Drop Shipping on Ebay

Drop shipping on ebay can be very tough now-a-days. It can also be very rewarding if you do it right. There was a time when drop shipping and ebay were much more profitable. Now everyone and their mother is trying to drop ship on ebay. It's not an easy task anymore, considering everyone else is drop shipping the same items you are. What's worse is; you have people like me, who buy in bulk to resell. I get my goods much cheaper because I buy in bulk and offer much lower prices on ebay than you can offer.
First you have to find some products to sell. Finding the best products for you is the most important part. Don't worry about what someone else is making money on. Try and find some products that sell well, without a lot of competition. Find some categories that have little or no competition.

In order to drop ship on ebay you have be creative. So, if there is competition(and I am sure there will be); you have to offer things your competition isn't offering. You have to do things differently than your competition isn't doing. I have said this tons of times, I know, but it's important. How else are you going to beat your competitions prices unless you get creative to give the customer more?

I have a great tip to offer you with drop shipping. Bundle/Combo deals.

Here are some numbers.

Let's say someone is buying bulk in wholesale. They buy 100 units for $50.00 each. The units retail for $95.00. They make $45.00 dollars profit on each unit.

You can get 1 unit for $70.00 if you have it drop shipped. You obviously can't beat the competition getting it at $50.00 each unit and you would lose customers. Plus, you will only make $25.00.

But, if you get 3 accessories that go with the unit. Each accessory costs you $20.00 each and usually sell for $45.00 in stores. You will make $75. 00 profit on just the accessories if you sell them for what they usually sell for.

Now you add the accessories into a package deal with the main unit. Now you have a package deal worth $230.00(the unit $95.00/ accessories $135.00). Now you stand to make $100.00 profit and you are offering something your competition isn't, a combo deal.

So, if your competition is selling their unit for $85.00 , it won't matter. They are not offering any accessories. Customers want everything in one place.

You stand to make $100.00 combined profit between the unit and accessories. While the competition is only making $45.00 profit. So you could actually lower your price $50.00 more and make your offer even more attractive to buyers. You will still make $50.00 profit.

The customer will get everything in a combo deal cheaper than they could get anywhere else. Because you made up your own custom unit and accessories bundle that nobody else was offering. This is why it is good to know what you are selling.

Know what you sell. Know what accessories go with each main unit. Know what kind of batteries it takes. Know every little detail about what you sell. Keep on top of everything new that comes out for it. Everyday new technology comes out that goes hand and hand with a main unit we already own.

Think about how many accessories you can use with an Ipod or cell phone. There are thousands of different combo deals you could make. Combo deals that no other seller is offering. That will make your auctions more attractive to someone who wants everything at once.

FYI; It is forbidden on ebay to put items up for auction that are not in your possession.Ebay frowns upon drop shipping and they do not allow it. Unless you use an ebay recommended company like worldwide brands. World wide brands is the only source company that ebay recommends for drop shipping. Thousands of people drop ship on ebay and have done so for years. It's something I never really got. They don't allow it, but they let us do it.

Just be careful and be smart about the drop shippers you choose to work with. There are some terrible drop shippers who don't care about your ebay reputation. Drop shipping on ebay can get pretty risky if you don't know what you are doing. I have seen some great ebayers reputations ruined from bad drop ship companies.

Ebay and drop shipping can be a great experience. Just be careful who you choose to do business with. Be careful about the products you sell. Get creative and make some profit. Try offering something your competition doesn't offer. Make up some bundle and combo deals so you offer something original that everyone wants.

About the Author
Learn how to start your own home business by following this amazing step-by-step guide. Want to be an Ebay Powerseller? This guide will help you. Check out my Daily Blog.