Re: Ebay.com DropShipping Search Algorithm 2018 Quote:
Originally Posted by Joe_Joe Please elaborate |
Of course. Let's suppose I have spent time researching a product on Alibaba and finally came up with a plan on how to bring it to the market (Amazon or eBay). Now I go buy the product and spend money on importing, storing, shipping...etc. A Chinese vendor somewhere in China has the product on Aliexpress.com, someone in the US for example sets up a dropshipping business and starts selling that same product making a very tiny profit on each sale.
Because Chinese vendors have the stupid philosophy of "sell a million item to make a million dollar", that dropshipping model was brought into existence.
The end result of all of this is the following: - That guy in the US made a laughable profit.
- I was driven out of the market because I can't offer the ridiculously low prices that Chinese vendor is offering.
- The Chinese vendor wins the game.
All of that comes with a risk for eBay btw (This is basically why the disfavored dropshippers and not because they care about anybody). Shipping times are usually outrageous, products are not as described...etc
On the long run, it is far better for eBay to have good local small-medium sized businesses that are capable of providing good customer service, quick shipping and quality products that having ****ty items with ****ty quality, but low prices.
Now you might say, but hey, is not that how the market is supposed to play out? The answer is a plain NO! The Chinese don't want anyone but their own people selling on Aliexpress.com for example. At the same time, they get involved in import tax evasion schemes and they bring havoc to local businesses in the US and the EU.
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