10k Net Profit Dropshipping from Homedepot to Ebay ONLY

[LEARNINGONLY]

Originally Posted by dallis

break down how this guy does 1.4 price increase and does 28% profit margin with tons of sales

His math sucks, that's how. Frankly, it doesn't suck. He's a liar and a conman.

Here's how his profit loss profile works out: Widget + shipping costs a dollar. Sell it for $1.40. EB minimum fees 10+%. PP fees 3% + transaction fee. $1.40*.13% = 18%. .40-.18 is 22 cents. Your profit is $.22. Already it's NOT 28%. It's really 22%. That's just to start with.

home depot he bulk orders to cover all shipment costs. Returns are free covered by home depot too. Btw he has 9% off gift cards he buys and cash back site.

Ya 22% not including any gift card discounts he's got or cash back sites. Sometimes he says he can price match or get a home depot rep to give him 10% off his order.

Yes I got lower than 28% when I worked out an example myself. Then again gcs and cash back help him. I also was told by him he told me via comment that he is doing something that constitutes a "grey area". .. so black hat that pushes up his profit margin. He said it after I worked out an example with a 100 dollar item.

Idk probably not worth me even trying.. from what I hear dropshippers say you should do about 4,000 ebay listings before deciding to quit. Either that or someone can't say they really tried.

I wonder if the ebay dropship successful people who he collabs with for events verify each other before doing so.

Maybe he's using software since he was a software engineer to get his listings to the top.

[Sunspot144]

Course "sellers" on youtube will tell you they make 500,000 dollars with a straight face like it were profit. Ask him to share his credit card statements... what does he have to hide?

[rsot]

Originally Posted by Sunspot144

Course "sellers" on youtube will tell you they make 500,000 dollars with a straight face like it were profit. Ask him to share his credit card statements... what does he have to hide?

Nice touch

[Sunspot144]

Originally Posted by rsot

Nice touch

For real.... beginning to think the guy is HIM and he's fishing for feedback on the credibility of his video.

[Camaro2SS]

All I have to say to people who think this is a scam

https://www.youtube.com/watch?v=48rz8udZBmQ

https://www.youtube.com/watch?v=48rz8udZBmQ

[Sunspot144]

Originally Posted by Camaro2SS

All I have to say to people who think this is a scam

https://www.youtube.com/watch?v=48rz8udZBmQ

Do you recommend his course?

[LEARNINGONLY]

Originally Posted by Sunspot144

For real.... beginning to think the guy is HIM and he's fishing for feedback on the credibility of his video.

Sure

[LEARNINGONLY]

Originally Posted by Sunspot144

Learn by example. You'll never know what you'll end up selling

https://www.youtube.com/watch?v=RQH-XC5jinM

Maybe they're just trying to sell their courses/ market as well.

Skepticism can be applied to anything.

[Sunspot144]

Originally Posted by LEARNINGONLY

Maybe they're just trying to sell their courses/ market as well.

Skepticism can be applied to anything.

Buy it then. Gnight.

[LEARNINGONLY]

Originally Posted by Sunspot144

Buy it then. Gnight.

I told you I'm not buying anyone's course. Instead just wanted people to confirm if home depot source + 4,000 listings would be enough to get good profit like 28%. Just needed analysis good or bad. Thanks for your time. Appreciate it.

[Sunspot144]

Originally Posted by LEARNINGONLY

I told you I'm not buying anyone's course. Instead just wanted people to confirm if home depot source + 4,000 listings would be enough to get good profit like 28%. Just needed analysis good or bad. Thanks for your time. Appreciate it.

Naw do it. Look what Camaro posted just last month

I am just curious. Those of you who used to sell on eBay during 2010 - 2016. Would you say that your business is significantly down or up in 2018 compare to previous years? As for my own experience, I went from selling 80-120 units consistently between 2012 - 2015 to pretty much just 2-3 units a day in 2018. Views have been dramatically down, these days I can't even get 5 views a day, compared to previous years, I used to get about 100-150 views per day per product.

Side effects of dropshipping vs branding. 4k listings? Makes me wanna just reorder.

[dealagreeproceed]

please pay me $3'000 n i ll teach you how to play basketball and make it in the nba. believe me

[JamesNorth101]

Originally Posted by LEARNINGONLY

I guess it worked the best for him as a source. I find it remarkable how this is working for him. He says he lists for 1.4 times the price of each home depot good, get's 28% profit margin. I was thinking he has some tricks of the trade in order to pull that off.

That maths doesnt work out

What about eBay fees - 10%. Sometimes higher
PayPal fees - 3.4%
Scam buyers / lost items - 4%
Returns - 3% - He will also have to pay for return postage
Taxes - Depends on your state

That 40% profit quickly vanishes and becomes nothing

Things that are too good to be true are generally just that.

[rsot]

Originally Posted by dealagreeproceed

please pay me $3'000 n i ll teach you how to play basketball and make it in the nba. believe me

Are you....

[Camaro2SS]

Originally Posted by Sunspot144

Do you recommend his course?

I wouldn’t buy anyone’s course. Whether it is Amazon fba, Shopify drop shipping , eBay retail arbitrage. All of the information if freely available online. Most of these courses are either scams or they are outdated however there are some that are legitimate. Personally I am not interested to guide anyone since I am not here to create competition. But to people who say , you can’t do something because they never done it themselves I say you are ignorant and clueless.

[LEARNINGONLY]

Originally Posted by JamesNorth101

That maths doesnt work out

What about eBay fees - 10%. Sometimes higher
PayPal fees - 3.4%
Scam buyers / lost items - 4%
Returns - 3% - He will also have to pay for return postage
Taxes - Depends on your state

That 40% profit quickly vanishes and becomes nothing

Things that are too good to be true are generally just that.

28% net profit not 40%.

paypal fee is 2.9% plus 30 cent fee.

Scam / lost items - I never in my life have gotten above 1% of orders with that.

REturns are free on home depot labels included.

He buys gift cards at 9% savings. In the beginning he had about 30k in them.

Also cash back site gives him like 3% off.

He even price matches or sometimes gets the home depot rep to give their max discount of 10% off final order.

Those are all things that he is upfront about. He very well could have something entirely creative and technical (he was a software engineer). That saves him a bundle.

We don't know. All I'll say is if it works that's INSANE.

[JamesNorth101]

You sound like you really believe it. Why not give it a go then. I promise you when your doing it the maths will not add up

He may well get a 9% discount on gifts cards, but that doesn't mean your going to be able to

He very well could have something entirely creative and technical

On eBay you mean? I cannot see that happening.

[Camaro2SS]

The main issue with drop shipping on eBay is that it’s already saturated. You used to be able to generate a lot of sales and have a markup of 40-50% a few years ago but these days you won’t make any sales if that’s your markup. Also another issue is being OOS as many monitors / repricer are not always able to track your items 100% of the time. I just lost a 9 year old PayPal account with 23k in it due to too many refunds because the tool I was using would fail and I would have to refund my customers due to OOS.

[glacier922]

I guess, the problem is, even though the math checks out, there might not be as many sales realistically. That could be where the problem lies.

[Camaro2SS]

Also as of April 21st eBay has decided to change their algorithm, they specifically are targeting drop shippers and even have been sued by multiple large Israeli drop shippers for doing so. eBay had to admit that yes indeed they were lowering ranking for accounts that were identified as drop shippers. If you noticed their new requirement is to have correct zip code for your shipping location. Their bots scam your tracking to validate it was indeed shipped from the same zip code else you will be silently punished. Drop shippers are unable to provide the same zip code for every listing as retailers use multiple fullfilent centers.

[Camaro2SS]

Now it is still possible to generate profit drop shipping on eBay but most drop shippers are unable to generate anything more than $500-1500 in profit because of the competition also because you would have to generate over 100k to make anything worthy. PayPal will place rolling reserve on your account eventually. I think I only had 5% Plus colatrial $6000 on my PayPal account that was recently suspended indefinitely.

[Camaro2SS]

Also another issue many of drop shippers are facing is snapping. You work hard optimizing your titles and then another drop shipper scrapes your entire store and undercuts you. I have known anther Israeli drop shipper who was generating 225k/month and in a matter of a few weeks I saw his store sales have tumbled due to being discovered by other drop shippers. He went from selling 150-200 items to nothing.