Many an aspiring eBay millionaire has asked about dropshipping. It sounds so simple. You list the item, sell the item, and somebody else takes care of the warehousing and shipping for you. That’s the bare bones of it.
The deeper look shows something a little more complex. First and foremost, you really must decide whether you can make money with the item before you go and start listing. Many of the sellers on eBay had the exact same idea as you did and most likely have the exact same dropshipper as you do. Check and double check for similar items. Chances are, there are several auctions that are selling below the profit level for you.
How low are you willing to go? How little profit are you willing to make? Remember to calculate in the listing fees and final value fees that you will incur. It does no good to make $1 on the item only to remember you spent $1.50 on listing it.
Another important thing to keep in mind is the amount of profit. If you sell 200 items that only have a $5 profit, that’s $1000. But that’s also a lot of work to sell 200 items for very little profit. On the flip side of that, if you sell 100 items for $15 profit, you’ve made $1500 and only done half the work. Make a decision now on how little profit you are willing to make and remember that the less the profit margin, the more work it will take to make the same amount of money.
You can make money on eBay with dropshipping, but don’t expect it to be a walk in the park. It will take lots of research to find an item that you can make a comfortable profit on and sell over and over again.
[tags]dropship, dropshipping, ebay, auction[/tags]
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February 6th, 2007 at 2:24 pm
Good day, that was a nice post, Regardless if you are an established retailer or simply someone desiring to make money with online auctions and on the internet, the biggest challenge you will face in the world of buying-and-selling is finding reputable Dropship Directory.
Drop Shipping has been around for a long time, too. Probably as long as mail order catalogs; maybe longer. Learn how you can profit by dropshipping, the most creative e commerce strategy.
March 7th, 2007 at 10:15 pm
Hi
Dropshipping is a extremely easy way to make money, but you ahve to be careful don’t let greed get the better of you as there are many pitfalls in this types of business! Lots of scammers, people who can’t deliver so take care when finding a supplier!
Jenny
http://internet-cashpoint.com
November 9th, 2008 at 9:02 am
Great article on the challenges of selling on eBay with dropshipping. I think like all things online it is important to determine if there really is a market for what you are selling. A quick gut check would be to use Google trends and see if any searches have been made for your keyword(s). From there I would look at the websites selling into these niche markets. This should give you a rough estimate whether people are looking and buying these products.
Also for more info on the dropshipping industry, check out http://www.dropshipindustryblog.com
Cheers!
Rob
http://www.dropshipindustryblog.com
November 17th, 2008 at 7:42 pm
Great post. I think it is very important to find valid dropshippers who will assist you. A lot of the information out on the web on dropshippers is not accurate.
Cheers
Rob
http://www.dropshipindustryblog.com
January 26th, 2009 at 5:36 am
Dropshipping is great, but I fear the market maybe close to saturation point.
January 19th, 2010 at 1:23 pm
Great tip about selling more high ticket items. Many people think to go for something that makes little profit but sells faster, but the trick is definetely to sell something more expensive or with a higher profit margin, then you only have to sell half as much and still make more profit.
Great Blog.
Thanks.
January 27th, 2010 at 9:13 am
This is very true – I think a lot of people think that dropshipping is some wonder solution to starting a business on the cheap, but like you say you still need to be able to make a decent profit, or you’re really wasting your time. Finding reliable dropship companies is just as important – no matter how cheaply you can source items, if your dropshipper has terrible customer service it will ruin your business.
Cheers
Becs
February 1st, 2010 at 6:53 pm
I agree that it is definitely hard to sell on ebay with drop shipping, you really have to be experienced. In my experience, drop shipping with WorldWide Brands is definitely the way to go no matter what kind of drop shipping you are doing.