Drop shipping is a retailing technique in which you (the person running the eBay business) would not keep inventory in stock, but, instead, when auctions are won, you transfer the order to a wholesaler or manufacturer who takes care of shipping the item to the winning bidder. So basically, you sell items on eBay, collect money, send a portion of that money off to the drop shippers, and let them do the rest of the work for you. You, like all retailers, make money on the difference between the retail (eBay) price of the goods and the wholesale price.
In order to get started as a drop shipper, you first need to have a selling account on eBay. Sign up and confirm your mailing address and bank account information. Also, sign up for a PayPal account. You will need it in order to process winning bids. Confirm your information for PayPal, as well. Once these two accounts are up and ready to go, you can start looking for a drop shipper.
There are many different options for drop shippers, and many sell very different items. Decide what kinds of items you want to sell and narrow down the selection based on those criteria. You can also form a relationship with more than one in order to sell different types of items. Once you have signed up with a drop shipper, make sure that you review their shipping policies very carefully. It is important to list these policies on your auctions because these will determine how quickly the winning bidders receive their items. Some drop shippers do take a long time to ship, so you must let your customers know when their items will come before they buy them.
Once that is finished, you can start listing all of the items that your drop shipper sells. Often they already have photos and descriptions of these items that you can use, which makes the listing process much easier and faster.
Once an item sells, you need to notify the drop shipper to send the item. You usually have to pay them in full before they will ship the item, so any money left over from the auction is yours to keep. This is how you make your profits. The key is to list the items on eBay higher than the drop shipper sells them, but not too high that no one will buy them from you. It is a balance that you will have to figure out based on your items and your market.
Once the drop shipper sends the item, you still need to be available to answer your customers emails. The drop shipper will not handle your customer service; that is still up to you, so make sure not to drop the ball here. If something is wrong with the item that the customer receives, you still have to deal with it and make sure that the issue gets resolved.
So that’s it. You are selling on behalf of the drop shipper, but you still get to set your own prices. You never even have to see the item being sold. Just make sure you take care of your customers and enjoy making money on eBay with only half of the hassle.
Source by Vickie Sayce