By John Freech
ebay provides a great opportunity to make money online and dropshipping is a great way to start your eBay empire with little risk and upfront capital. If you are new to dropshipping, it is basically a method where you can sell products without having to have the actual product in your possession. Instead, once you find a buyer, you will then buy the product from a dropshipper who will then handle the packaging and shipping to the buyer on your behalf.
Dropshipping on eBay works this way.
You figure out the product you want to sell.
Select a dropshipper and login to their website and find your product. Determine the cost to you and your goal is to sell the product for higher than this cost.
Sell the product on eBay and receive payment and shipping info from the buyer.
Buy the product from the dropshipper, and pay the wholesale price. You retain the profit.
Dropshipper ships the order to the buyer, handles returns and other order related problems.
Using a dropshipper, your role becomes that of a middleman, linking the dropshipping supplier and buyer. The difference between the price at which you sell to the buyer and the amount the dropshipping supplier charges you is your profit margin. Using eBay and dropshipping one can earn good profits without the worry about inventory, warehousing, shipping, staff or office space.
Still, there are a couple of downsides to dropshipping. First, there is the added cost. Since the dropshipper is assuming most of the risk, you will have to pay a little more compared with buying from a standard wholesaler. Second, it can be difficult to find a reputable dropshipper to work with.
If the dropshipper you choose does not deliver your products professionally and reliably to your customers, then you face the prospect of negative feedback coming your way. This can ruin any eBay business. One piece of advice I have is that before you go with a dropshipper, make sure to contact them to get a feeling of their level of service.
For those starting out selling on eBay, you should definitely consider dropshipping as a potential method to use. Stocking your own inventory can be expensive, and packaging and shipping are always a hassle. They key is to find unique products to sell, where you will be able to pass along the added dropshipping costs to your customers. Once you've discovered a few products like this, you will have a relatively risk free method of making money on eBay.
Mike Wong is a powerseller on eBay and has had success using dropshippers to sell a wide variety of products. If you are interested in learning more about dropshipping, then read his in-depth guide on EBay dropshipping [http://www.buythingsonline.info/getting-started-with-dropshipping-on-ebay]. In it, you'll find out how he chooses reputable dropshippers to deal with.
By John Freech
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