Back in June of this year, I published an article entitled, “Dropshipping on Ebay is Not Very Effective”. This article was originally entitled, “Dropshipping on Ebay is a Crock.” Shortly after publishing this article, I felt bad about the name I gave it, and decided to change the title to one that is more dignified.
I also changed the title because, dropshipping on Ebay is not a crock. I will maintain the present title because, dropshipping on Ebay is not very effective. This is true. It is not very effective, UNLESS:
- You know how to do it, and
- You do it right.
There is a way to effectively sell dropship items on Ebay and make money while doing it. I must tell you at the very beginning that it could be a little risky. For that matter, so is playing the commodities market. However, just like the commodities market, if you try the method of selling dropship items on Ebay that I am about to present to you, and stay on top of the situation, all of the risks will be eliminated.
Find the Right Dropship Items to Sell on Ebay
There are numerous dropship directories on the web. Two of the most famous are Doba, and GoGoDropship. These and many others are excellent directories offering fine products to sell on Ebay. The problem is, everyone who is dropshipping on Ebay knows about them. If you find a product from one of the many dropship directories to sell on Ebay, chances are, there are at least twenty other sellers trying to sell the same product. The market for most of these products has long since been saturated.
Finding the right product to sell as a dropship item on Ebay will involve a little research.
This is how to find the right dropship products:
• First, identify the niche, and the product you want to market on Ebay.
• Do a web search for the product you want to sell. You will probably find the product on a number of websites. Once you find the exact product you want to sell, and identify the website where you can purchase the product, do some additional research to find out if the company that has the product will dropship the product for you. Many merchants will do this. Some will specify on their website that they will dropship. If you can’t find the answer, then call the company and simply ask if they will dropship. Chances are, most companies will do it.
• After you have found the product you would like to market, see if similar products are listed on Ebay. If so, then do a completed listing research on the product. This will show you how the product has done in the past. You can do this by going to the following section in the Ebay sidebar, and clicking on Completed listings:
I want to specify that you want to find similar products, but not the exact product. If you find the exact product and try to market it, you will again run into the danger of a saturated market. Therefore, you want to make sure the product you are trying to sell is similar, but unique, in that, no one else is selling this product on Ebay. This will give you a much better chance of selling your product for the price you would like.
Listing Your Product on Ebay
Let’s assume, hypothetically, you find a product that you can purchase for $100. Naturally, you want to sell it for more than that in order to make a profit.
First of all, I recommend listing the product as an auction listing, as opposed to a fixed price listing. For some reason, fixed price listings do not do as well. Also, auction listings have no charge, while fixed price listing have a slight charge. You can experiment with fixed price listings on some products and see how they will do. If you do this, make sure you cover your cost of $100, plus your Ebay and PayPal fees. You can also experiment with listing the item with a reserve price. This means that you are under no obligation to sell the item to the winning bidder unless the bid equals or exceeds this reserve price. However, this can get very expensive. Ebay charges a higher fee for reserve listings. Remember, after you sell the product, you have to purchase it and have it shipped to the buyer.
Next, if you decide to list the product as an auction listing, do not start the bidding price at $100. If you do this, the product probably will not sell. Always list the product at a low starting price. This accomplishes two things. First, it arouses curiosity in people, causing them to believe that they are going to get something at a bargain price. Second, it creates a bidding war. I recommend starting the bidding a $9.99. I have done this many times, and have actually sold a product for as high as $1,200.
Finally, always list your product as a 7-day listing.
Watching your Listing on Ebay
Now the real fun begins. Remember, I told you above that this is like playing the commodities market. While we are not dealing with sugar, soy beans or pork bellies, we are dealing with commodities – consumer products.
With this in mind, you will need to watch your listing very closely, every day, and sometimes several times a day. For a product that will cost you $100, you do not want the winning bid to be $50, for example. If so, you will be $50 in the red, and you do not want this to happen.
When you list a product for 7 days, at a starting bid of $9.99, knowing that the product will sell for more, your product will get watchers and bids right from the very start. Keep watching it. At the beginning, you don’t want to think so much about making money as you do about not losing money. Once your product has received a bid that will cover your cost, plus fees, you are home free. Even if your product does not receive another bid, you will not lose money. But consider this – anything after that is pure profit.
In this situation, don’t think so much about making a profit. Think more about not losing money. If you do this right, the profits should come.
Ending your Listing on Ebay
Now, this is where the risk comes in. You must know the exact date and time your listing will end. When your listing gets close to approaching 24 hours before the end of the listing, pay special attention. If the highest bid for your product has not equaled or exceeded your cost, end the listing immediately.
When I began selling on Ebay, I was a little uneasy about ending listings. For my own peace of mind, I contacted Ebay and had several conversations with some of their representatives on Ebay’s policy for ending listings. Every time I spoke with them, the result was the same. Ebay’s policy is, a seller can end a listing as long as there are more than 24 hours remaining. I also questioned them on the ethics of doing this. Each time, Ebay assured me that this is not unethical. As long as someone is within the policy of Ebay, there is no problem. This is not unusual. Many people who list items on Ebay also list them on Craigslist. If the item is sold on from Craigslist first, then the item is no longer available for sale on Ebay, and the seller has to end the listing.
Remember, if you end a listing on Ebay, it has to be done before the listing approaches the time when there are 24 hours or more remaining for the listing.
Fulfilling the Order
This is my favorite part. Once the listing has ended, and you have sold the item at an acceptable price, just sit back and wait for the buyer to pay for the item. First of all, always accept payment through PayPal. After the buyer has paid for the item, and the money is in your PayPal account, then simply purchase the item, and have it shipped to the buyer. That’s all there is to it. This is the easy part. The hard work has already been done.
One word of caution – When you contact the supplier, and purchase the item, make sure you obtain all of the shipping information, and especially the tracking number. Most people who do business on Ebay are honest and reputable. However, there are a few who like to purchase items, pay for them, and then file a dispute with PayPal for an unauthorized transaction. If this happens, you are protected, as long as you have the shipping information.
Let’s assume you sold the item that will cost you $100 for $140. Excluding fees, your profit for this one item is $40. New sellers on Ebay can list as many as 100 items per month. As their business grows, Ebay will increase this limit. Also, they will probably increase the limit if a seller requests it. But, can you imagine repeating this process 99 more times during the month. This is a monthly profit of $4,000. Of course, the numbers will vary. Some may be less, but more important, some may be more.
My Gifts to You
With this being said, I really want you to succeed as an Ebay seller. And to show you that I mean what I say, I would like to offer you two free ebooks:
How to Make a Living on Ebay
How to Make a Living on Ebay is a 119 page manual that takes you from the beginning stages as an Ebay seller, all the way to the procedures and strategies that are used by the Ebay pros.
In Everything Ebay, you will find almost everything you need to become a successful seller on Ebay.
To get these free ebooks immediately, simply fill in the form below.
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