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eBay and Drop shipping – Getting the Product to Your Customer.
If you hope to own an eBay business, and make a full time living
at it, you can easily make that dream come true – even if
you don’t have a product of your own to sell. eBay provides
many people who want to quit their corporate nine-to-five jobs with
a way to make a good living, without having to put up a lot of start
up capital. This is made possible with the help of drop shippers.
Drop shippers send merchandise to the customers of business owners.
If you have an eBay business, you are a business owner. This will
allow you to offer a wide variety of stock in your eBay store, without
having the need to warehouse all of those products!
All you have to do is set up your auction, and sell the product.
You then pass the customer’s information on to the drop shipping
company. The drop shipper does the rest, and they will even use
your company information, as well as your company logo if you have
provided it to them. 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.
You must establish a relationship with several drop shipping companies
in order to become successful. In the beginning, most companies
will require you to pay for the items that your customers order
before they are shipped. You need to fill orders in a timely manner,
so you should pay for the items with a credit card for speedy service.
Eventually, you will be able to have the drop shipper fill your
orders, and then bill you for them later.
When you set up your eBay auctions, 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 you should do some research to see if the item
is selling for a lower price in another eBay auction, or through
other online sources.
By starting an eBay business using the drop shipping method, there
is essentially no financial risk involved. The product will be sold
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!
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