Just as the best stock portfolio is based on diversification, the most successful power sellers on eBay utilize a multi tiered strategy. In addition to selling assets acquired from Liquidation.com on their eBay store, they will also engage in what is called drop shipping. While this method is used by retailers, We will focus on the entrepreneurial aspect.
Drop shipping involves wholesalers who take orders from companies and then ship goods directly to the customers. Using this method on your eBay store will greatly improve your level of income. This should be used in addition to selling below wholesale stock from liquidation.com on your website. While you may not make as much from this method, because you will be paying close to wholesale, the advantage is that you can list items for sale on your eBay store that you have not bought yet. The lack of need for an upfront inventory in addition to the fact that you will be paid from your buyers from your store first, means there is no level of risk involved.
Basically the process is as follows; once you have set up your store and as we discussed earlier, you should start off slowly, selling small quantities of merchandise from liquidation.com or items that you already have. Once you are established on eBay, the next step is to find a good drop shipper. One thing to note here is the existence of scams related to this. Many websites will have offers to sell you lists of wholesalers and drop shippers; but in fact they are scam artists who set up phony or knock off companies and then pose as middlemen. They get the products from the real drop shippers and then sell them to you at a much higher price. In addition they fill out the list with real companies that are second rate and have prices that are too close to retail to give you a decent profit, in addition to charging you extra high membership prices.
Here is one legitimate place that you can check the price lists for a number of dropshippers for free. One dropshipper that may want to be cautious with is Doba. Though they are well known and offer a free trial, some people have found them to be problematic. Now that you have your drop shipper, make sure you take care of any preliminary paperwork that they require. Next you can start choosing the products to place in your store(make sure to follow eBay's policy on pre-sale items). As you do with Liquidation.com, you should always check on eBay to see what the current price and demand for any particular item is. In your store you should price your items just below the average. This way they sell faster, but you still make a profit on the difference between wholesale and retail. After someone buys one of your items from your eBay store and you have received their payment, you then place the order for the item with the drop shipper, giving them the appropriate mailing information, and they will send it directly to the customer. Also make sure you have the drop shipper put your label on the package(you don't want to give away your source).
