About eBay Drop Ship Businesses

Ebay has become a phenomenon especially for everyday people. It is a very easy place to learn how to sell and buy almost anything one can think of. Drop shipping is another facet to ebay's many capabilities. The concept makes it very easy to become a drop shipper and make a profit without having to spend a lot of money upfront. Whether you've heard the term before or not, you may wonder what drop shipping means, especially when it comes to ebay. Keep reading to learn more about it.

Identification

Drop shipping is selling a product from a wholesaler or drop ship company. The wholesale company in turn ships the sold items directly to the customer. The difference between what the ebay seller makes and the wholesale price of a product is what the ebay seller keeps as profit. The ebay seller does not have to deal with keeping inventory or with shipping the products ou tto customer. In drop shipping, this is handled by the wholesaler or drop ship company. The ebay seller strictly deals with selling and advertising their ebay business. This is a great concept for someone who would like to start selling on ebay but does not have a lot of money to invest in the actual product.

Function

The concept of ebay drop shipping is a win win for both sides, the wholesaler and the seller. Because the ebay seller is pushing product, the wholesaler gets more sales. Because the wholesaler takes care of inventory and shipping, the ebay seller does not need to worry about losing money by buying products in bulk and then not selling them. The seller also does not need to worry about shipping, which also costs money for postage and packaging products.

Geography

There are drop ship companies and wholesalers all over the globe. There are wholesalers in the United States and many in China. There are more throughout the world, all with different products available to ebay sellers to sell. They are extremely easy to find through the internet. It is harder to find a good, legit, and reliable drop ship company, however.

Time Frame

The time frame for building your ebay business through using drop shipping can vary greatly. Some ebay sellers will find success in a short amount of time, but more sellers will not find much success with this method. There are many factors that come into play when being a success or not on ebay through drop shipping which include the actual product and how in demand it is, the prices of your listing, which also depend on how much you are able to get the product for from your wholesaler. The quality of your product can definite play a part especially once the customer recieves it. If your customer leaves negative feedback, you may want to check the actual quality of the company you are selling for. The number of listings per day or week can play a part in the traffic of customers who actually view your ebay store each day.

Warning

Along with most things you will find on the internet, there are plenty of scam artists looking to take advantage of inexperienced or naive sellers just trying to make a living. Before you commit to any company, do your homework! Research different drop ship companies before signing on to just one. Find out if they have a fee to use their services and if so, how much. A company should not charge a very large sum to use their services. They should also not require that you buy a bulk of anything. That would be wholesaling, and not drop shipping. With drop shipping, the whole point is that you do not waste your money or be stuck with product that you cannot sell. Another thing to research is how much certain products are actually selling for on ebay. How much is the drop ship company selling it for? If it is to high, then you most likely will not be able to sell it on ebay. Make sure that the products are of good quality. This can make or break your ebay feedback, which can make or break your business.

Resources

• Dealing with Drop-Shippers in Your Ebay Business for Dummies