Dropshipping Question

I’m not sure this is the correct forum but anyway. Does anyone know of any dropshippers who actually offer products where their wholesale prices are lower than Walmarts retail prices?

It seems that the dropshipping companies that I have found online don’t offer competitive pricing. Usually I can go to Walmart and buy the same product cheaper than they offer for their wholesale pricing.

Since you’re not Wal-Mart, you can’t negotiate better wholesale pricing by offering to buy the majority of your suppliers’ factory output. The reason you can’t compete with Wal-Mart’s pricing is the same reason other major retailers can’t. It’s not that they’re just marking up prices higher, they pay higher wholesale, just like you will.

Nor will you find most true wholesalers and their pricing by searching for their websites. Figure out what it is you’re trying to source, find out who manufacturers those products, and talk to the manufacturers directly. But you probably won’t be able to simply drop ship one off orders if you want competitive pricing, you’ll need to buy in bulk, like a store.

If a company is offering dropshipping services, then they’re essentially acting as both wholesaler and retailer to people like you. That means their pricing has to incorporate a whole level of overhead (warehousing, order fulfillment, customer service, more employees, taxes, etc) that a company which only sells bulk orders to retailers doesn’t have. So naturally, again, you won’t get the same kind of prices Wal-Mart or even a smaller retailer can get.

Thanks for the response, but how do the little guys like you see on this forum and many others who say they make good money selling products on their sites that are dropshipped?

I don’t honestly know a single person that makes good money drop shipping. I’m sure they’re out there, but I’ve never met one and never read about one here. The only success stories I’ve read about on SPF for people that sell physical products bought them and warehoused them (or use an order fulfillment company), they don’t dropship.

the term “good money” is a bit relative

I’ve been drop shipping up to 125K Pet Supply products from a dozen different vendors through Peticious for the past couple years now and Peticious is - as far as I am aware - the largest dropshipper for pet supplies online.

Do I make money? Yes
Does it pay bills? Yes
Can I live off that site alone? During holiday season, maybe, but generally, no

Keep also in mind that my US living expenses are ridiculous and way higher than somebody in India for example. Also any college kid or single dude who doesn’t have family, mortgage, rent, cable, electric, propane, insurance etc. and lives at home with his parents or likes to eat a lot of cereal primarily, could easily be Dan Grossman’s hero :slight_smile:

What do you mean by this?

cause you said “I don’t honestly know a single person that makes good money drop shipping.” and if that college dude who I described with less expenses and stuff would come out and say “Dan, I, TwinkleDoodleDee make a living off drop shipping”, he may be your hero.
You follow?

I’m just a new person at trying to find a way to make money online while working a full time job but it seems that most people who are making money are those who are telling others how to make money. I have been looking at several dropshippers who drophip a wide variety of products and I was comparing what they wholesale their products for to what my local retail stores sale them for and in most cases I can buy them at the same price or cheaper at my local retail stores.

I s’pose :slight_smile:


  • Work from home and
  • Make money online

happen to be really popular fields. There is lots of demand for that info.

Way back in the early days I used to
be part owner of an opt-in email marketing
company and we would do commercial
mailings for folks.

The typical “drop shipper” never made a
penny off of our mailings so we stopped
accepting their business as it was not worth
the bad press or hassle - they all failed.

To this day, I still see people trying to
make money off these sites and I still refuse
to accept them as customers even on our
online shopping cart.

I call these sites the “10,000 pieces of crap”
sites …these people think that having a lot
of something makes it a good place for people to
shop …it doesn’t!

If you want to make money drop shipping, then
find a product line that is unique or that is
outrageously more complete than any store or mass
market online retailer could possibly support and
then focus on that niche like a laser.

redwagons.com is a good example of this.

Forget the cheap trinket and trash sites as you
will definitely lose your money.

Focus …Focus …Focus

…and one last thought, why sell physical products
at all? Sell software with a recurring payment model
and you’ll make money month after month from the
same customer.

Look at the richest people that started from nothing.
What field are many of them in? Think there’s a reason
for that? Just my 2-cents.

I’ve done some drop shipping and the problem is, as has been said, poor profit margins, especially on the higher end goods where Paypal was taking it’s cut from the gross transaction value and practically wiping out my profit. I’m trying to decide what to do with that site right now in fact.

For higher end Paypal transactions its almost worth talking the buyer into doing a Masspay, that is if they have a Paypal account.