Drop shipping has become the latest craze in business and is helping to drive the latest surge of new websites being created today. Drop shippers are creating multiple websites selling numerous product lines and making a fortune in the process. Just type any product you can think of into a search engine and just look at how many pages of websites come up-and most of them are drop shipping companies selling their wares!
Drop Shipping Benefits
The reason why drop shipping has become so popular and exploded so suddenly is that it is simply the most efficient way to sell retail goods. People surfing the web find a site selling a product they want and then make a purchase. The website owner (drop shipper) then passes that order along to their wholesaler along with payment and shipping costs.
From there, the wholesaler processes the order, packages the product with the website owner’s business name on the packaging, and ships it directly to the customer. The website owner bought the product at wholesale price and then sold it to the customer for whatever price they thought they could charge, and profited from the difference. It really is pure genius!
But, there is more to this than you think and the beauty of drop shipping gets even better! First of all, there is virtually no overhead because there is no store to operate (or employees to pay!) or any inventory to maintain. Stores like Wal-Mart may get better wholesale prices because they buy in such large quantities, but they still do not make as much profit on each item as a drop shipper due to the costs of operating their stores.
Drop Shipping with Ebay
Although websites are definitely cheaper to create and operate than a conventional retail store, they still can require a fairly sizeable investment of time and money. Between paying for servers and either creating or paying for content, websites can definitely eat up some time and money. But, this is where Ebay comes in.
For a small fee, you can post your wares on Ebay and benefit from the millions and millions of people who surf the site every year. This way, you never have to worry about maintaining any website and you can start selling products within a day or two.
Due to the incredible traffic on Ebay, it is definitely possible to make a fortune by drop shipping from the site. If you just think of the Ebay fee as a business expense, there really is no downside to the arrangement and it can definitely be more profitable than operating your own site and worrying about getting people to visit your site.
While some people may not like the idea of depending upon Ebay for their business, the fact remains that drop shippers can substantially benefit from the partnership. Due to the incredibly low operational costs of drop shipping, the Ebay fee is a very small price to pay for the convenience and high traffic offered by the site. If you are thinking about going into drop shipping but are not crazy about the idea of creating and operating your own website, consider posting from Ebay because the benefits far outweigh the small fee charged by the site.
About the author:
Jason James is an eBay PowerSeller and his website “Auction Resource Network” reveals his inside secrets, tips, and sources that help him earn $10,000+ a month on eBay. Claim your FREE e-Course Here: http://www.auctionresourcenetwork.com