Have you browsed online and seen millions of online auctions and people selling all kind of items. Sometimes you may wish that it was you who was working online; so you could quit your 9-5. Well the people who are currently running their businesses online; are no different than you are. As a matter of fact eBay makes it easy for anyone to start an eBay and Drop shipping business. You do not even have to have a lot of start up capital.
So what exactly is a Drop Shipper you ask? Anyone who sells on eBay has the opportunity to find companies who will do all the mailing or a product and ensure that your customer gets the item as promised.
All you do as an online business owner is set up your auction and sell the product. Then if you currently have an Ebay and drop shipping company; you provide them with the customers mailing information and details and they will take care of the packaging and mailing of the items. The customer of course is just happy to have gotten the item and has no idea that you did not mail it.
Many people who have successful online business understand the importance of developing relationships with several drop ship companies. While the company is taking care of the shipping order; you can tend to the other stuff that will bring in more income like setting up more auctions.
When first starting an eBay business; you may find it difficult to find drop ship companies that will provide you with their mailing services without first receiving payment up front. You may be required to pay for the shipping of the customers order before the mailing of the item. They usually do this just to build your relationship; once they know that you are a paying customer they will eventually begin to bill you for the mailings. It is good to have a credit card that you can use when first starting your Drop Ship business.
You never want to lose money when dealing with your drop ship business; therefore when you price the items on your auction make sure that your reserve price is set higher than your shipping company will be charging you.
Most people will tell you that a markup of 10% on the item that you are selling should cover the cost of the shipping company and still enable you to make a profit. However there are times when you will have to find out what other people are charging for these items; because if they are charging less and you are trying to cover your overhead; chances are the customer is going to purchase the product from the other person.
If you found this article on “Ebay and drop shipping – How to make a profit” helpful; visit our site below and get more information about drop shipping companies that will help your business grow!