One of the biggest problems with a retail website, is you end up becoming the seller, shipper and buyer all at once. When you are offering products for sale ononline auctionsyou are opening the door to an international market and you will need to have enough inventories. If you have to constantly send out apologetic letters informing customers that their choice is either on back order or discontinued will not bring many repeat clients and will eventually go to another website.
Allot of drop-shippers work along with internet auction sellers who list their products on their auction website and then the wholesaler takes over all the shipping and handling of the product. For online auction items there are risks to the seller, if a product is listed that does not sell, the seller is will still be responsible for any and all listing fees for advertising and putting the item up for auction.
In addition, once a product sells, the seller will be charged a value fee, this is a percentage of the total price at which the product is sold. Consequently, the seller must sell the product at a price that is higher than the unit cost plus advertising and listing costs before they...
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