BUYING HOT ITEMS VIA DROPSHIPPING AND RESELLING THEM ON EBAY DOES NOT WORK .

Are there any real drop shippers?    Does drop shipping work for anyone?    Is drop shipping a scam?    Are all drop shipping companies scammers?
Where do eBayers find drop ship wholesalers?    Who drop ships name brand merchandise for wholesale prices?

   
Chris at Computer for Drop Shipping Expo 2005

My name is Chris Bernard.  I worked for 11 years in the wholesale & drop ship industries and was considered one of the leading industry experts.  During that time worked with many of the world's most prominent drop ship companies.  However, in February 2007 I was banned from the industry just for speaking the truth!  The truth that would cut into the drop shipping gold-rush profits and would demand the industry reinvent itself...

The Truth:
THAT DROP SHIPPING IS A SCAM!


The Real Way to Find Products to Sell Online
And it's not what you think -- not even close!!


If you are looking to start your own online business using drop shipping then you need to use the resources and information on this site.  Read it all, read it carefully, and you will finally learn the truth.

DROP SHIPPING IS A SCAM!

If you are easily upset or offended that I would just leave this site.  I am not a rich jerk, but I am also not going to sugar-cote things.

I AM...
ANGRY.  FRUSTRATED.  PISSED OFF.
TIRED OF THE SCAMS.  SICK OF UNEDUCATED PEOPLE.  READY FOR BLOOD!

You see...  I'm a tell it like it is kind of guy.  This "flaw" of mine ended up getting me banished from the wholesale / drop ship industry in 2007.  I was working with some big drop shipping companies and they weren't interested in the truth.  They were not interested in their customers making money.  No, the drop shipping companies were ONLY interested in lining their pockets.

What is Drop Shipping?

Drop shipping is a method of buying-and-selling that requires very little overhead investment (aka CASH) and very little effort.  Sounds perfect for the entrepreneur who is both broke and lazy!

Typically here is how drop shipping "works" when applied to online salesPlease note: The word "works" is in quotes because drop shipping doesn't work, it is a SCAM -- but anyway, here are the mechanics of drop shipping.

1. You find a product to sell in the drop ship catalog.
2. You sell product online.
3. You forward the order to drop shipper.
4. The drop ship company completes the order and ships it to your customer.
5. You keep the profit.

When talking about profit, the profit in simplest terms would be the difference in price between what the drop ship company sells the product for and what you sell the product for to the buyer.

Here is a simple example...

1. XYZ Drop Ship Company sells an MP3 player for $22.

2. You, the entrepreneur, sell the same MP3 player online for $30.  Someone orders one.

3. You then send the order to the drop ship company using the money from the buyer to make the purchase.  Since you sold the MP3 player for $30 and the drop shipping company sells it for $22 you have a profit of $8.

4.The drop shipping company then sends the product directly to the customer.  All done.

That is what drop shipping is and how it "works".
Again; the word "works" is in quotes because drop shipping doesn't work, it is a SCAM.

Why Drop Shipping is a Scam!
Now, using the example above let's talk about why DROP SHIPPING IS A SCAM!

(Then, later, we will talk about what to do about the drop shipping scam...)

In the above example you have made $8 on a sale which was drop shipped for you by XYZ Drop Ship Company.  However, we made a basic example.  We didn't factor in any listing fees or payment fees (eBay fees, PayPal fees, etc)...  So, let's assume some fee minimums.

Let's assume you listed your product for sale on eBay and accepted your payment through PayPal.
You have $8 profit before the following fees...

--------------------------------------
eBay Listing Fee:  $0.75
(assuming you listed the MP3 player for under $10 starting bid with a gallery picture)

eBay Final Value Fee:  $1.58
(based on eBay's current 5.25% final value sale fee)

Average PayPal Fee:  $0.98
(based on PayPal fee structure)

$8.00 - $0.75 - $1.58 - $0.98 = $4.29
--------------------------------------
 ACTUAL PROFIT
:  $4.29

After all fees you're left with a whopping $4.29 profit...  Wow, congratulations.

Let's estimate that between finding the product, creating the auction, listing the auction, and completing the order for the customer you spent one hour of precious time; that would mean you're going to make around $4.30 per hour.

...Yes, that's $4.30 per hour you work.

Whoopee!   An $4.30 per hour job with no benefits (insurance, 401k, etc)!
Wait, that actually doesn't sound too good...  Does it?

But, even that measly amount of profit is assuming you could actually sell the MP3 player on eBay for $8 more than the drop ship price.  And you know what?  Making that assumption is not realistic based on the facts!

Want to know the reality?
Ok, here is some REALITY for you...

You will most likely not even profit $4.29 per drop ship sale!

Yes, you read that correctly.  $5 would be "good" profit for a drop ship product on eBay.  Below is a *REAL* example of a product found at one of the web's most popular drop shippers and what you could expect to profit with this product on eBay...

Dropship Ipod Nano Example

2nd Generation Ipod Nano 8GB

Retail: $299
 
Drop Ship Price: $235
+ $4 drop ship fee + $6 shipping = $245 actual drop ship price.
 
Average eBay Sales Price: $222.50 (shipping included)
 
Average eBay / PayPal Fees: $14.06
 

Resulting Profit: $36.56 LOSS!
That's not even including your eBay seller's fees, your PayPal fees, etc!

That's right, a $36 LOSS on a very hot product using a well-known drop shipper.

We wouldn't have to stop there...  We could make this unfortunate example with almost EVERY item in the drop ship catalog and with almost EVERY drop shipper.  When most eBay sellers who try drop shipping realize this fact they immediately start pointing the finger at the drop ship company and saying...

"These are not real wholesale prices, the products sell for LESS on eBay!"
"Your company is not a real drop ship company, you are just a MIDDLE MAN!"
"I can buy these products for less on eBay, this company is a SCAM!"

Well you know what?  What I am about to say might offend you, but I don't care, it is true...

STOP WHINING & CRYING ABOUT THE "MIDDLE MAN"
... AFTER ALL, THAT IS WHAT YOU ASPIRE TO BE! ...

I read it and heard it time and time again...
Waah, waah, waah -- such-and-such drop shipper is not the *REAL* wholesale source.  Boo-hoo!  They are a middle man with inflated prices.  They are nothing but scammers.  Waaaaaahhhh!  I want a REAL drop shipper!  Waaaaaahhh!

Well, think about this...
If drop shipping worked as it is supposed to...  YOU become a MIDDLE MAN!

YOU FIND A PRODUCT SOMEONE ELSE IS SELLING AND SELL IT TO A THIRD PARTY FOR MORE, WITHOUT PROVIDING ANY ADDED BENEFIT

ALL YOU ARE DOING IS INFLATING THE PRICE SO YOU CAN PROFIT

YOU ARE NOT SPLITTING A CASE OF GOODS, YOU ARE NOT MANAGING THE SHIPPING & HANDLING, YOU ARE NOT MAINTAINING INVENTORY, YOU ARE NOT ADDING VALUE...  NOTHING!

If anyone could simply go to the drop shipper and order just one of an item and have it delivered to a customer (or themselves) at this amazing low drop ship cost then they don't need YOU!  After all, they could avoid you (you nasty middle man) and buy directly from the drop shipper & pay less!

You see, with wholesale you have to buy a large quantity and break it up to sell individually.  You manage inventory, ship to customers, etc...  When you buy wholesale and resell you are not a middle man because you are providing a service that entitles you to charge more money.  You are buying large quantity and your customers are not.

When you use drop shipping ALL YOU ARE is the middle man!  You do NOTHING but inflate the price.  You are truly in every sense of the word *A MIDDLE MAN*.  It is not that same as buying wholesale.

Read this carefully and make no mistake...

DROP SHIPPING IS NOT WHOLESALE
... AND IT'S NOT RIGHT TO EXPECT A WHOLESALE PRICE EITHER! ...

Wholesale is about quantity...  Period.  Expecting to buy just one of an item and to get it for the same price as a company who buys 100,000 is a bit naive.  In fact, it is unfair for you to expect such a thing.  Real wholesalers and distributors deal in slim margins, their profit comes from volume.

Let's say a wholesaler's cost on a leather purse is $10 and the wholesaler sells the purse to a famous department store for $11.80 each with a quantity of 100,000 pieces.  The wholesaler will profit ~ $150,000 on this sale after labor and other expenses, $1.50 each.

$1.50 profit per piece x 100,000 pieces sold = $150,000.

If you want just one purse for $11.80, the wholesaler would profit less than $1.50 and have to breakup a case of merchandise.  No serious company is going to make this sale.  Not even a drop shipper.

$1.50 profit per piece x 1 piece sold = $1.50.

Would YOU bother selling items and doing a bunch of work for $1.50?  Well, neither will any other company -- and it's not fair to expect that of them, now is it?

That is why drop shipping is NOT wholesale.  With drop shipping you CAN buy just one purse.  BUT you can expect to pay AT LEAST 25% MORE for the product.  That would make the price $14.75 each in our purse example.  But we're just getting started...  On top of the drop ship sale price, there is almost always a 'handling fee' associated with drop shipping.  This is usually $3 - $5 per item, brining your cost on the purse to a base price $17.75 or more!

Now you're at a base price of $17.75 for the product.  You list it on eBay and are going to take payment through PayPal...  You need to add in those fees to determine the 'true cost' of your product!  Let's assume another $3.00 in fees bringing your true product cost to $20.75.  A far cry from that $11.80 isn't it...

Also, some drop shippers have monthly fees, membership fees, etc.  This too makes many people cry SCAM!  I have read many posts "any drop ship company that charges a membership fee for you to sell their products is a scam!"...  Really?

So let me get this right.  A good drop shipper should...

1.  Sell products at wholesale price (and profit next-to-nothing on the sale).
2.  Charge no membership fees (meaning anyone, including your customers could just go to them and order).
3.  Sell products for less than I can find them for on eBay (this actually becomes impossible, see below).

...and of course all you should have to do is list the products on eBay & make a fortune, right?

Wow...
YOU are starting to sound like the SCAMMER here!
...and I thought it was the drop shipping companies who were the scammers...?

But you know what, let's say you did it...
You found the golden goose that laid the golden eggs!
 

YOU FOUND A DROP SHIPPER THAT SOLD PRODUCTS FOR TRUE WHOLESALE PRICE...  NO WAIT; LESS THAN WHOLESALE PRICE!!

You found a drop shipper as you know they should be...  This drop shipper, we will call them World's Best Drop Ship Company, this drop shipper has it ALL...  The way you demand it!

World's Best Drop Ship Company offers...

1.  Prices at wholesale cost (ok, better than wholesale!)
2.  No membership fees (yeah!)
3.  Huge profit margins (due to their low pricing)

Now THIS is going to be great, right!?  You will conquer eBay for sure and make millions!! 

Oh, wait.  I should explain something to you first...

THE EBAY PRICE WILL ALWAYS BE LESS!
... AND IT IS PEOPLE LIKE YOU THAT MAKE IT THAT WAY! ...

Yep, sorry to say, but you are part of the problem.  It is people like you that help make drop shipping success on eBay almost IMPOSSIBLEDon't believe me?  Let's take a look...

Let's imagine for a second that you're using the World's Best Drop Ship Company (above)  who was willing to sell that purse (remember that leather purse we talked about?) at just $11.80 each.  And, let's say that the purse sells at retail stores for $20.  So, you list the purse on eBay for how much??  Well, you want them to buy from you and not the retail store so you decide you will sell them for $16 each.

$16.00 sale price - $11.80 purchase price = $4.20 profit.
(we will leave eBay, shipping, PayPal, etc our of this example for ease of explanation)

Not bad.  You're profiting $4.20 per sale...  How many do you want to sell??

Well, you don't want to make just $4.20 and sell one of an item do you?  No.  Trust me, you would not.  You would love to sell 1000 leather purses and make over $4,200 if you could, right!?  And, since your price is less than the retail store price, people are buying from you like mad!  But along comes Johnny OtherGuy...

Who is Johnny OtherGuy?

Well, he is just another somebody hoping to make a living on eBay with drop shipping.  And guess what?...  He sees that your leather purses are selling on eBay for $16 and he wants in on the gold-rush.  So what does Johnny OtherGuy do?  Exactly what YOU did!  He goes to the World's Best Drop Ship Company and locates the purse for that amazing $11.80 price.  Then he says to himself "I will sell the product for $1 less and get all the sales!".

So, Johnny OtherGuy now lists the leather purses at $15 each...

$15.00 sale price - $11.80 purchase price = $3.20 profit.

See what is happening here?  Since the World's Best Drop Ship Company is actually offering a great price on the leather purses, all the Johnny OtherGuy's in the world are going to keep cutting into the sales price so they can outsell the other eBayers.  Pretty soon it's...

$13.00 sale price - $11.80 purchase price = $1.20 profit.

So, because of people LIKE YOU, the profit potential for drop shipped items on eBay enters the realm of ZILCH, ZERO, NADA in no time.  What?  You're not a Johnny OtherGuy you say...  Are you sure!?

Let me guess...

The items you were hoping to sell on eBay were HOT ITEMS that you saw selling well on eBay!
(Currently this would include iPods, mp3 players, laptop computers, Webkinz, etc -- anything that is a must-have item right now.)

In fact, the "I will sell it for less plan" is THE PLAN most wannabee eBay sellers employ.  Or at least plan to employ until they find out they cannot get the products drop shipped for a cheap enough price to start with.  Anyway, that is the Johnny OtherGuy plan.

Was it your plan?
If so, look in the mirror and meet Johnny OtherGuy.

If it was your plan, then you need to read on.  You need a new plan.  If it was not your plan, then congrats -- unfortunately your plan still did include drop shipping, so why don't you go ahead and read on too...  :-)

So drop shipping is only kind-of a scam.  The scam is that it is marketed as an easy way to make money with a prey on your desire to sell what is hot...  But the reality is that drop shipping is too expensive and that the sell what is hot plan isn't a good one.  I do have some good news for both of us however...

"Chris, I wanted to drop you an email and let you know that this is a great little guide you have here and also to let you know that using your line of thinking I was able to come up with another source for products that I think is very good.  I hope you add it to your guide.  I do not need any compensation.  I am now officially a full time eBay seller. [...]"

Mark Snyder
Hillsdale, MI

"I had thought about this before and assumed that many sellers were using drop shippers.  Chris, you are the first person to tell it like it is and that is really nice.  I have just looked over your guide and wanted to let you know that for the first time I am really convinced that I will be able to make a good income working from home."

Candice Limpet
Auburn, TX

I have written a guide called Better Sources.  It will teach you the right way to find profitable products to sell on eBay.  I will also provide you with powerful online tools to help.

My guide & my tools will be the difference in your eBay career.

You will learn where to get products for less than you've ever thought possible.  You will learn how to buy products with no risk.  You will learn the real way to make a killing on eBay.

Not a List of Wholesale Suppliers or Dropshippers.
And unlike wholesale suppliers, you can use my sources anywhere in the world!

My guide is a complete manual for finding products to sell on eBay.  If you are just looking for wholesalers then the best place by far is Worldwide Brands.  Their OneSource product is $299 for a lifetime membership and it is far and away the top wholesale sourcing tool on the internet.

However, if you are looking to get started selling products on eBay right away and want as little overhead investment as possible (want to spend as little money as you can) then my guide, Better Sources, is the way to go.  I guarantee it.

So, you might be wondering what products you can find with my guide.  Well, below are REAL examples of products I have found using the sourcing methods taught in my guide!  They are real products and real auction screenshots from then the items were sold.

Izone Bought Using a DropShipping Alternative
POLAROID IZONE BOUGHT FOR $28.90
SOLD ON EBAY FOR $80

Blackberry Bought Using a DropShipping Alternative
BLACKBERRY 7520 BOUGHT FOR $42.11
SOLD ON EBAY FOR $102.50

   
Breeze Ball Bought Using a DropShip Alternative
BREEZE BALL BOUGHT FOR $6.60
SOLD ON EBAY FOR $89
PVR Bought Using a DropShip Alternative
PORTABLE DVR & DVP BOUGHT FOR $40.00
SOLD ON EBAY FOR $85

My guide is short, sweet and to the point.  It not only tells you where to find products but it gets you in the right mindset and gives you real-world examples.  My guide is not like anything else available.  And it works in any country worldwide!  It was developed using my unique insider's perspective from eleven years in the drop ship industry and my years of experience as a top eBay seller.

My guide will eliminate the problems that will plague your business if you were to use drop shipping.  It will redirect your thinking and open your eyes to the profits that can be made right away without the need for drop shipping or even wholesale!

  • You will learn exactly where to look to find the right products to sell for huge profits!

  • You will learn to eliminate any risk for financial loss!

  • You will be able to sell products with no cash upfront!

  • You will learn to open your mind and see all the profit potential that literally surrounds you!

  • You will have access to unique online tools that will help you find products faster!

  There is nothing else like Better Sources being sold anywhere!  Why?  Because there is not enough money to be made by selling a guide like this.  Seriously.  Companies that sell drop shipping & wholesale lists profit when you buy the list, but make even more when you buy the products.  I will not sell you any products -- my guide (and included tools) is the only product you will purchase from me.  My guide will tell you where to find products and I bet you cannot guess where I am going to recommend!

But, just to prevent you from making a mistake (by buying an expensive wholesale or drop ship supplier list), I am going to include them for free as well.  Yes, you will not only be getting my exclusive guide which shows you the *real* way to find products to sell online.

I will include a list of top wholesalers & drop shippers as well.

"Thanks Chris for all the personal attention you have given me to help me get my ebay store up and running and making money.  I wish you lots of luck in selling your guide and I will recommend it to anyone I come across who is looking to make money by selling products online."

Mark Snyder
Hillsdale, MI

I will also include some good information on how to import products for the lowest possible price.  I will show you where to go to find the products for import and teach you exactly how to do it.  It is very easy.

But still, the methods I will teach you for finding products are even better (cost less - profit more) than importing.  Yes, even better.

Each step of the way I am going to provide you with real examples of products I found, where I found them, and my ACTUAL eBay auction listings.  Again, there is nothing like this anywhere else.

If you want to get selling on eBay or anywhere online, including your own website, then my guide will have you investing less and profiting faster than any other system available.

I PERSONALLY GUARANTEE IT...
...OR 100% OF YOUR MONEY BACK!

It is important to understand what my guide is and is not...  Remember, it is unique.  It is not like the dime-a-dozen list selling sites you see all over the web.

WHAT MY GUIDE IS...
A complete manual on exactly where to find products to sell for a profit online and how to do it.  Risk free and with low investment.  Just like drop shipping, but it actually works -- anywhere in the world!

WHAT MY GUIDE IS NOT...
A list of wholesale sources, a list of drop shippers, a list of any kind.  Though I do throw those in too for free.

Buy my guide and try it right now and get instant access.  You have nothing to lose.  I use Clickbank for all my payment processing and, in accordance with their terms, I am required to honor my guarantee.  So you can be assured that I will.

However, I have yet to have a problem with even one single customer.  Not one!  My guide and tools are that unique and that good.  After your payment is processed you will have instant access to my guide and tools and can start selling products immediately.

So, what are you waiting for -- some fake sale!?  Those are just marketing tactics to get you to buy on impulse.  My guide is $34.95 but, if it helps, you can tell yourself that if you don't buy it today the price will go up to $49.95...  But all joking aside, if you're not ready to buy my guide today then feel free to think about it and look around at what else is out there...  I am sure you will be back.  My guide is not like anything else.  It is the real information you need to succeed.

 DON'T BE FOOLED BY DROP SHIPPING HYPE.  DON'T FALL FOR THE DROP SHIP SCAM.

If you are ready, the price is only $34.95 and you can access my Better Sources guide (and tools) immediately.  You can pay with PayPal, Visa, MasterCard, American Express, Discover, or even your checking account.

IF YOU DO NOT LIKE MY GUIDE, I WILL REFUND 100% OF YOUR MONEY!

Try Better Sources for up to eight weeks...  If you are not completely satisfied I will refund 100% of your money.  Period.

Better Sources - Say no to dropshipping!


ONLY $34.95
LIFETIME FREE UPDATES & UNLIMITED SUPPORT!


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No waiting!  Login access will be displayed to you on a separate webpage immediately as soon as you make payment!  You'll be able to log into the members area and access the guide as soon as your payment is confirmed.

P.S.   I will not just send you my guide and be done with you.  My guide will include a special email address where you can contact me at any time for help with your resale business.  From building a website, to making catchy auctions, to finding more products, I am here to help my customers!  Anything you need let me know and I will be happy to assist.  I can even provide you with my instant messaging address so you can get a hold of me whenever you need.  I am committed to helping you!

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