Drop-shipping on eBay, Think Niche!Expert Views of eBay Power Seller Mike Enos Can You REALLY Make Money Dropshipping On eBay? This is a subject that I just can't write enough about. For people just getting started with eBay selling, this can be the major stumbling block to starting their own business. We'll also discuss how "the herd mentality" can also lead you down "the road of no profits". Dropshipping Dropshipping is a favorite choice, especially for new sellers. You have to admit, the thought of selling a million dollars a month of product on eBay with no inventory, and no start up cost is a delicious fantasy! Unfortunately, (at the risk of major bubble popping), this just isn't going to happen to the majority of people. Why? There are a few reasons. Dropshipping is like a popular lake on the first day of trout season. Everyone is in the same spot, with the same bait, all trying to catch the same group of fish. When there are more fishermen than fish, the fishermen go home hungry.
Since it takes little effort, investment, and warehouse space to get into dropshipping, this is the method that many people want to use. Is that a bad thing? No, here is the bad part. Most when getting started are trying to copy what everyone else is doing. They go to the same HUGE distributors, look at the same "cool" products (laptops, dvds, MP3 players, etc..) and get exasperated when the eBay price is the same (sometimes even LESS) than the wholesale price. Has that happened to you? Have you ever wondered: "How can these people sell this on eBay FOR LESS than the wholesale price?". Here are two possible reasons: The eBay seller does not know what they are doing, and he is losing his shirt. They might be making up some $$$ on the shipping & handling. The eBay seller is using the item for a "loss leader". This is what the grocery stores often do. "Buy 1 gallon of ice cream and get 1 free". They're counting on the fact that while you're picking up your ice cream you are also going to do some impulse buying. The eBay seller may also be hoping to sell some accessories, refills for consumable items, or get repeat business from the buyer. The wholesaler is "buttering both sides of his bread". Some wholesalers will sell to eBay sellers AND sell on eBay themselves! Zoinks, you can't compete in that situation!
Are Dropshipping Profits A Fairy Tale? No, dropshipping IS a great way of making money on eBay, WHEN you do it right! There are MANY ordinary people consistently racking up eBay profits by dropshipping items. What do they know that many other sellers don't? They know what to sell! If your instinct is to sell an item that is easily found at retail stores or even the big online stores, then don't waste your time. The "trick" to finding an item to sell is to select something that: Cannot be found at Walmart, Circuit City, Best Buy, or other corporate chain retail stores. Cannot be found at online merchants like Amazon.com, eCost.com, etc.. In fact, if you cannot think of a "chain" store that would sell the item, then you are probably on the right track! Many people want to sell the "hot" general items. Although there is nothing wrong with that, you don't want to be going up against huge giant corporations. They have the power to cut special deals with the name brand companies, that you just don't have. You want to think "niche", NOT mainstream. I'll rattle off some examples. Catering supplies. Welding supplies. Beads (making jewelry is huge) Other hobbies. Need some help finding ideas? Try reading the paper version of the Yellow Pages (List of businesses by category). Look for areas that are NOT served by huge corporations, but rather by "Family owned and operated since 19XX" type businesses. Normally the type of items sold by these businesses have a HUGE markup. Why? Simply supply and demand. Less suppliers equals more demand which equals more money in your pocket. Don't have a paper yellow pages? You can read an online version here. http://yellowpages.superpages.com/topcats.jsp?SRC=msn&STYPE=S Of course, once you have an idea, you need to find sources. One method is to look up the manufacturer (or find some manufacturers). A great source is at ThomasNet http://www.thomasnet.com/ (formally ThomasRegister.com) They list manufacturers throughout the USA and Canada. Once you find a manufacturer, simply call them, and ask who their local distributor is in your area. Next, give them a call and ask if they dropship the item. My personal experience has shown that you have more flexibility with smaller distributors than larger corporations. I took this approach (as discussed in '12 Killer Dropship SECRETS For eBay Sellers' and it has resulted in 1104 sales for a total of about $121,000 (so far) of a single product! Cha-Ching! Another way of locating dropshippers is to use Chris Malta's Worldwide Brands Search Engine at.. World Wide Brands Be careful! There is a lot of junk out there. These are the only two legitimate sources that I recommend. So yes, you can really make money dropshipping on eBay. Points to remember: Don't compete with the "BIG-BOYS". Do not buy from distributors who also sell on eBay Look for niche products that are hard for buyers to find locally. Limit your competition by avoiding mainstream wholesale distributors. Do some extra homework to find manufacturer/distributor sources that are smaller and less popular. These will lower the competition and often be more flexible in comparison with the "giants". Mike Enos For more outstanding eBay tips and tricks, Subscribe to The Platinum Power Seller newsletter PlatinumPowerSeller.com  Learn eBay Dropship SECRETS From A REAL Powerseller
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