Sources From Salehoo: What Is Dropshipping Exactly?

Written by on February 25, 2014 in Information

What Is Dropshipping Exactly

Dropshipping describes a process whereby a manufacturer or supplier delivers products directly to your customers without you ever needing to stock or pre-purchase goods. Dropshipping is a very profitable way to make money on the auction powerhouse eBay. People all over the world are creating home based businesses by using wholesalers or also known as dropshippers to make money on eBay.

No Limits!
Because there is no limit to the number of listed items at eBay a retailer can list a single book and make available 50 units. With all this considered you should still be able to make a profit with the product that you choose to sell. If the math don’t add up to profit for you then you should find a different product to sell.

Starting Your Business on Ebay
If you are interested in selling on eBay you might wonder where you can get items to sell. I’m talking about after you’ve exhausted the logical first places such as items in your garage or loft or spare bedroom!. I would suggest Wordtracker and Digital Point great SEO resources. I would also recommend some paid advertising. Google’s Ad sense is a great way to get first page results you will have to pay more for the more competitive keywords. As an answer to the title – YES dropshipping on eBay can work for you! However as with any business you need to invest time energy and money in order to put it on the right track.

Ebay Economics
Here basic economics comes into play – the more people are selling the same product the lower the profit margins are. With dropshipping and any other business you can only sell what the public will buy. People using these companies can take advantage of having thousands of products to sell in their online auction campaign or for use in flea markets.

As bidirectional feature both the sellers and the buyers can submit feedback and rate one other. Bad news too because others might have tried selling similar products with little success. Lots of entries signals lots of competition but view listings first to check similarity to your product.

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