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Drop shipping

Discussion in 'Small Business' started by Logan, 30th Apr, 2016.

  1. Logan

    Logan Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    146
    Location:
    Sydney
    I have been looking at a number of online business and came across drop shipping - has anyone used this business model with success ? I understand the theory but can't work out the tax logistics ?

    I am also having a lot of fun with Alibaba searching for products - has anyone actually purchased from this site.
     
  2. Truly Exotic

    Truly Exotic Well-Known Member

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    21st Aug, 2015
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    Location:
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    ive looked into it

    in theory its great, easy,
    but essentially you are putting all your reputation and faith into a chinese company

    if they run out of stock, problems
    if they ship late, problems,
    if they dont ship, problems

    however that dropshipping flower shop that ran into trobules recently, seemed to have done well for years

    so i guess it can work, but ive yet to hear anyone succeed with it
     
  3. skater

    skater Capitalist Premium Member

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    18th Jun, 2015
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    1,412
    Location:
    Sydney
    I buy half container loads from both China & USA. I DO also have a couple of local companies that I use for drop shipping BUT I would never use drop shipping from China.

    Do your research, buy your products in bulk, and then you won't run into trouble.
     
  4. Logan

    Logan Well-Known Member

    Joined:
    19th Jun, 2015
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    146
    Location:
    Sydney
    Thanks for the feedback @Truly Exotic and @skater. It seemed too good to be true. I think it would work best with large expensive items. I have been reading a lot of books about start ups and online businesses. It seems one of the best things to sell is an information product, I have a great product / service but can't sell as I sign (and take seriously) exclusive waivers every 6 months with my day job :(

    Any other suggestions for online businesses ?
     
  5. Coastal

    Coastal Well-Known Member

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    22nd Jun, 2015
    Posts:
    153
    Location:
    Brisbane
    Why not use an Aussie Supplier.

    Selling on the web is no longer about being the cheapest. Think about being quality and convenience. Find a premium product to sell for a premium prices.