5 Reasons Not to Use Drop Shipping on s

Every day I get people asking me why drop shipping is not good for okay and every day I give them the same list of five reasons. So, I thought I would post it as an article so everyone can learn. Here are the 5 reasons okay sellers should avoid drop shipping (in reverse order).#5 - Out of Stock Equals Bad FeedbackDrop shippers often run out-of-stock on popular items. This means that after you sell the item on okay and then go to your supplier to have the item drop shipped you learn that the item is not in stock. You then have to tell your buyer the bad news and will usually get some bad feedback in return. The okay forums are filled with sellers who have been destroyed by the bad feedback they received by trying drop shipping. They are also filled with geplaints from buyers who did not receive the item they ordered because the seller was using a drop shipper -- and after the sale informed the buyer that the item was not available.#4 - PayPal Will Hold Your FundsAbout a year ago, in January of 2008, okay and PayPal issued some new policies. One of which is to put a HOLD on funds. Here is the quote from okay's policy:"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."Any new okay seller who tries using drop shipping as a method for sourcing their products will find that they cannot access their funds until after the product has arrived at their customer's door. This eliminates one of the most appealing aspects of drop shipping - the ability to sell a product and THEN use the buyer's payment to fund the purchase. With PayPal holding your money for 21 days this will not be possible.#3 - Direct from the Source gepetitionThis is a relatively new phenomenon that has gee about by the recent explosion of "direct from China" drop shippers. Simply put, this means that many of these drop shipping gepanies are actually selling the items on okay directly themselves. They are "double dipping". While they provide a website that will drop ship products to your okay customers direct from China, they are also selling the same products on okay themselves. To witness this one only needs to look in the electronics category on okay. Many of the listings have the item location show Hong Kong or some other location in China. Yes, the drop shippers themselves are gepeting with their customers.#2 - Profit Margin is Below $0That is not an error. The profit margin you will face when using drop shipping to sell on okay is most often zero. Nothing. Nada. In fact, most people who first try using a drop shipper to supply their okay products end up getting frustrated and crying "the price my drop shipper is selling the product for is MORE than the price the product is selling for on okay." And they are correct. You see wholesale is all about buying in quantity. When you use drop shipping you are buying just one of an item and cannot expect a wholesale price. Now why paying a bit more for an item may not be a big deal if you're selling it for top dollar at your local store, it is a HUGE deal when trying to sell on okay. okay is a place people go to get a deal. They do not want to pay full retail price, and chances are they can find the item at a rock bottom price if they just look around okay for a bit. Because even if you cannot sell an item for the lowest possible price (because you are using drop shipping), there are thousands of other okay sellers who can. So it is true. The price you get from your drop ship supplier will often be more than the product sells for on okay.#1 - Drop Shipping Does Not Work on okayConsidering the other four reasons not to use drop shipping when selling on okay this might seem obvious. And it should be! The bottom line is that drop shipping and okay are a toxic gebination. While okay is the place to sell products to people who want a deal, drop shipping is the way to buy products at the highest possible "wholesale" price. And, while your drop shipper may offer thousands of products -- they probably have thousands of clients like yourself who are also listing the items on okay. It simply doesn't work.OK, OK... Before you get all mad, let me add that drop shipping can (CAN, not DOES) work on okay if you have spent a long time establishing a rapport with a wholesaler who is then willing to give you a true wholesale price on items that they agree to drop ship. This however will take time and also you will need to make some larger purchases from that wholesaler first to show that you can sell in the volume required to make it worth the wholesaler's while to drop ship for you.Well, I hope I have convinced you to stay away from drop shipping when it gees to selling on okay. For more information on why drop shipping on okay is a bad business decision you can visit www.DropShippingSucks.ge (yes, Drop Shipping Sucks) and read the page.That's all for now and remember the age-old wisdom. If it sounds too good to be true, it usually is. This is definitely the case when it gees to okay and drop shipping.