Doba vs Shopster



Anyone who has inquired about getting into the drop shipping arena has probably asked themselves about Doba vs Shopster. Many of you may remember the four-part series I did on Doba not long ago.

Both companies aggregate hundreds of wholesalers and allow you (as the entrepreneur) to sell products of your choosing. So let’s jump right in and see the fundamental differences I uncovered.

Shopster has an amazing backend interface with an intuitive web 2.0 feel. The web newbies and less web savvy will find solace in Shopster’s 5-step program on getting started. Literally within 15 minutes you can be online and selling products with the sitebuilder.

The sitebuilder is huge for the average joe without web skills. Doba does not offer a sitebuilder and is partnered with a company called 3XP web solutions that will cost you more money on top of your monthly subscription to get up and running.

I created two sites to see where the rubber meets the road in terms of usability. I created Dealflicker.com (Doba) and trimslimusa.com (shopster). I built dealflicker with open source Creloaded 6.2 and shopster with the built-in sitebuilder tool.

Shameless plug – If you need open source webdesign (drupal, megento, oscommerce, drupal) you should be using Hyperactive media’s web services.

Because of the custom nature of building Dealflicker, I immediately faced product distribution problems (not Doba’s fault….but lack of sitebuilder is). I had to do csv exports and custom formatting to get products out to 3rd party distribution channels like google base, pricegrabber, bizrate etc…Shopster on the other hand was a joy, I clicked on the 3rd party export channel and had 7 preformatted exports for various distribution channels.

Inventory management was the other shortfall I saw in custom building a site for Doba. Again, it would have been easy to build a custom module or add some code to facilitate inventory management, but that limits the average entrepreneur for an out-of-the-box solution. The inventory quantity seamlessly intergrates into the website to montior out-of-stock etc…

The one drawback I saw with Shopster compared to Doba was the breadth and range of products available for sale. Doba has an impressive inventory of products available to drop ship compared to Shopster’s smaller inventory. A relatively easy solution to solve for Shopster I’m guessing, as products are continually being added.

Ebay Features
Both sites had the push to ebay features where products are selected and formatted on the fly and sent to ebay for live auction. Again, the Shopster really shined in terms of interface here, although both sites were effective in terms of functionality.

Education features
Both sites had ample education resources, with Doba having more educational resources than Shopster but not necessarily presented as effectively as Shopster.

Support
Shopster was genuinely interested in making sure I had the resources needed and solving my problems. Doba was helpful as well, but leaned more toward online resources and upselling my account and 3XPservices.

Overall UI (user interface) and usability was obviously a big design choice for the folks at Shopster where as Doba was about functionality and content and large inventory, both valid approaches. I think Doba could benefit tremendously with the addition of a sitebuilder (acquisition of 3XP maybe?). Shopster could benefit from a larger inventory. In the end both are formidable drop shipping solutions but I think Shopster gets my vote in the end with the ease of use, comfort level and affordability.

Word to the Wise
Profit margin and shipping costs and fees remain to be a problem with the “drop-shipping clearing-house” space in general. It remains a challenge to turn a profit with so many mark-ups before the end user. Reason 101 of ecommerce tactics…don’t compete soley on price.

Although the ebay features are nice to haves, ebay has proven time and time again to fail as a money maker for the average drop-shipper.

Turning around a failing business


Turning around a failing business is one of Startup Addict Musings more popular posts and a few folks commented it was a bit too qualitative for their needs. I decided to write a part II to the article and add more tangible solutions.

If your business is failing it’s most likely due to one of these reasons:

1. not being profitable
2. cashflow problems
3. poor management

Not being profitable is a direct result of not truly knowing your fixed costs, there may also be a paradigm shift within your industry that injures your sales. The other culprit for a failing business is cashflow problems usually stemming from a myriad of reasons:

1. Low profit margin or low revenue volume
2. Don’t understand your fixed & variable costs
3. Collecting money (accounts receivable) in a timely fashion


Poor business management
is the last of the three most common reasons your business may be failing. If you happen to be the management then an outside consultant, mentor or business associate may be neccessary to enable you to see the forest from the trees. If you have hired management to run you company you should identify the problem or find managerial replacement.

Your failing business may be a result of a less common reason (like 50% of sales are from one client you lost) but don’t lose heart, identify the source of the problems and review the systems you have put in place for your company…try to adapt and overcome. You may need additional funding, give up an equity stake or get a line of credit or bridge loan. That step should only be taken when the source of the problem is identified. You may deem the business irreversible and ultimately have to bankrupt, liquidate or close, but at least you did the due diligence neccessary to make the right decision.

Remember if you do as you always did…you will get what you always got….so change