eBay and Drop shipping - Getting the Product to
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!