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How to Start an Ebay Dropshiping Business for Passive Income

By Edited Nov 13, 2013 2 2

Have you ever wondered how to start and Ebay dropshipping business for passive income? It is easier than you think to get your autopilot Ebay business started and it will easily generate a steady stream of passive income for your everyday from there on out. While not truly passive income, autopilot Ebay businesses come very close to it, so let's talk a bit about the time requirement shall we?

How much time is required to set up an autopilot Ebay business using an Ebay dropshipping service? I get asked this question a lot actually. To do it right, you will need about one hundred hours up front to write a good catalog of auction listings or ebay store listings, and then an hour a day to attend to customer service and relisting your auctions.

How much money can you make running one (or many) Ebay autopilot businesses? The sky is the limit. If you choose the right products, mainly those with high profit margins, and unique or hard to find products, you can easily make a full time income and then some for just a few hours a week of effort.

Do you need much money to get started with a dropshipper? Very little, in most cases just enough to pay for your Ebay store or first auction listings. With that said, here is some more useful information about how dropshippers or dropship services work.

How Dropshipping Works

Dropshippers are commonly called dropshipping services, suppliers or wholesalers. You agree as a seller to list, promote and sell the wholesalers products for them, although you do not handle physical goods, pay any money up front or physically warehouse the goods. Once an order is made and you auction closes, the customer will pay you directly, generally via Paypal. You will order the product from the wholesaler, and supply the address where the product will be shipped to them. You will also need to paay the wholesale price to the supplier at the time of the order. The supplier or dropshipper will the collect your payment either by Paypal or credit card and mail out the product to your customer supplying the tracking number for the parcel to you. You may or may not choose to forward the tracking number to your customer.

Using a dropship service is both a huge time and money saver for Ebay sellers because they essentially prevent you from needing to spend any money up front in order to have merchandise to list and sell. You save even more time by not needing to ship your sold items yourself, and you have no downside risk. If a product does not sell well at auction you are not stuck with money tied up in it and product to get out of. You get more flexibility in your business with less risk when utilizing the dropshipping services offered by a wholesaler.

How to Open a Dropshipping Account

Opening a dropshipping account is a relatively straight forward endeavor. All you need to do is go to their website, fill out the new account form and verify your email. Some have additional requirements, but this is usually minimal and will vary from company to company.

How to List a Product on Ebay Using a Product from a Dropshipper

Listing a product on Ebay is also a relatively straight forward process. Assuming you already have an Ebay account and Paypal account set up, you can procede directly to the sell your item auction listing form. If you are not currently an Ebay seller, you can read the getting started selling on Ebay guide for more information.

So, assuming that you are ready to begin writing your auction listing, all you need to do is open the sell your item form and copy and paste the description into the product listing box. Incidentally, most dropship companies will allow you to use their stock photos and professionally written product listings as this feature is fairly common practice in the industry. Double check before you do, but most provide and allow you to use their materials. Fill out the rest of your listing form, and add your shipping and return policies to your listing, and set your selling price. Do not forget to add pictures to your listings or you can almost guarantee that your item will not sell. Save and publish your listing, and you should start getting bids relatively quickly. Sometimes you will see bids as quickly as within the first hour after listing your item.

One other thing to know about using dropshippers is that they are very fast with mailing out the products you purchase from them. The expected normal turn around time is 2 business days in the industry. If the company you are using is much slower than that, then look elsewhere. In order to be successful as a seller on Ebay, you will need to keep your feedback ratings exceptionally high, and slow turn around times will prevent high feedback scores.

Where to Find Credible Dropshippers

Many companies who either manufacture or import goods offer wholesale dropshipping services to Ebay sellers. I could recommend a few good ones to you, but in truth, you will get the best prices, and find the most unique products if you do your own research. Businesses come and go, and I would not want anyone to have a bad experience if what I write here should become outdated in the future. The best information is what truly reflects the current economy and marketplace. If you are considering selling on Ebay and using a dropshipper as your wholesale supplier, it is best to do your due diligence before you make any decisions on which company to use. Your business will ultimately be much more profitable in the long run for the time you spend making your product selections, as well as choosing your supplier.

The Advantages of Starting an Autopilot Ebay Business Using a Dropshipping Service

There are too many advantages to list in such a brief article, although the main ones are that dropshipping services do several things for you. You can "carry" a full product line without any upfront investment other than the cost of your listing fees, and time it takes you to set up the listing. The other main advantage is that your business will be a whole lot easier to handle from a time standpoint. You can not go wrong with a business which requires only hours a week to run rather than full time effort. Additionally, you have much less risk with physically carrying your goods. If an item does not sell well, you simply do not relist it and move on to a more lucrative item.

In my opinion, running an Ebay dropshipping business for passive income is one of the most legitimate ways to get started making good money online. Selling on Ebay via dropshipping wholesalers allows you to list, sell and profit much more efficiently than if you were to handle all of your own merchandise.

Some will tell you that you can not make money on Ebay, that is hogwash. Ebay is still a great way to start a business with next to nothing and work your way up in ecommerce. Make money Ebay dropshipping business is just like any other. It takes, time, dedication and a little insight to start, but pays of HUGE in the end.



Dec 3, 2011 12:40am
Very helpful explanation of how to do an ebay drop ship business. You can also sell off your own niche site and arrange drop shipping. This avoids all the ebay fees but your market may be more limited unless you are good at SEO.
Dec 24, 2011 4:42am
Its Interesting article , i liked it !!
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