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Dropshipping and starting an ecommerce site
#1

Dropshipping and starting an ecommerce site

I'd really like to try my hand at this, I've sold paintball guns on internet forums before, and I'm interested in taking control (and responsibility) for making my own bank, and not being someones bitch, at a part-time job. I've done some reading on dropshipping, it sounds ideal, given that I have no experience, deploying an ecommerce site, or with shipping products (let alone creating my own). I know that Amazon and Ebay rule mostly, but I've heard you can make some decent money on the side, what works, what is ideal? I've decided to NOT use suppliers from China, and focus on US distributers, what is a good start for someone like me, that wants to try their hand at this?
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#2

Dropshipping and starting an ecommerce site

i've seen a lot of advice against going the ecommerce site until you have proven yourself on either e-bay/amazon first. The reasons given is that it's easier to make money on these sites and less financially draining in terms of start up costs and if you can't win here then you're unlikely to be able to thrive with your independent site. Happy for others with more expertise to have their say on this matter though.
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#3

Dropshipping and starting an ecommerce site

I would try your hand at ecommerce via ebay and amazon first. Don't bother with your own site until you've proven yourself on there. Your goal is going to be to make a name for yourself as well as try to drive your regular ebay and amazon buyers off of those sites and buying direct from you to cutout the fees.

I'd challenge you if you don't have experience in ecommerce or blogging to start a blog and spend a month trying to see how much traffic you drive. After getting like 50 visitors your first month you're going to realize how difficult it is to drive traffic let alone get someone to take action and make a purchase.

I started my business on eBay, saw a demand and started a site. It was a shitty site a free blogspot blog with Paypal buttons and surprisingly people still bought. At that point I realized it was worth investing in a proper website.

One piece of advice I would give you starting out is take ebay and amazon seriously. If you fuckup and lose your account your banned for life and will be doing all this stealth account bullshit thats a headache and never gives you any security, even less security than even a safe ebay or amazon account where the rug can still be pulled out from under you for no reason.

I fucked up early on before I got serious and lost my ebay account would love to have it back but once your banned your banned no comming back so you gotta do stealth accounts or use someone else's name or try to start an llc, etc.

I'd start out selling some stuff around your house. If that works out and you like it try retail arbitrage basically buying stuff on sale at walmart or wherever and reselling if. If you have luck there then look into buying from alibaba or private labeling or whatever else.

I'd be careful of drop shipping. Ebay is doing a big purge right now asking for invoices from suppliers, if you dropship you don't have invoices and will probably get a ban unless you are good with photoshop and they don't call to verify.

I did about 2.3 million in sales last year through ebay, amazon and my site, this year on track to do about 2.5. Once you start doing numbers they will slap a rolling reserve on you. Basically anywhere from 5% to 30% of your money will be held for 90 days so unless your making killer margins you better have cash to sustain that. At one point I had over 100k tied up with paypal. I've managed to get mine lowered but they still got anywhere from 15k to 30k at any given time.

I'm finally going to try to make real money and get into importing and private labeling.
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#4

Dropshipping and starting an ecommerce site

Concerning Amazon, I wouldn't advise creating a seller account unless you have a good amount of inventory/sales. Amazon has fairly strict seller rules and sides with the buyer most of the time. You will have to absorb losses and concede on buyer disputes to keep your account. For someone with very low sales volume, if one of these losses occurs early in your tenure you can wind up losing money during your entire relationship with Amazon.
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#5

Dropshipping and starting an ecommerce site

2.5 mil in sales. Well done. You should drop a data sheet

God'll prolly have me on some real strict shit
No sleeping all day, no getting my dick licked

The Original Emotional Alpha
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#6

Dropshipping and starting an ecommerce site

Quote: (05-02-2015 10:17 PM)AntiTrace Wrote:  

2.5 mil in sales. Well done. You should drop a data sheet

Not to take any credit away from myself because I do bust my ass and work hard and I am pretty creative with marketing and stuff like that but honestly I fell ass backward into an amazing niche with very high average transaction amount, repeat buyers, and very few competitors. Alot of my success isn't something that can be replicated unless someone were to enter my category.

I'm really kicking myself for not scaling and improving my business sooner. My business has only really taken off in the past year but have been going at it about 3. really wishing I had sought better suppliers and better margins earlier, jumped on amazon earlier, scaled earlier, etc and I'd be much better off. My niche/product/etc will come to an end someday maybe tomorrow maybe two years from now but trying to get everything I can while I can.

That said I am pretty good at navigating problems and issues on eBay and Amazon, minimizing losses, good policies and procedures in place to minimize losses and scamming buyers so definately do have some info there to share.

If anyone has any questions about ebay, amazon, shopify, or setting up ecommerce sites, shipping questions regarding fedex or usps, etc Id be happy to answer
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#7

Dropshipping and starting an ecommerce site

Quote: (05-02-2015 07:15 PM)Mikan Wrote:  

Concerning Amazon, I wouldn't advise creating a seller account unless you have a good amount of inventory/sales. Amazon has fairly strict seller rules and sides with the buyer most of the time. You will have to absorb losses and concede on buyer disputes to keep your account. For someone with very low sales volume, if one of these losses occurs early in your tenure you can wind up losing money during your entire relationship with Amazon.

I just made the jump onto amazon within hte past year, have been on ebay for quite some time. I love amazon as a buyer, not so much as a seller. Ebay and Paypals buyer protection program has saved me lots of money. Long story short if you can show tracking and a sig if necessary you don't eat a loss ebay and paypal cover it.

Ebay also tells you clearly over $250 get a sig and you in the clear. Amazon gives you directoin at what dollar amount to get a sig, if delivery confirmation or tracking proves delivery, etc. Basically someone on amazon who wants to get their money back for no reason can and will if they press the issue.

I also don't really like amazons scoring system, its just awkward. People will send a message or better yet statement which does not necessitate a response and unless you type back just to say "k" or something like that your docked points for not responding in 24 hours. It makes a very awkward back and force forcing you to respond to stuff that doesn't necessitate it.

Overall I prefer ebay, I know people whine about ebay policies and ebay favoring buyers but having done both I'll take ebay over amazon anyday. I also love that ebay allows you to charge I believe up to a 20% restocking fee and accept returns. If someone wants to buy something and return for no reason at least htey are going to pay for it and you get product back to resell.
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#8

Dropshipping and starting an ecommerce site

I hate ebays item removal bullshit. like when you sell a product you see being sold by the masses there already but your item is removed. Apparently the rules change by what country you're in on ebay. I guess I'll have to start smartly wording my ads.
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#9

Dropshipping and starting an ecommerce site

Quote: (05-03-2015 10:04 AM)jamaicabound Wrote:  

Quote: (05-02-2015 07:15 PM)Mikan Wrote:  

Concerning Amazon, I wouldn't advise creating a seller account unless you have a good amount of inventory/sales. Amazon has fairly strict seller rules and sides with the buyer most of the time. You will have to absorb losses and concede on buyer disputes to keep your account. For someone with very low sales volume, if one of these losses occurs early in your tenure you can wind up losing money during your entire relationship with Amazon.

I just made the jump onto amazon within hte past year, have been on ebay for quite some time. I love amazon as a buyer, not so much as a seller. Ebay and Paypals buyer protection program has saved me lots of money. Long story short if you can show tracking and a sig if necessary you don't eat a loss ebay and paypal cover it.

Ebay also tells you clearly over $250 get a sig and you in the clear. Amazon gives you directoin at what dollar amount to get a sig, if delivery confirmation or tracking proves delivery, etc. Basically someone on amazon who wants to get their money back for no reason can and will if they press the issue.

I also don't really like amazons scoring system, its just awkward. People will send a message or better yet statement which does not necessitate a response and unless you type back just to say "k" or something like that your docked points for not responding in 24 hours. It makes a very awkward back and force forcing you to respond to stuff that doesn't necessitate it.

Overall I prefer ebay, I know people whine about ebay policies and ebay favoring buyers but having done both I'll take ebay over amazon anyday. I also love that ebay allows you to charge I believe up to a 20% restocking fee and accept returns. If someone wants to buy something and return for no reason at least htey are going to pay for it and you get product back to resell.

All you have to do in regards to the Amazon messages is simply click the "doesn't require a response box". I also sell on Amazon and Ebay, and started only a few months ago. Since then, done about 15k in sales, with a few hundred in profit. It takes a while to scale up in ebay, due to the fact that you have to wait to have your limits raised. You can call in, but I recommend being polite and helpful, and it was very easy to get my limits raised. Amazon is interesting, as you can list tons of products and just hope for volume to do the work for you.

"Money over bitches, nigga stick to the script." - Jay-Z
They gonna love me for my ambition.
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#10

Dropshipping and starting an ecommerce site

I'm looking at Doba right now, are there any more reputable sources?
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#11

Dropshipping and starting an ecommerce site

Quote: (05-02-2015 02:33 PM)jamaicabound Wrote:  

I did about 2.3 million in sales last year through ebay, amazon and my site, this year on track to do about 2.5. Once you start doing numbers they will slap a rolling reserve on you. Basically anywhere from 5% to 30% of your money will be held for 90 days so unless your making killer margins you better have cash to sustain that. At one point I had over 100k tied up with paypal. I've managed to get mine lowered but they still got anywhere from 15k to 30k at any given time.

I'm finally going to try to make real money and get into importing and private labeling.

Hey Jamaicabound,

2.3 million in sales is crazy - how much was your profit on that?
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#12

Dropshipping and starting an ecommerce site

Quote: (05-03-2015 05:58 PM)andy Wrote:  

I'm looking at Doba right now, are there any more reputable sources?

Have you looked at Drop Ship Lifestyle?
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#13

Dropshipping and starting an ecommerce site

Jamaicabound gives some great insight. I too have sold on eBay, Amazon, and several of my own ecommerce sites.

I would advise against drop shipping until you have some experience with your own inventory, learn how to market, and build your list/clients. Most of the reliable and profitable drop shippers are not found on doba or online. Our best suppliers, are vendors you can't find online, just by contacts.

Drop shipping also has very thin margins, so unless you know how to sell the products at a high velocity, your won't make much money. This is where a list or marketing expertise comes in handy.

I too would recommend eBay and Amazon first to gain experience, but have a plan and take them seriously. I don't sell on eBay anymore, but the barrier to entry is low, and you can sell almost anything and build your list. My Amazon does 8-10 the volume my eBay did, and is much more of a retailer instead of a flea market.

I have over 3+ years experience. Find some suppliers online for boxes or pallets. Start small, you can search liquidators, overstock or surplus companies. List on eBay, build your list, learn to market. Add Amazon on once you have more capital to buy more inventory. It will sell itself for the most part. Once you build your list and find great suppliers (possibly a year or 2 down the line) build out your own site with your own marketing campaigns and the possibilities are endless, whether you decide to buy inventory, drop ship, or private label.
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#14

Dropshipping and starting an ecommerce site

Does Amazon have the same controlling rules that Ebay has?
Ebay is such an easy platform but the rules are irritating.
I was selling a product that was perfect. Cheap shipping, good margins and big market. But it kept getting removed by eBay even though 100 other sellers were selling it (though in a different country).
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#15

Dropshipping and starting an ecommerce site

Just as strict, but they have more defined requirements. As I said, eBay is an online flea market. You are dealing with a bunch of crap, and pretty crappy clientele too. Amazon has much more of a department store feel, with much better service, customers and products.

eBay is great to get your feet wet, but its honestly one of the worst platforms Ive ever used to generate income, regardless of industry.
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#16

Dropshipping and starting an ecommerce site

Quote: (05-03-2015 05:58 PM)andy Wrote:  

I'm looking at Doba right now, are there any more reputable sources?

I tried Doba. It's a scam. You pay a monthly subscription to dropship their products, and prices they give for their products are more expensive than what they're selling on ebay for. Unless you're selling products more expensive than ebay costs on your own website, what's the point?

You should never sell anything on Amazon for three reasons.

  1. Amazon doesn't let you remove an item once they're selling it, so if you want to setup your own store so you can sell the item exclusively yourself, Amazon will steal your customers so you don't get the email addresses of your potential customers.
  2. Amazon doesn't let you remove and Amazon Store, so when people type the name of your store into Google, your "store" on the Amazon website will appear first even if you've removed all the products from your store.
  3. When you sell items on an Amazon Store and get traction, Amazon will find out what you're selling, and sell the exact same item you're selling at a cheaper price undercutting you due to their buying power. Then you can't sell the product any more.
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#17

Dropshipping and starting an ecommerce site

Quote: (10-21-2015 12:53 PM)tynamite Wrote:  

Quote: (05-03-2015 05:58 PM)andy Wrote:  

I'm looking at Doba right now, are there any more reputable sources?

I tried Doba. It's a scam. You pay a monthly subscription to dropship their products, and prices they give for their products are more expensive than what they're selling on ebay for. Unless you're selling products more expensive than ebay costs on your own website, what's the point?

You should never sell anything on Amazon for three reasons.

  1. Amazon doesn't let you remove an item once they're selling it, so if you want to setup your own store so you can sell the item exclusively yourself, Amazon will steal your customers so you don't get the email addresses of your potential customers.
  2. Amazon doesn't let you remove and Amazon Store, so when people type the name of your store into Google, your "store" on the Amazon website will appear first even if you've removed all the products from your store.
  3. When you sell items on an Amazon Store and get traction, Amazon will find out what you're selling, and sell the exact same item you're selling at a cheaper price undercutting you due to their buying power. Then you can't sell the product any more.

Amazon is notorious for either suspending people or banning them from a category if you outsell Amazon on a product they themselves sell. Essentially success equals failure on AMazon if they sell in your niche.

Whether Amazon or eBay its a huge audience and they drive tons of traffic but you have to putup with their rules, scammers, stupid buyers and other headaches. Everyone has to decide if its worth it for them.

Reason I hate drop shipping is not only thin margins but your making such thing margins that the occasional/regular lost package r scammer winds up wiping out like 20 sales of profit where as sourcing your own stuff on some of my products I can make 14x my money so as long as 14 buyers in a row don't screw me I'm still in the green.

I just recently got suspended from Amazon with them holding tens of thousands of dollars of my money for almost 4 months, with the logic being it protected them against A-Z claims which only last 90 days aka 3 months so basically they are holding my mney for 30+ days extra just for the heck of it.

Finally bombarded bezos and executive offices with so many letters they opened my account back up and are releasing my money a little ahead of schedule.
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