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If you look for information regarding how to make money with EBAY, then one topic you will
see discussed everywhere. And that is drop shipping. Now lets first understand what is the
meaning of that term
Drop Shipping is a special system of supply chain where the wholesaler directly ships the
product to the customer without first going through the retailer. The role of the retailer
here is only to provide the wholesaler with all the details of the customer. So in this case
the retailer is having much less overhead than buying from the wholesaler and then selling
in turn to the customer. But still the profit margin for the retailer is same i.e he gets
the difference between the retail price and the wholesale price. But he does not have to
maintain any inventory of the product and neither have to take care of shipping the goods to
customer.
Well this same system can be applied in the internet also. To specifically speak of EBAY
what any drop shipper will do is, he will buy a specific product from the wholesaler and
then sell it in EBAY to the potential customer. But here the buying will not be physical and
the wholesaler will only ship the product to customer. In return the drop shipper will get
the difference of the price paid by the customer and the wholesale price. The customer will
know that the drop shipper is selling the product and will not necessarily know about whats
going on in the back end.
Now that you know what drop shipping and how it is done in EBAY, the natural question that
comes to mind is: is it an effective way to make money with EBAY. Well people have different
perceptions but the reality is 95% of drop shipper will fail. This is because the wholesaler
will never sell one or two products in wholesale price. If some drop shipper can buy a whole
lot of products at the same time then only he will provide them in wholesale price. It will
only work if quantity is large! But most of the ordinary drop shippers selling in EBAY are
not capable of doing this in such a large scale. And in an auction site like EBAY where
people are looking for one or two pieces of a particular product, this idea is not feasible
at all, at least it will not make you a millionaire. Drop Shipping is a business model which
just does not go along well with online auction sites like EBAY.
About the author:
The author is an experienced EBAY seller for years. According to him the easiest way to be successful online is to duplicate a system which is profitable consistently. He talks about different systems to make money with EBAY in his blog: http://knowhowtomakemoneywithebay.blogspot.comIf you want to get your hands on an extremely powerful system to consistently make money with EBAY then visit: http://www.howtomakemoneywithebay.com |