Sunday, October 22, 2006

Basic Guide To Dropshipping on eBay - By Marty Fiegl

Dropshipping is when you sell an item and then order the item from the company and have it shipped to the customer.

The merchant/company will put your address as the return address making it appear as though you shipped the product.

There are some very big companies that use dropshippers as their entire business model.

While you can make money on eBay using dropshippers here's a few things to consider before you just into using dropshippers

1. Only use reputable drop shippers. While this may sound obvious figuring out if they are reputable will either come from a reference or your own experience with the company.

Most places carry the same items for a long time, if it's not a closeout or liquidation/limited supply item then they usually get the item in on a regular schedule, this is usually the case for popular items like you will be selling so you shouldn't have to worry, if you're unsure simply contact your drop shipper directly.

It's a good idea to have a good relationship with the company you're working with and while you're at it, ask for a discount on items you sell a lot of (Say something like, I love selling these items, but I'm going to be testing some new forms of advertising and my budget only allows me to spend $XX.XX on this item to be profitable).

2. If selling online or offline where you actually charge the credit card or cash the check, do NOT charge them or cash the check until you've made sure the item is in stock. Once you've charged their card you MUST deliver the item in 30 days (by law).

3. If you're having trouble finding a product to sell or you found something but you don't think the profit margin is high enough, brainstorm some other things you could sell that are related.

Let's say you found Golf balls cheap but the profit wasn't much ($1 or $2). You could also sell Golf Clubs, Golf Shoes, Golf "Gloves", gold Teas, personalized gold Shirt, Equipment or even a book or ebook about How to Take 5 strokes off your game, or put better (the list could go on and on).

So now, your little $1 or $2 profit could turn into $10 or $20 every time you make a sale. This is called Backend Selling.

4. Have a product you want to sell but can't find it with a dropshipper? Let's say you wanted to sell the "Ov Glove" and you couldn't find it or couldn't find it cheap enough to make a profit.

Go to any search engine and type in "Ov Glove distributor" or "Ov Glove Liquidator" You contact the manufacturer and they will either sell directly to you, tell you who does distribute the product, or simply say they won't work with you. More times then not they WILL work with you once you explain what you're doing or give you a great source to get the product cheap.

Or, you could do this. Go to a store like Wal-Mart that doesn't carry the item you want. Ask someone for help finding it, when they can't find it ask if they can check to see if they can get the product or have it.

They should get out a catalog for the department and you can simply see where they buy their products from! This may tell you where to get the exact product you're looking for from OR give you a great wholesale reference!

Marty Fiegl is an Internet Marketer & Author of many books on Internet Marketing & eBay. http://www.MartyFiegl.com for more information.