Question / Discussion eBay Dropshipping

I've been using Ebay Elevate since July last year. I don't know about any alternatives, but I can vouch for them. The course is a certain amount on their website, but if someone refers you, they provide you with a code for a substantial discount. DM me if you decide you want to go with Elevate, and I'll let you know how much the course is with the discount (there are different discount codes so the referrer can make more commission, so it's not fair on people who make their money on referrals if I publish what the course will be on the best discount code for all to see, but I'll let anyone know privately. Hope that makes sense!).

I've made nearly £4,000 since I started in July. It could have been a lot more than this (my best month was £1,260 profit), but because I have other self employed earnings and the profit margins are tight, I was concerned about the VAT threshold, so I haven't been expanding my store like I could have done. It's one of these things where the more time you put in, the more you will make. I haven't put a lot of time in for that 4k. Some are making huge amounts but to be honest, I'm not sure how profitable it would be if you hit the VAT threshold (and it would be very time consuming getting all of the VAT invoices...), so that's something to bear in mind if you go down this route.

Hope that helps. If you have any questions give me a shout.

The last time I looked into dropshipping years ago the margins were always REALLY tight!

Yes, just to give an example - my turnover for that £4,000 is £45,000. This is why it would be very easy to sleepwalk into reaching the VAT threshold if you just keep expanding without keeping an eye on it.

Rs20033 said:

Yes, just to give an example - my turnover for that £4,000 is £45,000. This is why it would be very easy to sleepwalk into reaching the VAT threshold if you just keep expanding without keeping an eye on it.

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Are you not wanting to go into the VAT threshold?

The best way to figure out dropshipping if decide what area of products you want to sell then just search trade places. I have a website I use as most drop shipper want you to have some website. I do this every now and again selling children’s furniture and house hold bits personalised items. It took a lot of time and research to find new suppliers.

Rs20033 said:

Yes, just to give an example - my turnover for that £4,000 is £45,000. This is why it would be very easy to sleepwalk into reaching the VAT threshold if you just keep expanding without keeping an eye on it.

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The flipside of course is if you register for VAT then you can claim back the VAT on all your expenses.

Jon said:

Are you not wanting to go into the VAT threshold?

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I guess I'm a bit wary of the extra paperwork/admin involved. I do my own self assessments, but I would probably want an accountant if VAT was involved, which is another cost.

Plus, I don't see the dropshipping as a long term thing - it's just helping for now. I'm hoping to save as much of the profit as I can and use it to buy stock that I can make a better profit margin on.

But claiming the VAT back on expenses does sound appealing, especially since my intention is to use the profits to purchase stock.... worth a thought.

Rs20033 said:

I guess I'm a bit wary of the extra paperwork/admin involved. I do my own self assessments, but I would probably want an accountant if VAT was involved, which is another cost.

Plus, I don't see the dropshipping as a long term thing - it's just helping for now. I'm hoping to save as much of the profit as I can and use it to buy stock that I can make a better profit margin on.

But claiming the VAT back on expenses does sound appealing, especially since my intention is to use the profits to purchase stock.... worth a thought.

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I get that mental barrier about the VAT admin side of things HOWEVER I thought the other day that proper entrepreneurs who earn their millions each year don't let this sort of thing put them off or otherwise they would all be there with their £69k turnovers!

£4K profit from a £45K investment? That's horrible.

That's the reality of dropshipping. It's all about volume (and not being scared of the VAT threshold if you want so make more than a few hundred a month!!). I don't purchase anything until I've been paid for it, so there's very minimal risk involved.

If you have the storage space and funds to purchase stock to sell (and can find the bargains), that is definitely the better option.