If you are thinking about selling goods on eBay and you have been researching the topic, you might have come across the term ‘dropshipping’. Some eBay sellers are involved with dropshipping, and once you know what this means you will see that it can provide a good way to earn a living without having many of the hassles that come with it.
Contrary to popular belief a dropshipper is not an eBay seller. The seller is the person who makes the goods available to the customer. The dropshipper is the person who actually sends them out.
Here’s how it works. You find yourself a dropshipper who has a range of items you would like to sell. You list those items on eBay and wait for someone to buy something. When they do, you take the money and pass the order on to the actual dropshipper. You will pay them the amount needed for that order to go through, keeping the remainder of the sum for yourself. The dropshipper then sends the order to the customer and everyone is happy.
Dropshipping usually works on smaller profit margins than buying goods direct from a wholesaler. But there is less risk involved because you can list everything the dropshipper has available to sell without having to buy any of it. Not only is this advantageous in terms of being able to offer a lot for sale at no money down, it also means you don’t have to find room to hold all that stock yourself.
This is the payoff for accepting a lower profit margin on each and every sale. And of course you also don’t have to worry about heading out to the post office each day. Instead all you do is send a quick email to the dropshipper and they take care of getting the actual order out on your behalf. You will either pay them for each individual order or you’ll get a statement on a weekly or monthly basis that you will need to pay.
Dropshipping is a great way for a new seller to get started for very little outlay on eBay. Of course you will still need to pay to list everything but you can always list small batches of items at a time if you are on a tight budget. Once the first few sales start coming in you can then use the profits from those to expand your business further.