1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Should I go from drop shipping to shipping from my house?

Discussion in 'Making Money' started by zanderzero, Apr 7, 2017.

Tags:
  1. zanderzero

    zanderzero Jr. VIP Jr. VIP

    Joined:
    Oct 17, 2013
    Messages:
    137
    Likes Received:
    56
    I currently am drop shipping with quite good success, getting around 80-100 orders a day.

    A main complaint I get from customers is that shipping takes too long, resulting in low return customers (Shipping currently is 7-25 days). I know that my market still has legs on it, so would it be wise to bulk order the product and ship from my house? I live in the US and almost all of my customers are from the US as well, allowing shipping time to decrease substantially if shipped from my house.

    Would this be a solid move?
     
  2. MisterF

    MisterF Jr. VIP Jr. VIP

    Joined:
    Nov 29, 2009
    Messages:
    7,163
    Likes Received:
    5,639
    Occupation:
    Conference Organiser, Business Advisor.,
    Location:
    JADIP
    Home Page:
    It's an option, but what is the MOQ for wholesale / distributor pricing ?

    Also is there any local legal requirements regarding planning permission or specific insurance you need to apply for too?
    If you're running a business from home, could it void any insurance you have ?
     
  3. zanderzero

    zanderzero Jr. VIP Jr. VIP

    Joined:
    Oct 17, 2013
    Messages:
    137
    Likes Received:
    56
    If I run this from home, it wouldn't void any insurance and from what I know of thus far I don't need to apply for any specific coverage. Drop shipping price is around $2 shipped with the 7-25 day shipping whereas I could get it for around $1 for a MOQ over 50.

    The main concern is how much time this would take to ship along with managing tracking numbers.
     
  4. MisterF

    MisterF Jr. VIP Jr. VIP

    Joined:
    Nov 29, 2009
    Messages:
    7,163
    Likes Received:
    5,639
    Occupation:
    Conference Organiser, Business Advisor.,
    Location:
    JADIP
    Home Page:
    Is it worth looking at doing FBA ?
    Let Amazon take responsibility for the delivery, warehousing etc
     
    • Thanks Thanks x 2
  5. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP

    Joined:
    Nov 8, 2009
    Messages:
    2,112
    Likes Received:
    797
    Gender:
    Male
    Occupation:
    Founder/CEO
    Location:
    Austin, TX
    Home Page:
    If you are selling a ton of the same product then it would make sense. As you could buy in bulk and cut price down there as well as might be able to get a better deal on shipping if you set your own account up and all packages are the same size.
     
  6. cnick79

    cnick79 Jr. VIP Jr. VIP

    Joined:
    Jun 10, 2010
    Messages:
    689
    Likes Received:
    369
    Location:
    Google's SandBox
    What about using Amazon FBA? You can have inventory shipped to Amazon warehouse who will handle your orders. I've never done this, so I'm not sure what the fees are, but being listed on Amazon with Prime Shipping is another sales channel.

    MisterF beat me to it! Great minds think a like.
     
  7. redarrow

    redarrow Elite Member

    Joined:
    Apr 1, 2013
    Messages:
    5,207
    Likes Received:
    1,188
    I would do both , greedy me , but it a way to to really go bigger .

    If you get a grate deal on wholesale then home business works grate .

    I remember a covo that price and competition can be won over via grate advertising , like images, video , review , the lot .

    So i remember getting a wholsale item at £1.50 and selling for £25 , imagine what a profit margin , and it worked .

    Competition is good , you just need to convince your item better then anyone else same item , sound madness but works proven fact.

    Good luck god bless (( also well done
    Nice to no someone still grafting to be paid ...
     
  8. Sephrata

    Sephrata Senior Member

    Joined:
    Mar 25, 2017
    Messages:
    1,060
    Likes Received:
    585
    Gender:
    Male
    Occupation:
    Digital Entrepreneur
    Location:
    Prague
    I would say managing 80-100 orders a day yourself is quite a task. If you can get some other local fulfilment service that is cheaper/faster than Aliexpress, I would go down that route.
     
  9. Lunaaa

    Lunaaa Elite Member

    Joined:
    Jan 18, 2016
    Messages:
    2,413
    Likes Received:
    1,269
    Gender:
    Male
    Location:
    Canada
    Are you currently accepting paypal?
    If you are not, you are probably losing 30-50% of customers.

    If you are, then you are taking a huge risk with getting your paypal limited.

    If you think it will be sustainable for abit, definitely buy wholesale.
    Happy customers = returning customers
    + paypal happy
    + more money and orders if you aren't already accepting paypal and you start accepting paypal

    + products costs less

    - you have to spend time shipping and it costs more to ship
     
  10. redarrow

    redarrow Elite Member

    Joined:
    Apr 1, 2013
    Messages:
    5,207
    Likes Received:
    1,188
    Right item at very small price , huge markup, huge profit.

    I Smell money, that = successes
     
  11. zanderzero

    zanderzero Jr. VIP Jr. VIP

    Joined:
    Oct 17, 2013
    Messages:
    137
    Likes Received:
    56
    Never would have thought about going down the road of Amazon, but now that it was brought up it definitely makes a lot of sense. There is defintely a decent amount of this product found on Amazon but I'd imagine if I can build a good bond with customers and nail down solid reviews it could be very successful. Might scout around a little bit into other warehouses, but having Amazon take care of the tracking along with that field of the business would make a lot more sense.

    Yea, I primarily focus on a central product where buying in bulk as you stated would be astute.

    Just as you mentioned, nailing down that brand image is big. Definitely will invest time to attain that.

    Yea, I accept paypal as payment and I'd say a majority of my sales are purchased through it. Going down this route of buying in bulk and shipping from the US will undeniably bring in more customer satisfaction than 7-25 day delivery.

    Cheers
     
  12. MySideHustle

    MySideHustle Junior Member

    Joined:
    Sep 21, 2016
    Messages:
    155
    Likes Received:
    54
    Gender:
    Male
    What type of product are you selling dawg? Ie, if it's small and light then shipping won't be too bad, but if it's large then you're probably getting a better deal from your dropshipper than you'd be able to get yourself at the post office.
     
  13. zanderzero

    zanderzero Jr. VIP Jr. VIP

    Joined:
    Oct 17, 2013
    Messages:
    137
    Likes Received:
    56
    It's pretty small.
     
  14. Pinger030

    Pinger030 Regular Member

    Joined:
    Oct 15, 2013
    Messages:
    238
    Likes Received:
    235
    I'm also in the same situation. The point is: The shipping from home is the one thing but the packaging, tracking of payments, writing of bills, managing of the returns etc. is the other thing. You can't move out of your business eg. to make two weeks holiday and you'll come quickly to this point where you're no more able to grow. So you need an employee someday = more costs, more responsibility, less freedom etc. So I would rather invest my money in an external warehouse service like Amazon FBA. (Again: I've no experience and these are just my personal thoughts because I'm in the same situation).

    Another thought is: If you have one foot in the door (eg. Amazon FBA) and you know that everything is running fine, it would be more easy to test new products (it's not more stress). In general, the potential is unlimited.

    I think I'll give it a try this year