Quote:
Originally Posted by gtron
you don't feel that distributors that offer drop shipping as an option cut too far into profits? i've found most of them charge more which makes it difficult or even impossible to stay competitive. in some really shitty places you will even see their distributor prices can't even beat amazon.
from a consumers prospective, why buy from some no-name site w/o ratings when amazon has it even cheaper.
imo, it's just too hard to stay competitive and make a profit when the words "drop ship" are involved.
if i'm wrong i would love more info. i have a few quality niches that i've developed for many years but marked as deinvest due to what ecommers has turned into.
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You are correct it's ALL about the distributor you get and that's what makes it hard. For the one business that is working our distributor also happens to be one of the largest retailers for the same product. So "our" service is excellent and we get a lot of great reviews.
I have compared our drop shipped prices to the pricing we can get from a regular none drop ship distributor and every time our drop shipped prices have been better. Not even factoring in the additional work involved if we have to ship ourselves.
That being said yes margins are shit, but the overhead is almost nonexistent. I'm not going to get rich off it but for the minimal work required it's a nice side income.
All that being said I wouldn't mind warehousing and shipping out product also. I'm just not sure how to source the right product.