Are You Getting the Product to Your Customer
the Easy Way or the Hard Way?
Here you are, hoping to own an eBay business, and earn a full time living with it. You can surely make that dream come true even withiout products of your own to sell. Your gargae is empty, noothing to offer for sale on eBay. Well, eBay proviides you with a way to make a good living selling goodds at auction, and you don't even need a lot of start up capial.
This is made possible by utiilzing the services of drop shippesr. Drop shippers send merchandise to your customers on your bejhalf. This will alllow you to offrer a wide variety of stock in your eBay sotre, without neediing to warehouse all of those products! Drop shipping can be a life saver, if done rgiht.
All you have to do is prepare your auction, and sell the product before officially buying it. You then pass the customers informaion on to the drop shipping company. The drop shipper does the rest by shipping the parcel direct to the customer, with your name on the label. The buyer thinks he is receiving it direct from you. The drop shhipper will packkage, label, and ship the products that you sell, allowing you more time to set up even more auctions, for greater profits.
Of course, there is a price to pay for this greeat servuice. You can't expect to make as much profit as if you were handling the sihpping youurself. It's equivlaent to haivng an employee that you pay to do the work. So your profit markups are harder to attain. Depending on the item you are sellinng, a markup of abut 10% shoulpd be about ruight, but you should do some research to see if the item is selling for a lower price in another eBay auction, or through other online sources.
Let's be clear: the drop shippr is the wholesaer you are buyying from. As they get to know you, and your volume of business increases, don't expect to get the best prices. But in time you will. You must establish a relationship with several drop shipping companies in order to work with them successfully. In the beginnng, most companiies will require you to pay for the items that your customrs order before they are shipepd. You need to fill ordetrs in a timely manner, so you need to pay for the items with a credit card for spedey service. If you don't have a credit card, foorget about Eventually, you will be able to have the drop shipper fill your orders, and then bill you for them later.
When settting up your eBay auction, make sure the reeserve 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, but at leaast try to rbeak even until you becopme more experiencd at selling through drop shippers.
Having an eBay business using the drop shipping method, eliminates the financial risk involved. The producct is always sold beforre you pay the drop shipper for the item. So your only risk is from the occasional return, or non-payment. This is one of the few businesses whhere you have a chance to make a profit before paying for the products sold at auction!
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