The Truth About Drop Shipping In Australia

Drop shipping is promoted as being one of the best and easiest ways to make money selling on eBay. At least thatâs what the owners of the countless drop shippers lists available on eBay want you to believe. It sounds easy, simply sign-up for a wholesalerâs drop shipping service then start advertising their products in online auctions or on your web site. People buy the products, you notify the wholesaler, pay the wholesale price & pocket the profit, without having to lift a finger.

Is that really what happens? Is it really the secret to your future financial success?

The concept of drop shipping first started in America many years ago, due to a VERY competitive wholesale market. Wholesalers were having difficulty selling their products for a decent price; so one clever person came up with the idea of drop shipping. The wholesaler would add a small premium to the wholesale price to cover the costs of extra handling of the item, and offer entrepreneurs the opportunity of selling the item for them, without having to carry any stock or deal with shipping. Once a few wholesalers started, it forced other wholesalers to do the same; otherwise they would lose their market share, and most likely go out of business. This is why drop shipping is such big business in America.

This is NOT the case in Australia, as our market is nowhere near as competitive. Itâs only recently that a handful of so-called wholesalers have started to offer a drop shipping service. When you think about it, why would a wholesaler want to be bothered selling just one of a certain item, as well as packing & posting it? Obviously they wouldnât unless they were forced to, to keep their business afloat as many are in America. Australian wholesalers donât have to do this to stay afloat.

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