How to Make Money on eBay with Drop-Shipping Wholesalers
Despite all the benefits a home-based business offers---a comfortable environment, your own schedule and non-existent gas costs---there is one downside when it comes to selling on eBay: limited space. Drop-shipping eliminates this concern by allowing you to sell products that you don't actually have in your possession. You forward the order to the drop-shipper, who delivers it to the customer with your business listed as the return address.
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Instructions
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Open a PayPal account. You will need it to accept payments through your eBay store. PayPal secures your customer's banking information during transactions.
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Open an eBay account. Go to the "Sell" section and purchase an eBay Store subscription, which you will need to host a store on the eBay website. The price for a store ranges from $15.95 to $299.95 as of 2010, depending on the degree of customization and customer support you want.
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Decide what items to sell. The typical eBay buyer is an upper-middle-class white person between the ages of 18 and 49, according to Quantcast marketing corporation. So aim to sell items that this market would like. Choose two to three related items so that you can market them all efficiently.
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Contact drop-shippers that stock the products you want to sell and compare the prices and quality of their products. Open an account with a drop-shipper whose products come directly from the manufacturers or distributors, since this will decrease your cost and increase your profit.
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Post the product photos provided by the drop-shipper on your eBay store. If you want your listings to stand out from the rest---since other sellers are likely to have accounts with the same drop-shipper---order a sample of each product and take your own photos. Include a brief description of the product and the price and publish the listing.
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Forward orders to the drop-shipper as soon as you receive them. If the drop-shipper is out of an item, contact the customer to let him know. Offer a refund to keep your eBay rating high.
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Tips & Warnings
Avoid so-called drop-shippers that claim to have thousands of items in stock. It's unlikely that a company would have enough warehouse space to store this many products, so this is a sign of a scam, according to For Dummies.
