Dropshipping is a kind of order fulfillment in which a product distributor ships items directly to the end user on behalf of the ecommerce website owner or retailer. It is viewed to be an attractive option to many (especially those who are just beginning their business and are strapped for cash) because it helps minimize risk and cost while being easy to use.

Dropshipping Provides a Low Risk Opportunity for Entrepreneurs

• No money is spent upfront on inventory, which means that initial costs are significantly lower when compared to a business that is required to stock up on inventory before a sale can be made.

• Businesses that use dropshipping are less likely to suffer from changes in consumer trends and product seasonality as they do not have to be concerned with liquidating excess inventory.

• Enables ecommerce store owners to offer a wider product range since financing and storage of inventory are not necessary.

Dropshipping Makes For Low Overhead

• Shipping costs can be lower as large drop shippers often have access to special shipping rates that small and new business owners will not.

• Less loses on damaged products and inventory as products sold generally go directly from the drop ship company to the end user.

• Warehouses or other storage space for items is a non issue as you carry no physical inventory. This could translate to huge savings as a business grows.

Dropshipping is Convenient

• Shipping and handling is a non issue.

• New items can be added easily and at anytime without risk.

Dropshipping is a Practical Solution

• Products which are not feasible for many to store (due to bulky size, special storage requirements, shipping logistics, etc’) turn into a viable option for the ecommerce store owner.

Keep in mind that most drop shippers allow the retailer to use their own address and company information on the item’s packaging, so shoppers will in fact not even be aware that you are using the services of a drop shipper. Make sure to take advantage of this feature as having your business information on the package will help the customer in identifying it as well as help your cause in winning their repeat business.

** Also, for related information, take a look at this post on dropshipping clubs and why to avoid them.

While it is relatively easy to use the Internet in order to find Chinese suppliers, it is imperative that you do adequate research and due diligence before placing an order. The truth is that more than a few eager buyers have jumped into a sales deal in the past for a legitimate sounding transaction, only to be ripped off by a shady supplier or con artist. Unfortunately, there is oftentimes little recourse for the buyer in these situations.

Perhaps the most popular website used to find Chinese manufacturers is Alibaba.com. In fact, Alibaba has products from all over the world, so you can use them to find all kind of international suppliers. Of course, the site is not free of fraud, so it is up to you to use the tools Alibaba supply along with your own commonsense and discretion when choosing who to do business with. Whenever possible, it is recommended to start with an order of samples in order to gauge product quality as well as create a base relationship with the supplier.

Another site that is frequently used to find reputable Chinese suppliers is EC21. EC21 offers a layer of protection by performing credit checks on the companies listed, and ensuring that they are registered businesses.  There may of course be other similar websites, but these (Alibaba and Ec21) are two of the biggest and the ones I would recommend to start with.

I would certainly not recommended starting out with a large order when dealing with a supplier you do not have experience with. A few small orders will allow you to ensure you are dealing with a reputable company that meets your quality requirements. After this is established you can negotiate better rates for larger orders. Also stay away from listings for commonly counterfeit goods such as brand name handbags, as you will almost certainly end up with illegal items.

My wife and I would visit this operation periodically and we got to know the owner very well. We would even split advertising costs when we had sales on the same day. It worked out for both of our events because we were selling open-box shelf pulls and they were selling used items.

I struck up a conversation with this fellow one day and asked where he was getting all of his merchandise. I was astonished at the crowds his sales would bring and people seemed to be driving away from his parking lot with carloads of items!

He went into detail explaining his merchandise came directly from abandoned storage auctions he would attend. This is where people fall behind on their monthly storage rent and subsequently their contents are auctioned off by the owners of the storage facility to recoup past due rent.

I was intrigued to say the least at this idea as this fellow always had fresh inventory to sell from clothing to furniture and electronics. He explained that most sealed storage auctions ended up selling in the $150 – $300 range. Once the winning bidder is chosen based upon a high bid, the doors are opened and the winner can begin to view the contents. he said at times some of the storage units are filled with junk and there is a lot of garbage to dispose of, but for the most part, contents can be resold at a good profit. This fellow also told me that he makes most of his money on the furniture he finds along with small collectibles items. The smaller items they would resell on eBay, while the larger items like appliances and furniture were sold at his warehouse.

Since then I have spoken with others who attend the storage auction sales and have found that there is a great following of people who are bidding on these sealed storage units ongoing. It seems as though in any one particular area the same people show up at each auction for the chance at finding a goldmine! Most of those attending are small store owners, flea market vendors and eBay resellers.

With today’s economy people unfortunately are not paying storage rental fees and this can you you the opportunity to bid on an entire storage shed filled with assorted merchandise to resell on eBay or at the flea market. Here is a link to give you a jump start in the storage auctioning arena, there are many tips and tricks that you should be well armed with before you attend your first storage auction.

–>Mini Storage Auction Riches<-

Retail returns represent a huge aspect of retailing and all large department and discount stores have their own procedure for processing the items you and I deem returnable. Next time you are standing in the customer service line returning that pair of pants you thought you could fit into, pay close attention to the employee behind the counter. You will notice that each time someone returns an item it gets placed into a bin or perhaps back into shopping cart.

Items that are returned to the original store which do not display any signs of product damage or packaging distress will often make it back onto the retail shelf for the next customer. But what about that item you are returning? You had a tough time getting that Sham Wow package open at home and you are almost embarrassed to even ask for your money back? Do not fear, they [the retailer] will gladly give you your $19.95 back!

Have you ever fibbed about a product in hopes of receiving a refund? “I got it home and it is broke!”. There is no lie detector test utilized, the minimum wage clerk simply marks the item damaged and moves on to the next remorseful shopper. Lets face it, do you really think most people step up to the counter and proclaim they made a silly impulse purchase? There is always a story behind a customer return, and many times it is just that…a story.

Items that exhibit packaging distress or items that are somehow defective or broken are not returned to the shelf for round two. These gems are placed in a special area where they pile up high! Items that are deemed “unfit” for re-merchandising are collected and sent to the stores’ processing center to be liquidated.

“G54.…..Bingo!” Small and mid size resellers are clamoring to purchase pallets and truckloads of customer returns direct from large retailers with the intent to resell these items at a fraction of their original retail selling price. Purchasing customer returns represents an excellent way for the small eBay reseller or discount store owner to source name brand merchandise below wholesale. The small entrepreneur can finally compete with the big box stores!

Be prepared for some missing pieces and/or broken items when you buy customer returns in quantity, but savvy resellers still find tremendous value in this inventory! Damage ratios will always vary, but remember, many consumers return items out of remorse!

If you are looking to source name brand merchandise for your business at liquidation pricing…purchasing a load of customer returns might be worth second look. You can buy pallets and truckloads of customer returns from wholesale liquidators or, in some cases, buy directly from the originating store!

Shoenet offers a wide selection of branded and non-branded shoes for retail stores, eBay sellers and exporters. Before diving fully into this website, please visit the “New Buyers” web page to checkout information about first time purchases and shipping options. Shoenet distributes a wide variety of shoes from the casual flip flops to career and dressy styles. There is also a large selection of athletic and tennis shoes available.

Not only can you chose to buy cased packed shoes in original manufacturer sizing, but you also have the ability to chose by individual style as Shoenet offers a complete description of each inventory item.

Shoenet also sells higher end designer shelf pull shoes by the pallet offering a complete manifest (inventory breakdown) of each lot available. In reviewing current pallets I noted shoes are sold ranging from a low of $11 per pair up to $17, which is competitive with other liquidation offers I have come across while researching shelf pull shoe pallets.

Name brand shoe pallets

Wholesale Pallets currently available through Shoenet offer brands like Coach, Michael Kors, Kensie, Steve Madden, Nine West, Jessica Simpson, Skechers, Converse, Casadei, Rocket Dog, Kenneth Cole and others.

If you are an exporter, Shoenet advertises the ability to assemble 20-40 foot containers of new shoes in several price points.

Please complete your due diligence research before buying from this wholesaler / liquidator. I have no first hand experience buying from Shoenet, but they look to be a formidable source for small and large lots of shoes. If you have purchased from this company, please offer feedback in the comment section of this post.

I have access to hundreds of manifested loads of apparel, electronics, general merchandise, furniture, shoes and tools at anyone time. I have a manifest below of a single pallet of customer returned electronics. It looks to be a good assortment of DVD Players, Video Game accessories and a few iPods.

By viewing the pallet manifest I can get an idea of contents before I make the decision to buy. Years ago (and I am talking years), the norm was “Blind” pallets. You would shell out the dollars and hope to God when you pallets arrive you will be able to recoup your investment and make a profit.

Lets look at this pallet load:

This pallet contains 102 items with an original retail value of $12,887.00

The pallet below has a current liquidation price (your Cost) of $1,289.00!

Would you like to be able to view extensive manifests before making a pallet or truckload purchase? I share all of my liquidation sources with you in my guide. If you are new to purchasing closeouts, liquidations, returns and excess merchandise do not make another purchase until you read my 137 page guide below!

Most of the items being auctioned have been through an insurance claim for damages, for example: A truckload of general merchandise that was involved in an accident and the trailer tipped over. I have also noticed merchandise that was involved in a warehouse fire or flood and subsequently suffered some damages as a result. You never know what you will find at SalvageSale, but it is fun checking this auction out. I have purchased a load of apparel from SalvageSale, but that was about 4 years ago…everything worked out fine.

There are great deals to be found with this auction and it is mostly due to the fact that many people are unaware of its existence. I keep this website bookmarked and you should as well if you are in the market for liquidation merchandise.