Five Reasons to Avoid Dropshipping When Selling on eBay

Every day I get people asking me exactly why dropshipping isn’t good for eBay as well as every day I supply them with exactly the same list of 5 reasons.  So, I assumed I will post it as an article so everyone can learn.  Here are the five reasons eBay sellers should avoid dropshipping (in reverse order).

#5 – Out of Stock Equals Bad Feedback

#5 – Out of Stock Equals Bad Feedback
Dropshippers usually work out-of-stock on well-known items.  This implies that once you sell the product on eBay after which go to the supplier of yours to experience the item dropshipped you discover that the product isn’t in stock.  Afterward you have to tell your buyer the terrible news and will usually get some bad feedback in return.  The eBay discussion boards are filled with sellers who happen to be damaged by the bad responses they received by trying out dropshipping.  They’re additionally loaded with complaints from customers which did not obtain the gadge they ordered because the seller was using a dropshipper — and after the sale informed the purchaser that the shoe wasn’t available.

#4 – PayPal Will Hold Your Funds

#4 – PayPal Will Hold The Funds of yours
About a year before, in January of 2008, eBay and PayPal issued some new policies.  One of which would be to put a HOLD on funds.  Here is the quote from eBay’s policy:
 “In a small percentage of instances in which it’s been determined the danger of disappointed buyers is higher, PayPal might postpone release of the payment money to the seller until the customer has left a good feedback or maybe 21 days have passed without a dispute, claim, chargeback or maybe reversal filed on that transaction.”
Just about any brand new eBay seller who will try using dropshipping as a method for sourcing their items will find they cannot access the funds of theirs until after the product has come at their customer’s door.  This eliminates by far the most attractive features of dropshipping – the ability to sell a product and after that utilize the wholesale formula course login (just click the up coming article) buyer’s payment to fund the purchase.  With PayPal keeping your cash for twenty one days this won’t be possible.

#3 – Direct from the source Competition

#3 – Direct from the source Competition

#2 – Profit Margin is Below $0

#1 – Dropshipping Does not Focus on eBay