At first glance, drop shipping on eBay looks like every beginner's dream. Unfortunately, nothing could be further from the truth. In reality, for most people, drop shipping on eBay is almost a certain recipe for failure. To give yourself any chance to succeed on eBay with this business model there are five rules you MUST follow.
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Five Rules You Must Follow if You Are Going to Profitably Drop Ship on eBay

At first glance, drop shipping on eBay looks like every beginner's dream. All you need to do is list a product on eBay, collect the money when it sells, and someone else does everything else. You don't have to purchase or store any inventory. There's no standing in line at the Post Office, no packing items, and no need to buy a camera or other photo equipment.

Sounds like the perfect business doesn't it? Unfortunately, nothing could be further from the truth. In reality, for most people, drop shipping on eBay is almost a certain recipe for failure and 95 percent or more of the sellers who try it will fail. To give yourself any chance to succeed on eBay with this business model there are five rules you MUST follow:

1. You MUST locate a product that will sell in large enough quantities to allow you a chance to succeed. Finding a drop shipper who sells hand-woven wool blankets featuring Old Faithful erupting in the center doesn't mean anyone is going to buy one to place on their bed.

When considering drop shipping any product, the first thing you must do is sufficient research to determine if there's a market for it. If you are going to be successful theremust be a good-sized active market for your item.

2. You MUST locate a product that provides a sufficient markup that allows you a reasonable profit. You are not going to be successful in the long term selling something that you only make a $10 or $20 profit from each item. With that kind of profit per item, it's just not reasonable to expect you can sell enough to attain long-term success.

3. Limit yourself to selling only a few related items that are all targeted at the same market. By limiting yourself like this you can decrease your costs, become more knowledgeable about your market than other sellers are, and in the long-term will make things more profitable.

4. Purchase a small supply of each item you sell to keep on hand for emergencies. While drop shipping may eliminate a lot of the headaches of selling on eBay, it adds a new one to the mix. There are going to be occasions when the drop shipper doesn't have the item you've sold in stock for immediate shipment. When this happens, and it will, you can ship one of the items you have in your possession so the buyer doesn't have to wait. The negative impact of not shipping an item immediately reflects on you and not the drop shipper.

5. Take the time to find a reputable local drop shipper. The popularity of drop shipping has attracted a lot of people who are just out to take advantage of you into the marketplace. Avoid drop shipping lists, turnkey eBay drop shipping programs, and drop shipping membership sites like the plague.

Rather, spend the time needed to locate a company reasonably locale to you that will allow you to sell their products on eBay and drop ship them for you. You'll have less competition, higher profit margins, and a much higher chance of succeeding. While drop shipping is a tough business model to succeed in, if you follow these five rules and believe you will succeed, you will have a much better chance to build a profitable eBay business for the long term.


Robbin K. Tungett is online marketing and eBay veteran of eight years. She is most widely known for her eBay expertise and her website www.AuctionRiches.com. Learn more about dropshipping at www.Auction-Dropship.com

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