eBay is often seen as a sort of online auction house. However, it’s evolved a lot since its creation in 1995. Now, fixed-price listings are exceedingly common and thousands of people shop there every single day. Selling on eBay is a big business. All sorts of entrepreneurs are cashing in from the windfall, from wholesale suppliers to your average next-door eBay sellers.
Did you know that most successful eBay sellers started off as drop shippers?
Drop shipping is a term used when the seller holds no inventory. As a seller, you place your order to your wholesale supplier and the supplier then ships the product directly to your customer. It’s a lucrative business that has enabled many online entrepreneurs to make a full-time living by selling goods at a profit on online marketplaces such as eBay.
To start, what you’ll need to do is find a supplier or suppliers that allow no minimum order quantity. This way, you’ll be able to buy even just a minimum of 1 product at wholesale or near wholesale price. Essentially, you’ll be the virtual middleman between the goods and your customers.
Below are three crucial tips on selecting the right type of products that you can start selling.
Choosing the right products to drop ship:
- Sticking to light-weight, low-cost products will keep your shipping costs and overall
- Check if there’s a demand for the product and the return is worth your time & resources.
- Choose a product with low competition, but still profitable. Make sure to calculate into the total all additional expenses for each product, i.e.: shipping cost, fees, etc…
There are ways to find wholesalers that are willing to deal with no minimum order quantity and we’ll get back to that in a little bit. The most important thing to keep in mind is, if you’re serious on making a return on your investment, whether it be your time or money; or even both, make sure to do your product sourcing and niche research thoroughly. Do your due diligence on your product selection. Manage your time and resources wisely.
There’s a neat tool that is popular amongst eBay PowerSellers called SaleHoo Labs that pulls data from eBay, Amazon, and Alibaba’s hot products. SaleHoo Labs crunches the data to find the best performing products based on category, sales numbers, competition, prices, popularity, and a list of suppliers who sell the products. It’s a very useful tool to have for those who understand the power and scale of e-commerce. There’s nothing more heartbreaking and discouraging than not being able to make any sales.