A Guide to Successful Dropshipping
Collectibles are products that people like to purchase as part of a hobby. Collectibles can range from rare and older items, to trendy everyday products. Selling to collectors is an easy way to make good money because it is typical for a collector to pay more money on an item than it is usually worth. A collector's market is different than the retail market because items can appreciate in value, giving the seller the advantage when pricing a collectible to sell. While one collector may pass on your product, another may need it to complete a set, giving you the ability to sell at a higher price. However, this also means as a seller you may need to buy collectibles at an inflated price as well. One way to avoid this and to keep your profit margins high is to purchase collectibles via drop shipping.
Many of the collectible items sold in retail stores were bought wholesale from distributors in China and then sold to the consumer at an inflated rate. The price range of retail collectibles will vary depending on the item, but most are sold for much higher than they were bought at, especially if the item is rare, in demand or part of a limited collection. Many retail stores carry basic collectibles, such as toys, movie and television merchandise and sports memorabilia. Many collectors turn to specialty stores which often raise their prices substantially. Collectibles can also be purchased at many online retail outlets like Amazon or directly from online specialty stores.
When purchasing collectibles from a drop shipping company, the price will be significantly lower. Depending on the drop shipping company you purchase the collectible items from, you can expect to pay anywhere from 10% to 40% lower than retail price and sometimes even cheaper. If the collectibles are bought in bulk, drop shipping companies will usually cut you a price break, which can be an easy way to save even more on an item you know will be a hot seller.
Once you have purchased the collectible items from a drop shipping company at a lower price, you will be able to make a profit by selling the product online. Sites like Amazon and eBay can provide you with a storefront where you can sell products directly to collectors from around the world. However, there are costs associated with using either one of these sites, which can cut into your profit margin. By creating your own web site and selling the product directly to the consumer you can take out the middleman and keep all of the profits for yourself. By setting up your own website you can offer more information on the collectible items to the consumer and enjoy low overhead costs for running your own business. Best of all, you have the potential to reach a much wider range of collectors by selling online.