Dropshipping is growing very popular lately and for good reason. You can have an online e-bay auction site or your own site without having to spend money on inventory… sounds like a good idea to me. Lots of people have seen success with this business model to dropship items. When you get paid from the customer, you order those dropship items from the wholesaler, pocketing the difference. You will spend the money only after you get it from the customer. You don’t have to spend money on inventory but dealing with the customer will be your responsibility.
RISKS of dropship items.
Obviously, if a dropship item has been backordered or is temporarily not available you need to know; otherwise you will be advertising it and you won’t be able to deliver it when a customer orders that product. If a customer doesn’t get his order on time he may write negative feedback for you in e-bay. This has to be avoided.
Also, what will you do if the product is defective? You have no control over the product and very often you have never even seen it; let alone inspect it.
So what can you do about this problem?
There are a lot of drop shippers in China that can’t be trusted. They will take your money and not send you items, or send you illegitimate items that are illegal.The easiest way to find drop shippers that you can trust is through SaleHoo.SaleHoo is an online directory that has over 8,000+ drop shippers, wholesalers and liquidators.Using a directory like SaleHoo is good because you can ensure you will be dealing with verified suppliers you can trust.