Some days ago we gave you the basics of drop shipping on eBay. Now you might be wondering:
Is it possible to operate a viable eBay drop shipping business?
Yes, but you need to research thoroughly in order to spot ultra niche markets. In other words, look for items not too many sellers can or care to provide. Remember that with drop shipping, your margins are smaller, so you have to spend the time and make the effort to uncover markets avoided by other sellers looking for an easier road.
Secondly, bear in mind that drop shipping rarely works as a sole sourcing method for an eBay business. More often that not it's one of several different sourcing strategies. As we pointed out in last week’s post, companies such as ToolKing have been able to realize immense success on eBay by harnessing the benefits of drop shipping, using it when possible to expand their product offerings while minimizing their operational overhead.
What products can be drop shipped on eBay?
We're not going to pull any punches: these days there are lots of items that simply can't be profitably drop shipped on eBay. When you drop ship, you are buying items one at a time, so you can't hope to compete with sellers buying in bulk or buying liquidation.
That said, there are still some areas where drop shipping has an advantage:
These two ideas are by no means it, but hopefully they give you an idea of how you need approach your product search.
Selecting the best drop shipper for eBay
When you think you've found a good 'un...
Build trust and communication
No matter what drop shipper you choose, you'll need to work hard to establish a good relationship.
How do you avoid shipping delays?
Shipping delays and backorders are perhaps the two biggest issues with drop shipping on eBay. Keeping in touch with your drop shipper will help a lot. We recommend calling every Monday to check on stock levels for the week. Make sure you alert them to anticipated sales spikes.
However, the only way you can truly maintain control and avert crises is to keep some inventory on-hand. That's right - don't leave it all up to the drop shipper! He will never care about your business as much as you do. Buy 3 or 4 items and keep them in your spare room. You can count on them coming in handy. Basically, you can either spend a bit more money now on reducing risk, or potentially face enormous losses down the track when you get a couple of negative feedbacks. Got that?
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