When most of us think of eBay we think of online auctions, however since it’s creation, eBay has expanded into a much larger marketplace. Businesses can post and sell their products with or without using the bid feature and become very successful in the process. Personal operations have flourished on the site, evolving it into a dynamic marketplace beyond simple online auctions.

When eBay was first created, one of the things it was best known for was as a source for rare and unusual items. Since it began as an auction site, all of its listed products were personal items, which could vary wildly in where they originated from and how old they were. eBay then became the go-to place for unusual and hard-to-find items. Because of this, it creates a prime market for dropshippers, where their products were previously only found in catalogs and from door-to-door salesmen.

Dropshipping on eBay

Since eBay allows you to list your own products, joining together with a drop shipping company gives you access to a much larger store of merchandise. Customers will be looking for rare and unique items, and with the help of the right manufacturer you can provide just that. Often times, unique items will get a higher profit margin simply because they can’t be found anywhere else. It then becomes more sensible to sell those rare items than to sell a more popular item that can be found in stores.

Drop shippers will usually charge you half of the full price their products are being offered for. The profit you make is then the remainder of the price, minus personal costs of any manufacturer finding website and listing fees. The more successful sales you produce, the less of your profits will be taken away by external costs.

Staying Competitive on eBay

Making a profit on eBay also depends upon what is selling well. By using the website’s advanced search engine, one can find previous auctions that were successful. This method not only helps find popular products, but it can help a new dropshipper figure out how best to price their own products.

Perhaps you might have an opportunity to list a product lower than the higher selling products of the same nature, but still turn a profit. This will put your lower costing alternative in higher demand, allowing you to sell a higher quantity of items. In this instance, several smaller, high demand items could make a higher profit than one high priced item. Knowing what prices to meet and beat will determine how much of a profit you can make.

Dropshipping on eBay saves you money

Dropshipping does not require you to purchase any stock from the wholesaler. Every order is taken by you and sent to the manufacturer directly, at which point you pay them the designated amount. You do not have to worry about storing the product or shipping it, eliminating many costs associated with selling your own products. These eliminated fees translate directly to money in your pocket.

For more information on drop shipping and to get a look at an extensive Dropship Directory of dropship companies, please check out this great Dropshipping Source.

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