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How Does Dropshipping Work? | Internet Auction Site

How Does Dropshipping Work?


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Big Value Depot

So… where do you get products to sell on an Internet Auction Site?

A good place is from dropshippers.

The product’s distributor handles of all your shipping. Instead of ordering stock in bulk, the stock remains with the distributor, and then when you make a sale, they take care of everything, from packing up the item(s) and to sending them straight to your customer complete with your company label on the box. This is dropshipping.

Dropshipping is great, especially for those who are new to selling online, either in a small ecommerce store or an online auction. This is because there is little to no start-up cost and no risk involved so to speak, as you won’t need to make an investment in a bunch of items that you aren’t 100% sure you can sell. Using dropshipping services also eliminates one major issue faced by many online sellers: where to store their inventory – there is no need to lease any storage or fill up your garage, which means saving both your money and your sanity.

There are a few drawbacks to dropshipping, however. First of all, dropshipping is slightly more expensive than buying your products in bulk. Often a dropshipper will add a processing fee of about US$2 to $5 dollars onto the cost of the item to cover their costs. This means that keeping up with the staying competitive in high profile categories like electronics and clothing may be difficult but it certainly does not mean that you cannot make money when you drop ship, it simply means that finding a niche market will be even more important.

The 5 step guide to drop shipping:

Step 1: Find a dropshipper

You can do this by either Googling your product name + “dropshipper” or you can check out online wholesale directories.

Step 2: Set up an account with your dropshipper

There may be a small fee to set up an account. This is common practice for dropshippers. You should be weary, however, of suppliers who insist on you paying monthly or annual fees.

Different dropshippers have different types of accounts which you can set up. You can either credit your account and use the credit to pay for items you purchase for your buyers or you can pay as you go and use the money you receive from buyers to purchase the items

Step 3: List the items you wish to sell.

You can list the items you wish to sell on your website, estore or online auction site such as eBay.

The great things is that you can list as many as you like, since you don’t have to pay for them until after they sell! You can even use the photos and item descriptions that your dropshipper supplies.

Step 4: Place your order with your dropshipper.

Then, when the item has sold and you have received payment from your buyer, you just log on to your suppliers web site and purchase the item you have sold and have it sent directly to your buyers address. If your dropshipper does not have an ecommerce site set up from which you can buy directly, all you have to do is send them an email with the details of what you want and where to send it.

Step 5. Now it’s in the dropshipper’s hands.

They will package up and ship the item out to your buyer.

If you want to find a list of reliable dropshippers, be sure to check out SaleHoo.

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