Having a drop ship store is all about selling products that are then shipped directly from the manufacturer or wholesaler to your customer. Your profit depends on the difference between the wholesale price and the retail price you make. You can manage the store in many different ways (physical store, catalog, website) but this article focuses on how to do it on eBay.
Steps
Step 1. Create an eBay seller account
Part of your investment is eBay listing fees.
If you're not familiar with eBay, read a guide
Step 2. Search for suppliers that provide drop ship service
Choosing suppliers from the same country as your customers will make shipping easier. Use a dedicated supplier selection site, such as WorldWide Brands, Doba or SimpleSource, their job is to find real suppliers for you.
Beware of scammers who pretend to be suppliers but are nothing more than intermediaries. They will take part of the profit, thereby reducing yours. If they charge extra for their services, consider it a red flag
Step 3. Decide what you want to sell
It is important to check if there is enough demand (and not too much supply) for the products you want to sell. Here's one way to find out:
- Go to eBay
- Click on "Advanced Search"
- Insert a product (for example: art deco lamps)
- Sort by descending price
- Click on "Search"
- Take note of the best-selling products
Step 4. Register a reseller profile on the supplier's site
Email, call, or send a letter asking how to become a reseller of their products and ask if they offer drop ship service for your customers. You will also need to know if they can indicate your address as the sender, with your name and address, on the packages sent, so that the customer thinks you sent it.
Don't be surprised if the supplier asks you for a VAT number. To buy products at wholesale prices, many require it
Step 5. List on eBay
Upload images and descriptions from the supplier's website. Make a detailed and professional listing. For best results, provide a description of yourself and a photo of the product you are selling (if you have samples). The price must be low enough to be competitive with similar items, but high enough to give you a profit after your listing costs.
Read guides on how to advertise efficiently and how to create eBay listings
Step 6. Contact the supplier when you sell an item
Give him the customer's address. They will ship the product directly to your customer. Follow the order to make sure that the shipment takes place on time and in the manner described.
Advice
This may not work on new PayPal accounts because PayPal now blocks payments for 21 days on the new accounts until the item is received by the buyer
Warnings
- Make sure you always know how many items the supplier has. If you sell an item that they have out of stock, the shipping will be delayed, and your customer will not be happy, giving you negative feedback and decreasing your sales.
- You will probably have to pay taxes on the profits you make this way.
