I sell alot of products on e-bay and my web site www.shipmodelsuperstore.com

www.redscollectibles.com

I have over 250 products for sale on all my sites. One of each would cost about me about $50,000 therefore ten of each would be $500,000. It would also be 2,500 pieces to have to store, keep dry and Insure.

The profit margins are thinner on drop shipping but if you consider lost or broken items that you would have to pay for or lose money on I feel that I have less headaches. My suppliers are on the West Coast and I am in NC so if I have the items shipped to the East Coast that would not offset the bulk buying discount.

My products range from $89.00 retail to $2,900.00.

I can order directly from the manufactorer and have them shipped to the East Coast from overseas and save about 40% per unit. I am going to try and order a few palletts to put in stock but only my most popular items. I do keep about $1,500.00 worth of economy items in stock that move fairly quickly.

Drop shipping allows me to run a full line of products and experiment with, price, availability, and keep my capitol close to me.

I have been doing this for two years and if the economy was better I would stock more but you may get stuck with more inventory.

Keeping track of someone elses inventory can be tough and occasionally I have to refund a customer but drop shipping is working ok for me.

I can test market an item without ever touching it.

Bob sales@shipmodelsuperstore.com