eBay and Drop shipping – Getting the Product to

Your Customer

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. 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!

All you have to do is set up your auction, and sell

the product. You then pass the customer’s

information on to the drop shipping company. The

drop shipper does the rest, and they will even use

your company information, as well as your company

logo if you have provided it to them. When the product

arrives at your customer’s home, they will have no idea

that your company didn’t send it. The drop shipper

will package, label, and ship the products that you

sell, allowing you more time to set up even more

auctions, for greater profits.

You must establish a relationship with several drop

shipping companies in order to become successful.

In the beginning, most companies will require you to

pay for the items that your customers order before

they are shipped. You need to fill orders in a

timely manner, so you should pay for the items with

a credit card for speedy service. Eventually, you will

be able to have the drop shipper fill your orders, and

then bill you for them later.

When you set up your eBay auctions, make sure

that your reserve price is set higher than the price

that the drop shipper will be charging you for the

item. The idea, of course, is to earn a profit!

Depending on the item you are selling, a markup

of about 10% should be about right, but you should

do some research to see if the item is selling for a

lower price in another eBay auction, or through

other online sources.

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!