5 Reasons to Stay away from Dropshipping When Selling on eBay

Every day I get individuals asking me why dropshipping is not perfect for eBay and each day I give them the same summary of five reasons.  So, I assumed I would publish it as an article so everybody can learn.  Allow me to share the five reasons eBay sellers should stay away from dropshipping (in reverse order).

amazon business#5 – Out of Stock Equals Bad Feedback

#5 – Out of Stock Equals Bad Feedback

Dropshippers often operate out-of-stock on popular items.  This implies that once you sell the item on eBay and then visit your supplier to have the product dropshipped you discover the product isn’t in stock.  You then have to notify the buyer of yours the terrible news and will usually get some negative feedback of return.  The eBay discussion boards are loaded with sellers that have actully been damaged by the undesirable feedback they received by trying out dropshipping.  They’re in addition filled with complaints from buyers who did not get the appliance they ordered considering that the seller was using a dropshipper — and after the sale informed the buyer that the product was not available.

#4 – PayPal Will Hold Your Funds

#4 – PayPal Will Hold Your Funds

About a year before, in January of 2008, eBay and PayPal issued new policies.  One of that would be to fit a HOLD on funds.  Here’s the quote from eBay’s policy:

 “In a tiny percentage of cases where it’s been decided the risk of dissatisfied consumers is higher, PayPal might postpone release of the transaction funds to the seller till the buyer has left a positive feedback or perhaps 21 days have passed without a dispute, case, chargeback or maybe reversal filed on that transaction.”

Almost any brand new eBay seller who will try using dropshipping as a way for locating the products of theirs will discover that they cannot access their funds until after the product has come at their customer’s door.  This eliminates one of the most appealing elements of dropshipping – the ability to sell a solution and after that utilize the buyer’s transaction to fund the purchase.  With PayPal holding your hard earned money for 21 days this will not be achievable.

#3 – Direct from the source Competition

amazon business#3 – Direct from the cause Competition

#2 – Profit Margin what is the wholesale formula, https://www.Whidbeynewstimes.com/, Below $0

#1 – Dropshipping Doesn’t Focus on eBay

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