Advantages and Disadvantages of eBay Dropshipping
There are quite a few sellers who choose to use eBay dropshipping as a way of selling.
This involves forming a relationship with a company that is prepared to ship out their products, directly to the customer on your instruction.
This means that you do not have to keep any products in stock as they will do that for you.
You also do not have to keep packaging materials in stock or worry about wrapping up items and dispatching them – either staying in for a pick up or taking them to the post office.
These advantages certainly make eBay dropshipping sound like an easy option for selling things on eBay.
There is no doubt that it is easier than having to do all of these jobs yourself and a great option for anyone who is thinking of making some extra money in their spare time and so do not have a lot of time to commit to it.
However, there are some disadvantages. Firstly there could be a problem if the company runs out of stock and have nothing to send to your customers.
They may not send them out very quickly or may not package them up very well.
All of these problems could lead to customer dissatisfaction and could affect your eBay feedback and your reputation.
It is therefore very important to use a company which you can trust. You will also find that by using a dropshipping company you will be restricted on what stock you can sell.
Obviously you will only be able to supply your customers with what the company can provide you with, whereas if you source stock yourself, you might be able to have a larger range of items.
When deciding whether to use a dropshipping company you have to make a risk assessment, are you prepared to risk using another company to do some of the work for you in exchange for you having more free time?
You will also need to bear in mind that it is likely that your profit margins will be lower as the stock will be more expensive as you are also paying for the services of the eBay dropshipping company and with the current economic situation and money being tight for everyone, you may find that your customers cannot afford to pay that much for the items that you are selling.
Also if there are cheaper sellers, you may find that you just cannot compete with them.
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