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How eBay Works With Dropshipping 
By: Mike Stason
Many people want to have an eBay business. Wouldn't it be nice to make a full time living from home just selling stuff on eBay? The good news is: It can be done - even if you don't have products to sell.
eBay provides many people who want to quit their corporate nine-to-five jobs with a way to make a good living, without having to put up a lot of start up capital. This is made possible with the help of drop shippers.
When you use a drop shipping company they will store the items in their own warehouse and ship them to your customers whenever your tell them so.
The only thing you have to do is setting up your auction in eBay. When the auction ends you just pass on the shipping address to your dropshipper. Or even better: Have the address automatically passed to your dropshipper when the auction ends. This way you would have everything automated.
This whole process is totally invisible to your customer. The dropshipper lables and ships everything and you just have to administer your auctions and pay your dropshipper a small fee.
There are many dropshipping comapnies available and prices differ substantially. Usually when you are starting out your will have to pay your dropshipping comapny up front. Later you may negotiate better terms and conditions. However, this depends on the volume over a period of time.
Orders usually have to be delivered instantly and the company will either charge you per delivery or upfront - depending on the conditions that you agreed on.
When you set up your eBay auctions, make sure that your reserve price is set higher than the price that the drop shipper will be charging you for the item. The idea, of course, is to earn a profit!
Observe your competition. Find out what they are charging for similar products. If for some reason they sell the items cheaper than your dropshipper would sell them to you try to find out which dropshipper they are using. To do that just order the item from them and when it is delivered have a look at the label. Usually dropshippers leave traces or their contact details somewhere. This is because they also handle returns.
An eBay business using a dropshipper is ideal if you don't have money to start with because you get paid before your have to pay your dropshipper.
Article Source: http://www.uberarticles.com/articles
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