In this article, we’re going to talk about where to sell dropshipped products.
By this point, we’ve covered quite a bit. If you were totally new to e-Commerce and dropshipping before, at this point we hope you’re starting to get a clear picture of what dropshipping is.
We hope that you now have a better understanding of exactly how this online business model can work, and what’s possible with dropshipping.
Now, let’s get started with the different ways you could sell these dropshipped products.
3 Different Ways to Sell Your DropShipped Products
When you start thinking about the different ways to sell your dropship products, it comes down to three options.
- First is eBay. That’s pretty much everyone’s starter business model when they think about e-Commerce. Create an eBay account, make some listings, sell the products.
- The next is Amazon. It’s becoming more and more popular, but it is still possible to actually list products for dropshipping on Amazon. So that’s an option.
- And option 3 is having your own store, this is what we recommend you to do. It’s actually building your own e-Commerce store.
Dropshipping on eBay
Let’s talk about why eBay shouldn’t even be an option for dropshipping at this point.
First of all, the really good suppliers with great brands aren’t going to allow eBay dropshipping.
Whenever you sign a contract and get approved for a new dropship supplier, 95% of the time it states in the contract that you’re not able to sell on auction websites.
Obviously, that includes eBay, because it dilutes the value of a brand.
Good dropship suppliers – the ones you want to work with – are those who truly care about the perceived value of their brand.
Great suppliers are not going to approve people only to have them jump on eBay and start selling their products at ‘auction’.
Just think about a high level company like Saint Laurent. They’re not going to approve a seller and say: “Okay, yeah. You can sell these real Saint Laurent wyatt harness boots on eBay. It’s fine.”
That’s not how it works with any good supplier, no matter what the price point of their products or the level of their supplier tier. When it comes to using eBay for dropshipping, don’t even think about it.
Dropshipping on Amazon
The next dropshipping option is Amazon. Quite a bit of people do this successfully.
What can be said about dropshipping on Amazon, is it’s risky, because the window could shrink fast and you could get wiped out by an over-saturation of competition.
On Amazon, making a lot of sales comes down to who has the best price.
Again, like eBay, there’s a lot of dropship suppliers that won’t even let you sell on Amazon.
We do have one piece of advice for dropshipping on Amazon: Don’t put all your eggs in one basket. It’s quite common that overnight, a bigger player steps in and starts competing with you.
But we still can’t fully recommend dropshipping on Amazon, especially not as your primary source of income.
Though if your store is up and doing well, and you’re looking to scale your business, then Amazon is an okay option for an additional source of income. Still, you shouldn’t rely on all of your income coming from Amazon.
Here’s a recap of the reasons why we find dropshipping on Amazon too risky to rely on 100%:
- You don’t own your customers.
- The margins are very low.
- You can get wiped out easily.
Owning Your Own Dropshipping Store
The third option is to have your own e-Commerce store. This is the dropshipping model that we always recommend.
So let’s go through some of the countless benefits as to why it’s proven to be successful, time and time again.
Benefit #1: You’re Not Competing Solely on Price
First, you’re not competing solely on the price of an item. When you own your own dropshipping business, you own that platform and data. It’s no longer only about price.
Sure, people can find your products elsewhere, but when they’re visiting your e-Commerce store, they’re not seeing all of your competitors like they do on eBay and Amazon. They’re seeing your store and your store only when making a purchase decision.
The same can’t be said for dropshipping on Amazon or eBay alone.
Benefit #2: You Have More Choices for Additional Traffic Sources
Next, when you own your own dropshipping store, you have more traffic sources available to you.
When you’re dropshipping on eBay or Amazon, they already have their own built-in traffic. Some people see that as a benefit to dropshipping on those platforms, but we see it as limiting.
What arguably makes owning your own dropshipping store better is having access to certain advertising options that you just don’t get with Amazon or eBay.
Benefit #3: You Own the Customer and the Data
The next benefit of owning your own e-Commerce store is having the customer data.
This is a huge drawback on Amazon. You don’t even get your customer’s email address! When someone buys from you on Amazon, you’ll ship them the product, but you won’t know who that person is.
When you have your own e-Commerce store, you own all of this data. When these customers buy from you, you have:
- Phone Number
- But most importantly, you have their email address.
And that leads into the next benefit of owning your own store.
If you have their information, especially their email address, you can extend the lifetime value of your customer, or LTV. You could have emails automated to follow up with them to offer upsells and add ons. Also, you could send them Holiday promo campaigns, and any other promotional email marketing they might be interested in.
Benefit #4: You Can Implement the Changes Your Market Wants
The next benefit of having your own store is that you can implement the changes that your market wants. You can target your specific buyers.
On sites like eBay or Amazon, they’re not targeting one specific customer because they sell everything. They are targeting anyone who could purchase anything from them.
When you have your own dropshipping store, you can make it super specific and target an exact buying demographic.
So, find out who your ideal customer is and make your dropshipping store revolve around them.
Making your dropship store highly targeted will greatly increase your conversion rate when you compare to somewhere like eBay or Amazon.
Now you can start to understand why it is appropriate to recommend that dropshippers start and sell from their own e-Commerce store.
Just remember, you should never sell on eBay and you shouldn’t start dropshipping on Amazon right away.