How eBay Works With Dropshipping

Many people want to have an eBay business. Wouldn't it be nice to make a full time living from home just selling stuff on eBay? The good news is: It can be done - even if you don't have products to sell.

eBay provides many people who want to quit their corporate nine-to-five jobs with a way to make a good living, without having to put up a lot of start up capital. This is made possible with the help of drop shippers.

Drop shippers send merchandise to the customers of business owners. If you have an eBay business, you are a business owner. This will allow you to offer a wide variety of stock in your eBay store, without having the need to warehouse all of those products!

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.

This whole process is totally invisible to your customer. The dropshipper lables and ships everything and you just have to administer your auctions and pay your dropshipper a small fee.

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.

An eBay business using a dropshipper is ideal if you don't have money to start with because you get paid before your have to pay your dropshipper.

About the Author

If you want to know how a 25-year old made a fortune on eBay in just 6 months using secret eBay tatctics that only few people know about just go to eBay selling tips Click here for other unique 'eBay selling' articles.

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