CASH BACK AT EBAY helps you win rebates and residual income from eBay. Get rich on eBay, plus get
cash back at eBay, and earn residual income from other people's eBay auctions. Read our free guides.
Thinking of starting an
eBay drop shipping
business? Looking for a
You can profit on eBay
(and earn a lifetime of
residual income) without
relying on a drop shipper.
Cash Back at eBay | online coupons | rebates | residual income
Drop Shipping on eBay: Is it another scam?
Discover why drop shipping sucks for your eBay business and learn how to profit on
eBay without dropshippers
Drop shippers thrive on people who want the easy way out when starting an eBay business.
They know that many people don't want to stock inventory themselves or ship it. The appeal
of a drop shipping business is that you don't have to absorb the expense and hassle of
inventory in case that it doesn't sell, but the truth is that there's no profit in dropship.
The Wholesale Dropship Myth
If you're looking for a wholesale dropshipper, then let me stop you now. Simply, there is no
such thing as a "wholesale dropshipper." Either it's wholesale or it isn't. Period. A wholesaler
is a manufacturer or the owner of the . The truth is that dropshippers are the middle man
between you and the wholesaler and they're stealing a cut of your profits.
Here are more reasons why drop shipping sucks:
- Even the best suppliers sometimes run out of stock. There's a great danger in running an
ebay drop shipping business. When you sell something on eBay nowadays and can't
deliver, this danger is called feedback. You will get a negative feedback score because
someone else promised you inventory that isn't there and you can't deliver to your
client. If you sold something that you can't deliver, even if you returned money to the
client, you will likely get a negative feedback score and a bad reputation along with it.
What's more, low buyer satisfaction will reduce your standings in the Detailed Seller
Ratings, which ties directly to eBay's algorithms. In short, your items will get reduced to
the bottom of the search when buyers rate you negatively and even if the next buyer
finds you, s/he won't have confidence in your ability to deliver.
- You won't make much profit on drop shipping items. The margins are, well, marginal when
dealing with drop shippers. That's because the drop shipper is the middle man and
takes a bigger cut of the profit.
- You will have back end problems as returns are inevitable. There's a lot of red tape to deal
with when you use a drop shipper. If you choose to drop ship, make sure you
understand how the supplier handles returns and go only with a supplier that lists the
inventory on hand. Check their return policy, and make sure you highlight these details
in your auction listings. Then be specific to your clients to set their expectations about
returns. Knowing the stock levels will help you control the backorder problem. But
again, it is inevitable in the new eBay climate that even if you are able to deliver on a
backorder, the buyer will give you a negative simply because the package arrives late.
The truth is that you can profit on eBay and earn a lifetime of residual income without drop
shipping. A better option by far is to buy in bulk (wholesale from the manufacturer). When you
buy wholesale, you are in charge of your inventory and you will make the most return on
investment. Buying wholesale requires a seller's permit and some wisdom.
So know you know why drop shipping sucks. Drop shippers give you slim margins and you
absorb all the risk and they get all the profits. Drop shippers give you problems, they don't
solve problems for you.
Start your eBay business with wholesale in mind. The true key to success on eBay is to buy
niche items retail and then sell them around 25-35 percent above wholesale. Buyers want a
deal and they're looking to you for the savings when they shop eBay.
Learn how to start your own eBay business now.
eBay Selling Tip
Buy in bulk / buy wholesale
Buying in bulk means you will
save money so you can resell
for profit. Sure, you can buy in
bulk retail, by shopping
Walmart or Costco, but why
would you? Buying in bulk
usually means buying
wholesale. Of course, buying
wholesale requires that you
secure a business license. It's
easy enough and well worth the
Here's a well guarded wholesale
secret source: GoWholesale is
the ideal solution to find
importers and suppliers who
have the products and services
for your eBay business.
Another great site to check out
is wholesalecentral, but don't be
fooled as they are really a
distribution site and not offering
(C) Copyright 2007-2014 by M.C. Nygard. All rights reserved.
Linking to this site is permitted. HOWEVER, no part of this content may be reproduced, or stored in any retrieval system, or
transmitted in any other form or by any means including but not limited to electronic, mechanical, photocopy, recording or
otherwise, without the written consent of the author. The author makes no warranties express or implied.
Popular links: Cash Back at eBay, profit on eBay, eBay Spy Tool, eBay seller guide, eBay buyer guide, eBay tools, free eBay
Consider selling on Amazon! cashbackateBay.com is a participant in the Amazon Services LLC Associates Program, an affiliate
advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to
amazon.com, amazonsupply.com, or myhabit.com.
Search eBay tips now: