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    1. bouncer123 is offline

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      #1

      Help with dropshipping - the risks of dropshipping

      Hi Guys,

      I'm a student looking to earn some extra cash and have heard that dropshipping is a simple risk free way of doing this. However all the websites i have seen so far are looking for businesses as their clients and are wanting money up front. Is it possible to dropship as an individual without having to pay money up front? i.e. someone buys off me, i pay the dropshipper their price, keep my profit and the dropshipper send the product to my customer. Or have i been misinformed and just dreaming? :P if thats the case any other advice on making extra cash is appreciated.

      Thanks
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      WholesaleForum is offline

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      #2
      Hi Bouncer,

      Welcome to Wholesale Forum

      Drop shipping is not risk free, far from it, in fact in most cases it is riskier than wholesale. This is why:

      1. Today there are thousands of middlemen drop shippers who have set up compelling websites asking for a joining fee to drop ship products. What you won't know until you have paid is that their products are overpriced (and can be purchased much cheaper directly from an online retailer), and that the site you have signed up to is part of a network of duplicate sites all offering the same exact service.

      2. Getting stung by drop shipping scams. These are websites that ask for a fee but never dispatch any goods.

      3. You are not in control of stock levels. Unless you choose a dependable drop shipper you are likely to find yourself refunding customers more often than you can bear.

      4. Hundreds and even thousands of resellers selling exactly the same products as you. If you opt for a drop shipper that can be found easily, you are automatically undermining your chances of success. If instead you think uniquely, and identify a product that few other drop ship resellers know about, you have a much better chance of making money and building a sustainable business.

      How do you do that? It's explained here: Zero to Hero - How a home based start up generated over 3 millions in just one year - Wholesale Forum

      PS: having a business is always preferable, setting up a Ltd company in the UK costs as little as 20 if you just take the time to fill the forms yourself. And it is all explained at http://www.companieshouse.gov.uk/infoAndGuide/companyRegistration.shtml

      We recommend you register for VAT only once you have surpassed the 70k turnover threshold.
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