Since at least two people who aren't my mom read the last blog post we've decided to keep doing it. Today's topic is dropshipping.
So what the hell is dropshipping? In a nutshell dropshipping is selling an item on a site like ours without having it in inventory and then when you get an order getting it shipped from somewhere that sells it far cheaper and pocketing the difference. The somewhere else is almost always AliExpress which is pretty much Amazon for Chinese factories and occasionally a site called BangGood* (And you thought LibrisArcana was a shitty site name).
The benefits of dropshipping to a retailer are pretty obvious. Zero inventory cost and you never even touch the product so essentially no staff effort. All this and you can still get a margin of 25% or more. As you can imagine a technique like dropshipping attracts a certain scammy demographic and if you go watch some youtube videos of their 'money making systems' you'll soon be completely turned off the entire idea. That said dropshipping is not all bad and we have experimented with it on a small scale on LibrisArcana. To be clear everything on LibrisArcana that doesn't include the words 'ships from China' ships from Vancouver Canada and has gone through our quality assurance process.
The reason that dropshipping isn't the pure evil scam that you might think goes back to the quality problems that you will find on a site like AliExpress or BangGood (Seriously did they not Google that name?). If you buy an item from one of these sites you will about 50% of the time receive something of very poor quality and sometimes get nothing at all. One would hope that a site doing dropshipping has taken the time to do basic quality assurance and find suppliers that can be trusted to deliver a decent product in a reasonable timeframe. This research is a value add is certainly worth a few percent added onto the price in our opinion but we promise to be very careful with it and if it becomes a problem we will drop the concept entirely. And of course we will always stand behind the product even if we didn't ship it.
So that is dropshipping in a nut shell now off to AliExpress to buy awesome skull dice for less than $3.
* If you are in the market for knock off junk we can't say enough good things about these sites they are legit amazing in that you can get things for prices that are truly unbelievable. Occasionally the things are of usable quality.