About eBay Drop Shipping
Drop shipping is a way to make eBay selling easier for the seller. The practice of drop shipping allows people to sell on eBay without having to buy or to carry their own items. This has a number of benefits for the seller, including putting the burden of storing the products on the drop shipping company instead of the eBay seller.
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Function
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EBay drop shipping can be done in one of two ways. Some eBay sellers go through drop shipping companies who stock a variety of items. These items are stored by the company until they are sold by the eBay seller. Once a sale is made on eBay, the eBay seller places on order with the drop shipping company and buys the item. The eBay seller gives the eBay buyer's address to the drop shipping company and the item is shipped there by the company. Other people sign up with a company as a distributor and then sell the items through eBay, ordering from the main company each time an item sells.
Significance
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For many eBay sellers, having the space to store items can mean the difference between being able to sell on eBay and being unable to. Having dedicated space for storing an inventory of eBay items is often not possible for those who live in large metropolitan areas. Purchasing a lot of items before they are sold is also a risk that some eBay sellers are unwilling to make.
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Time Frame
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Sellers are not allowed by eBay to sell things that can't be shipped within 30 days of the end of the auction or fixed price listing. If the drop ship company cannot guarantee that the item can be shipped within 30 days, it is not a company that is compatible with eBay selling. EBay sellers should generally seek out drop shipping companies that can ship out the items right away to keep the customer happy and so that the company doesn't inform you days later that the item has gone out of stock.
Identification
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In many cases, a drop shipper never has to disclose this fact on the eBay listing. However, if a drop shipping company is likely to take a week or longer to ship an item, this should be mentioned on the listing. Some items are more likely than others to go out of stock, and those items may need to be refunded if they are purchased through eBay and the drop shipper is unable to ship them. If an item has gone out of stock before, it should be mentioned that the item is drop shipped or shipped through a third party. This will make it easier to resolve problems if this should happen after the sale.
Considerations
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Sellers who sell drop shipped items on eBay often get negative feedback eventually when items are out of stock or the item that the drop shipping company sends is the wrong item. Even when the shipping time and the item shipped is taken out of the eBay seller's hands, the eBay seller is still responsible for any mistakes that are made.
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