Hi ljjr02:

No need to repost - Lisa is responding to questions in the order in which they were posted.

FYI: She tends to respond in detail which takes a bit of time.

Thanks,

Deirdre
eBay Community Development

Great information and posting folks.
I have a customer who buys in medium sized parcels from me and resells them after breaking them down smaller.
He would like me to drop ship to his customers, it would save half the shipping costs overall, he could reduce prices to compete with me, and yet be able to increase his customer base, and buying from me, I gain also.
The cincher is he does not want his customers to know of my business, so he wants me to put his return address on the shipping labels.
Agriculture Products Law for Interstate Shipping says the product name and the County and State it is grown in must be posted on the box. We've determined that is about the least information we can get away with.
We're also Organically Certified, and I resist putting Organic Labels on the boxes when the 'Farm of Origin' is not listed.
My question is... is it appropriate for him to request we not use our company logo and information on boxes we ship out?
Thanks,
John

Hi ljjr02, In a situation like this, before contracting with a company to provide services, you'll want to be very sure that they offer the products you want to sell on eBay.

As a general rule, if you call a company and they are unwilling to give you specifics as to the types of products you ask about, are unwilling to give you information to make a decision without first spending a lot of money, OR pressure you into signing up with them by declaring that they are the latest and greatest - that is a red flag.

Approach it from this standpoint -

Form a list of questions, call multiple companies and then ask them the same questions. See how each respond.

You will be able to tell when you are getting the high pressure sales pitch.

Lisa
WhatDoISell.com

Hi Bob. That would work, if I had access to the names and phone numbers of manufacturers (usually overseas), or importers, which is extremely hard to find for the products I want. These things aren't exactly in the phone book and online searches haven't revealed what I need yet.

I've found ripoffs, but not anything I can work with yet. It seams that everyone wants me to spend money I don't have in hopes of pie in the sky. Odds sound better in Vegas, if I could get there. You know the old joke about the way to make a small fortune there is to start out with a large one...

Hi omasilfies , You have a wonderful attitude towards your customers and I know that shines through in the customer service you provide.

In Post #19 and #20 I talk discuss that it's best for new eBay sellers to first handle their own inventory, list it, ship it etc. so they can build a solid business - before they begin to drop ship.

However, that doesn't mean that you can't start looking for wholesale suppliers who drop ship and testing them out as described in Post #23.

Start small - pick some products that you think lend themselves to drop shipping (heavier products, more expensive products etc.) and test some drop shippers.

Once you are satisfied with the results, list a couple products and keep some inventory in back stock, so that you can fulfill your orders in the case of an out of stock situation ( as described in Post #28).

Keep the balance weighted towards sourcing your own inventory and slowly introduce drop shipped products into the mix.

This will allow you to see how it works with your customer base and to continue to build a customer service driven business!

Lisa
WhatDoISell.com

Hi charmlinda, I'm glad you brought this up because I want to clarify the drop shipper fee issue -

In Post #10 I discuss who is not a drop shipper. These are companies who are intermediaries and also drop ship directories.

These companies are providing a service. They find the drop shipper and (in the case of an intermediary) set up an account with the wholesale supplier. They often create a software system that allows you to enter your order all in one system.

In these cases, these types of companies will charge you a one time fee or a monthly fee to use their service.

Generally (but not always) they do not mark up the cost to drop ship the products, but rather charge you a straight service fee.

It's important to note though, that all the WHOLESALE SUPPLIER is charging the intermediary for is shipping costs.

So - service providers = retailer fees (plus the normal per item drop shipping cost).

Now, a wholesale supplier will NEVER charge you to do business with them. If they do charge you a service fee to view their catalogs etc. then you are not working with a true wholesale supplier.

A wholesale supplier will only charge you the drop shipping fee to get the product out to the customer.

They will not charge you a month flat fee on top of that.

For example, if you call a manufacturer of curtains and they say that it will cost you $6.00 per order to drop ship - they have already calculated the cost to perform this service into that charge.

So you can contact as many wholesale suppliers as you want, ask them if they will drop ship, set up accounts with them and never pay a dime until you place the order.

At that time, if they charge $6.00 per item to drop ship, you pass that entire cost on to your customer.

On the flip side, if you sign up with a bunch of drop shipping service providers, you will end up paying a fee for their service to have access to their information or "warehouses".

So it is best to focus on calling the wholesale supplier and try one or two drop shipping intermediaries or directories at a time. This will help conserve costs.

Lisa
WhatDoISell.com

Hi bobrcindy, Excellent advice! And you bring up a great post about the economy and manufacturers' and wholesalers' desire to get product out into the retail channel.

You underline the most important point about finding a drop shipper - making phone calls to wholesale suppliers who are not technically drop shippers and simply asking them if they will drop ship for you.

Many eBay sellers are looking for a company that has a big "sign" out that says 'drop shipper'.

It's the eBay sellers who go the other way and ask a regualar wholesale supplier if they will drop ship that are able to set up great arrangements with companies that no one else will ever find. Because they don't bill themselves as drop shippers.

Another thing I wanted to add - some companies will first require you to order from them for 3 - 6 months and see how much product you can move (sell) before setting up a drop ship arrangement for you.

They do drop shipping as a perk for their best customers.

If it's a good product and a good company, it's worth working with them over the long haul!

Great post Bob!
Lisa

WhatDoISell.com

For Further Information

To learn more about drop shipping, and the WhatDoISell.com Drop Shipping System, go to Link