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What is Dropshipper's Business Motivation?

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sohelpmegod



Joined: 23 Feb 2006
Posts: 5

PostPosted: Thu Feb 23, 2006 6:37 pm    Post subject: What is Dropshipper's Business Motivation? Reply with quote

I personally don't understand why it would make $ sense for the supplier to dropship. He can place an Ebay auction just like you can. Can someone explain to me please?
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Voasi



Joined: 22 Dec 2003
Posts: 895
Location: California, The OC

PostPosted: Thu Feb 23, 2006 6:42 pm    Post subject: Reply with quote

Why handle all the aspects of running a business, rather just producing a product and shipping. I'd rather have a 100 ants working for me rather then me going out and doing the work for myself.
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robertb



Joined: 09 Aug 2003
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PostPosted: Thu Feb 23, 2006 7:57 pm    Post subject: Reply with quote

For the same reason a supplier launches an affiliate program for their products.
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sohelpmegod



Joined: 23 Feb 2006
Posts: 5

PostPosted: Fri Feb 24, 2006 9:34 am    Post subject: Reply with quote

To be honest I don't quite understand why big companies don't just hire a few SEO/marketing people and do in-house what affiliates do. Although running a successful affiliate campaign does take significant skills as opposed to hmm... putting up an auction on Ebay.

robertb wrote:
For the same reason a supplier launches an affiliate program for their products.

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Voasi



Joined: 22 Dec 2003
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PostPosted: Fri Feb 24, 2006 5:26 pm    Post subject: Reply with quote

Quote:
To be honest I don't quite understand why big companies don't just hire a few SEO/marketing people and do in-house what affiliates do.

I don't know either. Smile Honestly, its lack of knowledge. Knowledge of the online industry and how the web works. Still, a majority of brick & mortar companies aren't on the web. Getting them to the web is one thing, but getting them traffic/leads/conversions is something else, which is another can of worms you have to 'explain' to them.

But hey, it's fun getting together and starting you own dropship sites. I don't know why everyone doesn't get setup like www.netshops.com does.
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morak



Joined: 24 Feb 2008
Posts: 1

PostPosted: Mon Mar 10, 2008 7:53 pm    Post subject: Furniture marketing online Reply with quote

I think by now a lot of people or jumping on the wagon, building one stop shopping sites for all people’s home needs, see http://www.homelivingstyle.com they have a neat selection.
Probably hiring the professional help for the online marketing aspect of the business
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Warburton2



Joined: 05 May 2007
Posts: 238

PostPosted: Mon Mar 10, 2008 9:33 pm    Post subject: Reply with quote

Quote:
I don't quite understand why big companies don't just hire a few SEO/marketing people and do in-house what affiliates do.


I'm just guessing here, but might it be because the people who even halfway know what they are doing with regard to SEO and online marketing are pretty unlikely to go and work in-house for someone else?
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blakekr



Joined: 17 Dec 2003
Posts: 263

PostPosted: Tue Mar 11, 2008 2:21 am    Post subject: Reply with quote

Quote:
the people who even halfway know what they are doing with regard to SEO and online marketing are pretty unlikely to go and work in-house for someone else?


Right.

As for dropshippers, I've often wondered that too, but the ones I work with seem to be pretty happy with the hands-on work of designing, making, shipping, without having to worry about the arcane business of SEO.

Me, I'd rather gouge out my eyes with pixie stix than schlep items to the post office every day, so it seems like a good trade.
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Bobby



Joined: 12 Jul 2003
Posts: 764

PostPosted: Tue Mar 11, 2008 3:24 pm    Post subject: Re: What is Dropshipper's Business Motivation? Reply with quote

sohelpmegod wrote:
I personally don't understand why it would make $ sense for the supplier to dropship. He can place an Ebay auction just like you can. Can someone explain to me please?


Suppose I'm a dropshipper and I list 1,000 of my items on eBay and 600 of them sell. It took time to list 1,000 items and answer questions to potential buyers. Plus, I had to pay a listing fee on all 1,000 items and a final value fee on the 600 items that sold. On the other 400 items, I lost money (the listing fee). And I have to deal with feedback.

Now let's say I have 100 sellers and each lists 10 items. I still have 1,000 items on eBay but I haven't invested any time or money. And for the items that don't sell, my sellers lose the listing fees, not me.

And more importantly, I can focus my time and energy on shipping the products that sell and finding new products to sell in the future.
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nancyj



Joined: 27 Feb 2008
Posts: 4

PostPosted: Wed Mar 12, 2008 1:30 pm    Post subject: dropshipper Reply with quote

Does anyone know of a good dropshipper for fishing equipment, lures, etc.?
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