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:

• What Dropshipping Is and How It Works (Part I)

• How to Find a Good Dropshipper (Part II)

• The Pros and Cons of Dropshipping (Part III)

• Is Dropshipping for You?  (Part IV)

PART IV - IS DROPSHIPPING FOR YOU?

If you're a new eBay seller and don't have a lot of cash to purchase product inventory, dropshipping is a viable alternative. 

You do not pay for the products you have included in your online auction listings, fixed-price listings, or store items, until you have sold the item!

Dropshipping sources can be used until you have accumulated enough operating capital to make wholesale purchases (for inventory you physically store) - but can also be used as a supplement to your physical inventory and online sales once you start purchasing wholesale!

When using dropshipping services, you will need to keep a close eye on inventory levels in order to avoid selling an item that is on 'back order' - in other words, 'out of stock'.  When I have dropshipping products listed, I check inventory levels each morning - twice daily during holiday shopping seasons when buying demand is higher.

You will need to track returns and exchanges as well.  Most often, when your buyer wants to return an item either because it is not what they wanted, it was damaged in transit, or they need a different size, your dropshipper will more than likely want you to request an 'RMA' (Return Merchandise Authorization) form.  The RMA is usually issued to you via email, then you forward it to your buyer with instructions on how to proceed.

You will need to track returns to ensure the buyer has received their exchange item, or so you can issue a refund due them once the merchandise has been received by the dropshipper.  The dropshipper will issue a refund or credit to you once the merchandise is returned to their inventory - generally, there are no refunds on shipping charges.

When using a dropshipper, you are depending on a third party to deliver quality products to your buyers - all to a great extent out of your control. 

If you have not purchased any of the dropshipper's merchandise to inspect for quality and proper sizing before listing to sell, you're placing 'blind trust' in your dropshipper - and do not know your product.  Always keep this in mind!

Don't be discouraged.  If you have the time, patience, and good recordkeeping skills, working with a reputable dropshipper will become routine after a short while.  You may have to invest more time in your daily eBay routine, but it will soon payoff!

In addition to my resale business (purchase and resale of new and gently used items I inventory), I utilize several dropshipping companies - some of which are the actual manufacturer!  

I can honestly say that the extra effort I put in to researching dropshipping companies and getting to know them directly has been very beneficial to the success of my business. 

Although we email quite often, I usually make telephone contact at least once a week directly with these companies to thank them for a job well done.  They are, in large part, the reason why I am now an eBay PowerSeller. 

Is dropshipping for you? If you're uncertain about using a dropshipping company, try at least one before you make a firm decision - otherwise, you'll never know whether this type of service was right for your business or not.

Best Wishes on your eBay selling!