Content

• Steps
• Tips
• Warnings

In drop shipping, your success depends on selling items that are then shipped directly from the manufacturer or wholesaler to the customer. Your profit depends on the difference between the wholesale and retail prices (why are you selling it). You can start your business in a variety of ways (real store, catalog, website), but this article will focus on eBay online auction activities.

Steps

1. 1 Create an eBay seller account. A portion of your investment in this business will appear in the payment list on the online auction site.
   • If you are new to eBay, read How to Sell on eBay
2. 2 Find a company, also known as a supplier, to be your dropshipper. Choosing suppliers that are in the same country as your potential customers will likely make the shipping process easier. Use a directory or other dropshipping tools like WorldWide Brands, Doba or SimpleSource to do the job of finding legitimate suppliers for you.
   • Watch out for scammers who pose as suppliers, but in reality themselves are just intermediaries. They will take their share of the profits, which will reduce your income. So if importers require you to pay a regular fee for using their services, treat it like a bright red flag raised high!
3. 3 Determine what you want to sell. This is important to check that there is sufficient demand (and not too much competition) for the products you intend to sell. Here's one way to find out:
   • Go to eBay
   • Click "Advanced Search"
   • Enter the name of the product (for example, art deco lamps)
   • Sort by Price Highest First
   • Select "Completed listings only"
   • Click "Search"
   • Pay attention to the best selling products
4. 4 Indicate in your account that you are a dropshipper seller. Email, call or send an email asking how to become a retailer of his products and if he can ship directly to your customers. You should also inquire if the vendor includes a customer return coupon (with your store name and address) in the shipping documents so that customers assume you sent the item.
   • Don't be surprised if the vendor you turn to for a retail opportunity asks for a tax identification number. Many will require this information when you want to purchase products at a wholesale price.
5. 5 Submit your list of products for sale on eBay. Download images and descriptions from manufacturers websites. Make a detailed, well-crafted ad. For more impact, add your own description and photos of the product you are selling (subject to samples). The price should be low enough to compete with similar products, but high enough to give you a good profit after paying the ad placement fees.
   • Read on for tips on how to effectively advertise products on eBay and write ads for eBay.
6. 6 Contact your distributor when you have sold the item. Provide him with your client's shipping address. The supplier will send the product directly to him. Follow through and make sure that the shipment arrives on time, as indicated in the description.

Tips

• All this may not work for new PayPal accounts, because this payment system now freezes funds for 21 days after opening an account until the goods are received by the buyer.

Warnings

• Make sure you keep a close eye on the supplier's inventory. If you sell an item that has already ended, then the shipment will be delayed and your customer will be unhappy. This will lead to negative reviews, which will lower your sales.
• You may have to pay taxes on the profits you earn from this business. Read on to learn how to minimize your taxes when working on eBay.