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How To Make Money At Home Drop-Shipping For eBay

Updated 20th November 2018

 

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How to make money at home drop shipping – Drop shipping, for those who are unfamiliar with it, is a system whereby you promote the products of a particular manufacturer, take orders directly, and the manufacturer handles all the inventory and fulfillment functions for you.

drop shipping business opportunities

In a nutshell, here is the drop-ship system:

 

  1. You generate and accept the order
  2. You take your profits out of the sale price
  3. You forward the order and the wholesale cost to the drop shipper
  4. The source factory ships directly to your customer

 

The benefits of this arrangement are obvious: No inventory cost to you.

 

  • Substantially higher profits to you over what most regular affiliate programs allow.
  • The ability to quickly set-up inexpensive, highly targeted, niche or mini-sites to test and promote diverse products.

 

This process has been around for years and has been responsible for many highly successful mail order dealer relationships in the past. Many of the top catalogers and other direct response marketers, have been using this system to increase profits for decades. If you have ever ordered a high priced item from a mail order catalog and been told that the product was being shipped from the factory… then you have experienced drop shipping first hand.

 

Drop shipping is, I believe, an untapped storehouse of profits for today’s work from home enthusiast.  In my opinion it is the best way to make money online without all the hassle of keeping a room full of stock you constantly have to send off to customers.

 

Drop Ship Business Plan

 

Before you actually start up your drop shipping business you should have some sort of plan.  Do your research.  Find out all you need to know to get started.  Beware of any drop ship source which requires you to pay a fee in order to become a drop-ship dealer… or requires a membership. These are generally organizations which make their money selling “drop ship licenses”… and are, for the most part, scams.

 

dropshipping startup

Legitimate drop shippers and factory sources never charge you any fees other than the actual shipping costs of the products you sell.

 

Another caveat… always make sure that you have a written agreement with the source factory that you own the customer! The factory or drop ship source should agree in writing not to solicit your customers in any form. This is very important to you. Your customer list is one of your most important assets. If the factory you are dealing with balks at this request… use another source who will agree.

 

Almost every conceivable type of product is available from a drop shipper willing to ship products in single units under your companies name. Pick your interest area… electronics, consumer products, agricultural & industrial products, office equipment & supplies, hobby gear, recreational / sporting goods, clothing, furniture, etc. The list of available products from drop shippers is almost endless.

 

Online Shipping Services

 

When you offer a drop shipping service the products actual source is invisible to the consumer. The seller (you) is able to build a database of customers that he/she owns and controls (by agreement with the manufacturer).  You have all the direct marketing advantages that accompany that arrangement… while eliminating the need for maintaining expensive inventory.

 

This arrangement offers maximum flexibility and cost savings for the seller. If a product does not sell well online you can pull the advertising (web page or website) instantly with very little cost to you outside of the actual time it took to build and test the marketing effort. Or, since this type of page/website is so inexpensive to maintain and host… you can simply leave the pages online and take whatever orders trickle through… while you move on to the testing and promotion of new drop ship products.

 

The manufacturer benefits from this relationship by gaining a legion of active marketers promoting their products… at little or no cost (other than those small costs involved with supporting the marketer with online marketing materials like product images, sales materials, etc).

 

Components In Developing Dropshipping

 

Unlike traditional offline retailers, online dropshippers do not need to invest in an inventory stockpile.  They have no overhead expenses such as warehouse fees and inventory management either.

 

Shipping and packaging is handled by manufacturers, and the manufacturer handles the additional workload of increased sales.  Therefore as a marketer you are looking for several key components in developing the drop-ship relationship with a source factory or distributor:

 

  • High Quality Products

 

  • A clear guarantee and return policy

 

  • High Quality Marketing Materials … product images, selling copy, other suitable web graphics, etc.

 

  • A Customer Service Department that will work with you to develop the best selling situation for you.

 

how to run a small business

If you are a manufacturer seeking to expand distribution (or an inventor with a new product) you will find the willingness to drop ship in single units will give you a strong competitive edge while you carve out an increased market share at little cost.

 

If you are an online marketer interested in offering high profit products to your niche market (your website visitors) without incurring high front-end development or inventory costs… then drop shipping is for you.

 

Internet marketers (affiliates) are uniquely positioned to take profitable advantage of the drop ship arrangement and should give this system a serious look.

 

Ok now you know about dropshipping lets move on to one of the biggest and best online companies to earn an income from.

 

Drop Shipping Business Opportunities

 

Is it possible to start a successful Ebay drop-shipping business at no cost to you?  Yes, it is!  The problem is that there are hundreds of supposed drop-shippers online and many so called “instant auction success kits” and all but two are useless.  There are only two Ebay approved drop-shippers and joining either one is the first step to creating an Ebay work at home business drop-shipping business.

 

wholesale dropshipping

 

As I have already outlined above, drop-shipping works like this:

 

  1. You locate products to sell from a database with at least 250,000 products.
  2. You can use tools through your drop-shipper that allow you to select products, set pricing and automatically send them to eBay. 
  3. Your item sells on eBay and you receive payment through Paypal.
  4. You purchase the product from the drop-shipper using your Paypal funds.  You pay the wholesale price and keep the profit.
  5. The drop-shipper will process and ship it to your customer.  They will handle any returns, exchanges or problems or instruct you how to resolve the issue through the manufacturer when warranties apply.
  6. You will have tracking information on every order.

 

You can expect to spend the first week getting your business set up.  The good news is that you will probably already have made a profit by day 5, and once you have set up all your products the business will pretty much run itself without a whole lot more effort on your part, but I am getting ahead of things.  Let’s start from square one, shall we?

 

To start your business you are going to need:

 

  1. A Paypal account
  2. An eBay account
  3. A drop-shipper account

 

Best Online Dropshippers For Wholesale

 

As I have said above, there are many supposed drop-shippers out there that are nothing but a scam.

 

 

In my opinion one of the best drop shipping companies is called Wholesale2B.  I have used it many times in the past simply because its fully integrated with Ebay. Try it out and decide if its right for you.  I think you will.  There is of course a membership fee, but you would have to pay that whatever drop-shipper you used. 

 

You can also go with their Do-It-Yourself plan where you just copy/paste the product images and descriptions manually and use your account to fulfill orders. This only costs $67 for the full year, so pretty cheap at just over a dollar a week.

 

If you choose to go with a free trial drop-shipping account then by the time you need to pay membership dues you will have easily earned more than enough money to cover your monthly dues.  

 

Remember I told you it would cost $0 out of pocket?  Here’s how:

 

Sign up for the free 7 day trial

  

Make a real effort to get things started

 

How To Get The Best Return On Your Money

 

Call customer service or contact live chat on the 4th or 5th day of your trial.  Let them know how hard you have been working and that you very much would like to extend your trial period so your auctions have time to run their course, you can get a better feel for the system, etc….

 

I was able to get my trial period extended to a full month by taking this approach.  Take the time to ask them any and every question you have since you are on the phone anyway!  The customer service reps are amazing and it is well worth taking advantage of their expertise. 

 

Work your butt off during the trial period and you will easily earn the few bucks your membership will cost you and more.  Then you can pay your membership with your earnings and thus have a $0 start up.  In fact in my first two weeks I earned enough to pay for a one year membership at a huge discount which leads me to step 5….

 

When you have convinced yourself how wonderful your new business is and you are ready to pay your membership dues DON’T!!!  Don’t do a thing until you call the customer service department back and ask to speak with someone in the promotions department.  They will be offer you HUGE discounts on your membership and they will usually throw in free tools as well.

 

Before you go any further you need to take some time getting familiar with Ebay, Paypal and your drop-shipper.  Explore each site carefully.  Read about Ebay’s fees (you will not have to pay any fees up front to use Ebay, but you will need to understand the fee structure to price your items properly). 

 

Familiarize yourself with the tools and products offered by your drop-shipper.  If you run into any questions or problems along the way contact the customer support for the site you have issues with and they will be glad to assist you.  It will be much easier for you to follow the rest of this guide if you have a basic understanding of your new accounts first.  Here is a site where you can get free eBooks on Dropshipping.  There is a free PDF download as well.

 

Start Drop Shipping Business

 

Now that you have a feel for the tools you will be using there are four more areas you need to cover in detail to make sure you are off to a solid start.

 

  • Product Selection -You have instant access to plenty of products to pick from.  Find out how to determine which products to sell.

 

  • Product Pricing – How to set prices that will earn you the best conversions.

  • Traffic – There are over at least 2 billion Ebayers out there.  Learn how to drive them to your listings.

 

  • Things to Avoid – Find out the most common mistakes newbies make.

 

Ok folks there you have it and if you think that Dropshipping is for you then you just have to get started, and what better place to get a great training than the program and community that I am a member of.

 

Its always best to have your own website and Wealthy Affiliate will give you two as soon as you join.  All you have to do is start taking the lessons (free) and build out a website to advertize yourself and your home business.

 

I have embedded a link within the image below my name.  Click on the image and you are taken to a web page with a menu at the top.  Within those menu headers you will find all the information you need.

 

I will see you on the inside when you get in touch.  You can be sure that I and all the other members will be more than happy to answer all your questions and point you in the right direction.

 

Onwards and upwards to your success as a home business owner and your eventual financial freedom.

 

Have a great day wherever you live in the world and warmest regards.

 

Robert Allan

what's the best way to make money online

4 Comments

Add a Comment
  1. Andy Zeus Anderson

    I love the fact you specify factory direct or another wholesale supplier not buying from Amazon and jacking the price up to sell on e-Bay. Your practices are very legit and can be put into practice with little effort and a small investment. Let’s face it, with no investment it will take a while for the business to start getting orders but advertising is very effective when you use a resource to learn to properly implement it to get sales flowing in the meantime. I love drop-shipping as a business model because done right it cuts 60% of the cost related to selling and offers more profit than many brick and mortar stores.

    1. Hello Andy and thank you for taking the time to visit my site and leave a comment.

      Yes it is relatively cheap to get started and their are plenty free advertizing avenues you can go down as well.

      I have used dropshipping for quiet a few years now and it is a great way to earn yourself some decent money.  Especially as you say when done the right way it can cut 60 percent of your overall expenses.

      Please do visit my site again and I’m sure you will go away with even more tips and advice pertaining to working from home with your own online business.

      Have a great day and be successful.

      Regards.

      Robert Allan

  2. Hi there,

    Thank you kindly for this outstanding and highly detailed post regarding drop shipping.

    Drop shipping is something that I have been thinking about a lot lately, in regards to my own brand, Is it feasible that I could have products made for me, under my brand name and then shipped out to my customer and then have affiliate work for me promoting my products (for a commission)?

    1. Hi Derek and thank you for taking the time to read my article on Drop Shipping and leaving a comment.

      Drop Shipping can be a great money maker for anyone who wants to work online for themself.

      As I explain in the article there is virtually nothing for you to do.

      Of course it helps if you have your own website to promote products but there are plenty of companies that will give you one of those and usually at no cost.

      Take yourself for example.

      You want to market your own brand .

      You most certainly can have your own products made and then sell through an online company such as eBay or Amazon.

      There would be a charge incurred but that’s par for the course in business, online or offline.

      You can also have affiliates promoting your products as well.

      Of course this would be on a commission basis so you would have to take those costs into consideration.

      If I was you Derek, I would go for it.

      Do your research first though.

      Get all the information you can before you get started.

      I wish you success and if you need any pointers then by all means get in touch.

      Have a great day.

      Regards.

      Robert Allan

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