How eBay Works With Dropshipping
If you hope to own an eBay business, and make a full time living at it, you can easily make that dream come true – even if you don’t have a product of your own to sell.
Many people want to work from home and selling products on eBay is one of the easiest choices that are logical and easy to realize. However, nobody wants to pile up products in their backyard or livingroom. This is where dropshipping companies come in.
When you use a drop shipping company they will store the items in their own warehouse and ship them to your customers whenever your tell them so.
The way it normally works in eBay is that you set up your auctions and when the product is sold the customer address is automatically sent to your dropshipping company so that they can ship the products to the desired address. You don’t deal in any way with shipping or handling.
The dropshipping company will label and ship the product without you getting involved. Your customer will have the impression that you mailed the product yourself.
It is a good idea to check several different dropshipping providers when you start out. The fees and the level of automation differ from company to company.
Orders usually have to be delivered instantly and the company will either charge you per delivery or upfront – depending on the conditions that you agreed on.
In order to be profitable you must make sure that your item is sold at a higher price than the price the dropshipper charges you.
You should aim for a profit of at least 20%. Anything below that is usually not enough to make up for returns and the occasional fraud that will occur. Do some research before you select a product and observe what others are charging for similar products.
By starting an eBay business using the drop shipping method, there is essentially no financial risk involved. The product will be sold before you pay the drop shipper for the item. This is one of the few businesses where you can actually turn a profit before you have expenditures!
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