The Truth About Dropshipping on EBay

Everything you’ve heard has probably told you that you can make a fortune on eBay by dropshipping products to buyers.

You’ve probably been told about the convenience of dropshipping on ebay. That the dropshipper stocks the item for you and sends it out under your business name after you’ve sold it and made the purchase from the dropshipper.

And of course, the prices. The dropshipping companies you’ve probably encountered have most likely told you about their low, “wholesale” prices and how you can make a killing on eBay.

Although you can make a living on eBay dropshipping products to customers, the truth is that the companies you’ve seen advertising dropshipping as a way to make easy profits are in business to to cater to inexperienced eBay sellers seeking a way to make money using a dropshipping business model. Now, although many of these companies, such as Megagoods, are perfectly legitimate, they are not wholesalers, and the prices you are getting for the products in most cases will not be low enough to allow you to make a profit on eBay. Now, if you are a clever business person, you might very well make a killing in other business environments, but probably not on eBay unless you’ve really done your homework on what products that particular dropshipper is offering that are likely to be successful.

A crucial point to understand about eBay, is that almost everything for sale is already at or below wholesale prices. For that reason, when you buy from a dropshipper such as dropshipdesign.com or megagoods.com, your purchase price is already at or above many of the selling prices on ebay.

If you intend to use dropshipping as a model to work on ebay, you are going to have to find a real wholesaler or some other product distributor who offers dropshipping as a service, not a selling point for ebay merchants. And, generally speaking, real wholesalers seem to have a pretty low Internet profile.

I don’t want to discourage you, but you do need to know the truth. Anyway, there are solutions to finding sources of low cost products. More about that later.