drop ship guide

Auction Site Drop Shipping Techniques And Strategies

This page discusses strategies for using auction sites to your benefit. And it discusses drop shipping as related to auction sites.



We will start from the perspective of a typical person who lists and sells on eBay. When you sell products that you have listed on eBay you are effectively working for eBay and acting as their drop shipping program.

Let us examine that statement. You make the investment in the product, you store the product and you ship the product when eBay sells it through their website. That is exactly what a drop ship program does for its members.

But even beyond that, you provide customer service, something that drop ship programs in many cases do not do.

Now you use a drop ship program yourself to list and sell on eBay, you are still making the investment in the form of drop ship program fees and you still provide customer service.

This is great for eBay. No matter whether you sell the product or not, eBay gets its profit. And that occurs even if you lose money on a transaction. EBay always comes out ahead.

The essence is that you work for eBay by supplying product and pay them for the opportunity to supply them product that makes their portal attractive. They sit back and reap the profits while you do the work and take the risk.

And as far as the products that you sell on an auction site, generally speaking, selling products that you get through a drop shipping program is a losing proposition. You will find that the profit margins on products sold through drop ship programs are very slim and your profit margins may be very low - if the products yield a profit at all.

How do power sellers do it? Power sellers generally inventory their own product and use a fulfillment house or have their own shipping facility. They buy products in bulk factory direct and work at the highest profit margins.

But inventorying a product requires cash. And most people who want to get involved in drop shipping do not have that cash. So they need an alternative.

The alternative is to use eBay as the drop ship supplier and the drop ship program. Have eBay work for you and every person listing product on eBay work for you.

tYou turn eBay into your drop ship program by using the eBay affiliate program. When you use the eBay affiliate program you can sell every product on eBay and get a commission from eBay for making the sale.

The eBay affiliate program is perhaps one of the most lucrative affiliate programs on the Web and one of the most simple to use.

The program is free. You set up your own store to sell eBay products. And setting that up is nothing more than setting up a WordPress blog and and adding product and content.

EBay states in his introduction to its affiliate program that its top eBay affiliates make over $100,000 per month. In other words, the top eBay affiliates make over $1.2 million per year. So it is nothing to sneeze at.

The setup of such a store is extremely simple. And people who set them up have no down side risk in that they do not list products and they pay no eBay fees. Their total work effort is that of promotion. And the major risk is time.

Consider this:

One eBay affiliate is reported to have five blogs and websites. He spends three hours a day adding content to the blogs and three or four hours a week adding content to the websites. It's said that he averages $7-$8000 a month from the eBay eBay affiliate program. Plus he monetizes his blogs with Adsense and picks up another few thousand dollars from Google adsense.

He does this all on less than a 20 hour week.

So if you are going to work on auction sites, your best strategy is to use the eBay affiliate program.

You can download a white paper on how to use that program at this link. Ebay And WordPress