Dropshipping - How does it work?

Free Member
  • Posts: 3
  • Joined: 27 Aug 11
  • Karma:
3 Sep 11 10:06:46 am
Hello there,

I am a newbie in dropshipping and would like to know the following

1: After finding a dropshipper, do I have to pay for the products first before selling them on auction sites or do I just sell the products without buying them from the dropshipper, and say if someone buys it from me on my ebay account then i pay the dropshipper the price they are selling the product for and I keep the profit?

I am a little bit confused regarding this, please help


Site Admin
  • Posts: 5202
  • Joined: 20 Oct 08
  • Karma:
3 Sep 11 03:09:22 pm
Hi and welcome to SaleHoo, enways10 :)

Wholesale dropshipping is a very popular form of product sourcing because it allows you to pay only for the items that you sell.

It works like this: You find a dropshipper and set up an account. Different dropshippers have different setups but usually you can choose to credit your account, or, you can simply leave it empty and pay for each item as you sell it. Once you've created an account, all you need to do is grab the dropshipper's provided photos and product descriptions for the items you wish to sell and list them on eBay or your website.

After you make a sale and receive payment, log into your dropshipper account, select the product you have just sold and take it through the checkout and pay for it. Enter the buyer's shipping details, and the dropshipper will package it up and post it. Basically, the big advantage of dropshipping is that the dropshipper takes all the responsibility for handling and managing stock, saving you a heck of a lot of time!

If you haven't I suggest downloading your copy of our Dropshipping Handbook - Link hidden: Login to view

You might also find the following guides helpful -

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Hope this helps. Should you need further assistance please let us know :)


Customer Support Manager
SaleHoo Group Limited


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