What is Dropshipping

Drop shipping is a network technique whereby the merchandise is shipped directly form the wholesaler to the client. The retailer only transmits the customer’s order and other details regarding the shipment to the supplier who provides the delivery. This is a convenient technique for the retailer for two main reasons: firstly he doesn’t have to worry about warehousing, packing and shipping the products, this way saving money and trouble; secondly he doesn’t have to buy the merchandise until he already has the buyer, not risking anything. Drop shipping is a classical form of a supply chain management technique. 

There are certain steps to be followed when an eBay retailer wants to use the services of an online drop shipper, and they are:  

1. Finding the appropriate products to sell from the wholesaler/manufacturer 
2. Describe all the products properly and use images to enhance the description 
3. Whenever a product is sold, collect the money from the client 
4. Place the product order online through a dropshipping company after receiving payment from the eBay buyer.
5. The supplier now ships the product directly to your buyer and you can relax.  

Note: Like in all retail business the difference between the final retail price, the wholesaler/manufacturer’s price and the eBay fees, is considered profit. The better and reliable your online drop shipper is, the higher your profit and your reputation will be.