Selling your used items on eBay is one thing, but using drop shippers to sell new items can take your business to a whole new level. Drop shipping involves a merchant using another company to fulfill and ship the order. Many of the new items, including electronics, children's toys, and health and beauty products, are sold through drop shippers. There are several suppliers who are large drop shipping services with access to hundreds of wholesalers, as well as specialty businesses that drop shop niche items like gift baskets. It's also possible to use the principles of drop shipping when buying from online retailers. The large drop shippers have a membership agreement and fee, while the niche products may have an application you have to submit.
Some of the greatest success from drop shipping on eBay comes from using other retailers, not wholesalers. Items selling on clearance at retailer websites can be used to fulfill orders. Many times these items are even cheaper than wholesale, because the store wants to get rid of it. When someone buys the item from your eBay listing, you go to the retailer's website, place an order with your payment information and the eBay buyer's shipping address. You don't need to tell the retailer you are reselling the item. This strategy works well because the retailer has reliable shipping times and quality items. It takes research to find that hot item, but the profit margin can be anywhere from 100 to 400 percent. Sometimes retailers limit the number of items a customer can purchase, so check the store's policy before you list a bunch of them. You can also pretend to purchase the item, type in a large quantity and see if it is placed into your online shopping cart. Monitor quantities every few days to make sure the item is still available from the retailer.