Drop Ship on eBay? Risk Versus Reward
Let me start with an interesting eBay auction story!
I was experimenting with various ads and categories in eBay. There are many tools on market that can help you locate what are called "Hot eBay Sales Items". A few years ago, eBay would put a small flame next to any item that received 10 or more bids. That would be considered a "hot" or "in demand" item.
If an item is in demand, it is simply good business logic to search for sources on item so you can also sell them on eBay. While using a hot item search tool I noticed that high-end appliances (brands like Viking, Subzero and Thermador) had a very substantial number of bids.
I went to Viking website, looked at their accessories for gas ranges, and proceeded to list one of items on website for $39 to test consumer response. This was $15 more than price of $24 shown on Viking website. I did call Viking 800 number for customer service to make sure item was in stock before I listed item for sale, and also to verify that I could pay with a credit card and have item shipped to a different address. Viking said, "yes" to both questions.
I was surprised to find item sold after three days for $39 price plus $6 shipping. I received payment from eBay buyer, called Viking and placed order to be shipped direct to buyer with only a packing list.
This is a great example of how I set up a drop ship account. When you set up a drop ship account with a distributor or wholesale company, they will give you a discount on retail price. I made money on this test transaction and sold it for more than retail.
I will now explain process of drop shipping. Drop shipping a product means you are taking an order either from your own website, or an auction site such as eBay, Yahoo, Amazon, etc., receiving payment from customer and then contacting direct source of product to have it shipped to customer. You supply name and address of your customer, thus eliminating your need to box and label item. The drop-shipping source uses a "blind ship" label, which contains your business name and address, or just a plain packing slip with package.