time as I can but with a full time job it is tough.

So I am asking the advice of my readers, if any still exist.  From my experience now I am very confident I can double my eBay profits to $800/wk in under 2 weeks if I had full time to work on it.  I also feel pretty sure I can get that up to $1500+ per week if I go at it full time for a month or so and then beyond.

But I am very afraid to take this leap.  I could fail and end up with $512 less per week and no eBay business as I spend my time searching for new employment.

PLEASE HELP!

My friend has advised me to take my 2 week vacation from work and try to increase my eBay profits then and if it works then give my 30 days notice.  But I don’t have another vacation coming until 2009 so that is a way off and also, once I get the full time eBay started I don’t want to pull back for 30 days.

ARGH!  YOUR ADVICE IS APPRECIATED.

Posted in Drop Shipping Sucks, eBay Stories | Tagged: , , , , , , , | 7 Comments »

Drop Shipping Didn’t Work for Me on eBay and It Looks Worse Now!

Posted by dropshipebayer on February 14, 2008

Here is a copy of an article Chris sent me via email.  Well, he sent me a link to an article.  But said I could copy and paste it in my blog, so I did.  I also made the link my affiliate link so please if you buy the Better Sources guide Chris sells use my link and I will make a little money.

Here is the article.

If you are considering using dropshipping to supply your eBay auctions with products then this article might change your mind and send you in the right direction…

Dropshipping is terrible for eBay businesses!

What is dropshipping? Dropshipping is a method of buying-and-selling that requires very little money upfront and very little effort. In theory.

Here is how dropshipping works on eBay.

You look through a dropshipper’s catalog to find products you want to sell on eBay. Then, you post the products as auctions or buy it now listings on eBay. If the product sells, you collect the payment from the buyer and forward the order on to the dropshipper, using your eBay customer’s payment to fund the transaction. The dropshipper then send the product directly to your eBay customer.

The money you have left is your profit.

The profit is the difference in price between what you pay the dropshipper and what you sell the product for on eBay. So if your dropshipper sells the Nintendo Wii for $230 and you sell it on eBay for $250 have $20 in profit. However, to determine your actual profit you need to include and deduct your eBay fees, PayPal fees, etc. So your final profit is under $20 using the example given.

Why is dropshipping bad for my eBay business? Let me start by saying “bad” is an understatement. Dropshipping is not bad, it is deadly. Dropshipping makes no sense in the eBay marketplace… Just think about it!

Dropshipping is based on the concept that you can get just one of an item and pay near wholesale price. But if you just think about it, that doesn’t make any sense. If we look at how the wholesale industry works it will be obvious.

The wholesale industry works on quantity. Wholesale is all about bulk. When a huge company, such as Wal*Mart, places an order it is in huge quantity (to fill all of their stores). I’ll make you an example using dvd players…

Wal*Mart wants to order 5000 ZIP-ZAM DVD PLAYERS which retail for $105 each. Wal*Mart plans to sell them for a little under retail at $98 each. So, they contact their wholesale distributor who offers them a price of $86 each. Wal*Mart places the order and everyone is happy. But…

Using dropshipping you cannot expect to get that DVD player for anywhere near $86. The distributor offered Wal*Mart the $86 price because of the quantity they were agreeing to purchase. At the $86 price the distributor is only profiting $5 per DVD player. But that is ok. One sale of 5000 units to Wal*Mart is $25,000 in profit. But you want just one, and a $5 profit sale is not going to do.

You have to look at it from the dropshipper’s perspective. If a dropshipper had a really hot product — why would they sell it to some small businesses for very little profit? Anyone using dropshipping is not going to sell huge quantities (or they would use wholesale)… So what is in it for the dropship company? The dropshipper could even sell direct to the public and do much better. They could charge a higher price and probably sell more units. Wholesalers could do this too, but remember, they do not sell one item at a time. They have a completely different business model.

So, when you think about it even a little bit – WHY would any company sell you just one of an item for very little profit? WHAT would be the advantage?

The answer is simple. They do not. The exception to this would be companies that sell large items that most stores do not keep in stock but will special order or very unique specialty items. But in the real world; in the EBAY world, dropshipping will cost you much more than wholesale price. Since eBay is a low-price marketplace, this means that often the dropshipping price is MORE than the eBay price.

eBay is a very competitive marketplace and the profit margins with dropshipping are just too thin to allow anyone to actually make a good living with this method of product sourcing.
But even if you could find a good product with a high profit margin, you cannot use dropshipping’s main advantage. You can no longer sell the item on eBay and then use that money to buy the item from the dropshipper.

You see, dropshipping is about getting paid first and then using that money to buy the product and have it shipped directly to your eBay buyer. So, you list an item on eBay then someone buys it. Then you use the money they paid you (though PayPal) to buy the item, which the drop shipper then ships directly to the buyer.

YOU LIST THE ITEM
YOU SELL THE ITEM
BUYER PAYS YOU FOR THE ITEM
YOU USE BUYER’S PAYMENT TO BUY THE ITEM FROM THE DROP SHIPPER
THE DROP SHIPPER SENDS THE ITEM DIRECTLY TO YOUR EBAY CUSTOMER

eBay’s recent policy changes will make it nearly impossible to start with dropshipping. One of the major benefits of dropshipping has been obliterated by eBay. You can no longer use the buyer’s money to pay for the product you are selling on eBay.

eBay has an new policy in place where they will start HOLDING FUNDS FOR 21 DAYS or UNTIL POSITIVE FEEDBACK IS LEFT! This applies to small sellers, new sellers, and sellers with less than stellar feedback.

Here are the details direct from eBay’s website…

FROM EBAY’S POLICY CHANGE ANNOUNCEMENT:

Occasional holds on payment
27. Which sellers will have their payments held?
In a small percentage of cases where it has been determined the risk of dissatisfied buyers is higher, PayPal may delay release of the payment funds to the seller until the buyer has left a positive feedback or 21 days have passed without a dispute, claim, chargeback or reversal filed on that transaction.

To determine if a transaction may have a higher risk of dissatisfied buyers, eBay reports to PayPal a number of factors, including but not limited to:

Seller’s % Positive Feedback in the last 30 days
Seller’s Detailed Seller Ratings in the last 30 days
Final price for the item
Shipping & handling fee
Seller’s eBay tenure as an eBay member
Seller’s total number of Feedback

29. When will PayPal release the eBay item hold?
PayPal will release the hold when the earliest of the following occurs:

the buyer leaves positive feedback,
3 days after confirmed item delivery* or
21 days without a dispute, claim, chargeback, or reversal filed on that transaction.

* This applies to US domestic transactions that are shipped by USPS or FedEx and either (i) use PayPal shipping labels to ship items or (ii) upload tracking information to PayPal via the transaction details page.

So, now assuming you are a newer eBay seller (and if you’re established why on earth would you be considering dropshipping) you can not use the money they pay you to complete the transaction as it will be held.

You must use your own money to complete the drop ship order as the funds will not be released for 21 days. Seeing as this “pay only after you sell” feature was one of the best things about the dropshipping method of product sourcing there is really no reason whatsoever to use dropshipping any more.

While this might have you upset. I think it is a blessing in disguise. This will undoubtedly put a dent in the business of the handful of dropship sourcing companies that have made a fortune preying on eBay business hopefuls.

Dropshipping doesn’t work on eBay. It didn’t before and it definitely will not now!

If you are interested in buying products in a method similar to dropshipping (but that actually can help you profit) please visit my anti-dropshipping website at http://www.dropshippingsucks.com/sale/id-nohop

Good luck and no matter what you try remember… If it sounds too good to be true, it is!

Hopefully you enjoyed the article.  I liked it but found it a little hard to follow.  The gist is that eBay has added a 21 day hold to your money.  So, now if you wanted to use drop shipping because you didn’t have a dime to spend on products you can’t really use the buyer’s money anymore.

Although I do not use drop shipping I sure hope this doesn’t happen to me.  I am not “established” yet so they could hold my money.  =(

Wish me luck!

Posted in Drop Shipping Sucks | Tagged: , , , , , , , , , | 2 Comments »

eBay “Experts” are calling about the amazing new drop shipping secret!

Posted by dropshipebayer on January 30, 2008

I got a call today, not sure where they got my information but I am guessing it was DOBA.  It was from the “Auction Training and Profit Center” in Utah.  Couldn’t find much information on them when I looked on Google, but here is how the call went down.

The phone rings, I pickup.  There is a guy on the phone who asks “This is Paul Ruben, Am I speaking with the future eBay power seller?”.  Huh?  Was this someone who was reading my blog?

Well, right after he introduces himself and I introduce myself he starts into a heavy telemarketing script.  He asks how much eBay experience I have and how much time and money I have put into eBay so far.  I give him some short answers and the next thing he says really catches my attention.

“You’ve been doing it all wrong.  You should be making thousands per week by now, what do you think has been holding you back?”

I continue to tell him that I am new and that I am just experimenting until I get some solid cashflow so I can grow larger.  He then inquires how much cash I have available for my eBay business and if I have any credit cards to use.  I explain my cash on hand and my credit card senario to him and he continues.

He jumps into a speach about how we all need guidance and personal attention when getting started in a new business.  I told him that I couldn’t agree more and that I have been looking for a mentor for a little while and am a little frustrated because I want to start moving a little faster.

We then discuss how much a good mentor is worth and he agrees with me when I explain that it depends on what the mentor can provide.  He asks why I have not used a mentor yet, again with a “what is holding you back?”.

I explained that the mentor I wanted to work with (Chris Bernard) had suggested I keep going at my current pace until I had enough savings to afford to buy more products and really launch a complete business.  The mentor (Chris) explained that before I pay for mentoring, I needed to have the money to afford what he would recommend I buy.

“I am about to blow your mind!  What you be able to accomplish, how much money would you be able to make if I told you that you could have a personal mentor AND easily afford all the products you want.  You can sell thousands of products a day no matter what your budget!  How does that sound?” said Paul who was almost giddy at this point.

I must admit, being a bit of a novice still I suppose, my first thought was WOW!  That sounds great!  But the next words out of Paul’s mouth would make me realize once again the truth that I already knew.  There is no magic potion, no golden egg.  What did Paul say?

“Your mentor is going to teach you about a little known method of buying products to sell on eBay.  A secret that all of eBay’s top power sellers use to make huge amounts of money each month.  And, you’re not going to believe this, you don’t have to buy a single product until after it has already sold on eBay!  What do you think about that?  How much money could you make if you had access to unlimited products, had absolutely no risk, and didn’t need a single penny to invest?”

I may be a bit slow, but at this point I knew exactly where Paul was going with this.  “Do you mean drop shipping?”

 Paul quickly jumps on and replies “You’ve heard of it?  Great!  Then you probably already know that it is the hottest way to make money on eBay.  There are so many people making an absolute fortune on eBay with drop shipping, everyone wants to get involved!  So if you knew about drop shipping, why haven’t you gotten started yet?  What is holding you back?”

Now I was really laughing to myself.  He JUST SAID that I am going to learn a big secret (drop shipping).  Now he is saying that SO MANY PEOPLE are doing it!  Is it a secret or are so many people doing it?  But I was really curious so I indulged him.  I do feel a little badly about it, but I couldn’t help myself.  I wanted to know what he was selling exactly.  So I told him that I had tried drop shipping a little bit but that I gave up because it seemed like it would be too hard for me.

“You know what Drew, it sounds like you are really ready to get to the next level on eBay.  Most people I talk to have no experience and have no idea what to do to get started.  You sound like you have a very good start and are really just looking for someone to help answer your questions and maybe help you find some good products.  If you have a few minutes I am going to see if Mike is available to talk to you.  He’s been coaching eBay sellers for years.  I will explain to him that you have some eBay experience and just need some advice.  He can answer any questions you have and help you out.”

My first though was, how much is this going to cost me?  “We’re all about helping people out here.  Let me see if I can get Mike on the line and he will answer any questions you have for free.  He’s a great guy, he will be excited to talk to someone who is already so close to becoming a full time eBay seller.”

There is a little more talk then I am put on hold with some music while Paul gets Mike on the phone.

“Mike, I have Drew on the phone and we’ve been talking for a while.  Drew has already been making pretty good money on eBay but would like to make more of course.  I told him you would be happy to answer some questions for him and get him on his way.”

Mike then takes over the call and Paul disappears into telemarketer-land.  I am very skeptical but also kind of excited thinking maybe I was going to get some good FREE mentoring.  Mike starts talking about his eBay experience and how many people he has made into eBay power sellers and then asks that magic question “So, what has been holding you back?”

It seems like we relive the same conversation I just had with Paul.  Now, time for me to ask my questions.

“Will having an eBay Store increase my sales, or should I wait until I have more products?”

Mike’s answer, “Let me tell you about our program.”

Mike goes on and on about the value of a mentor and he keeps asking ME questions about what I could do if I instantly had the knowledge of all of eBay’s top sellers and all of their sources, including thousands of products I could sell without ever even have them in my hands.

This call has taken over 40 minutes now and my curiosity has started to fade.  I just want off the dang phone now.  Mike continues and finally he asks “How much would that be worth to you?”

Having missed the last 5 minutes of what he had said because my mind had wandered far elsewhere and also being a little annoyed at this point I said with a small bit of scarcasm “ten million dollars”.

Mike replies “great, would you like to put that on your Visa or Discover card?  Just kidding Drew.  But you are right, having your own personal mentor has almost unlimited value.”

Mike then drones on for another 5 or so minutes.  “We offer three levels of mentoring.  Our basic level is $12,600.  It is for people who have little to no experience and need coaching on everything from setting up their eBay account to learning what feedback is and how it affects you.  As Paul told me, you are way beyond that already.  Our second level is our intermediate level.  This is the level that would be perfect for you.  We assume you already have your eBay account, PayPal account, and know your way around eBay pretty well.  We’re going to focus on helping you find products that you don’t need any money to sell, creating listings on eBay that get higher bids, and turning your little eBay success into your huge eBay fortune.  Our intermediate package does include unlimited phone coaching and it is just $9,400.  The great thing about it is I can split your payments between two or three credit cards.”

Shocked by the amount of money they want for someone to tell me to try drop shipping, which I would pay NOTHING for, I quickly and firmly say that I cannot afford that.

“Well Drew, if we put that on your credit card the monthly payment will be under $300.  You can afford $300, can’t you?”

Since when is $300 a month, just $300.  Maybe I can afford $300.  But that doesn’t mean I can afford $300/month.  That is more than my car payment!  I let him know that I simply cannot afford it and that this doesn’t sound like something I can do.

“Let me check on something Drew.  Can you hold on for a minute?”

I tell him that I really have to be going.  “I’ll just be 30 seconds.” Mike insists, so I say ok.

“What I am going to do for you is this.  I am going to cut out the give you the advanced level price but on this form I submit for the coaching I am going to fill it out as intermediate.  This way you will get the full intermediate level of coaching and all the tools but will only pay the advanced level price.  If I can do this for you would you want to put it on your Visa or do you want me to split the payment between a couple of cards?”

Ummm, he didn’t even tell me the price of the “advanced level”.  So, I bit and asked “How much does it cost?”.

“$6,700.  For this price, of course the unlimited phone coaching is normally not included.  Our advanced level clients usually only need 10 – 15 hours of phone coaching.  But, I am going to charge you for the advanced level but when I fill out the form I will put it as intermediate.  You will still get unlimited telephone coaching and all of the tools and sources.”

I of course respectfully decline.  Mike then asks when he can do to get me on the right track to becoming an eBay power seller.

I HANG UP THE PHONE.

I was so tempted to send them to the dropshippingsucks.com website and say “can you tell me how drop shipping will work for me when there are all these problems” but I thought it would be better just to stop wasting their and my time.

Although I do think that if Chris never mentors me I will eventually choose another one, these guys will never work!  They talked in circles, offered no new insights, and were planning on recommending drop shipping.  I am guessing they were going to recommend DOBA.  That is a guess.

That is my telemarketing story.  Now, back to real business.  Wish me luck!

Posted in DOBA, Drop Shippers, Drop Shipping Sucks | Tagged: , , , , , , , , , , , | 8 Comments »

I want to hear your stories about drop shipping and eBay!

Posted by dropshipebayer on January 26, 2008

I decided to try something new today.  Since I have started getting a few comments now I thought I would ask you for your experiences using drop shipping on eBay.  Some of you may have good experiences, most of you probably have some drop ship nightmares to share.

If you read through the history of my blog you will see that I started out with a drop shipper called DOBA and have since dropped drop shipping completely and am currently using the methods taught at “Drop Shipping Sucks“.

If you have some good and bad stories about your drop shipping experiences, especially when dealing on eBay, let me know them and I will publish them here.

My status is still strong.  I have recovered from my telescope selling nightmare where I sold a telescope for $1 on  a buy it now auction.  Ooops!

Thanks in advance for your comments and drop ship stories.  Wish me luck!

Posted in DOBA, Drop Shippers | Tagged: , , , , , , , , | Leave a Comment »

How much is an eBay mentor worth?

Posted by dropshipebayer on January 8, 2008

Ok, I am doing well on eBay.  Nothing to quit the day job over but I feel I am right on the verge of making big money and have this nagging in my head that says if I had a mentor I could just be crusing.  I have talked to a company that offers mentoring for almost $3500!  That is just too much for me now.

Also, they brought up drop shipping.  One of the first things they talked about was how exciting and easy it was to make money on eBay with drop shipping.  No way.  I am not going to fall for that again.

I really want to contact Chris from www.dropshippingsucks.com and offer him some money to mentor me personally.  How much do I offer to pay for this?  What mentoring is best?  On demand on the phone?  Set times?  Just IM all the time?  I am going crazy with the possibilities and getting frustrated too.  I know I am just an inch away from BIG TIME success but I cannot go fast enough.

I guess I will contact him and have him make an offer.  He has got to be so sick of me by now.

WISH ME LUCK!

Posted in Drop Shipping Sucks | Tagged: , , , , , | Leave a Comment »

This is getting ridiculous. But there is some good news!

Posted by dropshipebayer on December 7, 2007

Ok, this is getting crazy.  I have now searched around Salehoo for a few hours and contacted many of the wholesalers and visited their websites.  There is really no obvious product to sell that will turn a profit on eBay.  Yuck!  I do like what Salehoo offers much better than DOBA though.  Also, the DOBA guys tried to pressure me into stuff on the phone and I was not comfortable with that at all.

As I mentioned I also bought the Drop Shipping Sucks guide which I have now read the first several pages of and I must say.  I am excited again!

This has some good and really different information.  I am not sure if I will be able to profit on eBay yet but it does look that way!  I must admit, the guide was nothing like what I thought it would be.  I thought it was going to be about wholesalers that sell on consignment or something, maybe getting credit with wholesalers so you didn’t have to pay for the products first.  It is not.

I will let you know how it works tomorrow if I can or cannot find some products that will make money on eBay.  I am hoping to turn my -$166 into +$166 over the next week.  Wish me luck!

Posted in Drop Shippers, Drop Shipping Sucks | Tagged: , , , , , , , | Leave a Comment »

Quick Salehoo Update and Drop Shipping Sucks

Posted by dropshipebayer on December 7, 2007

Well, I do like Salehoo, there are some really nice people there.  I am not sure yet about the profit potential because after my bad experience with the products at DOBA I am not sure I am ready to take any leaps of faith.

I have also just ordered the Drop Shipping Sucks guide but it has not arrived yet although the site did say “instantly” so I am wondering if it is not some kind of a scam.  It has only been under 10 minutes so maybe I am just a little impatient.

So far, $166 invested in wholesale/dropship programs and eBay fees.  It is actually more, but I have made some back, well I should say lost less.  So my total loss so far is $166.  If I get to the $400 mark I am going to quit.

I hate setting a negative goal for myself but at this point it is necessary.  I don’t want to waste too much time as you can tell by the rapidness of these posts and my changing and finding new programs.  But I cannot afford to waste too much money either.

Check back shortly for my Drop Shipping Sucks review.

Posted in Drop Shippers, Salehoo | Tagged: , , , , , , , , | 1 Comment »

Day 2: Time to Move on to Another Source

Posted by dropshipebayer on December 7, 2007

Well, I have moved on to another source that looks promising, Salehoo.  And so far, so good.

Salehoo does have some nice forums that have already been helpful but I think the search is a little weak.  I am finding many of the same drop shippers that were in DOBA.  However, they also offer links to some wholesalers who have some decent prices but still nothing that seems like it will be a big success on eBay.  So I am more optimistic but still a tad frustrated.

I am also going to try that drop shipping guide since it is only $35 but I am not quite sure what it is so I will let you know in a further post.

Wish me luck.

Posted in Drop Shippers, Salehoo | Tagged: , , , , , | Leave a Comment »

Day 1: Already Trouble in eBay Paradise

Posted by dropshipebayer on December 6, 2007

Well, with excitement and motivation I started this blog and I was going to take over the ebay world using the simple but effective concept of drop shipping.  Opps!

So far and not so good.  I have been looking through the DOBA catalogs now for some time and cannot find anything that is selling for more on eBay than it is through them.  Although it is too early to give up I must admit that the excitement of yesterday has melted into the apprehension of today.  I am starting to rethink my plan.

I have already started to look for other options.  One would be to use DOBA and create my own website, the other is to look for other drop shippers.  Though a google search led me to a site called Drop Shipping Sucks which is trying to sell me some guide but the information they post about drop shipping does seem to make sense.  If that is the case then drop shipping makes no sense.  ARGH!

Well, I am not giving up on drop shipping yet!  Maybe in an hour though.  I am becoming impatient with the whole thing.  Stupid me, I thought this was going to be a cake walk.

It also appears that DOBA has some bad press on the Ripoff Report.  I hope they don’t try to charge me even if I cancel within my trial period.  But so far, other than not finding any products I can profit with, I have had no problems.

Posted in DOBA, Drop Shippers | Tagged: , , , , , , | Leave a Comment »

 
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