Using Drop Shipping to Sell on eBay
A Drop shipper is a wholesaler who will ship items directly to customers on for online
sellers. Many eBay sellers use drop shipping because it allows them to spend less time receiving,
storing, packing, and shipping products. Instead, they simply list and sell the item on eBay,
then contact their drop shipper to have the item sent to their customer.
The drop shipper ships the item and charges the wholesale cost, plus shipping, to the
eBay seller. The eBay seller collects the profit without having ever touched the product. eBay
sellers who sell high-end products use drop shipping because it allows them to sell high priced
products without the financial burden of having to actually stock the items.
Think of the financial advantage to high-end product sellers when using drop shippers.
Most eBay sellers keep at least enough stock on hand for one month of sales. If you have a
product that sells for $500, it might cost you about $250 wholesale. If you sold 12 of these
products every month, that means you would have to invest $3000 in inventory. With drop shipping
your inventory costs are $0.
Disadvantages of Drop Shipping
There are some cautions to drop shipping that you need to understand.
1. Because you don't ship the product yourself, you place your eBay feedback reputation
in the drop shipper's hands. You must be sure the drop shipper will provide professional and
timely order fulfillment for you.
2. You are not in control of your inventory. What if you sell an item on eBay and find
that your drop shipper is out of stock? Before you list an item, login to your drop shipper's
website to check their stock of the item you're going to list.
Even if you check your drop shipper's stock before you list an item, there is no guarantee
the item will still be in stock when you sell it. The solution for this problem is that you're
going to have to keep some inventory. If your drop shipper is out of stock, you simply ship
your customer the product from your personal inventory. Then you don't list that product again
until the drop shipper has restocked. Your inventory is not zero, but it's still a lot less
than having to stock an entire month's worth of the product.
How to Find Reputable Drop Shippers
There are a lot of scammers on the Internet who claim to be drop shippers. The most important
step is to find reputable drop shippers. Many eBay sellers use Worldwide Brands to find reputable
drop shippers.
As a member of the Worldwide Brands website, you simply enter the brand name or type
of product you want to list on eBay, and the site will find a drop shipper that has been preapproved
by Worldwide Brands. Once you have selected your drop shipper, you need to contact them to
request a dealer application.
After you're approved by the drop shipper and are assigned a salesperson, contact that
person to learn about the ordering and fulfillment process. Ask the following questions:
o How soon do they ship after an order is placed?
o What shipping carrier do they use?
o Do they ship internationally?
o How do they notify you of shipments?
o Will the shipping label and invoice have your address or the drop shippers address?
o How do you pay for your products?
o How do they handle and notify you about back orders?
o How will they handle product returns from you or your customer?
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