eBay consignment selling is not a yard sale where things sell for .10 cents on the dollar. You will quickly discover that you can in fact make a very handsome profit on your items.
Why don't people sell their items themselves?
If you have sold a few items on eBay you already know that there is a lot involved in the selling process. Of course it may seem or look easy and for many sellers the process is easy, because they enjoy doing it, but if you stand back and add up all the time involved in a typical sale, you could find that each item takes an hour or more to sell, and sometimes two to three hours.
An hour or more to sell an item may seem unrealistically long, but consider every part of the selling process step-by-step. You could spend 5 minutes to half an hour on each of the following tasks
? researching item and prices ? taking good quality digital pictures ? cropping, resizing and editing photographs ? writing a description that properly sells the item ? listing the item in the correct category ? answering all email questions within 24 hours ? corresponding with the buyer (ie: to obtain payment etc) ? paying by check ? monitoring your bank account for checks to clear ? packing the item ? shipping the item ? updating spreadsheets or accounting software ? posting feedback (and dealing with negative feedback) ? invoicing and paying the consignor
From the outside, eBay may look easy. Like anything else, it's a learning curve and that takes time. You may not have the time or technical skills.
Who exactly should be selling by consignment on eBay?
? people without the time to do it themselves ? anyone who wants to sell an item ... just not locally ? in need of cash for bills, a holiday or college expenses ? people with estate or inheritance items ? someone or group with a fundraising project ? a business selling overstock merchandise (special discounts apply) ? anyone disposing of obsolete equipment
Why eBay?
In 2005 eBay had 147 million registered users in 30 countries. eBay owns PayPal with another 100 million users worldwide. There simply is no larger marketplace anywhere. When your item is listed on eBay people can look in from anywhere .. you go to bed at 11pm and at 2am your time, someone in Japan just bought your item. Your item is exposed to the world 24/7 and that is simply working smarter .. not harder!
The idea of drop shipping is that you can be a sort of salesperson for a merchant, whether wholesaler of manufacturer who doesn't want to take on the additional responsibility of being a retailer as well. You instead act a s a distributor for them, with the company taking care of getting orders sent out to customers ? this saves the company the time and trouble of marketing their products and you the hassle of warehousing them and dealing with inventories and shipping. This is a good arrangement for everyone involved.
There are drop shipping opportunities available for just about any product can think of. Try not to get carried away by the many options out there and instead just pick a few high quality items to begin with. This will keep you from losing focus or becoming overwhelmed by the fees involved in selling on eBay. You can also then determine the salability of each item before becoming dedicated to selling a product nobody wants.
This is also how you should approach getting involved with a drop shipping partner company. Don't go with the first company you find that meets your needs; you can shop around for the best deal out there and see how they really perform before you commit to any one company. Of course, any legitimate drop shipping company will also be watching your performance at the same time.
The manufacturers will probably ask you some questions about you and your business, including your Tax ID number. You will be doing business as a sole proprietorship unless you take the step of registering your business as a corporation or some other sort of entity with your state of residence. As a sole proprietorship, your social security number will be your tax ID. You will, unless you incorporate (which means getting the involvement of one or two other people) be responsible if anything should go wrong, it also means that you can get into business instantly without filling out any forms or jumping through any hoops with the government.
Finding The Right Manufacturers And Wholesalers To Do Business With
The hardest part of getting a drop shipping business going is finding companies who are reputable to do your business with. There a re a lot of shady, fly by night operators out there who are always on the prowl hoping to take advantage of people who want to go into business for themselves. You should be very careful when picking a drop shipping partner; be sure to do your research first.
While there are some companies which carry eBay's stamp of approval, you are more than likely to find out that they already have all of their products on eBay with many other drop shippers representing them. You should be sure to thoroughly look into any drop shipping company you are interested in and find drop shippers to work with. If you go with the eBay approved drop shippers, you may find yourself with razor thin profit margins at best ? and perhaps even losing money!
Not all drop shippers are created equal, even if they carry the same products. When you find a company which seems interested in doing drop shipping for you, you should look into how long the company has been in business and how long they have been doing drop shipping. You might find that you are the first company they have ever done drop shipping for! There might be a chance for great profits this way; but the risks are also great, so proceed with caution.
Don't be shy about asking questions and try to find out how quickly the company processes and ships orders ? also evaluate the professionalism of the company. If they are forthcoming with answers and get right back to you when you have questions, this is a good sign. They should also be able to tell you exactly what products they sell and which they are capable of drop shipping for you.
Both Mike Perras & Leon Edward are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mike Perras has sinced written about articles on various topics from Interview Questions, Education Toys and Cover Letter. There simply is no larger marketplace anywhere. When your item is listed on eBay people can look in from anywhere .. you go to bed at 11pm and at 2am your time, someone in Japan just bought your. Your item is exposed to the world 24/7 and that is simply w. Mike Perras's top article generates over 6600 views. to your Favourites.
Leon Edward has sinced written about articles on various topics from Small Business, Work From Home and Health Insurance. Learn step by step about starting and running an ebay business at Leon's website Find Internet Business Ideas and get a free. Leon Edward's top article generates over 27100 views. to your Favourites.