Wholesale Drop Shipping: How to Make Money from Home using eBay
Ebay is one of the biggest Internet success stories in history, and it is still growing. Not only does it allow people to come to its website and bid upon items they want, it also allows people to open their own ebay business and use online auctions to make money. Wholesale drop shipping is a great way to sell on Ebay virtually risk free.
A wholesale drop shipper allows you to sell items without keeping a physical inventory. The company provides and stores products, then, when someone buys an item from an eBay business owner for example, that owner simply processes the order and sends it and payment onto the drop shippers who then package and ship the product to the customer. All you have to do is sell the products listed on the pages of a wholesale drop shipper’s web site for more than the drop shipper is charging and you’ll be on the way to an easy profit.
Drop shippers and wholesalers are an invaluable resource for all eBay store owners. They provide a means of simplifying the entire ordering process and enable entrepreneurs to make greater profits. The customer never knows that a third party exists because drop shippers will package the product using the eBay business owner’s labeling. By purchasing the products at wholesale prices, the eBay store owner profits the difference between that price and the winning bid amount while the drop shippers take care of everything else.
The beauty of drop shipping is that it is virtually risk free. Any business which fails to use a wholesale drop shipping company must bear the expense of buying the inventory and waiting until a sale is made before recuperating an investment. By using drop shippers, nothing is paid out until the customer’s payment is received. It is an ideal arrangement for people with little start up capital.
Basically, time is the only thing that an eBay business owner must invest when using drop shipping. And the majority of that time is spent on research, trying to find the best wholesale drop shippers to supply the quality products they wish to sell.
However, be warned, it is not all smooth sailing. It can take hours to find a reliable source. Believe me, searching for wholesale drop shipper companies using Google turns up middleman and broker network offers almost exclusively.
‘Brokers’ often have a very elaborate system of steps you need to take. Effectively, all that these companies are offering you is a commission sales situation. They require a W-9 to participate, something no real drop ship supplier would demand. In general you should NEVER, EVER pay a fee just to talk with someone about what they offer. No reputable business would require this.
A middleman drop ship company positions itself between the manufacturer/distributor wholesale drop shipper and the retailer. They generally aggregate many different suppliers and present them under ‘one roof’. Many charge a monthly fee and also have per order drop ship fees. In general, middlemen are best avoided as it is difficult to find profitable product lines given their mark up, participation fees, and per order drop ship fees. However, some companies do offer money making potential and if you have lots of time to spare this may be worth pursuing, for example the free trial at Doba.
The true wholesale drop shipping companies referred to throughout this article are manufacturers and distributors who are willing to work directly with internet retailers. You can use these sources to stock your eBay store or other online marketplace and stand to make a good profit. They require little or no money of eBay business owners, and they even take care of the entire logistics involved in getting an item to your customer. So if you are serious about making money on eBay look into the world of drop shipping today. Visit salehoo for a great list of wholesale drop shippers.
| By Paul Buntrage Published: 11/9/2006 |
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