Drop shipping is a part of a process with several points. Of course profit is the first issue. Even though the profit (the difference between the wholesale price and market price) is most likely stay the same with a good drop shipper. The basic process is that you (the retailer) deal with the customer; however that is all you do. You collect the information like: their address, the choice of product, and shipping options, then you rely this information to the drop shipper. The drop shippers then uses the information relaied to them and pick-and-pull the order to the specific criteria and send it off. This is how the system works, and there are benefits for a person seeking to make a living off of eBay.

The primary plus to this system is stock and inventory. You do not have to deal with those issues, you the salesman or woman and that is it. So, there is a whole side of the business annexed from your responsibility. Even though you are dealing with a little less, the customer thinks everything is being done by you. So if the process works with a flaw, you do a little less work and the customer is very happy because the receive what they wanted when they wanted it.

So if that is the process of drop shipping, the next question is natural, “Should I do it…it seems fine?” This is where the debate takes place. Basically in theory the drop shipping option is a great tool fro everyone involved in a purchase, however the reality is simple – 95% of drop shipping fails somewhere along the line. The main issue being the wholesale price; if you are only selling one or tow products at a wholesale price, your profit margin is dim; however, if you sell a large number of items at a wholesale price one is expected to generate some serious revenue. There is another catch to this equation: a lot of drop shippers on eBay cannot handle huge orders which will generate the type of profit one needs. So, what is the solution? The answer lies with the nature of eBay itself. One has to be realistic – it is an auction site and most people are only looking to buy one or two items at the lowest price. Given the nature of eBay and the nature of drop sipping, most of the time they are not complementary and ultimately give a seller a bad reputation.

In closing, like all things research is a prime tool. If you are a seller you must research the options and the future of those options. Remember, this is your business and these are your customers. Profit margins and the happiness from a solid transaction is the cornerstone of the business industry. It can happen on eBay.