If your desire is to own an eBay drop shipping business, and make a full time living, you can easily make that dream come true – even if you don’t have a product of your own to sell. An eBay business has allowed many to quit their jobs and still earn a good living, without investing large start up capital.
This is made possible with the assistance of drop shippers. Drop shippers send merchandise to the customers of home business owners. If you have an eBay business, you are a business owner. This will allow you to offer a wide variety of merchandise in your eBay store, without the need to warehouse all of those products!
All you have to do is set up an auction, and sell the product, then pass the customer’s information on to the drop shipping company. The drop shipper does the rest. When the product arrives at your customer’s home, they will have no idea that your company didn’t send it. The drop shipper will package, label, and ship the products that you sell, allowing you more time to set up even more auctions, for greater profits.
In the beginning, most companies will require payment for the items that your customers order before they are shipped. You need to fill orders in a timely manner, and pay for the items with a credit card for speedy service.
When you set up an eBay auction, make sure that your reserve 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! Depending on the item you are selling, a markup of about 10% should be about right, but do some research to see if the item is selling for a lower price in another eBay auction, or through other online sources.
Especially on eBay, beware of really low auction prices on the same products. Many auctions will add high shipping prices to lure potential customers into thinking they are getting a real deal
By starting an eBay drop ship business, there is essentially no financial risk involved. The product will be sold and paid for before you pay the drop shipper for the item. This is one of the few businesses where you can actually turn a profit before you have expenditures!
Related Resource: eBay Business Solutions
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