In this article, I'll be exposing the shocking truth about drop shipping companies. I know, like you haven't heard that before.
When I started in the drop shipping company roughly 20 years ago, the good old days, there were many problems and concerns that I faced.
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After I had established that this sort of company can be very profitable (which is still true to this day), the next biggest issue was seeing legitimate providers and companies, while trying to weed my way straight through illegitimate and scam companies, manufacturers, brokers, and programs.
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I spent countless hours each and daily seeing for reputable drop shipping companies.
Drop shipping is a solid branch in the supply chain supervision business. The charm of utilizing these services for eBay, online, and offline businesses is that you don't carry any inventory in-house whatsoever, you can deal with clubs who'll directly ship the products that your customers order - to your customer (free of charge).
Most of these clubs can be used everywhere in the world.
Yup, that's right. Either you're a mate in Australia, a bloke in the Uk, or a dude in the United States. Remember, it is still a company though. You are still responsible for collecting payments from your customers, and providing excellent customer-service to your clients. If you're not up for that, you might want to think another business.
Now, there are some people who should assuredly stay away from the drop shipping company and drop shipping clubs in general. If you don't take care of your company correctly, you will:
- Get taken (scammed!) by illegitimate drop shipping companies
- Wholesale drop shipping clubs will refuse to work with you, and
- You can say goodbye to your dreams of operating a profitable, money-making eBay drop shipping business, or selling straight through your own online store.
As you've already been doing some explore on the internet (I figure that's how you ended up on this page), you've probably seen people contribution everything from their tips, high-priced guides, lists of what they claim to be free legitimate & real drop shipping companies, to paid memberships towards so-called "wholesale clubs" and "eBay drop shipping companies" that promise to give you all kinds of products and what not, for dirt cheap and make you rich in a week (or quicker).
Ha, ha, ha. What else can I say?
Now, don't get me wrong, I'm not trying to say every person out there is a scammer. However, over the years I've crossed paths with some pretty low-life people and companies, so I've just learned to have a cautious mind towards these things - to cover my own self and those who I love and respect. Make sense?
How to get started with drop shipping, and the reality of key issues at hand:
You can go and try contacting manufacturers and wholesalers to see what kind of deals they can give you. Anything company you want to start in, Either it be clothing, electronics, fashion, condition & charm aids - whatever.
As soon as you call your first incorporate of companies, you will soon be hit with high prices which are about the same as sell (I've even seen wholesalers trying to payment prices higher than retail, they must've notion they could get away with it). These high prices come along with a bunch of other hoops and fees that you will have to jump straight through just to sell a stock or two.
I have two words for you: Buying Power.
The typical small businesses, like when I started 2 decades ago, don't have the buying power like large retailers such as Wal-Mart or Best Buy - to be able to command lower prices from these drop shipping clubs and wholesalers - so we get the other end of the stick.
Solution? Find a legitimate membership program...
...and join it. I'm talking about good, solid, money-making (for you) membership clubs. There are only 2 or 3 legitimate, good ones out there that I personally know of. That is assuming you have a plan for how you're going to run your business. Ebay, straight through a website, online store, find clients offline - Anything the case may be.
Now, don't go joining any Joe scheme Wholesale & Drop Shipping Membership Club online. You'll get in the members area only to find that it's full of suppliers who only want your money quickly, they're not seeing to form a company association and help both of you succeed. That's if you're able to get in sense with them in the first place. I've tried roughly every website contribution a list of drop shipping clubs after you pay a membership fee to join - and most of them had outdated information, old phone numbers, clubs that had went out of business, and dead links to websites that went nowhere.
If you get lucky enough to discover a good source of dropship suppliers online, you can (almost) think yourself successful.
Why? Because these clubs have tens of thousands of members, presented as one entity to the suppliers, distributors, and manufacturers who work with them to ship products for their clients (you and I).
What does that mean to us? Remember when I mentioned something called "buying power". Well, now you have just that. Join a good, legitimate, up to date drop ship sources membership site and you now have the same buying power as the big players on the field.
Drop shippers in these clubs will deal with anyone, even if you're a small time guy or girl seeing to start by selling one stock on eBay here and there to get some cash flow going, and then go big time. Or, you might be seeing to set-up an eCommerce store with a shopping cart, and operate your company on a drop-ship model for hassle free order fulfillment and inventory supervision - whatever. They will work with you and build a long-lasting relationship.
Oh my God: A Win, Win, Win situation for everybody!
It works for the people who're running the membership site because obviously they can payment fees to people like us who join, fluctuating typically from -ish to a few hundred dollars. It works for these clubs & wholesalers, because they gain entrance to a multitude of customers (us) that they otherwise wouldn't have at all.
Most importantly, it works for the entrepreneurs seeing to start a business, get products for reasonable wholesale prices, and assuredly make a good profit.
Remember, the legitimate providers of drop shipping clubs & sources will only payment you a one-time fee for a lifetime membership usually, not a monthly fee where you'll be stuck paying a month or whatever, no matter how good or bad your company is doing. Heck, I've even seen clubs trying to payment upwards of a incorporate of thousand dollars just to come to be part of some site that gives you a list of drop shipping companies? Does it make sense to you to pay that much, when you don't even have a concrete company in place? You should probably stay away from those type of companies.
If you're not seeing to suck up small start-up costs, forget about being in business.
Read that sentence above this one once again. Stop thinking that somebody is assuredly going to give you entrance to legitimate wholesale directories thoroughly Free. Searching for it online will yield you nothing. If you have some base sense, by now you've assuredly learned that nothing is free in company (nothing good anyway).
Be prepared to make some type of a small speculation if you are serious about your company and production money in the drop shipping business.
This is not a kid's game, be prepared to be overwhelmed by choices after you join. Find a niche & class that you want to specialize in: clothing, computers, televisions, handbags, brand name products - whatever, and deal with suppliers based on what you're seeing to sell and make money with.
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