In Finance Business

Archive for November, 2009

How I Made A Fortune On Ebay Using Dropshippers… And Then Lost It All

My name is Kevin and I’m 24 years old. This is the true story of how during the summer of 2001 I made 40000 selling dropshipped goods on ebay only to lose it all and end up with 4000 of debt. Read my cautionary tale to prevent yourself from making the same mistakes that I made.

I first found out about dropshipping back in June of 2001 a little after I started a notsoprofitable business on eBay selling cell phone accessories and such. I saw dropshipping as an all profit method of business. You don’t pay for shipping. You don’t pay for inventory. You basically just advertise the product on auction websites such as eBay take orders collect the money and pay the set amount for each item to the dropshipper keeping the remaining amounts for yourself as profits. I now realize that it is only that easy when you’re dealing with the right person.

I first started dropshipping with a guy named Chris. I was selling Nike Air Jordans on eBay. I saw that Jordans are real popular on eBay and people pay huge amounts for them. I’ve seen some pairs go for 1000. Chris only charged me 67 a pair. So I basically just doubled the price and sold them on eBay for 134 a pair. I sold about 20 pairs of shoes within a week giving me a profit of 1340. I suddenly became happy with the success I had because obtaining over 1000 in a week at the age of 19 is pretty rare. So I wanted to start putting up way more auctions so that I could make way more money. Unfortunately this is when Chris became unreliable. He never returned any of my emails and never got back online. Plus he only had shipped half of the 20 orders I had. So I decided that I needed a replacement quick before I started to have some unhappy customers on my hands.

This now brought me to dropshipper 2. I talked to the guy about the situation and he said that he would be able to handle it. I paid him for the remaining 10 orders I had left and he shipped the shoes off to my customers. I respected the fact that he picked up right where my previous dropshipper had left off at and took care of business. So I assumed that this guy was all about business and was a very reliable and legitimate dropshipper. So I started to put up more buy it now auctions and these shoes were selling faster than I could put them up for auction. This is the unbelievable part. I had sold 250 pairs of shoes in a matter of 4 days. I collected over 40000 in 4 days. That’s 10000 a day! This came as an amazement to me especially since I was only 19 at the time. I’ve made some people’s yearly salaries in a matter of only 4 days. Little did I know though that I was in over my head. I got a little too greedy and started to splurge on money that wasn’t even mine yet; buying clothes shoes and even put a 1000 down payment on a new car. My dropshipper shipped my first 30 orders only to find out that he had shipped off nothing but all wrong sizes and wrong colors. So I had a lot of complaining customers. Some even went straight to PayPal to complain causing PayPal to limit access to my account. So now I had over 40000 sitting in my PayPal account that I had absolutely no access to and over 200 orders that need to be shipped off. So my only option was to refund everyone their money back to get my PayPal account back to regular standing which brought me to my next dilemma…

I spent almost 4000 of the 40000 I thought would be mine to keep. So now my Paypal balance was negative 4000 and I needed to come up with that 4000 quick before PayPal took legal action to get that money. I thought the only way to get me out of this mess was by the same way that got me into this mess. This is what brought me to dropshipper 3.

I stumbled upon a guy named Jarell. I found him through a legitimate business website so I decided to sell enough pairs of Jordans to make up the 4000 and then I’d call it quits because this was too much for someone so young. Everything went smooth and I was able to make the 4000 using my girlfriend’s PayPal account. Unfortunately PayPal then limited access to her account also finding out that she was linked to me. This then aggravated me because now I had 15 orders that I in no way could pay my supplier. If I had shipped to my customers it would bring more complaints and negative feedback which was very bad for business. That was then this is now.

After reviewing my whole experience with dropshipping in hindsight I realized all of the mistakes that I had made. For anyone who is looking into working with dropshippers please pay close attention.

1. Before going into business with someone who is going to be dropshipping merchandise for you be sure to get to know the person really well. Don’t go by instinct. Have a few converstations with the person before you start anything. Collect all methods of contact of the dropshipper for emergency contact.

2. I suggest that you do not start off having the dropshipper ship the merchandise to your customers. Order some of the merchandise for yourself and examine it thoroughly before you go into business. I started to recieve emails from angry customers stating that the Jordans were of terrible quality when I was told by my dropshipper that they were of authentic quality.

3. Don’t bite off more than you can chew. As stated previously I sold 250 pairs of shoes in 4 days. Within those 4 days I had to deal with about 600700 emails which is almost impossible for only one person to deal with that also has school to worry about. Patience is the key to success.

These were a few of the mistakes that I made dealing with dropshipping. I had a price to pay for my mistakes. I owed 4000 to PayPal and I had a 2000 eBay bill that I ended up working during the summer to pay off. My purpose in writing this is for everyone considering going into business with a dropshipper to take precautions and use the tips I provided. I would also like to say that even though I had a bad experience dealing with dropshipping that is not always the case. I know there are some people who have become successful and wealthy off of dropshipping.

Five years have passed since I began my journey in this industry. I finally did pay off all of my debts that summer and have made it my mission to educate and inform people of the scammers out there waiting to ambush the inexperienced and naive. I wrote this article because I don’t want anyone else to go through the experience that I did. There were times where I felt hopeless and bitter for falling into a trap that left me feeling depressed. Needless to say I have learned from my soulcrushing mistakes and now make a decent living selling on ebay.

About the writer:

Kevin Nobleman has researched and uncovered numerous scams in the corrupt online drop ship industry. He has written special articles to help people avoid drop shipping scams. Kevin has discovered over two dozen legitimate dropshippers wholesalers independent suppliers and buyer/seller communities. Read about it at http://www.restaurantandbar.org/.

How I Generated More Revenues Without Having A Sale!

You want more revenue and you want it fast. The marketing experts tell you to create a compelling offer. You immediately think Sale.

You wonder how big the sale should be. How much can I afford to give away before the sale starts costing me money? How will I word the sale materials so customers dont take advantage of me? The worries start and you realize you have a huge task to pull off this sale and generate real revenue.

Unfortunately in our crowded market place a compelling offer has become synonymous with a sale. There are other better alternatives to motivate customers to buy from you.

This article will show you six options that will accomplish your goal of getting more revenues. These options will build a stronger relationship with your customers that the sale will not accomplish.

The Limitations of the Sale

The fundamental problem with most sales is that they are good for the business but not necessarily good for the customer.

A sale usually starts with a business problem you want your customers to solve for you. You need more cash. You have excess inventory. You need to meet sales quotas. You want to get ready for new merchandise. Your sale is asking the customer to solve your business problem.

There will always be customers who dont mind being used. Their agenda coincides with your agenda. Quid pro quo.

When you create your offering around something they really value however they look on your offering differently. It becomes more than just a customer transaction. It is the start or the continuation of a relationship that will result in sales now and in the future. The customers primary concern is always how the product or service benefits them and makes their life better.

Six Alternative Offerings

Convenience

Structure your offering around customer convenience and you have a motivation that does not require sales or discounts. At my daughters school recently the uniform company came to the school to sell uniforms. The parents alternative was to drive 30 miles into the city to purchase the uniforms at the companys store. Parents were lined up forty deep to purchase the uniforms at regular prices. This store made convenience a motivator for the parents to shop.

Enhance Your Expertise

If your customers are buying your expertise by enhancing that knowhow you give them additional motivation to buy your product or service. Suppose you were in the copywriting business. You announce to your customers that you had just completed a copywriting campaign that generated thousands of dollars for a particular business. Customers now see doing business with you as even more desirable. No discounts; no sales!

SelfEsteem and Praise from Others

Those who market golf equipment say the main motivation for customer purchases is praise from others. Great shot Bob. Youre really driving the ball well! If your product or service involves these types of motivations repackage your offering to foster selfesteem and praise from others. It has more power than a sale!

Tapping into Social Issues (Idealism)

I recently worked with an acupuncture clinic. This form of Chinese medicine can heal many ailments and injuries. We chose to focus their acupuncture marketing on the treatments on athletic injuries because of the current scandals involving the use of harmful drugs and steroids. We presented their offering as a safe and natural alternative to more harmful drugs. By presenting an ideal alternative to a current social issue no sale or discount was required. You can appeal to your customers idealism.

Popularity

People want to be part of the ingroup. They want acceptance. By repackaging your offering to emphasize the popularity of your product or service you give people another motive for wanting to buy from your business.

Scarcity

Scarcity is another motive that drives customers. It can be expressed in limited product or service quantities; limited editions; selective lines of products; preferred customer programs; limited time; or taking advantage of opportunities. There is some greed in all of us. If we feel we are going to lose out we get very motivated.

Conclusion

This article has shown you six alternatives to generate more revenue that dont involve a sale. When you need a compelling offer start with the motivations that drive your customers to buy from you and then emphasize these motivations. You will find these motives are just as effective as a sale. They will also help you build a better relationship with your customers because youre doing it for them!

If you want to learn more about how to repackage your offerings and other successful marketing tools go to www.successfulmarketingtools.com. If you want a free follow up report on how to create new offers send me an email at the following address: alsuccessfulmarketingtools.com. Put in the subject line Free Report on Offerings. I will send you a free report.

Copyright Al Hanzal 2005. All Rights Reserved

About the writer:

Al Hanzal

Small business owners have been using Al Hanzal’s innovative marketing tools to bring more customers to their businesses. For more marketing tools go to www.successfulmarketingtools.com.

How Easy Is It To Give Away Money?

Instead of “gambling” with my online business I’ve discovered that I can invest in my business by simply paying for other people to join my group. Once they see how this works for me they’re delighted to pay for other people to join THEIR group as well. Their group grows my group grows and we all make money!

But How easy is it to get the message across? I recently discovered that a British bank was shocked to find it could not even give away money.

The branch of Barclays Bank in Croydon London put up a sign offering a 5 note to anyone who stepped inside to collect it.

But bank officials told the BBC that noone took up the offer.

The experiment carried out for two hours one day in January was to help Barclays understand “what engages customers as they walk past branches”.

A spokeswoman for the bank said: “The basic conclusion that we came to was that people would much rather look at shops that are selling dresses than financial services.

“Obviously we are always looking for better ways to engage with our customers.”

She stressed the experiment was a oneoff.

So I must stress myself. The experiment with IGiveAwayMoney is not a oneoff it is the real deal. My group grows and grows and I continue to pay for members to join this exciting opportunity with No risk on their part. If you are serious about joining a program that you want to be part of for years to come you are in the right place at the right time.

Join me today
http://igiveaway20dollarbills.blogspot.com/

Nigel

About the writer:

Nigel Owen I am a highly motivated individual who decided 3 years ago that I should retire at the age of 40. Through Network marketing and the internet I am working towards my goal and giving up the day job.