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How eBay Dropshipping Works and Its Types


E-commerce grows bigger day by day, allowing more people to enjoy its convenience. eBay as one of the leading online commercial sites throughout the world involves many people for its business, including drop shipper. What is actually drop shipping technique? How eBay drop shipping works? Today, running a business as eBay drop shipper has been done by many companies. You are about to know more about drop shipping for eBay.


how to become a dropshipper in ebay, how it works?
How eBay dropshipping works?



How eBay Dropshipping Works and the Advantages

When it comes to how eBay dropshipping works, you need to know the meaning of dropshipping. Dropshipping actually refers to selling something that you do not own. Even though it sounds illegal, it is actually not. Meanwhile, drop shippers refer to companies which offer things for sale. After you pay, the drop shipper will ship the items directly to your customers. Sell on eBay as drop shipper is considered easier and has a lower risk. The dropshipping process is actually simple. Without purchasing the items, you can sell it to customers. Here is the principle of dropshipping for eBay.


1. Find a company

First, you need to find a certain company which agrees to dropship. List the provided merchandise on eBay or your website without purchasing the items. It is considered risk-free because you have nothing to lose.


2. Determine price

When customers are going to buy the item, collect the selling price. Don’t forget to also count the shipping cost and charge to your customer.


3. Pay drop shipper

After getting money from customers, you have to pay the drop shipper with wholesale price, shipping fee, and handling fee.


4. Shipping

When everybody gets the money, the next process is shipping. Your drop shipper will ship the items directly to your customers.


This is How eBay drop shipping works. You will get profit from the difference between retail and wholesale price. Pay attention to the handling fee as the sum of handling fee and wholesale price should not exceed the retail price.  Running a dropshipping business for eBay brings you some advantages. First, there is no up-front investment to run the business. In other words, you do not need to spend money on inventory.

Another advantage of drop shipping from eBay is a product variety. When you buy a certain product, it might be limited in number and type. Meanwhile, dropshipping allows you to have more variety of product lists. When it comes to dropshipping types, there are 2 types of drop shipper as follows:


Aggregators

It refers to companies that advertise heavily on the internet. Typically they claim to have a lot of products that you can sell. In fact, they have a virtual warehouse instead of real stock. When you sign up, they ask you to sell products that are already selling on eBay.


Master Distributors

This drop shipping allows you to get the lowest price. This is what you need to make more money on eBay. Some manufacturers also use the service of this master distributor.


Read also:

How to sell on eBay quickly?



Now you know the in and out of dropshipping for eBay. How eBay drop shipping works are actually easy, that is why you can start this business without any problem. (gk)




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