Five Reasons to Stay away from Dropshipping When Selling on eBay

Every day I get people asking me why dropshipping isn’t ideal for eBay as well as each day I provide them with the same list of 5 reasons.  So, I assumed I will publish it as an article and so everybody is able to learn.  Allow me to share the 5 reasons eBay sellers must stay away from dropshipping (in reverse order).

#5 – Out of Stock Equals Bad Feedback

#5 – Out of Stock Equals Bad Feedback
Dropshippers often run out-of-stock on popular items.  This implies that after you promote the product on eBay and then go to the provider of yours to have the product dropshipped you learn the product isn’t in stock.  After this you have to tell the buyer of yours the terrible news and will often get some poor comments in return.  The eBay discussion boards are loaded with sellers that have actully been damaged by the undesirable responses they received by trying out dropshipping.  They are additionally loaded with issues from customers who didn’t obtain the appliance they bought considering that the seller was making use of a dropshipper — and after the sale informed the buyer that the shoe wasn’t accessible.

#4 – PayPal Will Hold Your Funds

#4 – PayPal Will Hold The Funds of yours
About a year ago, in January of 2008, eBay and PayPal issued some new policies.  One of which may be to fit a HOLD on funds.  Here is the quote from eBay’s policy:
 “In a tiny fraction of instances in which it’s been determined the risk of dissatisfied buyers is higher, PayPal could postpone release of the transaction funds to the wholesale formula price (about his) seller till the buyer has left a positive feedback or twenty one days have passed without a dispute, claim, chargeback or perhaps reversal filed on that transaction.”
Just about any new eBay seller who attempts making use of dropshipping as a method for sourcing their items will find they cannot access the funds of theirs until after the product has arrived at their customer’s door.  This eliminates by far the most appealing features of dropshipping – the capability to market a product then use the buyer’s payment to fund the purchase.  With PayPal holding the money of yours for twenty one days this won’t be achievable.

#3 – Direct from the cause Competition

#3 – Direct from the cause Competition

#2 – Profit Margin is Below zero dolars

#1 – Dropshipping Does not Work on eBay