Just wanted to know if anyone has gotten any exp in either owning their own Ecommerce business or done dropshipping in the past. I don't know much about either one but I think I have a general understanding of how it works. My gf has bought some products off from alibaba.com and is hoping to sell them for profit but what I really want to know is where do most Ecommerce business buy their products from?
I would guess that they are buying directly from China but if you buy from alibaba, made-in-china, doba, worldwide brands, dhgate, etc wouldn't you be acting as the middlemen of the middlemen instead of being the middlemen? And I'm pretty sure that the publisher/manufacturer only wants to deal with those buying in XXXXX quantities and meeting certain requirements in order to buy directly from them and eliminate the middlemen to increase profit margins. So how much would it cost to start up your own ecommerce and would dropshipping be a better route so you don't have to deal with shipping or buy the products first? And as the little guys, is our only option to buy from the middlemen websites I mention above? Anybody want to shed some light or insights from these type of business models?
Investment cost will depend on your product. You should be able to estimate the cost of hosting, ads, etc
You can drop ship from DealExtreme. I've always thought about creating an SEO based e-com site to do it. Hasn't happened yet. You could collect the orders & cash then make the purchase on their behalf.
Alibaba usually has minimum runs that will up your investment.
I have been doing ecommerce for almost 8 years now with 360skate.com and longboardwarehouse.com (my new site) and have never dropped shipped. I really like the control of shipping the products ourselves. We can do this because our warehouse is less than a mile from the largest skateboard distribute in the country.
If it where me I would look in your local area for wholesalers and distributors. It could be anything like HVAC parts to Beach Cruisers. I am sure you have some good opportunities. Also a lot of companies have no minimums these days. Everyone is trying to make a buck.
Also be sure to set up your business right before dealing with wholesalers and distributors. You need a resale lisc and collect and pay sales for your state. Set everything up as if you were a brick and mortar store even if you choose to dropship.