So, I'm trying dropshipping out. I contacted a very reputable website designing company who have a great portfolio. I talked on the phone to them and told them my business idea. I want to dropship games on my own site and eventually get my ranking higher. They will design the site, make all the functionality, and post the products with descriptions etc (games/consoles) for a monthly total of $129 for 12 months. Then, after the 12 months, the price drops to $50 a month. They said they will post up to 25 products on the site for that price. And if I ever wanted 26 to a 100 products posted on the site, that would be $155 a month instead of the $129 Would this be a good idea? They do the SEO stuff too for the site. I don't know if I post that small amount of products, if it'll be worth it. All I will be making is a bit of profit cause I'd be ordering from a wholesaler...so not sure that I want to invest in this? Any idea if this is worth it?
If I just do affiliate links, it'll be $60 a month for the first year. My only concern is that 25 products doesn't sound like a lot, and the monthly payment for the first year seems like a lot. I wouldn't want a nice website that makes no money. Please help.

Do you understand what dropshipping is? What you describe is not really dropshipping. It's more like a franchise. For example, a McDonalds where you pay for the store but buy all your product from them. Essentially, you are paying them to develop a store that will sell their products.

Dropshipping is where you have a store, but don't store the product, instead you transmit orders directly to the wholesaler who does the shipping.

Thank you for your prompt reply. Well, I wouldn't actually be stocking any of these items. As soon as somebody makes a purchase, I'd go onto the wholesaler website and punch in their information for them. I'm just concerned because 25 products doesn't seem like a lot, especially for a start up dropship company.

Sorry, I just re-read my initial post, was pretty confusing. When I said I'd order from a wholesaler, I meant I'd just be punching in the customers information and having them ship it to the customer directly. I won't be holding any stock on items.

Of course it depends on the company, and the terms of service as there are many such companies, offering the same thing, so compare a few, and the products, to get a bigger BETTER picture of what you are getting into, but for context you can blow 130 bucks taking the family to dinner on a Friday night, or golfing for that matter.

Research any investment before you take the risk. An honest evaluation of your "learning curve" is also a factor in keeping expectations REAL in the beginning, since it may take a while to LEARN how best to turn a profit from a new endeavor you have no experience in.

No risk, No reward, so make an informed decision based on FACTS, and not just speculations, or HIGH hopes, and fear of failure.

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Originally Posted by talaniman

Of course it depends on the company, and the terms of service as there are many such companies, offering the same thing, so compare a few, and the products, to get a bigger BETTER picture of what you are getting into, but for context you can blow 130 bucks taking the family to dinner on a Friday night, or golfing for that matter.

Research any investment before you take the risk. An honest evaluation of your "learning curve" is also a factor in keeping expectations REAL in the beginning, since it may take a while to LEARN how best to turn a profit from a new endeavor you have no experience in.

No risk, No reward, so make an informed decision based on FACTS, and not just speculations, or HIGH hopes, and fear of failure.

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I've been considering actually buying the products and selling them. But I just don't know how to go about finding whether or not it would be profitable.

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Originally Posted by rackcity

I've been considering actually buying the products and selling them. But I just don't know how to go about finding whether or not it would be profitable.

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The cost of buying the products directly and shipping yourself need to be weighed against the cost per product of dropshipping (or having them create and maintain the site). Note, that generally shipping costs can be passed on to the buyer. In fact, many retailers make a profit on S&H costs.

I've done a lot of selling on ebay. I've seen dropshippers sink like rocks. I bought 2 dropshipped items that were NOTHING like the picture or description, and guess who had to refund my money? They were the first and last dropshipped items I ever bought.

I've also worked for a computer game company in it's infancy and heyday. There is no way in heaven or hell that you will make any money. You will lose.

THINK - this outfit will do all this for a fee. Why aren't they doing it? Because they know they can get more money out of you than they can get doing it themselves.

Lastly, aren't all games these days signed up for directly from the creators, online? I'm not current with this, but I can't imagine what games you think you are going to sell.
You can't possibly compete with GoT and Warhammer, etc. You MAYBE can with cards, card sleeves, and other side items.

DO NOT DO IT.

Do not try to sell games, period, unless as a collector/reseller of vintage games.

I'm with joypulv on this, I'm seeing a lot of red flags, and for the same reasons she does.

And I along with a business partner did try to sell parts dropshipped from a wholesaler.

Problem is, unless you sell a huge volume, you will find your wholesale price is higher than existing businesses are selling retail, with shipping included.

There is no easy money to be made.