At its most basic, the amount you purchase an item for in your local clothing store is the retail price. Let's say you buy a slinky black party dress for $175. The storeowner may have purchased the dress from a wholesaler (or distributor) for $75. That's the wholesale price. The difference ($100) is the profit margin the storeowner just made on that hot little number you're going to wear to your company's Christmas party.

Many sellers on eBay deal in wholesale products and business. This means they don't actually own or have in their possession the product that is listed for sale. When a bidder places the winning bid on such a product, the eBay seller places an order for that product with his or her dropshipper (or distributor) and has the item shipped directly to you from their location. This is called ?dropshipping?.

Can you do it? You bet. All you need to know is the difference between a consumer (the buyer), various wholesalers (where you can buy bulk items for much less than they are offered for sale in a retail store) and the option for dropshipping (or mailing directly to your customer and not to you). In many cases, you and the buyer can save money on shipping by having items delivered directly to the winning bidder. In this case, the delivery is also called a ?drop? or a ?dropship? order, this is one of the advantages of being an ebay wholesaler.

Look at it this way. If you could ship products directly to a person's home faster and more efficiently, wouldn't you want to take advantage of such a method? Of course you would. That's why dropshippers make more money on their products. They've cut out the middle step in the shipping process.

To learn how to ship products this way, type ?dropshipping? into your online browser search bar. You'll find all the information, explanations and descriptions of terminology that you need. Now that you have that figured out, click onto eBay, register and create an account, and ship your own products to happy and satisfied customers.

Keep in mind that when using eBay or similar auction sites that your rating and reviews are going to be a key to your success. When buying or selling merchandise, know your product and how it works. Be ready and able to answer questions from potential bidders and buyers. Just because you're a drop shipper and have access to multiple sources or a single source for your product doesn't mean your responsibility stops there.

Engaging in an online auction business means that you must take responsibility and be a good provider. Offer guides about the products you're selling, or a directory or catalog that browsers can download from your eBay storefront or site. Whether your products are gifts, tools, collectibles or clothing, let your customers know that you are ready, willing and available to answer any questions and address concerns regarding their shipment.

You can make a profitable income as an eBay wholesaler, but only if you're serious about providing excellent product and superb customer service. Take your job seriously and strive for customer satisfaction and you'll be well on your way to eBay success.