Saturday, June 27, 2009

Drop Ship Selling On eBay – How Effective Is Drop Ship Selling On eBay?

One of the most safest and profitable way to make money through the internet nowadays is drop ship selling on eBay.


If you are looking for information on how to make money through eBay, then you are not the first one. There are number of approaches to make money through eBay, you can take the traditional approach and use wholesaler. This involves buying goods from wholesalers and then stocking them at a warehouse, and once a product is sold through the eBay account; it is shipped from the warehouse to the customers address.


Even though this approach has been used for a number of years, it involves a lot of time, effort and more importantly money. On the other hand, drop ship selling on eBay is quite simple and a cost-effective way to make money online. This approach saves you from incurring freight charges as the wholesaler ships the product directly to the customer without going through the retailer.


The role of the retailer in this arrangement is to provide the wholesaler with all the details of the customer. Furthermore, the seller spends less as compared to the traditional business arrangement, as he/she is able to get the most discounted price to increase their profit margin. The profit margin for the retailer is calculated on the basis of difference between the price of retail and wholesale. But, they do not have to maintain any inventory of products and worry about the shipment of goods to customers.


By using drop ship selling on eBay, you can really simplify your business operation and cut on substantial costs. You only are required to list the products and leave the rest to the drop ship distributor or manufacturer. The only problem associated with dropshipping is finding the right dropshipper for your online endeavor. You can search for them yourself, or you can consult experts, but this approach does not ensure their reliability and authenticity.


On the other hand, you can use a dropshipping directory that offers its members with a huge list of wholesalers for dropshipping on eBay. Dropshipping is an effective way to earn money on eBay. Majority of the online businesses that fail even though they use dropshippers is due to the fact that this solution is only effective if you purchase good in bulk for drop ship selling on eBay. Therefore, your key to success on eBay relies on the fact that you purchase bulk of goods in order to really benefit from the wholesale price that is offered to you by the drop ship distributors or manufacturers.


The best online directory for dropship selling on eBay is Salehoo, which offers you a huge list of trustworthy and legitimate wholesalers.