Whether you are new to eBay selling, or a seasoned veteran, dropshipping is one of many options available to you for sourcing products to sell.
"eBay Selling: Dropshipping For Success" - a four-part series, is a must-read for those sellers wanting to learn:
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What Dropshipping Is and How It Works (Part I)
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How to Find a Good Dropshipper (Part II)
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The Pros and Cons of Dropshipping (Part III)
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Is Dropshipping for You? (Part IV)
PART I: WHAT DROPSHIPPING IS AND HOW IT WORKS
If you're wanting to sell on eBay, but do not have the time, storage space, or manpower to manage physical inventory of the item(s) you wish to sell, dropshipping may be a viable resource for your online business.
Simply put, dropshipping is the "off-site" storage and shipping of available inventory to your customers by the manufacturer, distributor, or other third party. In general, here is how the dropshipping process works:
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The dropshipper provides product photos and item descriptions to you for use in your auction, fixed-price, or eBay Store listings.
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As your items sell, you receive payment directly from your buyer then place the order for the item with your dropshipper - most often through their company web site. You will also pay the dropshipper for the item you have ordered - most have shopping carts and checkouts on their site.
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The dropshipper processes your order, pulls the item from inventory, prepares it for shipping directly to your buyer, then emails you a shipping confirmation (most often with tracking information) once shipped.
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Your buyer receives their item, then leaves feedback for you - the seller.
The product photos provided by the dropshipper are generally in .jpeg format for easy editing and application - upload to a photo hosting site to be included within your item description, or upload directly to eBay from your hard drive for a gallery view(s).
The product or item description can be used word-for-word. However, I generally will edit (but not misrepresent) the description to offer greater detail about the product I am offering for sale.
When preparing the item for shipping to your buyer, most dropshippers will "blind ship". Blind ship means that the dropshipper is not identified on the shipping label or anywhere in the packaging. In fact, the majority of dropshippers will place your company information on the shipping label.
Some dropshippers will even accept insertion materials (packing slips, thank you notes/cards, promotional flyers, etc.) from you for placement inside the packaging - another potential sales source at no additional cost!
What happens when your buyer needs to return their dropshipped item to exchange for size, damage received during transit, or does not want the item at all? Most dropshippers require you, the seller, to notify them directly within a certain time period that an item needs to be returned.
The dropshipper will issue an "RMA," or Return Merchandise Authorization form to you for emailing to your buyer. Your buyer must use this form (and follow the instructions listed on it) to return their item. Once the item is received by the dropshipper, they will exchange the item and ship directly to your buyer, or in the case of no exchange will issue a refund to you so that you may refund your buyer directly.
Voila! No photos to take...No inventory to buy or store...No packaging of items...No shipping labels to print...No shipping drop-off trips to make! Save time and money!
Sound great?
Dropshipping can be a very valuable resource for eBay selling, but you need to do your homework before diving in!
Be sure to read Parts II through IV of this guide, then make your decision as to whether dropshipping is right for your eBay business.
Happy eBaying!
Guide created: 12/29/05 (updated 10/14/09)


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