Hi All,
I have been heavily discussing this topic over the last few months on here and have good experience of setting up dropship services.
I have just spent 3 months researching, implementing and organising over 80 different suppliers/dropshippers for 60+ websites.(ranging from electronics, houseware, CD/DVD's, fashion amongst many others.) I have just left my job and am looking for a good company to utilise my skills.
I have a good portfolio of clients and contacts to hand if anyone is looking to take on somebody with good knowledge of setting up this particular type of service.
In my experience I think dropshipping is a fantastic idea and believe that it is the future of distribution on the web. It has opened up various areas within the online community for all types and sizes of business. Like many concepts there are pitfalls to avoid if you are to make it a success:
A good example which has been mentioned is the shipping aspect. Some companies will charge over the top postage/shipping costs and will then also try to charge you for a "drop ship fee" i.e the inconvenience of packaging an individual item. (therefore the margins end up not being that great).
My advice to anyone thinking of setting up a dropship service is to be selective - if one supplier cannot offer the margins you hope for, there are still plenty out there that will be more than happy to take your business on.
If anyone has any queries, I'll be more than happy to be of some assistance.
Look forward to your thoughts,
All the best,
Jamie