First of all, lewy2k, thank you for this great detailed guide.
I'm looking to get into this dropshipping business for some time and this guide helped me a lot.
I understand everything but I still have some few questions if you don't mind answering.
1. You said you have around 150 items listed now. Are those products all from the same niche(or same category) or all sort of different products?
2. What is the some average price of those 150 items on Amazon? Do you do better with some cheaper products or some more expensive ones?
3. If you use PRIME, does that mean that you get FREE shipping on all products where you can see PRIME logo under? So that means you don't need
to look for just products that are over $35 on Amazon to get free shipping, right?
4. In case something is wrong with the product, can customer choose if he want to return his product and request a new one or to get a refund?
And does buyer always pay for returning product even if something is wrong with the product?
5. In your 2 years of doing this, did you have many issues of returning or refunding the products?
Hope you can answer me this.
Thanks in advance.
Good luck in the future!
1. They are various categories. Electronics, toys & games, home appliances etc.
2. I do best in the $30-$50 price range
3. Correct, any item with a Prime logo is what I look for, price doesn't matter
4. This is in the original post, look under part 10 (isn't highlighted green sorry)
5. No issues, Amazon will accept anything in a return with no questions asked
So I saw somewhere in here that there are 0 upfront costs, but how did/do you get around the ebay and paypal holding periods on the funds you receive from a sale on ebay? Interested in your answer because this is what has held me back when using this method.
I have had this eBay and Paypal account for 7 years. I had them from selling my own personal belongings and Paypal did not do 21 day holds when I first started. Plus I am Paypal verified which means I don't get "21 day holds" I've never experienced any hold from Paypal.
What about the tax man your going to need to pay taxes on those 20,000$ no ? After taxes you would probably be making a loss.
You must not be familiar with how tax works... With Paypal, 200 incoming payments or $20,000+ in payments means they send you a 1099 tax form. You don't pay taxes on the $20,000+, you pay tax on the PROFIT from all of these incoming transactions. There is no way to make a loss on profit from taxes. You should read some more on how tax works.
^^ I saw that you said you pay taxes, but I was wondering how? Do you have a sales and use tax certificate and remit monthly/semi-annually sales tax? Or rather just paying federal wage taxes?
I'm just confused as to what you'd file under. I'm guessing your a sole proprietor?
Yes I file as a personal small business owner, which is perfectly okay to do with eBay. I just followed the guidelines that many people have posted on the eBay community site.
