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  1. #1
    OPM and Moderator Chuck Hamrick's Avatar
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    Addressing 'dropshipping' on ABW
    Got an inquiry by iNet if there is any interested in creating a sub forum for Dropshipping? Asking the moderators if they have an opinion if they or members would be interested in discussing.

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
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    Moving this question to the Inner Circle to see if our core members are interested in this discussion.

  3. #3
    ...and a Pirate's heart. Convergence's Avatar
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    If you are dropshipping, and processing orders/payments, then you are a merchant.

    If you are promoting products from another site who "dropships", but are not processing orders/payments then you are an affiliate.

    There are dropshippers with affiliate programs - MANY merchants no longer stock, they are simply dropshippers.

    There are dropshipper "programs" out there like Doba, (myself), etc - is that what the question is about - discussing those types of programs?
    Salty kisses, Sandy toes, and a Pirate's heart...

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  5. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    There are dropshipper "programs" out there like Doba, (myself), etc - is that what the question is about - discussing those types of programs?
    Yes. I have spoken with affiliates who have moved on to become dropshippers. They did this because they wanted to do several things:

    Remarket to consumers who bought from them.
    Make a higher margin then they could as an affiliates.
    Have total control over their website and marketing.

    Specific to Doba, I haven't heard any glowing reviews about them. Are there better alternatives?

  6. #5
    ABW Ambassador kse's Avatar
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    I have looked for such information in the past, having it discussed here would be a great addition in my option.
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

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  8. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    One of my merchants has allowed dealers as dropshippers to compete with our affiliates on trademark in paid search. They give dealers top priority since they are see the dealer spending their own money to sell product. We see that affiliates are driving sales to the merchant at a higher profit margin. In my experience distributors buy at 50% of MAP while dropshippers buy at 65% (net 35% profit). Affiliates who sell directly for the merchant sell at a 25% cost of sale (commission, network fee, management fee). That to me means affiliates make the merchant 25% more profit over distributors/dealer who fulfill their own orders and 10% more profit than dropshippers.

    I have seen the same with agencies that get 15% gross profit for PPC sales for a merchant versus 25% for affiliate sales. They in a like manner give more precedent to PPC over affiliate because they fell they have more control. Its the same with dropshippers, merchants give them more precedent/preference as they have a 1:1 relationship with them.

    Convergence, why are you a dropshipper in some cases and an affiliate in others?

  9. #7
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    I think it will be an interesting discussion on the topic of dropshipping.

  10. #8
    Beachy Bill's Avatar
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    Yes, it could be an interesting section - if there is adequate participation.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  11. #9
    OPM and Moderator Chuck Hamrick's Avatar
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    Thanks everyone, looks like there is enough interest to start a sub forum here: Starting Your Affiliate Marketing Business - ABestWeb Affiliate Marketing Forum

    I have put the request in. Let me know if anyone on this thread has an objection to moving it there once its created?

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  13. #10
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    Convergence, why are you a dropshipper in some cases and an affiliate in others?
    Build turnkey dropship websites.

    http://www.abestweb.com/forums/adult...ns-149702.html

    Do not do any dropshipping now as to not compete with my dropship customers.

    Have personally been a dropshipper in the past for commercial seating - all the products made overseas, inventory issues, blah blah. Damn GOOD money...
    Salty kisses, Sandy toes, and a Pirate's heart...

  14. #11
    OPM and Moderator Chuck Hamrick's Avatar
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    New forum is ready and going to move this conversation there: Drop Shipping - ABestWeb Affiliate Marketing Forum

    Let me know if any posts need to be edited out?

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  16. #12
    OPM and Moderator Chuck Hamrick's Avatar
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    Got this moved over to the public forum. What companies besides Doba are there specializing in dropshipping?

  17. #13
    ABW Ambassador kse's Avatar
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    It would be nice if someone here who has experience with drop-shipping could give their experience with it and what are the plus & minus of getting involved with drop-shipping.

    Here is a simple question: What is the differences of doing drop-shipping or being an affiliate?
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

  18. #14
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by kse View Post
    It would be nice if someone here who has experience with drop-shipping could give their experience with it and what are the plus & minus of getting involved with drop-shipping.

    Here is a simple question: What is the differences of doing drop-shipping or being an affiliate?
    Drop shippers for all intents and purposes are merchants. You handle all your own customer service, returns, credit card processing, etc - just like a merchant. You can even have an affiliate program.

    Pros: Higher profit margins, more control
    Cons: Customer service, returns, higher operating expenses, accounts payables

    You do not need to use a service like Doba. That's great for starting out or for filler products. Once established in business as a DS, you can easily contact manufacturers direct.
    Salty kisses, Sandy toes, and a Pirate's heart...

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  20. #15
    ABW Ambassador kse's Avatar
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    So would returns be sent to me or the company that shipped the product to the customer in their first place? Would I need to take care of the refunds or would say Doba take care of the returns?
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

  21. #16
    OPM and Moderator Chuck Hamrick's Avatar
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    I pointed Doba to this thread and they declined to get involved! Always amazes me how vendors don't have time to interact.

  22. #17
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by kse View Post
    So would returns be sent to me or the company that shipped the product to the customer in their first place?
    Typically returns go to a central "return center". However, since the customer is your customer, you need to do all the interacting with the customer, get an RMA from the "warehouse", send it to your customer, follow-up with the "warehouse", issue refund or exchange to your customer.

    Quote Originally Posted by kse View Post
    Would I need to take care of the refunds or would say Doba take care of the returns?
    Haven't looked at Doba in a very long time. When we were doing drop shipping in 2008/2009 we handled EVERYTHING. NOTE: We DID not have returns sent to us - they went back to the manufacturer...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  24. #18
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    I pointed Doba to this thread and they declined to get involved! Always amazes me how vendors don't have time to interact.
    Would suspect it's because their service has nothing to do with affiliate marketing and they may not want to be associated with any negative connotations with same...
    Salty kisses, Sandy toes, and a Pirate's heart...

  25. #19
    ...and a Pirate's heart. Convergence's Avatar
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    Similarity between Affiliates and Drop Shippers (using programs like Doba):

    The Google doesn't like either. Read that years ago in the Google's "Froogle" TOS...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  27. #20
    OPM and Moderator Chuck Hamrick's Avatar
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    Would suspect it's because their service has nothing to do with affiliate marketing and they may not want to be associated with any negative connotations with same...
    Yep we affiliates (and AM/OPM) are certainly bastards!

  28. #21
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    Yep we affiliates (and AM/OPM) are certainly bastards!
    To paraphrase Matt "the Puppet" Cutts:

    "Why send traffic to an affiliate website when you can send them direct to the merchant?"

    What wasn't said was "direct to the merchant" was through the Google's services...
    Salty kisses, Sandy toes, and a Pirate's heart...

  29. #22
    OPM and Moderator Chuck Hamrick's Avatar
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    When the Google genocide (googlecide) is over will it truly be a brave new world?

  30. #23
    ...and a Pirate's heart. Convergence's Avatar
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    Hmmm, not unless It commits suicide (googlecide def. 2)...
    Salty kisses, Sandy toes, and a Pirate's heart...

  31. #24
    Beachy Bill's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    I pointed Doba to this thread and they declined to get involved! Always amazes me how vendors don't have time to interact.
    Might also be because their reputation is a bit "sketchy."
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  33. #25
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    I've been doing the dropship thing for a little while now. It certainly has it's advantages AND disadvantages, but so far I like it overall.

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