5 Drop Shipping Problems & How eBay Sellers Can Overcome Them
Most Common Problems with Drop Shipping on eBay
Drop shipping on eBay as a business can be difficult for many reasons.
Here are just 5 of those reasons:
- Shipping Time
If you’re not in possession of the product you’re selling on eBay, it may be difficult to manage the actual shipping time. To maintain a high customer rating you need to ship fast, which will be out of your control with drop shipping.
- Inventory Control
You won’t always have an accurate inventory count. This can cause problems if you sell a product that goes out of stock. You either have to let the customer wait, and risk negative feedback, or cancel the order entirely. Canceling too many orders will definitely hurt your eBay seller rating.
Manufactures are always changing the packaging of products. Though the product will be identical; If a customer receives a package that is different than the image you’re listing, this can cause poor feedback.
When you’re not in control of the shipment process, damaged boxes happen. Though the product may actually be fine, customers will have a negative feeling and may want to return the product or leave poor feedback on your eBay store. If a customer is looking to return the product, you’ll be the one paying for shipping.Now you’ve lost the return shipping fee and original cost to ship the product. Make sure that if you’re drop shipping you have an arrangement worked out with the company about damaged packaging. Many (not all) won’t refund you the original shipping fee, though you’ll be responsible for refunding your customer the original fee.
Drop ship warehouse companies work with countless other sellers on eBay. This typically erodes all the opportunities to make any profits. These drop ship companies typical charge you a monthly membership fee, along with many other sellers. This makes it difficult to make money unless you plan to automate the listing and product updating process.
So you might be saying with all these reasons, how are so many people successfully drop shipping on eBay, and other marketplaces?
Automation is the answer.
Automation instantly keeps your inventory, pricing changes, images of packaging and much more updated in real time. If you’re only listing a few products you can do this yourself, but once you start listing enough to earn a living, you’ll want to automate as much as possible.
The benefits of drop shipping on eBay are why so many people decide to go down this path. You don’t need to invest in inventorying yourself, which saves on cash flow and also inventory risks. You can be up and running relatively fast and if you’re automating you can have hundreds (if not thousands) of products up and selling in no time.
Pro eBay Tips:
- To be successful you’ll want to have a good relationship with the drop ship company
- Work hard to get best pricing so you can list more competitively and understand their policies
- Once you start selling a lot you can typically get better pricing
- To reach that level fast, some people will list at breakeven to be competitive
If this is you’re “making money” path, set a game plan, and you’ll be prepared for the challenges of drop shipping on eBay.
Happy Online Selling!