What is Dropshipping and How Does it Work?

September 8th, 2007 by admin

Dropshipping when done right can be a highly profitable addition to your auction business, or you could specialize and sell only dropshipped items through your auctions.

What is Dropshipping and How Does it Work With Online Auctions?

  • A dropship distributor is a wholesale company that will ship one product at a time directly to your customer.
  • You don’t pay up front for inventory. In fact, you don’t pay for an item unless it sells.
  • You don’t stock or ship merchandise. It’s all done for you by the dropshipper.
  • You simply place an ad on eBay or your website, then take orders.
  • When someone buys the product at your auction they pay you for the product.
  • You pay the dropshipper and they ship the product to your customer under your name!
  • You pay the cost of the item and keep all the profit for yourself!
  • If the item costs you $5 and you sell it for $25, you’ve made an easy TWENTY BUCKS!


Dropshipping is a great way to increase your income without risking your own capital.

The hardest part about dropshipping is finding reliable dropship companies to partner up with. You don’t want to sell an item on eBay and then have your dropshipper take two weeks to ship the item. Or worse, you sell an item on eBay and then you go to pay the dropshipper for the item and they tell you that item is backordered. Those two nightmares are why it is critical that you only deal with reliable and reputable dropship companies.

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Posted in Sell On eBay, eBay Business, Auction Articles |

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