Results 1 to 25 of 25
  1. #1
    Member
    Join Date
    July 4th, 2006
    Location
    MoneyBags, USA
    Posts
    89
    Drop Ship Site vs Affiliate Site
    My sister and I had a heated debate this morning. She recently attended a local conference (sales pitch!) where the company sponsoring it was trying to sell her three websites at a price of $4,000 initial setup fee, plus monthly hosting ($25x3), domain reg ($35x3) and an additional $75 per month! It was all based on a datafeed plugged into a template (I think). It was based on a drop shipping concept. She would handle all the money and pay the merchant their wholesale costs at the end of the month. The rest she got to keep. Mind you, she's paying the merchant fees!

    I did a little research on Google and found more than 1,000 websites that were identical (different header) to one she was planning to buy and they all had dup content. None of them ranked worth a

    I don't know how they brainwashed her into thinking drop shipping was better than affiliate marketing, but they did. Perhaps I'm missing the point of drop shipping?

    Anyone here tried it? If so, how did it compare to building an affiliate website?

  2. #2
    Internet Cowboy
    Join Date
    January 18th, 2005
    Posts
    4,662
    Tie her up, lock her in the basement. Do what is needed to keep her from giving $4000 to some scammer, which is exactly what she is about to do. Ask her how she will deal with chargebacks, returns and lost shipments.
    If you are unable to get through to her, let her do it and watch her as she wastes her money. Then you can be there to help her when she finally realizes that she was a fool.


  3. #3
    Affiliate Manager Allen Nance's Avatar
    Join Date
    January 18th, 2005
    Location
    Colorado River, Bullhead City AZ
    Posts
    1,604
    Quote Originally Posted by UncleScooter
    Tie her up, lock her in the basement. Do what is needed to keep her from giving $4000 to some scammer, which is exactly what she is about to do. Ask her how she will deal with chargebacks, returns and lost shipments.
    If you are unable to get through to her, let her do it and watch her as she wastes her money. Then you can be there to help her when she finally realizes that she was a fool.
    Well said UncleScooter dude.... That deal smells like rip-off with my computer smellavision.
    Signup Now for our KiteandWind affiliate program exclusivly at Shareasale.
    * 7% + Bonus - 365 return days
    * 2nd Tier Signup Bonus - Parasite Free - Auto Deposit Merchant
    * Free Datafeed - PopShops- Performance Cash Bonus

  4. #4
    Full Member
    Join Date
    September 10th, 2005
    Posts
    369
    What is the company name?

  5. #5
    Member
    Join Date
    January 13th, 2006
    Posts
    55
    Drop ship lists are everywhere although there are fees for some good ones, I wouldn't pay a cent
    Cheaper to pick up a phone and talk to some merchants or browse some forums

    For $100 you can get a thousand templates with resell rights even
    of those about 150 - 200 are not bad and about another 50 - 100 are pretty good to really nice

    3 domain names can be bought for 9$ although I would probably go as high as $8 per


    $75 month for hosting is equal to a cheap dedicated server although I would probably get a decent reseller account for about 25 - 30 bucks

    With the money left, buy some ad space, sponsor a community event or fundraiser, pay a student to put up flyers for your domain

    just a thought

  6. #6
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
    Join Date
    January 18th, 2005
    Location
    Winter Park, FL
    Posts
    6,930
    Some people have to learn from experience... find her a much cheaper experience.

    I don't know how they brainwashed her into thinking drop shipping was better than affiliate marketing, but they did.
    They wore nice looking suits...

    It's often easier to sell an illusion than reality, people are fascinated by how easy it sounds. They tend to think of the rewards / results more than the work to get there, it's human nature. Bet their seminar focused more on results than in how to get there...

  7. #7
    Moderator BurgerBoy's Avatar
    Join Date
    January 18th, 2005
    Location
    jacked by sylon www.sylonddos.weebly.com
    Posts
    9,618
    Talking
    Quote Originally Posted by ocs94
    My sister and I had a heated debate this morning. She recently attended a local conference (sales pitch!) where the company sponsoring it was trying to sell her three websites at a price of $4,000 initial setup fee, plus monthly hosting ($25x3), domain reg ($35x3) and an additional $75 per month! It was all based on a datafeed plugged into a template (I think). It was based on a drop shipping concept. She would handle all the money and pay the merchant their wholesale costs at the end of the month. The rest she got to keep. Mind you, she's paying the merchant fees!

    I did a little research on Google and found more than 1,000 websites that were identical (different header) to one she was planning to buy and they all had dup content. None of them ranked worth a

    I don't know how they brainwashed her into thinking drop shipping was better than affiliate marketing, but they did. Perhaps I'm missing the point of drop shipping?

    Anyone here tried it? If so, how did it compare to building an affiliate website?
    A con man or company is trying to steal money from her and she is falling for it.

    She might as well take the money out into the backyard and burn it.

    If she has $4,000.00 that she just wants to give away with nothing in return for it - PM me and I'll send her my address so she can send it to me. Remember to tell her that I will give her nothing in return for the money she sends me though.

    It will just be a free gift to me.

    OH - by the way - tell her that I am also trying to sell the Brooklyn Bridge if she would like to buy it from me.

    Vietnam Veteran 1966-1970 USASA
    ABW Forum Rules - Advertise At ABW

  8. #8
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida
    Posts
    12,817
    First off, $4k!! What a ripoff!!

    The fact that they'd charge $4,000 just to set up, also tells me that they'd WAY overcharge for their merchandise. So if she charged enough to make a profit, it'd be so expensive that no reasonable customer would buy!

    I'd bet that their so-called "wholesale" price is more money than the stuff could be bought for at a big-lots type discount store (or just barely cheaper), for items of similar quality. Compare the prices and quality! IMO you need a real wholesaler, where you can buy at 50% of retail or less, if you want to be able to charge a reasonable price and still make a profit from the endeavor. Remind her that all the advertising costs, shipping materials, etc. has to come out of that selling price.

    As for drop-shipping in general: If she's going to go through all that hash, she might as well be the merchant. All that $4k "deal" (ripoff!) she's being offered does, is leave the big points of failure--the points where customers can get pissed and the money can get away--in someone else's hands.

    She's stuck with handling the:

    Merchant account
    Chargebacks
    Customer Service

    Yet she CAN'T directly do anything about:

    Order Fulfillment
    Product Quality
    Shipping Time
    The Shipper's Response to Complaints

    Definitely go for AM or non-drop-ship merchant-side.
    I don't know how they brainwashed her into thinking drop shipping was better than affiliate marketing, but they did. Perhaps I'm missing the point of drop shipping?
    Dropship fans often point out the fact that the customer pays them, rather than the merchant. So, no "reversal reason other" or nontracking to worry about. And, they don't have to stock or ship merchandise. USUALLY the up-front cost is minimal compared to being a merchant and having to buy stock, but at $4,000 + monthly fees, that's definitely not true in this case!!

    They forget that it'd cause other ulcers to have customers demanding things a drop-shipper site can't provide, like solid info on why their shipment hasn't come even though it's been 4 weeks. What if the shipper is out of the item? Without backup sources, she'd have to do a chargeback. What if the shipper just sends a substitute, but the customer decides they hate it? What if the shipper's service or product quality just plain sucks?

    Not to mention the fact that $4k is just RIDICULOUS! Sheesh! It cost me far less than that to go merchant-side, including merchant account, SAS merch. fees, ongoing fees, advertising and merchandise.

    And stocking and packing/shipping isn't a problem. On j*bs, I hated packing and finally refused to do any more of it. But it's like people say about their kids: "When it's YOURS, it's different." I'm not going to test it by having kids, but I had a 180-degree change in my opinion of packing and shipping the instant it was MY merchandise being packed! Of course, I fixed all the aggravating stuff (like too-small boxes, lousy tapers, etc. ) that ruined packing j*bs. Now it's quite pleasant!
    There is no knowledge that is not power. ~Hemingway

  9. #9
    Kung Fu Master Eathan's Avatar
    Join Date
    January 18th, 2005
    Posts
    1,833
    Drop shipping itself isn't a scam or shady business practice, but the line of bs she was being fed certainly was a scam. The company is in the business of selling sites and collecting fees, NOT selling product. If they cared about selling product the barrier to entry for new marketers would be minimal to non-existant. Any set-up and/or ongoing fees would cover hard costs and support, nothing more.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  10. #10
    Merchant & ABW Ambassador
    Join Date
    May 31st, 2006
    Location
    Houston TX
    Posts
    4,731
    Honestly, that is way too much and the monthly fee is how they make a good income throughout the years.

    Drop ship makes sense if you do it yourself. I know of some people doing that and they grew so big that they got a factory and started stocking.

    Pros for drop ship - they are your customers (unless the supplier hijacks them). Customers are valuable in the long run.

    I would ask her to spend the money elsewhere.

  11. #11
    OOOPS just realized was an old POST, LOL GethsemeneRose's Avatar
    Join Date
    April 25th, 2006
    Location
    Virginia Beach
    Posts
    465
    Before deciding to go the Affiliate route I spent a solid week researching some QUALITY drop shippers then I phoned them and spent many hours talking to various companies (I spent alot of time asking them how they will resolve the questions already asked above and most of them had no solid answers) I looked around and still almost did it I got enough information to see that Drop Shipping is decent if done right. That being said the INITIAL startup was too much for me... Oh and I was lookin into companies were the initial startup was only 200 dollars and the monthly fees were only 20 dollars and I could have unlimited domains at only 8 dollars a year per domain and these were not subdomains they were reall "www.firstleveldomains dot com" so if she is really hooked on DropShipping have her look around she can join some really good ones for one 20th the cost and use the rest of the money for driving traffic to the site (wich is still the biggest point of failure even if she paid for the 4000 dollar program)
    :gnome: [URL]www.gethsemenerose.com[/URL] :gnome: As for me and my SITE we shall serve the LORD!

  12. #12
    Full Member
    Join Date
    September 10th, 2005
    Posts
    369
    I found a good dropshipper about a year ago. Startup was only $65.90. I received the startup kit including catalogs. They also setup an osCommerce store for me that, to this day, they update the stock. I have complete control of the store and have customized it including putting a nice template on it. I don't pay any monthly hosting. The product prices are low and shipping is reasonable. Emails are replied to quickly. My $65.90 was refunded after I made a certain $$ amount in dropship orders. They also have worked out special deals for bulk purchases. No minimum orders and no dropship fees. So, there are some good dropship programs out there.

  13. #13
    Moderator BurgerBoy's Avatar
    Join Date
    January 18th, 2005
    Location
    jacked by sylon www.sylonddos.weebly.com
    Posts
    9,618
    Talking
    Quote Originally Posted by dpl882
    I found a good dropshipper about a year ago. Startup was only $65.90. I received the startup kit including catalogs. They also setup an osCommerce store for me that, to this day, they update the stock. I have complete control of the store and have customized it including putting a nice template on it. I don't pay any monthly hosting. The product prices are low and shipping is reasonable. Emails are replied to quickly. My $65.90 was refunded after I made a certain $$ amount in dropship orders. They also have worked out special deals for bulk purchases. No minimum orders and no dropship fees. So, there are some good dropship programs out there.
    And the name of your dropshipper is ?????

    Vietnam Veteran 1966-1970 USASA
    ABW Forum Rules - Advertise At ABW

  14. #14
    Member
    Join Date
    January 13th, 2006
    Posts
    55
    Feel free to PM it to me

  15. #15
    Member Kevin Collier's Avatar
    Join Date
    March 10th, 2005
    Location
    My Office in North America
    Posts
    149
    I had been fairly successful with AM over the last 7 years so I figured that I would dive into the drop shipping world and become a 'merchant' myself.. get some affiliates and move on to the next level. Basically, to make a long, ... very long story short... I wasted a year of my affiliate marketing career by experimenting with drop shipping. It was a nightmare.

    I was tired of certain programs where I would send the merchant thousands of customers and get nothing from it so I figured that if I was the merchant, I would never get ripped off by skimming, shaving, theiving merchants and those that just didn't convert. I found that once I was a merchant I couldn't convert. I found what I thought was a bullet-proof system with great products, a good merchant account, etc. Then I promoted my drop-shipping business to the hilt. Nothing. My first 4,000 visitors (electronics related) resulted in zero sales. I checked everything because I just couldn't believe that this was happening. It happened. I did get a few sales to trickle in but in the long run I was greatful to return to affiliate marketing with a new respect for the merchants that I promote.

    My biggest complaint about the drop-shipping business was that the products offered were constantly changing and it was difficult to keep up with the ever-changing inventory. Overall, my experience taught me that affiliate marketing is much easier than drop-shipping marketing.

    It was a good learning experience though.
    :warning: If we don't get some cool rules ourselves.... pronto... then we'll just be bogus too..

  16. #16
    Member
    Join Date
    January 21st, 2005
    Posts
    101
    These outfits have been scamming people for many years. We'll set you up with a turnkey business, and all you have to do is cash the checks.

    Chances are that if they have your sister's contact information they won't let up. I had one telephoning me for weeks. I never even went to a seminar. The guy started making offers of lowering the price of the deal. Each week it would be $500 or $1000 less.

    I finally got rid of him when I asked why he was sitting in a cubicle making phone calls instead of relaxing on the beach waiting for his next check from the fantastic business.

    Keep a close watch on your sister. They'll be calling back. My sister almost fell for it too. I had to hogtie her and drum some sense into her. She is now a beginning aff marketer and starting to see some income.

  17. #17
    Senior Affiliate Manager AMWSO James - AMWSO's Avatar
    Join Date
    May 15th, 2005
    Location
    Anywhere with Fiber
    Posts
    858
    If your sister wants a hybrid solution OCS94 then Shopster.com is a good company to look at...It's a damn site cheaper than whatever she was being sold for starters!

    She can learn more about Shopster and sign up for a 14 day free trial here: www.amwso.com/shopster.php

    In the next few days Shopster will be introducing an affiliate program and I'll post the details if any of you are interested. It'll be two tier, and lifetime commissions...
    James D. Nardell
    AMWSO.com Affiliate Management Team
    email: James.Nardell [@] AMWSO.com
    Phone: (805) 624-5669
    IM - Google/Skype: JamesNardell
    iolo technologies | Paychex | Personal VCard Website

  18. #18
    Kung Fu Master Eathan's Avatar
    Join Date
    January 18th, 2005
    Posts
    1,833
    OCS94,

    Say somebody offered your sister a free website with mainstream product, handled the shopping cart, customer service, chargebacks, returns, shipment etc, let her set her margins and control shipping & handling charges and paid her weekly for sales generated - with $0 in setup and no fees whatsoever - you think she could market it reasonably well? Is she new to marketing, or does she know her stuff?

    I ask, because I'm getting ready to ramp up recruiting on a new program, but have to be selective at first just because there's still a lot of hand-holding on my end to get someone started.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  19. #19
    Newbie
    Join Date
    July 20th, 2006
    Posts
    27
    I would be interested in that program, Eathan. I wouldnt need hand holding though. I know my way around affiliate programs, PHP and general web design very well. Please email me at [removed], my PM doesn't work yet. Thanks.
    Last edited by MichaelColey; December 4th, 2009 at 03:10 PM. Reason: Removed per user request

  20. #20
    Kung Fu Master Eathan's Avatar
    Join Date
    January 18th, 2005
    Posts
    1,833
    Hi Mike,

    I would, but after a year of development and testing, and about six weeks shy of public launch, would you believe the company has shelved the project? The best affiliate program I've ever worked on, as well as the best I've ever participated in and it may never see the light of day. You have no idea how bad I was looking forward to launching this thing.

    I feel like I've been kicked in the gut - a few times...
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  21. #21
    Newbie
    Join Date
    July 20th, 2006
    Posts
    27
    Why?? What happened? If you need help finishing development, I will do it. I know PHP, MySQL HTML, AJAX, etc... Let me know!

  22. #22
    ABW Ambassador netnow22's Avatar
    Join Date
    January 18th, 2005
    Location
    Columbia, SC
    Posts
    748
    The only thing I dont link about dropshipping is that you can always find the products cheaper from RETAIL Stores

  23. #23
    Newbie
    Join Date
    April 1st, 2008
    Posts
    4
    I've been experimenting with a startup idea for a new business related to this topic myself.

    I'm currently building out an "affiliate" site using Amazon Web Services to enable me to sell high-end men's apparel. I'm going to a provide a rich but simple shopping experience on my site.

    I didn't want the customer to be sent off to Amazon every time they clicked on an individual item because I intend to be able to sell multiple items (>25 products) per visit. It looks like I'll be able to hold the customer on my site until final checkout and then send them to Amazon.

    I'd rather not have to send my customers to Amazon at all!

    In fact, I'd rather work directly with the retailer (large dept store that sells through Amazon) and just send them completed orders for fulfillment. The retailer, not me, would deal with shipping, returns, and all inventory mgmt (as they are now via Amazon).

    Amazon's Web Services come close to providing this but it still requires checkout on Amazon and its limited to Amazon partners.

    So, I'm considering building the missing piece myself in the form of an affiliate network to allow all merchants and affiliates like myself (not just Amazon partners) to work this way.

    It gives much more power to the affiliate than exists today and it allows a better shopping experience for customers.

    Can anyone comment on if this already exists somewhere and if not, why not?? I'm sure its complicated and expensive to build (and to integrate with the retailer) but it seems like a no-brainer....

    Thanks, W

  24. #24
    Newbie
    Join Date
    June 15th, 2008
    Location
    Texas, USA
    Posts
    9
    Original posting by netnow22
    The only thing I dont link about dropshipping is that you can always find the products cheaper from RETAIL Stores
    Jason,

    This is actually not true. The fact is that there some good drop ship companies out there that give you decent profit margins. The products I carried in my first eCommerce store were impossible to find in a brick and mortar retail store. And prices were reasonable.

    But what you guys haven't mentioned (that i could see) is that besides all the other negatives of spending $4k on such a cookie-cutter template, think about what google thinks about this.

    Google hates duplicate content. And companies that kick out 200 different sites on similar templates, with the same product descriptions are just selling junk, that will never rank well in the search engines.

    My first drop ship distributor offered a 'Package' deal like this, and I chose to build my own site with the same products. After some hard work and SEO, I ranked #1 in yahoo and google for many of my main keyterms. I never saw any of the cookie cutter sites in the top 10. There is a reason.

    BR

  25. #25
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida
    Posts
    12,817
    Can anyone comment on if this already exists somewhere and if not, why not?? I'm sure its complicated and expensive to build (and to integrate with the retailer) but it seems like a no-brainer....
    Yeah, there's some place that brags about being the dropshipper behind a lot of eBay sellers. But when I checked it out, as I recall they had high fees (high compared to the fact that it costs $0 to set up an account directly with a legit wholesaler), and some comments about them not updating their feeds to remove OOS items. OOS items is a pretty big deal when you're on the merchantside, because you have to give refunds ( = reverse on yourself!) if someone is able to order an undeliverable item from you.

    As for cost, SOME of the items did indeed cost at least as much as retail. The ones that didn't, still cost more than if you just set up an account with the wholesaler directly.

    Ah...I found the name after some G searching. Doba. www.doba.com
    I've never used this place and only repeated what I remember reading about them, but they are (or were) an "ebay-approved dropshipper." That may just mean they paid ebay a promotional fee, so make sure to check them out fully before signing up! Also note that they have lots of affs of the faux-review variety, so make sure any "independent, unbiased" reviews you see really are independent...

    One very irksome thing about the place that I just remembered (upon revisiting their site) is that they don't tell you their price until after you give them your email! I had given them an email addy just to get to that info (info which I have now forgotten the specifics of), and they proceeded to bombard me with "complete your registration!" emails until I finally found the link to get off their list. They did respect my unsubscribe command, but I was perturbed that they constantly pestered me until being specifically told to bug off.

    One thing to note about dropshipping in general is that the shipping fees can kill your competitiveness. Always ask about that before accepting an offer, because there's a lot of competition amongst retailers on shipping fees, and if yours are too high, you'll get trounced. I had one place (an individual company, not a "dropship clearinghouse") quote me shipping fees that, when added to the low-looking "wholesale" price, brought it right up to full retail cost, and for some products, a bit more than retail!

    So you need to be careful. Fees for opening accounts, high shipping fees, etc. were the norm for the dropship-clearinghouse places I remember coming across. All that can be avoided by opening an account directly with a wholesaler.

    Dropship in itself isn't always bad, but the "clearinghouse" setups I've seen can't beat direct accounts, at least not if the comments I've seen about how they operate are true. Not to mention that there is a fee for dealing with them, whether you manage to sell anything of theirs or not.
    There is no knowledge that is not power. ~Hemingway

  26. Newsletter Signup

Closed Thread

Similar Threads

  1. Drop Ship vs BLind Ship?
    By Verbalkent in forum Midnight Cafe'
    Replies: 13
    Last Post: December 7th, 2004, 07:56 AM
  2. affiliate transfer? drop ship option
    By btweb in forum Midnight Cafe'
    Replies: 7
    Last Post: October 24th, 2004, 08:55 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •