3 ms·
1995-97: My the key to drop-shipping is buying cheap from one market and selling expensive to another market (market arbitrage). I did this for classic video ga
by benjohnson 6y ago
1995-97: My the key to drop-shipping is buying cheap from one market and selling expensive to another market (market arbitrage). I did this for classic video games - bought from thrift-shops and sold via the web - my web-store was build with MS Access piping out raw HTML that I FTP'd. Customers found my via Usenet and Yahoo's curated links.
Worked well - but the problem is that it's easily repeatable because there's no regulatory capture, patents, large-startup costs or other things that makes it hard to start. I soon had competition that killed the margins.
Several people that did likewise wound up training their own competition - there employees would leave and mimic their business model.
So if you do this, or something like this, make sure your profitability event horizon is really short. Make sure you can exit the business without holding the bag of expenses or inventory.
- beervirus 6y ago> bought from thrift-shops That doesn't sound like drop shipping.
- tdfx 6y agoYeah, that's just retail (assuming thrift shops are considered retail) arbitrage. Dropshipping specifically is when you accept orders for products you don't have in inventory, and someone else fulfills that order for you.