Use Drop Shipping

Is Your Customer Getting his Auction Delivered
the Easy Way or the Hard Way?

Do you want to make a full time living with an eBay business? Then you must use drop shipping. There are a few different ways to make that dream come true, but my favorite is by using the art of Drop Shipping.

This method works well, mainly because you don’t need to have a product of your own to sell. eBay provides you with a way to make a good living, without having to put up any start up capital. This is made possible by using drop shippers. Drop shippers deliver the merchandise you sell to your customers for you. This allows you to auction off a wide variety of stock without having the need to warehouse any of these products.

All you have to do is set up your auction, and sell the product. When sales are confirmed to the highest bidder, you then pass the customer’s information along to the drop shipping company. Of course the drop shipper is the wholesaler from whom you buy the goods you're offering at auction.

The drop shipper does the rest, and they will even use your company information on the shipping label, including your company logo. When the product arrives at your customer’s home, they will assume it came directly from you. In other words, the wholesaler / drop shipper will package, label, and ship the products that you sell on your behalf, saving you lots of time.

There actually is some risk using drop shipping. The fact of the matter is that the profit margins using drop shippers is usually less than if you stored and shipped the goods yourself. When you think of it, you can understand the logic. The shipper has more expenses that they have to charge you for. To you, this is offset by the tremendous advantage of not having to store, finance and ship the goods yourself. But your risk here is that your price may be undercut, and you may not make any profit.

It just means that you have to be sharper to be profitable. Many business owners are making good money with drop shipping, so why not you too? You need to establish a relationship with several drop shipping companies so that you have options as to which one to use. Nothing wrong with using more than one, except that you get better prices as your volume of sales increases with one company.

But by trying out several wholesalers, you get to experience many things that will ultimately help you decide which ones to use permanently. Besides, you may find some products at one, that is not offered by others.

Payment system: It's customary for companies to require you to pay for the items sold before they're shipped. In any case you have first collected from your customer, then you pay the wholesaler, after which he ships the goods.

To ensure that orders are shipped in a timely manner, you should pay for the items with a credit card. If you don't have a credit card, you might as well forget about working with eBay, it just won't fly. It's veritably impossible to make serious money on the Internet if you don't have a credit card.

When you set up your eBay auctions, make sure that you price the items higher than the price that the drop shipper will be charging by at least 10%. The idea, of course, is to earn a profit, and due to stiff competition, it's a challenge to make even a 10% markup. Depending on the item you're selling, an even higher markup should be targeted, so you need to research the item thoroughly.

By starting an eBay business using the drop shipping method, the only financial risk involved is your ability to make a profit. The product will be sold and paid for, before you pay the drop shipper, so this risk is virtually eliminated.

To sum up, I say you should be able to have a profitable eBay business using drop shippers. It all depends on how sharp you can become in your negotiations with the wholesaler, and even more important, in your choice of products to sell.

To have a real chance of success, consider some training. It could save you lots of time and heartache. Meanwhile please download this freebie ebook, as it has good information of how drop shipping works. Free Download Drop Shipping - Ebay's Road to Riches

Fred Farah