Wholesale vs Retail Dropshipping on eBay (Which do I like more?)

i've been drop shipping on ebay for almost four years now and in that entire time i said that i would never do wholesale drop shipping but then something happened that changed my mind

what's up everyone paul here from dropshippingtitans. com where i teach regular people just like you how to start your first successful drop shipping store and i've been exploring different ways to make money online for about five years now and when i first started i had a lot of failures i spent a lot of money trying to get things to work to put a lot of time into things that just didn't work and when i finally found drop shipping it felt like i had found like a life ring because it was so much simpler drop shipping is a model where we sell items on different websites whether that's ebay whether that's amazon whether that's our own website once we sell it we then buy it from someone else and that other person ships the item directly to the customer so you never have to handle any inventory you don't need to spend all that money up front in order to buy all those items and that was very appealing to me because i had just spent a lot of money on other businesses that didn't work out so i had tried this i built my own website i had to figure out how to make it look nice i had to pay for ads to get people to visit that website and that was a more wholesale model where i connected up with different suppliers and tried to get relationships with them so i can get good deals on products and that was also a complete failure i never went anywhere i didn't really sell any products and i just felt completely defeated after that drop shipping seemed like the simplest business model out there and yet i couldn't be successful with it and that's when i discovered something called ebay drop shipping now this took the drop shipping model which was already pretty simple and made it even more simple because remember the problem i had with building my own website and doing the wholesale route with that was that i had to build my own website which you sell if you sell on ebay you don't have to do that i had to worry about getting traffic to that website and if you sell on ebay you don't have to do that ebay already has customers on ebay ready to purchase from you and i had to get relationships get contracts with these wholesale suppliers but with the model that i started on ebay i wasn't doing that any time a person would purchase an item from me on ebay i would then just buy it from another website like walmart or home depot and that website would ship it directly to our customers

this i didn't know it at the time but this was called retail drop shipping and the best part is that it worked it was very scalable because once i get connected with like walmart they have so many different brands that they sell so as soon as i started drop shipping from them i was able to list up pretty much all of those brands it quickly added a lot of products into my stores and there's great software that will help you automate drop shipping from retail websites like walmart or home depot onto ebay so it's very scalable and very simple simple but not necessarily easy it does take work in order to be successful with drop shipping this model and this model retail drop shipping is not perfect there are problems with it or things i would say that are less than ideal so some of these downsides are that one you're not getting the best prices if you do wholesale you're going to get better prices lower prices so you can get higher margins and with retail when you're buying from these other retail websites you're paying the retail price the second problem is that these items on these different websites like walmart they tend to go up and down in price a lot with different sales and in and out of stock quite frequently or not quite frequently more than they would with wholesale and the third problem with them is that those websites like walmart at home depot can always change their rules they can suddenly say oh we're not going to let you do this or we're going to change our shipping policy or all these different policies that they have might change and we've seen that yes we adapt to that actually one of the biggest benefits of this business model retail drop shipping is that you can quickly adapt to any changes because you don't hold any stock and you're not relying on just one supplier that you have a contract with like a wholesale supplier it's very easy to start selling from another retail website so those are the issues you know we've always been able to adapt to them but i'm not gonna lie i'm not gonna sugarcoat it those do exist you just gotta know how to deal with them so for years that's the only business model that i used and it worked and we were humming along great no issues or with any small issues we would quickly adapt to them and then ebay made a change to their terms of service and they said that drop shipping while it's allowed using the retail model is not allowed now i'll have a whole video about that and when it's available i'll have it linked up right here but once that came out we were like huh what do we do now so me and my team we did two things first we just continued to sell using the same retail drop shipping model we made some small modifications what we noticed is that we continued to sell items we continued to add we continued to make sales and things weren't an issue now you won't get banned for doing this model and we know that because ebay actually sends an email saying we know that you're doing this it can be a kind of scary looking email so if you get that don't worry because all they do is lower some of your listings in the search results but that's okay with drop shipping because we can add new trending products with this model so quickly faster than we can with any other business model which allows us to stay ahead of the curve but more importantly the reason retail is still the most popular way to dropship on ebay is because it's extremely low risk and much easier to start than wholesale drop shipping so when people

tell me or ask me hey paul why do you teach this even though it technically says you're not allowed to it's because one ebay has sent me emails letting me know that hey we know that you're doing this but yet they haven't banned us we continue to sell we continue to make money and it works so the reason we still talk about this is because it still works but the second thing that we did was we started to look for alternative ways to dropship that were in compliance with ebay's rules because we wanted to diversify we wanted to have backups at all times so we tried some different things some things kind of worked some things didn't work out so well and then we hit on something that i didn't think i would ever come back to and that's wholesale and wholesale what we found once we put in the work it actually does work so if we look at the drop shipping model again remember we have a customer here on ebay and they purchase from us that's the same whether you're using the retail model or the wholesale model that money then goes to you and that's the same as well the only component that changes with the wholesale model is this one who the supplier is and supplier in the wholesale model is a wholesale distributor or maybe a manufacturer they are going to ship the items directly to the customer for you and that the first benefit is that it's completely allowed by ebay another benefit is because we are higher up in the chain here we are actually buying the items for cheaper so we're going to have higher profit margins and we're getting that direct relationship with the suppliers these suppliers they don't really change their price or stock as often as retail websites will and they're not going to change their rules as often either but maybe most importantly it also works now it's not perfect so some of the problems we've had with wholesale drop shipping is at one it's more difficult to get these relationships with the different suppliers so again with the retail model all you have to do is start buying from walmart or home depot it's not hard to do it's not like you have to get special permission from them to do that with these wholesalers you have to do that second thing is you have to also have a legitimate business and you don't need that technically for the retail drop shipping the other downside of the wholesale is that it's not as easy to automate it so with retail drop shipping we have really great software that allows us to quickly list items and reprice them yes software like that exists for wholesale drop shipping but in our experience it's not as good there's there's not a comparable solution for that so which one is more profitable well let's look at this because let's say you have fifty thousand dollars worth of sales in a retail drop shipping store and wholesale drop shipping store your will more likely than not have higher margins but the retail drop shipping store will probably be more automated which means it takes less time on your part and less work on your part the other thing to consider is that retail drop shipping stores are easier to scale up because again all we're doing is taking items from walmart or home depot and listing them onto ebay you can do that really quickly because walmart has so many different products and brands they are selling but with wholesale drop shipping you need to form new relationships with suppliers all the time in order to add new products and different brands and that can be much more of a longer process than it would be with retail now that leaves the final question then which one of these should you do wholesale or retail which one of these two should you learn how to do and the good news is that for a limited time you don't have to choose so i've been teaching people how to drop ship onto ebay now for i think about two or three years yeah over two and a half years and in that time i've always taught what i know and what works for me and that's retail drop shipping like i said me and my team we've been doing wholesale now we've been trying it and we've been partnering up with people who are also experts on it and because of that we've put together a brand new course that will teach you everything you need to know to be successful with wholesale drop shipping so we have two different courses here retail drop shipping course and a wholesale drop shipping course but for a limited time you get a bogo you gotta buy one get one so and then the good news is that the wholesale drop shipping course even though it's 997 dollars if you get the retail drop shipping course which is just 297 you get that course plus the wholesale course now it's only for this week only because this is a special deal just for this week so what you need to do is underneath this video in the description is a link it's the only link there if you click that link that will bring you to this website and on this website you're gonna see that at the bottom is a bar that will tell you it's a little pop-up bar that'll tell you how much time is left in this deal as soon as it's gone the bogo is no longer there but as long as you join up before that deadline you will get their original course which i've had thousands of students see success with that and you'll get this brand new wholesale course as well so if you want this bogo limited time offer i'm doing this for you guys because when i created my course dropshipping titans i wanted to make sure that it was the most comprehensive course available i wanted to make sure all my students were capable of seeing success and that required me as the teacher so to speak to always make sure that my course was 100 up to date and i've done that over the years i've continued to update my course and you know things have changed on ebay they technically change their rules i still teach retail again because it works but i want to make sure that if you want to be fully compliant with their terms of service and you want something that actually works here's the solution for you can choose retail or wholesale you don't have to choose with your wallet you only actions i'm giving you both choices so it's completely up to you but this is a limited time deal link is in the description and i hope you guys check it out