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Top 5
DropShipping Misconceptions And Mistakes to Avoid Those people selling the products must be getting them from somewhere better. WRONG! The reason is simple. These people buy the items in bulk usually in large pallets and can get them a lot cheaper than from a dropshipper. So yes you can get these products cheaper than what the dropshipper has them for, but do you want to spend thousands of dollars on a pallet load of products, store all the inventory, package the products, and ship them out yourself?
2. I want to sell ipods, xbox 360's, and psp's because they are a hot product people will buy. Yes these items are an in demand product and will usually sell very well, but do you know how many other people are selling these items? Are they making a profit? PROBABLY NOT! Every guy is trying to under cut the other guy therefore probably losing money. Again these people are selling so low because they are buying in bulk or truckload to get the kind of discount they are receiving. My suggestion is to find products that are in low competition where everyone isn't sell the same thing. You will have much better success. You might ask yourself, how can I do that? Well it's very simple with this tool and I know others that have used it to find products that are making them good money. Check it Out!
3. The only place I can make money selling products online is eBay. eBay is a great place to sell products because of the traffic and exposure, but it is not the only place to sell products. Having your own website will increase your earnings by 73%! Why? It's simple because once you sell an item on eBay, you've not only received a new customer, but hopefully a REPEAT customer. How? Well, in all your corresponding emails, you should have a tag line at the bottom something along the lines "Like Our Products? Browse Our Huge Selection of Quality Products at www.YOURWEBSITE.com" That's just a rough example, but it actually works, because a buyer is likely to buy more if you have the products available to buy immediately instead of waiting for an auction to end. There are many benefits of having your own website. Plus you can email them from time to time and let them know about sales or special offers. It's proven to work!
4. Some dropshippers are asking for a resale license or tax id number. I'm going to avoid them and use someone else who doesn't ask for this information. That's perfectly okay, especially if you don't have one as it can take some time to obtain one, but I wouldn't necessarily count out those dropshippers for good. Why? Think of it like this. How many other people probably avoided that dropshipper because of that same reason you did? I'm sure about 99% of them especially if they didn't have a resale license or tax id number. Well that means that there is a small percentage of people using this dropshipper and probably making a lot of money with them because they don't have as much competition with their products being sold all over ebay.
If you find a dropshipper that doesn't require a tax id number, anyone can buy from them, even your customers!! So if you're customer found out about them, they wouldn't need to buy from you anymore. However if they found the website that asked for a resale license, they wouldn't think twice about trying to buy from that site would they? Nope! So what I'm saying is that it may be very advantageous for you to obtain a resale license or tax id number which would enable you to sign up with virtually any dropshipper or wholesaler that can really have true wholesale prices if they are asking for this information. They are very easy and cheap to obtain. If you want one, you can grab one here fast for under $10.
5. You have to buy in bulk to make a profit, there's no profits in dropshipping. Sure, you're going to make money if you buy in bulk, but as I explained earlier, do you want to put up thousands of dollars up front, store all the inventory, pack all your products, then ship them to your customer? If you don't mind doing that, then sure you can make some good money using our Suppliers category, but the majority of people want to dropship. There's a lot of middlemen out there claiming to be dropshippers who oversell their products and aren't true wholesalers. It's hard to find a good reliable dropshipper that you can make money with, that's for sure. But I encourage you to browse through our strictly dropshippers and top 10 dropshippers category as these are true wholesalers that you can make money with. The key is finding the right products. It might take some time to research, but it will be worth it in the long run. Don't just give up if the first 5 or even 10 products you find from a dropshipper are cheaper on ebay. There are probably thousands that the dropshipper offers and I can guarantee you that you can find at least 10 if not more that will be profitable. As I said earlier, the auction inspector tool makes it a heck of a lot easier finding those products. Check it Out!
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