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Drop Shipping And EBay - How They Work

May 18, 2008
Drop shipping and eBay are like inseparable twins and this union has benefited all the 3 participants, including the customer. Competition is what maintains low prices and ultimately this benefits the customers. Here is how drop shipping and eBay work together to display and deliver products to customers.

You too can join the eBay bandwagon and make money in the process. You will first have to identify products, which sell in a large quantity on eBay. The other way you could go about is to find out rare and exclusive products, which are sold in less quantity but where your margins could be more.

This could compensate for slower rotation and you could earn higher profits even while selling fewer items. The next step is to find a good, reliable drop shipper who stocks these products and is willing to ship it to your customers.

He should be ready to attend to single item orders and should also not insist on any minimum value. You can download his product catalog and photos and study his prices and brands. You should alter the description of the products without touching the technical specifications.

You could also rotate the photos since that catalogue would have gone to many other dealers and you could get higher orders if your product stands out from similar products, which might be posted on eBay.

You will also have to check out the prices offered by your drop shipper and compare it with the retail price at which it is sold not only on eBay but also on other sites as well as retail stores around your neighborhood. That will give you an idea as to the retail rate, which you could mention on eBay when you post that product.

If you have done your homework right, then after posting various products on eBay, you might receive an order for one or more of those items.

After collecting the payment through PayPal or any other means, you can now forward that order to your drop shipper and pay him his price. The difference in the customer price and your drop shipper price is your profit margin.

Once you get the hang of how things work, then it will become very easy for you to bag larger orders through eBay. You will also have to pay certain charges to eBay for letting them display and sell your products on their site.

So, with the right combination of a good shipper and eBay, you not only have a front end to showcase your products but also have a back end taking care of shipping the products to your customers on time.

However, the important cog in this wheel is an efficient drop shipper since his timely deliveries can enhance your reputation but his inefficiency can mar it. So study the drop shipping market carefully before closing in on one.

So, drop shipping and eBay can work together only when you can co-ordinate both of them and together all 3 of you can work together in fulfilling the customers needs and make good money in the process.
About the Author
Paul marshall your guide to an
internet income for more on dropshipping business see www. your-freeinfo.com
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