How to Dropship Electronics

You only have to take a look at some of the most popular searches on eBay using the eBay Pulse tool, to realise that selling dropship electronics is potentially a very profitable business opportunity. From iPods to mobiles and sat-navs to digital cameras, consumer electronics is one of the most poplar markets for online shoppers, all looking for the latest tech at the best possible prices. However, where there are plenty of buyers, there’s likely to be lots of competition. So if you’ve decided you want to build a business selling dropship electronics, here’s some useful information to consider.

Where to source products

Sourcing dropship electronics can be a bit of a minefield. If your looking for the latest branded items, like iPods and mobiles, you will find hundreds of dropshippers all over the world offering ‘genuine’ products at unrealistically cheap prices. The reality is, if you start your business in these ultra competitive sub-markets of the electronics sector, it’s going to be very difficult to get better products and prices than the established dropshippers on eBay and Amazon.

However, if you’re determined that this is the market you want to be in, to minimise the risks of being scammed with fake or low-quality products, you really should use a reputable dropshipping directory like Worldwide Brands, Doba, eSources and SaleHoo. They might not always be able to provide suppliers with the best prices, but they will be competitive, and their verification processes mean you’ll only be working with genuine, reliable businesses. Alternatively, you could look to work with local dropship partners in your own country to minimize any risk or hassle, although they will probably offer much lower margins.

A slightly different approach to take, might be to focus on generic products or brands that are slightly less popular and well-known in the west, which are manufactured out in the Far East. One dropshipping company that specialises in providing western quality technology, at far eastern prices is China Vasion. They were the first online Chinese wholesaler and they provide a wide range of products which they will dropship all ovaer the world. They are accredited by various trustworthy sources and could offer a profitable alternative to the big name brands.

Where to sell products

While you tend to see a lot of branded dropship electronics for sale on eBay, it might not always be the best place for these types of products. When buyers on eBay are looking for the latest technology, they are generally only bothered about two things – is it genuine, and how cheap is it. The sellers with good reputations, who do enough business to get the best deals with wholesalers and dropship suppliers, make it very difficult for new sellers to enter the market. If you want to sell on eBay, you will probably have more luck selling the cheaper branded and generic products you can get from the Far East, than trying to compete with the hundreds of iPod sellers.

While average prices for most dropship electronics products will tend to be slightly higher on Amazon than they are on eBay, you will still have similar issues with breaking in a market full of established competitors – although the odds against you are slightly smaller.

If you can’t compete on price, you need to try and compete on value – which means offering customers a much better buying experience, and one of the best ways to do this (and also avoid having to pay expensive eBay and Amazon fees) is to have your own website.

Of course, all of the above advice is based on it being difficult for new sellers to get the kind of prices for their dropship electronics that enable them to compete. However, because of the nature of the electronics market, the complete opposite of everything we’ve said is true, if you can indeed find a genuine supplier with the lowest prices. In this scenario, being able to offer the most popular products at the lowest price will guarantee sales on eBay, Amazon, and pretty much anywhere else you can find to market your dropship electronics.