Here are advantages and disadvantages of Drop Shipping.  First, know that a drop shipper holds a large inventory ready to be shipped to the first buyer to pay. When you sign up with a drop Shipper he/she will allow you to advertise its inventory and offer it for sale on your auction site/store.  When you have a winner, and you have received payment, you go to the Drop Shipper’s site, pay for the item and provide the name and shipping address of the buyer so that the Drop Shipper can then ship to the buyer.

Advantages:
1. You don’t need to invest in inventory. The drop Shipper has already done that for you.
2. You don’t have to invest in packing and shipping materials, the Drop Shipper has done that for you, too.
3. You don’t spend time packing and shipping and dropping off your auction packages at the post office, or shipper’s drop.
4. You will have a large variety of items to offer your bidders.

Disadvantages:
1. You must rely on the drop shipper to ship in a timely manner. Some do; some don’t. If there is a delay, or complaint, the customer will be coming to you for a solution to the problem.
2. You are dependant on the Drop Shipper’s Supply to hold up until your auction ends. Sometimes it does; sometimes it doesn’t. Then you have to deal with finding the item elsewhere, not shipping and dealing with a very unsatisfied customer, and/or delaying a shipment, which probably will result in a dissatisfied customer.

Questions to ask your drop shipper:
1. How often is your website and inventory updated?
2. What carriers do you use when shipping, domestic and international?
3. Do you use tracking methods on your shipping? What are they?
4. Do you charge a handling fee on each item?
5. Do you have “combined shipping” when a customer buys more than one item?
6. Do the products have warranties?
7. Will they replace or refund if a product is lost or damaged?

These are things to think about before entering a drop ship agreement.  There are others of course.  The most important things to remember are
1. Will your customer receive top-notch service from the drop-shipper?
2. Will the drop shipper maintain an inventory to cover your auction sales?
3. Will the customer receive the item in a timely manner so that you are not forced to spend a lot of time tracking down the drop-shipper or the package?
4. How long has the drop shipper been in business?
5. Does the drop shipper collect and remit sales tax?
6. Will you receive a monthly itemized invoice of all your shipments from the drop-shipper?

Not one of the answers to the above questions should be the determining factor in choosing to use a drop shipper. Investigate and examine all the terms and conditions offered to you by the drop shipper.  You must be willing to deal with the irregularities for the drop-ship method to succeed. Take your time before
making a decision.