Thursday, November 12, 2009

Making Money With EBay and Drop Shipping - Watch the Money Drop Your Way

There are more than one way to make money on eBay. Yes, you can sell products from your house or maybe a new hot item just hitting the market, however there is another way. This other way is drop shipping. How or what is a drop shipper? How does becoming one make me money? These are the basic questions that we will be exploring in this article.

Whenever you are on eBay you can all of a sudden find your self on a drop shippers website or store. You can always tell where you landed, since; these guys have everything from clothes, CDs and even assorted nuts. However, it might seem strange to say - they are making some serious money. There recipe is simple, so anyone can follow it.

The basic definition and understanding of a drop shipper is easy. First, these sellers do not have the massive inventory of items next to them. In fact, they usually deal with a warehouse which contains all the products you see on the store webpage. Once, the sellers received your payment the order goes to the warehouse and begins to get processed, with the shipping address attached to the order. All of this amounts to the fact, the seller simple passes along the information to the warehouse to fulfill the order.

To most people this sounds great. They don't have to fill their basements or attics with certain or multiple products and inventory is a thing of the past. In fact you don't every have to deal with another box again. Is this to good to be true? Well, the answer is two fold - yes and no. However, to answer in the negative would be your own fault. This process takes a good amount of investigation and research. There can be a lot of scams in the drop shipping world, so be careful, but it can be done.

Some traits of a negative outcome are as follow. First, most solid reputable drop shippers will not charge for shipping and if they do it is at a fraction of what it should be. Second, when they claim they have every product underneath the sun, but when it comes time to ship the product they come up with excuses. It should be noted an excuse is fine once in a while (they are dealing with massive inventories), however if it becomes chronic you might have been scammed. Thirdly, these warehouse should not charge you fees to sell their products.

Some ways not to fall victim to being scammed is know your product. That is, if you become an expert on your product that you want to sell it will be much harder for anyone to tell you likewise. The more you know the more powerful you are in this business. You want to find your niche and then find those drop shipping warehouses that share your same passion for a product. This is a guarantee strategy, it is hard for a sma artist to fake their passion and knowledge about every product they, "say they have."

Overall, one can see this is a very complicated business and there are a lot of things to look out for. However, it can be very profitable to be a drop shipper. The big thing is investigation and researching your options and products. If you have the knowledge, then it will be hard to become a victim of a scamming warehouse.

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