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droppshipping vs lot purchasing
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kw101966



Joined: 04 Mar 2005
Posts: 326
Location: North Carolina

Posted: Tue Apr 12, 2005 12:23 am    Post subject: droppshipping vs lot purchasing  

Hello all
I have researched till I am sick...LOL ,I use a couple of droppshippers but the prices they have make it hard to consitently make a profit, I have heard alot of people say it is better to buy in lots or by pallets, I realize when buying from liqidators some items will need repairs and some can just be trashed, Since I'm still kind of new and learning along the way my concern is how high are the precentage of trash items to good and in buying this way is there still a decent profit to be made even with for example a pallet of 10 tv's of which 3 are trash, I am just tring to figure out which is the best way to go . I know there a quiet a few here that sale in this way, just looking for some input and info as to the risk vs profit, Thanks for any help. :?: :?
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elgato



Joined: 24 Feb 2005
Posts: 12046
Location: Texas

Posted: Tue Apr 12, 2005 4:23 am    Post subject: Re: droppshipping vs lot purchasing  

Good evening kw!--I've studied dropshipping for my small business and it just didn't work out--Many of my fellow sellers use dropshippers and do quite well with them but it took awhile to weed out the one's who were constantly out of stock on hot items--Some sellers have learned to pick a certain style of product that no one, or few others are selling and key on those particular items--Personally I purchase all of my own inventory to where I know exactly what I have, where it's at and how quickly I can get it to my buyers--Like the dropship users it took a while for me to locate certain wholesalers with good prices and fast shipping to get the products I needed--I'm always in search of another quality company with great deals and plentiful inventories--Best of luck!-->elgato
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Havaauction



Joined: 24 Feb 2005
Posts: 212
Location: Lake Havasu City

Posted: Tue Apr 12, 2005 4:34 am    Post subject: Re: droppshipping vs lot purchasing  

http://www.tvshoppingsurplus.com/store.asp
Dropship or just purchase.
Some famous brand and some hot items
.... Some items have very good to excellent prices.... yet some stuff is junk to some and yet wanted by others!!
Just another place!

ALSO.... around the edges of the site, they advertise tons of dropshipping websites!!
WARNING!!! You could spend several hours here!!!
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Roundabout926



Joined: 08 Apr 2005
Posts: 2556

Posted: Tue Apr 12, 2005 5:10 am    Post subject: Re: droppshipping vs lot purchasing  

Hey, Havaauction, I found the exact same site... only different. www.bargainwest.com lol, I don't get why they make multiple sites like that, prices are the same, so it's not like one's the middleman for the other. I did research, noone of that stuff sells in auctions, or sells for under what they're selling, but it might be good for a website, But for what KW is into, which is electronics, It doesn't have anything. O HAVAAUCTION, one more thing, have you tried any of those surplus things? look junky, but who knows, tell me what you think of them?
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Havaauction



Joined: 24 Feb 2005
Posts: 212
Location: Lake Havasu City

Posted: Tue Apr 12, 2005 5:18 am    Post subject: Re: droppshipping vs lot purchasing  

:lol:
Sure has the same look, that is for sure...funny same icons....
OH Roundabout926, thanks, now I will be up for hours checking it out!!
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kw101966



Joined: 04 Mar 2005
Posts: 326
Location: North Carolina

Posted: Tue Apr 12, 2005 8:46 pm    Post subject: Re: droppshipping vs lot purchasing  

Thanks for the input, I have used many different droppshipers, They will do ok for awhile and then delays in shipping and out of stock items, I have been thinking of buying in cases or pallets to see how it will work out, The concern that I have with that is I realize a certain amout of those items will need repair and some will just be junk. Is there enough mark up in the remaining items to offset those items and still turn a good profit.
As for droppshipers I have found some with cheap items but, not only was the price cheap so was the item,LOL I mean I want a profit but I dont want to be cheating anyone either with something that isnt worth thier money,after while you will start losing the customers you work to build up.
Again thanks for your input, Tis site has been a blessing I have found so much great info.
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Roundabout926



Joined: 08 Apr 2005
Posts: 2556

Posted: Tue Apr 12, 2005 9:07 pm    Post subject: Re: droppshipping vs lot purchasing  

Hey I got a little more info for you. For starters go to my Topic http://www.powersellersunite.com/viewtopic.php?p=5093#5093 has a lot of information, not from me, but from OSAN, and ThePerfectGift. OSAN is putting together something for wholesalers, you shouldn't have to settle for damaged liquidation palets when you can find a wholesaler and order new items! Your a business, not a garage sale, have more respect for yourself, your doin great. Your site has a really great look to it. Try supporting OSAN's site, they have Dropshipping programs and Wholesale programs (WHOLESALE brings much greater profits) that are currently in the works. OSAN sounds like a great place for sellers and once I contact my partner we'll be sure to join! So there you have it, there aren't any resources there but Stay away from junk! If you have Tax ID's and such PRIVATE MESSAGE ME, I got at least one cool stie that is useless to me but You could try out with Namebrand Electronics! O, and one more thing STAY THE HELL AWAY FROM MEGAGOODS.COM!!!!!! They use netdropshipper. Megagoods marks up the prices from Netdropshipper.com, and just uses netdropshipper to Fulfill your orders. On top of that, Megagoods adds on their monthly fee, Why screw you once when twice is much more profitable??? Private message me, Respond here, or post in my Topic "I need A LOT of HELP getting started!" We've got a lot of ideas flowing, join the mix!
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kw101966



Joined: 04 Mar 2005
Posts: 326
Location: North Carolina

Posted: Sat Apr 16, 2005 3:15 am    Post subject: Re: droppshipping vs lot purchasing  

hm you have a point, I am just searching as I know many are for the products I need to make a profit without feeling like I have ripped someone off after a sale. I would love to be able to buy Brand new products by the pallet at a great price if I could find them ,Do you have any ideas... LOL And since I operate on a very small budget at the moment price is everything to me lol I am determined to make this work I know the deals are out there just finding them can be frustratuing. But I will continue the search, Already been 2 mice this year ...LOL
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rockandjewelrysensations



Joined: 04 Aug 2005
Posts: 46
Location: Fort Worth, Texas

Posted: Fri Mar 24, 2006 5:38 pm    Post subject: Dropshipping - Need Some Advice  

Hello everyone!

I'd like to get some advice on dropshipping. I know I've seen discussions here re. dropshipping but I didn't have any success finding specifics when I did a search in this forum.

Basically, here is our scenario. We just discovered that a vendor we've used for years to purchase wholesale gemstones and jewelry items also provides dropshipping services. It is a reputable company in our field and we feel pretty comfortable with them as far as being dependable and reliable from a dropshipping perspective.

Still, dropshipping is totally new to us and I'm looking to find out the pros and cons. Some specific questions I have are:

1. Is it wise to mention in our listings that we are using a dropshipper or do we remain silent on that point?

2. Would it be better to start out small to test the concept to see how it works first?

3. We are located in Fort Worth but the items are out of New York. Do we indicate item location is New York or Fort Worth?

These are just some questions I've come up with. However, if there are any other issues that I haven't thought of that need to be addressed, I would appreciate any advice y'all might have.
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CompassRose



Joined: 29 Jan 2006
Posts: 79

Posted: Fri Mar 24, 2006 6:42 pm    Post subject: Re: Dropshipping - Need Some Advice  

Are you listing on eBay? I believe eBay requires you to state that you are selling items not in your possession at the time if you use a dropshipper. I'm not certain of the exacting wording they require.

Not all dropshippers are bad, though it certainly adds uncertainty when you're selling stuff that you can't be sure is in stock. I think the fact that you know this company and have dealt with them before is a definite plus.
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rockandjewelrysensations



Joined: 04 Aug 2005
Posts: 46
Location: Fort Worth, Texas

Posted: Fri Mar 24, 2006 7:17 pm    Post subject: Re: Dropshipping - Need Some Advice  

Yes, we would be selling on eBay. I'll search their policy area and see what I can find out. That's good info to know. Thanks!
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flags1776



Joined: 25 Feb 2006
Posts: 107
Location: Northern California

Posted: Sun Mar 26, 2006 3:00 am    Post subject: Re: Dropshipping - Need Some Advice  

Mark
I have used drop shipping for years but not with my on-line businesses. I drop ships for large orders or custom flag orders going to the same address. They are shipped from the manufacturer, not a middle man. In many cases this saves freight and time since they have negotiated with the freight company. They do charge a fee per shipment, not unrealistic. However, there are mistakes. It also causes problem when you have to trace a package.

With my experience, I would not be comfortable doing a large number of orders of one items per order.
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salehoo



Joined: 01 Dec 2009
Posts: 56

Posted: Mon Feb 22, 2010 5:07 am    Post subject:  

Hi kw101966,

Liquidation pallets contain goods in mixed condition - it may include items people have worn or used once or twice, sometimes, items that are broken or missing components - and it can be a bit ‘luck of the draw’ as to what you receive. In general, most pallets contain 15% throw-away, although this may increase with some less reliable liquidators who cherry-pick the best items. Despite this, liquidation is an incredibly profitable way to source stock. If you're into brand name and designer goods, liquidation will allow you to offer great prices on these items, while still making a good margin.

Just, if buying liquidation, try to physically view the stock before buying. If this is not possible due to distance, or for any reason, try to ask for a full inventory that includes item condition.

All the best!
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DaLizardsLair



Joined: 16 Feb 2009
Posts: 3291

Posted: Wed Feb 24, 2010 5:44 am    Post subject:  

Food for thought...

When the buyer doesn't get their item in a reasonable time, who do you think gets to refund their money and gets the bad feedback?

When the dropshipper doesn't keep you up to date on what is and isn't in stock, who do you think gets the bad feedback?

When the buyer gets a damaged item, who do you think gets to refund the buyer their money, and risk the bad feedback?

Hint: It's not the dropshipper.

And salehoo,

eBay REQUIRES that you let the buyer know that you do not have the item in your possession.
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DaLizardsLair



Joined: 16 Feb 2009
Posts: 3291

Posted: Mon Mar 01, 2010 10:36 pm    Post subject:  

kw,

Stay away from using dropshippers. Google doesn't like them and tends to drop sellers making use of them, from their search engine.

Plus most dropshippers are simply middlemen, who buy the product wholesale and then tack on a large profit, for them. What you get to make is pennies.

And when something goes wrong, who do you think the buyer is going to go after?

With liquidations, you can get good items or junk, as you already know. liquidation.com is one site to check out. Another possible source are the min-storage auctions, where the person who rented the storage unit didn't pay their rent, so the site is selling off the entire unit to the highest bidder. If you pay attention and do your homework, you can get some nice items for sale.
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