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.

Doba Review part IV – case study



The final chapter in my Doba review case study is finally here. If you missed any of the previous segments feel free to catchup below:
Doba Review part I
Doba Review Part II
Doba Review Part III

The purpose of the case study was to test whether Doba is worth the upfront fee and/or monthly investment for an entrepreneur looking to cut their teeth in ecommerce via wholesale drop shipping.

Pros
Access to thousands of products priced below retail and you never handle inventory. I should point out this can happen with any reputable drop shipping company eliminating a competitive advantage for Doba.

Extremely large product selection. One-stop shop.

Cons
The push to marketplace feature (integrated instant push out to Ebay) works effectively but is useless because of the deep discount mentality ebayers are so typical for. Instead of Ebay focus on more profitable outlets that will garner a higher sale price but still be below retail. Go for more “retail” type outlets like Amazon, Craigslist, overstock, epier or an Adwords approach via niche keywords.

The so-so wholesale rate coupled with a flat Doba fee (usually $2.50) and a high shipping fee leaves a less than desirable profit margin for the ecommerce entrepreneur in most bargain outlets with Doba products.

A few recommendations I would throw out would be the following:

If you have experience in web development you should grab an open source solutions like ubercart (especially as part of Drupal) or Oscommerce. Take a solid month or two to build out your ecommerce solution and use Doba’s product line to fill your product coffers. Please note, whatever solution you choose CSV or XML import of the Doba catalog is paramount or you will be spending the next three years filling your ecommerce database one Doba product at a time.

If you are less savvy at web development then go for a popular licensed or hosted ecommerce solution like cubecart, agora cart pro or yahoo small business setup. All the tools will be built in for the novice and worth the investment.

When you decide on your ecommerce solution dropshippers can be used to flesh out your product lines. Shopster is another popular competitor to Doba. If you want to get more of a direct relationship with wholesalers rather than middle men like Doba and Shopster than think about visiting Worldwide brands. Also peruse through this small biz article.

In summary:

Doba is far from the panacea for a drop shipping startup especially for the “get rich” entrepreneur looking to kick back, never touch a product and clear 20% every sale on Ebay. Doba should certainly be considered for any drop shipping strategy but only in conjunction with an exclusive ecommerce store promoting successfully researched niche products.

For the average Joe, skip Doba’s upfront fees and parlay the money into an ecommerce website along with a healthy SEO campaign. When you get some real traffic you can always consider adding Doba. Like so many other startups the real success will come from research, elbow grease, passion and a little luck.

Happy drop shipping!

Putting Doba to the test Part II



Doba

About mid-week I received a phone call from a Doba representative. He was certainly a nice enough gentleman the appropriate balance of sales and telemarketing. Being the qualified “warm” lead that I am, you could tell he was reading the Doba sales script and inserting my first name every other 100 words to sound congenial and personal. All in all he did a good job. Doba was offering a 50% Doba special if I prepaid all at once. After his speech he clearly spelled out the savings over the normal $59.95 a month ($700 annual) he was offering. The total was $299.00 for the next 12 months. I would have hung the phone up at this point (because if Doba profit margin’s are so good, why do they need an annual prepayment, but that would be much of a case study for all you entrepreneurs would it? I said sure, let’s give it a go in the name of lifting the veil on Doba.

Shortly after this I took my research I conducted from (Doba part I). I used the fancy push to marketplace button and had 3 products on ebay in less than 10 minutes. A bar stool, piece of jewelry and a men’s watch. Fast forward 3 – 5 days (length of auctions) and Nada. I was out the ebay fees. So now my total investment is about 10 days being involved with Doba and about $303 dollars of total cash outlay.

I have noticed the supposed “wholesale” price of Doba products plus a 2.50 dropship fee plus and abnormally high shipping rate is starting to be the culprit for no sales in the Ebay marketplace. I also notice a plethora of no-name brands pushing product through Doba. I’m not losing hope yet though….Ebay is known for price-slashing shoppers and people looking for 25 -50% off retail (the same margin as the price for Doba’s products). Before I throw Doba under the bus I will forge ahead with other sales outlets on the Internet.

Stayed tuned for Part III of Doba case study as I ramp up the sales efforts.

Other Doba Reviews you may find interesting.

Ryan’s Review

Salehoo

Ebay feeback review