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4 sports betting strategies that work in 2024
Takeaways by BetterChecked
- Real Nike products are only sold by authorized retailers.
- Selling fake Nike products can get you in trouble. Also using their trademarked logos and names must not be used.
- Nike usually sells large quantities to approved sellers only.
- Buying and reselling Nike products increases the prices.
- It's tough to maintain the quality and authenticity when dropshipping Nike.
First published 8/13/2024 on BetterChecked• last updated 8/13/2024
However, the dream often gets crushed when you try to find legitimate suppliers, as Nike's wholesale model poses a significant obstacle for small dropshippers. They only supply authorized sellers, making it extremely difficult to obtain genuine products.
In fact, Nike's website clearly states that they do not allow goods for dropshipping. Many suppliers claiming to have real Nike products for dropshipping often sell counterfeits, which can lead to serious trouble, including legal issues and account bans.
In 2020, U.S. Customs seized over $1.3 billion in fake goods, including a significant amount of fake Nike gear. You might find a supplier who claims to sell real Nike products, and the initial shipment might even appear genuine. However, there is always the risk that future batches will not pass authenticity checks, as counterfeit goods can be extremely difficult to identify.
E-commerce sites like Amazon and eBay have strict rules against selling counterfeits and often suspend accounts when they detect fraud. Nike's legal team also pursues unauthorized sellers, adding more risk.
Penalties for selling counterfeit goods can become expensive quickly, with legal fees ranging from $2,000 to $10,000, and e-commerce platforms can fine you as well.
Recommendation by BetterChecked
Due to the high risks and legal issues, it's super important to avoid unauthorized suppliers. Stick to reputable brands instead. Jail time and lawsuits are definitely not fun.
The financial and logistical chaos
Dropshipping seems great because you don't need to keep inventory, lowering financial risks. However, doing this with Nike products is super complicated, expensive and dangerous.
One option is to buy Nike items from authorized retailers and resell them, which means buying at retail prices and leaving you with tiny profit margins. For instance, if you buy Nike shoes for $100 and sell them for $153, the profit is small after transaction fees and shipping costs.
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- ->PayPal and Stripe take around 2.9% + $0.30 and 2.9% + $0.25 per sale, respectively, which further reduces your profits.
Managing stock is another significant challenge. You need to keep track of inventory, deal with items going out of stock, and handle shipping logistics. At the end, it's also important to note that you're usually breaking trademark laws.
Recommendation by BetterChecked
Dropshipping Nike products is super hard for small businesses because of the money and logistics involved, so it's crucial to think about other options.
Finding niche success
Offering a 10% discount on new arrivals from lesser-known but legit brands can boost customer engagement and loyalty.
Dropshipping remains a viable business idea for many new entrepreneurs. Still a lot of new dropshippers fail. However, attempting to dropship Nike products can be a complicated and challenging task due to:
- ->the difficulties in finding authentic suppliers
- ->dealing with high costs
- ->ensuring the products are genuine and of good quality
- ->dealing with trademark laws
Trying other niches and brands can be a more profitable and easier option, as the e-commerce world offers numerous opportunities. For instance, some suppliers offer customizable sneaker (not from Nike) allowing you to dropship them for a good profit margin.
Focusing on less stressful alternatives is generally more practical.
