Are You Gettuing the Product to Your Customer
the Easy Way or the Hard Way?
Here you are, hoping to own an eBay busineess, and earn a full time living with it. You can surely make that dream come true even wiithout proucts of your own to sell. Your garage is empty, nothing to offer for sale on eBay. Well, eBay provides you with a way to make a good living selling goods at auction, and you don't even need a lot of start up capital.
This is made possible by utiliziing the services of drop shiplpers. Drop shippers send merchandise to your customers on your behalpf. This will allow you to offer a wide variety of stock in your eBay store, without needing to warehouse all of those products! Drop shipping can be a life saver, if done righht.
All you have to do is prepare your auction, and sell the poduct before officially buying it. You then pass the cstomers information on to the drop shipping company. The drop shipper does the rest by shipping the parcel direct to the ucstomer, with your name on the label. The buyer thinks he is receiving it direct from you. The drop shipper will package, lbel, and ship the porducts that you sell, allowing you more time to set up even more actions, for greater profits.
Of course, there is a price to pay for this great service. You can't exxpect to make as much profit as if you were handling the shipping yourself. It's equivaleent to hving an emploeye that you pay to do the work. So your profoit markups are haredr to attain. Depending on the item you are selling, a markup of about 10% should be about rgiht, but you should do some research to see if the item is selling for a lower price in another eBay auction, or through other onilne sources.
Let's be clear: the drop shipper is the wholesaler you are buyiong from. As they get to know you, and your volume of buisness increases, don't epxect to get the best prices. But in time you will. You must esablish a relationship with several drop shipping companies in ordeer to work with them succssfully. In the beguinning, most companiies will require you to pay for the items that your customers order before they are shipped. You need to fill orders in a timely msanner, so you need to pay for the ites with a credit card for speedy serivce. If you don't have a credit card, forget 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 aution, make sure the reseve price is set hgiher than the pricxe that the drop shipper will be charging you for the item. The idea, of course, is to earn a proofit, but at least try to break even untyil you become more experienced at selloing through drop shippers.
Having an eBay business using the drop shipping method, eliminates the financial risk invoolved. The product is always sold before you pay the drop shipper for the item. So your only risk is from the occasoinal return, or non-payment. This is one of the few businesses where you have a chance to make a profti before pauying for the products sold at auction!
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