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How to Use eBay with Drop Shipping

Aug 24, 2008
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.

Many people want to work from home and selling products on eBay is one of the easiest choices that are logical and easy to realize. However, nobody wants to pile up products in their backyard or livingroom. This is where dropshipping companies come in.

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.

The dropshipping company will label and ship the product without you getting involved. Your customer will have the impression that you mailed the product yourself.

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.

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!

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.
About the Author
To learn how a 16 year old high-school dropout made a fortune on eBay in only 4 weeks using secret eBay tatctics that only few people know about just go to eBay selling tips
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