Big Profits With eBay
Dropshipping for Dough
How can you make money on eBay with no inventory? You essentially work as a middle man. You look for products that are available for purchase on the internet at a discount, and you list them on eBay as if you were the seller, yourself. Not to worry. There’s nothing immoral about this. In fact, it’s becoming more and more common these days. Think of it this way. You’re offering a needed service to people who aren't very talented with internet searches. You’re finding inventory that they couldn’t find, themselves. Now, there’s a little risk involved with this strategy, but we’ll get to that in a moment.
WHERE TO LOOK FOR DEALS
There are many websites where you can discover truly outstanding deals on any number of products. Some common places to look are the Amazon.com marketplace, dropshippers, alternate auction sites (besides eBay), and online wholesalers. Once you find a cheap deal, you need to do a little research to find out what the value is on eBay. You can do a quick search of closed listings to see how much people are paying for the particular item you’ve found. Once you’ve confirmed that there’s a good market for the item you’ve found, you list the item on eBay. You can use a stock photo of the item for your listing. These can usually be found on the original manufacturer's web page.
AFTER THE SALE
You'll get an email notification as soon as the item sells on eBay. The next step is for you to place an order for the actual item from your supplier. In many cases, depending on the supplier, you can have the product packed by your supplier so that it appears to have come directly from you. This is especially true in the case of dropshippers. Otherwise, you’ll want to have the item shipped directly to you; then you can send the item to your buyer. This incurs some shipping costs, and it takes longer for your buyer to get the item.
ONLY LIST PRODUCTS WITH GOOD SUPPLY
I mentioned that there may be a little risk. The risk is to your eBay feedback score, which is essentially your reputation. You incur this risk by promising someone else’s inventory, and you’ll suffer if the inventory is out of stock when it comes time to deliver to your buyer. So, to protect yourself, you should only list products that are in good supply. Do not ever try to sell an item from a supplier that only has a small quantity available. In the event that someone places an order with you, and you discover that the inventory is out of stock with your supplier, you’ll have to find an alternate supplier quickly.
USE A DROPSHIPPER
Probably, the best way to protect yourself is to use a dropshipper and to actually buy some merchandise from the dropshipper, who then sets the merchandise aside for you. When the merchandise sells, the dropshipper packages the item and ships it for you. This virtually guarantees that you’ll never receive an order only to find that your supplier is out of stock.
Though, there is a little risk with this method as well. Once you buy the inventory, you own it, even though it’s sitting in the dropshipper’s warehouse, and if the market price drops for that inventory, you’re out of luck. You may have to sell the product at a loss.
Both methods come with their risks. You’ll have to decide which one you’re more comfortable with. As long as you’re deliberate, you’ll do well. And you’ll stand a good chance of making some great money on eBay, while never stocking any products.