A Guide to Dropshipping on eBay

March 9, 2009 by

Auction sites are a dropshippers dream. Huge amounts of consumer traffic pass through their auctions everyday, all looking for items to purchase. As the biggest of them all, by a considerable distance, eBay is a perfectly placed tool for dropshippers to take advantage and profit from.

That’s not to say there isn’t a downside, there is; you have to pay fees for listings, there is significant competition and there is a risk that the item will cost you money in fees if it doesn’t sell – whereas other methods of dropshipping might be less risky. But in most cases the benefits far outweigh the negatives.

So that being the case, how does a potential dropshipper best take advantage of eBay?

Tips to dropshipping on eBay

The idea behind selling on eBay is the same as anywhere else, make your auction the most attractive possible and ensure that the market is there for what you are selling.

Market research

Before jumping into an auction right away look through eBay. Is anyone else selling what you are (quite common when using dropshipping)? If so look at what they sell for, and if any fail. Make use of the option to watch an auction and see what items sell and what don’t.

Decide how you want to sell

There are numerous ways of selling items. Basic auctions, Buy it Now auctions, eBay shops etc. You need to decide what your strengths are an what the buyers are preferring for that niche. Each has its own advantages and disadvantages so don’t rush your decision.

Make sure you are aware of the fees

eBay charges for almost everything, and it is important that you make yourself aware of what your auctions are going to cost. Your profit margin is directly effected by your outgoings and there is no way of avoiding these fees – so ensure that you are including them as part of your calculations.

Test your sales copy

Assuming that you start selling items at a profit you should start looking at testing your sales copy – what is written about the item in an auction. By trying different techniques when you are selling an item you can come to understand what helps it sell and what hinders it. Selling is the only function you provide in the dropshipping sales process – so make sure you get it right.

Protect your reputation – use good dropshipping companies.

On eBay reputation is key in making people trust you enough to buy form you, so it is vital that you have a company that you trust to deliver the items they promise to, in the time frames they assure. Test the company if you need to, but make sure that you only use reliable companies – their performance will help decide if you succeed or fail.

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