How to Use eBay with Drop Shipping

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 only thing you have to do is setting up your auction in eBay. When the auction ends you just pass on the shipping address to your dropshipper. Or even better: Have the address automatically passed to your dropshipper when the auction ends. This way you would have everything automated.

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.

There are many dropshipping comapnies available and prices differ substantially. Usually when you are starting out your will have to pay your dropshipping comapny up front. Later you may negotiate better terms and conditions. However, this depends on the volume over a period of time.

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.

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.

You don't risk anything by selling products from dropshippers. This is because you usually pay the dropshipper after you get paid by your customers. It is the ideal business to start with if you still have a regular day job.

Article Source: http://www.rightbiz.com

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