How I made a fortune on eBay using Dropshippers … And then lost everything

My name is Kevin and I'm 24 years old. This history true of how, during the summer of 2001, I made $ 40,000 selling dropshipped goods on ebay only to lose everything and end up with $ 4,000 debt. You Read my cautionary tale to prevent you from committing the same mistakes I made.

I have heard of dropshipping in June 2001, a little afterwards, I started a company that is not so profitable eBay selling cell phone accessories and more. I saw how dropshipping method all company profits. You do not pay for shipping. You do not pay for inventory. You basically just advertise the product on auction sites like eBay, take orders, collect money and pay the whole amount for each item to the dropshipper keeping the balance for yourself as profits. I now realize that only so easy when you're dealing with the right person.

I 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 are for them. I saw a few pairs to go $ 1000. Chris does not charge me $ 67 a pair. So, I practically did everything double the price and sell them on eBay for 134 Per pair. I sold about 20 pairs of shoes in the week gives me a profit of $ 1,340. I suddenly became happy with the success I had reason to get over $ 1,000 for one week at the age of 19 years is rare. So I wanted to start putting up more sales to auction so that I can make room for more money. Unfortunately, this is when Chris became unreliable. He never returned any of my e-mails and never had back online. In addition, he had delivered half of the 20 orders I had. So I decided I needed a replacement fast before I begin to have unhappy customers on my hands.

This company brought me to dropshipper # 2. I talked to man of the situation and he said he would be able to handle it. I paid for the other 10 orders I had left and he sent shoes to my clients. I respected the fact that he picked up right where my previous dropshipper had left and took care of business. So I guess this guy was all about business and has been very reliable and legitimate dropshipper. So I started put up more and buy it now auction these shoes were selling faster than I could put them on auction. It's incredible part. I sold 250 pairs of shoes in a matter of four days. I have raised over $ 40,000 in four days. It's $ 10,000 per day! It was a great surprise to me especially as I was only 19 years old at the time. I did pay some people a year in a matter of only four days. I do not know if I was in over my head. I am a little too greedy and started to splurge on money that was not even mine; buying clothes, shoes, and put a $ 1,000 deposit on a new car. My dropshipper delivered my first 30 orders only to discover he had sent nothing, but all sizes and colors bad bad. So I had a lot to complain about customers. Some went directly to PayPal to complain causing PayPal to restrict access to my account. So now I had more than 40,000 $ Sitting in my PayPal account that I had absolutely no access to more than 200 orders and must be shipped. So my only option was to pay all their money to get my PayPal account back to the ordinary, which led me to my dilemma …

I spent nearly 4,000 of the $ 40,000 I thought was mine to keep. So now, my Paypal balance was negative $ 4,000 and I needed to find $ 4,000 with this quick before PayPal took legal action to get that money. I thought the only way to get out of this mess was the same way that got into this mess. That brought me to dropshipper # 3.

I came across a guy named Jarell. I found through a legitimate commercial site, so I decided to sell enough pairs of Jordans to make up the sum of 4,000 and then I would say it closes because it was too much for someone so young. Everything went smoothly and I was able to take the $ 4,000 using a PayPal account of my girlfriend. Unfortunately, PayPal, and limited access to his account also discovered she was related to me. This then compounded me, because now I have 15 orders that I could in no way paying my provider. If I sent my clients to bring more complaints and negative feedback has been very bad for business. It was then, this is now.

After reviewing all my experience with dropshipping hindsight, I realized all the mistakes I made. For those who seek to work with dropshippers, If Please pay attention.

1. Before going into business with someone who will be dropshipping merchandise for you, make sure getting to know the person very well. Do not go by instinct. Have a little converstion with the person before you start anything. Collect all contact methods for emergency contact dropshipper.

2. I suggest that you do not start having dropshipper ship the merchandise your customers. Order some of the goods for you and examine it thoroughly before starting your business. I started receiving e-mails from angry customers stating that the Jordans were of terrible quality when I was told by my dropshipper they were of authentic quality.

3. Do not bite off more than you can chew. As stated previously, I sold 250 pairs of shoes in four days. In those four days, I had to deal with about 600-700 e-mails which is almost impossible for one person to deal with the school, which also worried. Patience is the key to success.

These are some of the mistakes I made treat dropshipping. I had a price to pay for my mistakes. I PayPal had $ 4,000 and I had a bill of $ 2,000 to eBay I ended up working during the summer to pay. My goal in writing this is account for everyone going into business with a dropshipper to take precautions and use the tips I provided. I would also say that even if I had a bad experience on dropshipping, which is not always the case. I know there are people who have become successful and rich beyond of dropshipping.

Five years have passed since I started my journey in this sector. I finally did pay all my debts that were and made it my mission to educate and inform them of crooks there waiting to ambush the inexperienced and naive. I wrote this article because I do not want anyone else to go through the experience I did. There was a time when I felt hopeless and bitter for falling into a trap that left me feeling depressed. Needless to say I learned from my soul-crushing mistakes and now make a decent living selling on eBay.

About the Author

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/

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