Ebay Dropshiping

Hello, I am interested in ebay business, but I don't understand many things about it. Can you help me on some questions, please?

1. I always see Dropshiping, Wholesale. What are they and what's the difference between them?
2. How do you sell the products on ebay. Do you buy a product from another site and send them to the auction winner on ebay, or do you enter winner's address directly to that another site?
3. How do you look for a niche? Is there any software on the Net, or are you just searching the ebay and looking for something popular and with least competition?

Thanks!

Dropshipping means you have a selection of items in which you can sell. A wholesale or manufacturing company typically ships the items to your customers for you.

Buying wholesale means you are typically a retail (eBay/Amazon) establishment and you purchase a bulk amount of product to resell.

Selling wholesale is investing money into what others want and selling in bulk to them. (Think Costco or Sams.)

Although dropshipping is relatively convenient and you don't have to hold any inventory, the drawback of dropshipping is that the margins for profit are usually smaller. However, there is little risk to dropshipping and that's why people do it.

There is risk for your eBay account, and eBay isn't too fond of people who don't have the inventory on hand. The penalties of a supplier not sending your item out in a timely fashion could destroy your DSR's, and eventually get you removed as a seller. The only solution is a full verification that the supplier has the inventory they claim to have and experience working with them to get a good understanding of how fast they ship and how they deal with out of stock inventory.

Sometimes when you dropship, some people have suggested to keep some items in stock so if your supplier ever somehow is out of stock, you can still send it in time

Lets take a look at the differences between drop shipping and wholesale.

Drop shipping-
Where you sell the products and contact the supplier who ships the item to the customer.
1. Quick and easy for you but costly in shipping and less profit margin.

Wholesale-
Where you buy a bulk lot of items from the supplier and store them yourself.
1. Great for cheap shipping rates since you can store the items where you sell them.
2. Big risk on not selling allot of items and having to liquidate your stock.

For a beginner I would suggest drop shipping and then graduate up to wholesale.

Cheers
Mike

Hi Everyone,

I have been reading this blog about Ebay Business/Drop Shipping and I thought of contributing some points I read from this blog.

"Make sure you?re working directly with the manufacturer or authorized wholesale supplier

Drop shipping means a higher wholesale price compared to bulk wholesale which means that the closer you can get to the original source the better your wholesale price is going to be. If you found your supplier on your own, take a time and do the research to make sure that you?re not dealing with a middleman. You will save money on the wholesale price.

If you?re selling a product that has a variety of different manufacturers, make sure to price shop. This will depend on how specific your niche is but you may be able to find the same type of quality product at a better price.

Note: Worldwide Brands can save you valuable time for this time consuming process, because our researchers are conducting this research every day. We add new suppliers to the database, and we update the supplier database every day. As a member, you can also submit product requests or supplier verification requests if you?re not sure on a particular supplier you found yourself."