Profit Margin From Dropshipping

I did a search on the web and found a free drop shipper. So I listed a single test item on ebay (blue ray dvd player) that would seem to do well.

Well if it sells for its buy it now price after shipping I will make 40.00 on it. If it sells right at its reserve price I ill make 25.00 off it with shipping.

How do you think that is? It that a decent profit or is it now even worth going thru the hassle?

$25 per sale might be okay if u make a shitload of sales and if u have the money to cover everything. the problems start to arise when u have 15% returns and u have 15 opened blu ray players sitting in your living room and u cant seem to sell them
u definately need to factor in some returns and scams in your calculations and then decide for yourself if its worth it.

Wow, didnt about that. And how in the hell does that work with a dropshipper. IF someone returns something. I assume it comes back to me since my name will be in the packing slip. I guess I could try to recoup some of it via CL. But thanks for the tip.

Ermmm @SleepieGirl it really depends on what anabolicdragon states on his eBay listing, e.g. no returns... because he might state this and then he will be good. But anyway coming back to the topic, the profit margins here for a dropshipper are great even if you manage to sell the item for its reserve price but to be honest something seems to be fishy here, usually if the profit margins are too good to be true then they are because what you are getting seems a little unrealistic unless we are talking about non branded electronics if your item is a branded electronic and you are getting these high profit margins then the dropshipper either sells fakes or they just won't get back to you after you pay them. Good Luck.

I consider $20 a good profit if you are just dropshipping the product (you are not actually stocking it). The issue you will have is buyer disputes from some of the knuckle headed ebay buyers as well as there 21 day payment release policy (unless the buyer leaves positive feedback for you).

I see. Lets see if the item sells. The auction is almost over so. But thankls for your feedback

ShadeDream said:

Ermmm @SleepieGirl it really depends on what anabolicdragon states on his eBay listing, e.g. no returns...

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when someone files a dispute paypal doesnt care what the sellers terms were.

i just wanted to make sure he thought it through and wasnt spending 100% of his budget on it and then getting sunk into a hole when he has some chargebacks and disputes.

keep us posted anabolic... im interested to see how u make out...

where was this dropshipper based?

ok update. The item didnt sell. I got bids up to about half of the reserve price. But it did get bids but it didnt sell. I may try to jazz up the listing and list it again and see what happens.

what is everyone else on ebay selling the player for