Dropshipping for eBay & Amazon
How to find real dropshippers that will work with small eBay and Amazon Sellers
By Skip McGrath
Understanding Dropshipping for eBay and Amazon
Dropshipping is selling something you don't own. That may sound illegal –but it’s not.
Dropshippers are companies that offer merchandise for sale that will ship the merchandise directly to your customer once you pay for it. Here is how eBay dropshipping works:
Disadvantages of Dropshipping for eBay and Amazon
Advantages of Dropshipping for eBay and Amazon
There are two types of dropshippers and it is important to understand the difference:
Let's look at each type before you decide what kind of company you want to work with.
1. Dropshipping Aggregators -- Aggregators, also known as Dropship Warehouse Companies, are basically middlemen. They advertise heavily on the web claiming to have millions of brand name products you can sell online. Many of them also offer pre-made websites loaded with these products. These companies list products in a virtual warehouse that other, real wholesale companies, have in stock. Aggregators don't really have any products in stock.
If you sign up with one of these companies, you will soon find that most of the merchandise they offer is already selling on eBay or Amazon for about the same price they are offering it to you. I have been selling on eBay successfully for over 10 years and in my opinion, although there are some exceptions, it is very difficult to make money on eBay with these types of sellers.
In general these companies make their money from membership fees or handling fees. When you order something from them, they order it from the real wholesaler, mark up the cost and/or charge you a fee. Because of this it is very difficult to make any money as they have basically made a big piece of your profit.
2. Dropshipping Manufactures and Master Distributors -- There are hundreds of actual manufacturers who will dropship. Some of them do it directly while others use the services of a master distributor. When you work directly with a manufacturer of the product or their master distributor, then you are getting the lowest price available. This is where you can make the most money on eBay or a web site.
It is not well known, but there are thousands of manufacturers who will dropship for you. I currently work with three different companies who will dropship for me. We list several of these manufacturers in the member’s area of our website for people who purchase our eBay and wholesale sourcing manuals at www.skipmcgrath.com. You can also find dropshippers in the Thomas Register and the best place is to attend wholesale trade shows such as the ASD/AMD Wholesale Trade show held in Las Vegas every March and August or the various wholesale trade shows that are held all over the US and Canada.
If you would like to learn more about dropshipping and how to find legitimate companies that will dropship, visit the Free Articles Section at SkipMcGrath.com.
Skip McGrath is a Top Rated Seller on eBay and the author of numerous
books about selling on eBay and the Internet. He is the publisher of the
eBay & Online Sellers News, the oldest and largest free newsletter for home
based business owners.
© 1999- Harry McGrath, Inc., DBA Skip McGrath, Auction Seller's Resource and Vision-One Marketing. All Rights Reserved.
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