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Hello biophase,<br />
thanks for your answer. I will explain my business plan.<br />
Dropshipping means for me: I sell a product(no matter if it is on my online shop, ebay or amazon). I get the payment and the adrdess from the customer. Than I go to my dropshippers website and order the product at a wholesale price and input the adress of my customer.<br />
The Pro's:<br />
I don't have to make any investements before I know a product is sold.<br />
I can have a very broad product pallete because I don't need to buy them all before.<br />
I just have to put products online for sale, promote them and give away the adresses without caring about the shipment.<br />
I get all the promotional Material as Images, Videos, Product details from my dropshipper.<br />
The Con's:<br />
Dropshipping Prices are usually higher than Wholesale Prices, because of the lower volumes and because they take care of shipment.<br />
I don't have the product in my hand to answer buyers requests.<br />
I can't use FBA which gives me advantages at amazon because I don't get the product as fullfillment is made by my dropshipper.<br />
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<br />
Low Price ist okay for me. Example: There is a product which is sold for about 127€ at Amazon. I get it at my dropshipper for<br />
77,19€ (includes shipping). The Product will be shipped within 1 day from a warehouse in the same country as the customer. So if I calculate 15€ Amazon fees, I'm able to sell the Product at a much lower price then the others while still making profit from it. But FBA is not possible as said above.<br />
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<b>It is my strategy because it has the lowest barrier to get into business. I have no upfront payments and risks. If I'm successful with this strategy I can always change to the other strategy mentioned in the thread where I have more risk but also higher margins.</b><br />
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Regards<br />
<br />
Andreas
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The fact that there is little barrier to entry is a large reason why <b>this should not be</b> your strategy. Low barrier to entry <i><u>is not a good thing. </u></i><br />
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Are you just slapping some stock product photos on an eCommerce platform and hoping they sell with a bit of advertising? Do you think this will work? Be honest. <br />
<br />
Are you adding value? Is your niche going to benefit from your addition? If the answer is no, it is my strong opinion that you revise your plan.<br />
<br />
Find a niche that you can reach, add value to a product(s) within that niche, test & validate your product idea, source a few reliable suppliers, order samples, sell your shit, optimize your selling process. Add another product to your line, rinse & repeat (not necessarily in that exact order). <br />
<br />
<i>(This is my first post on the forum... want to take the opportunity to thank Bio for the value he's added here... you're F*cking awesome). </i></div>