Having already chosen a product, assured suppliers and your business legally established, it’s time to start selling! Then you need to decide how you will place your products in front of potential customers. Several options are available for sale, but most likely will choose a combination of selling your own online store, eBay or Amazon.
Drop shipping on eBay
As the auction site physical products in the world largest online, eBay is a site that most people know well. The following is a list of reasons to consider (or avoid) do Drop shipping on eBay:
The pluses to sell on eBay
EASY START: With eBay you can start immediately to publish a list of your products wholesaler. Create an account, add a list and that’s all.
PUBLIC ACCESS TO NUMEROUS: When you post your listing on eBay, you have access to many online shoppers who frequent this sale giant. Millions of citizens will see your listings, and significantly lively and robust market will help to ensure a decent price for your products.
LESS MARKETING: As you can reap the benefits of the huge platform eBay, you need not worry about marketing, SEO and pay for traffic. This saves time because the marketing is one of the biggest challenges associated with the launch of a Drop shipping business.
The points against selling on eBay
RATES OF PUBLICATION: The biggest downside of eBay is the fees that must be paid. The most notable is the success rate, which can reach up to 10% (or more) of the selling price of your products. In the Drop shipping market, where margins are so low, that much of your earnings will be.
CONSTANT MONITORING AND RE-PUBLICATION OF LISTS: eBay is an auction market so you must constantly monitor and republish the products you want to sell. Some tools help automate this process, but still is not as simple as static list items for sale on your own ecommerce website.
NO you can customize your sales platform: listings of your products must conform to eBay templates, making it harder to create a professional page and add value to your products.
NO CONNECTION WITH LONG-TERM CUSTOMERS: You can have some customers who come back to you on eBay, but most probably never will. The benefits may have to provide excellent service most likely will be lost.
The structure of this market site has been created for your own benefit. eBay traders do not want to be the center of attention but products. Your communication with customers be severely restricted, like how publicizes your brand, designing your store, etc.
NO BUILDING AN ACTIVE ARE YOU OK: When you create a store that generates traffic and you have returning customers, you are creating a real business value you can sell to a third party. When you sell on eBay, you are not building a lasting brand or web property with a tangible worth that can be sold in the future.
Drop shipping on Amazon
Although Amazon has in stock and sells a series of articles, many of the published products are sold by third parties from side to side the Amazon site. Like eBay, Amazon intervenes to make easy the sale and decide any problems that might arise.
The pluses to sell on Amazon
The advantages of selling on Amazon are similar to those mentioned to sell on eBay is easy to start, has immediate access to a large audience and need not worry about marketing or SEO.
Amazon also offers its own deposits to complete orders (Fulfillment by Amazon), which allows you to supplement your Drop shipping products with own products without having to deal with packing, shipping or storage.
The points against sell on Amazon
RATES OF PUBLICATION: As with eBay, you pay substantial fees for access to this wide network of buyers. Commission rates Amazon vary by type of product but are general between 10% and 15%.
Again, if you’re working with relatively low margins Drop shipping, that a considerable portion of your earnings will be.
SALES INFORMATION PRESENTED: A risk you take when using Amazon’s platform is that they have access to all the sales data, items sold and how much more is sold in total. Amazon has been accused of using this information to identify large sales opportunities and expand their involvement in certain niches, which seriously harms other traders who use the site.
NO CONNECTION WITH LONG-TERM CUSTOMERS: As with eBay, it is unlikely that you can build long-term relationships with your customers. Amazon there for your own benefit and the best for them is to focus on products rather than sellers. Be prepared to suffer severe restrictions as to how you Publicities your brand and your business, how you show your products and how you communicate with your customers.
It IS NOT PERSONALIZABLE: Again, as on eBay, the customization options are extremely limited. Everything you do to advertise your brand, user interface, marketing and so on, will be under the control of Amazon.
Drop shipping with your own virtual store
The alternative to selling on third party sites like eBay and Amazon is to establish your own online store to sell your products. This is the method that attracts more people interested in creating a successful Drop shipping business.
The pluses to sell in your own shop
MORE CONTROL: With your own online store can create a shopping environment that is conducive to selling your products and, most importantly, add value to your customers. You can customize the appearance and distribution, and create product pages as optimized to provide the best information to your customers.
EASY DESIGN: Build your own ecommerce store is easy, especially with platforms like Shopify. Simply choose a design for your store from hundreds of options, customize it to your taste, add your products, you set up a payment gateway and you’re ready to go. Depending on the type of online store you want to create, you could be working in a day.
LIST FOR MOBILE DEVICES: Selling on eBay and Amazon through mobile devices can be a headache. If you decide to make your online store with e-commerce platform reputable you have your own hosting, your site should respond optimally and look great on an iPad or mobile phone. This is increasingly important, as nearly 30% of online purchases are made through a mobile device.
Some platforms for virtual stores like Shopify, let you handle all your business from your mobile device. This is particularly attractive for Drop shipping business owners often do from different places, or even from a beach.
You will build a real business: You can build a long term business with an aspect that distinguishes you, experience and returning customers. And what is even more important, will be building a business with value. It is much easier to sell a business built on a separate website.
The points against sell in your own shop
LESS TRAFFIC FREE: Having your own site, you will be responsible for generating traffic through marketing, SEO and paid to advertise. You should invest more time and money and be willing to carry out a long-term campaign to promote your new store.
More complex: On eBay and Amazon do not have to think much, just fill the standard template and publish your products. With your own site, you will be responsible for the design, layout and structure of your store. And if you’re hosting your own store (instead of using a service including accommodation and Shopify), you will be answerable for the mechanical configuration of software and servers.
What sales strategy should you choose?
So what platform should I choose? There is much to consider, and different platforms are best suited for different people in different situations.
If you’re looking to try drop shipping business and explore it as a hobby, selling on eBay and Amazon can be a viable option if you can find products with a good margin that allows you to cover fees and still have profit. There are many people making money from sales on eBay and Amazon so do not discard.
But if you desire to construct a long term business, we recommend you start with your own e-commerce store. As explained above, this option offers the greatest flexibility, customization options, ability to connect with customers, the opportunity to build a real business value, and more. You should invest in marketing and promotions, especially in the early days, but we believe that this option offers the greatest long-term potential and is actually the only option for those who seriously consider online sales.
Moreover, there is nothing wrong with selling some items on eBay and Amazon while you’re starting to build your online store. In fact, many mature and established brands sell merchandise this way, particularly through Amazon.