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Finding the Right Products from the Right eBay Drop Shippers

There is a lot of negativity about using wholesale drop shippers on eBay. I'm here to tell you that not only is it possible to make good money selling on eBay via drop shippers, but that I actually think it's a good idea to do so – or to at least have access to several drop shippers to ensure availability of products to sell.

So what is drop shipping anyway? If you don't already know, I recommend taking a look at Wikipedia's entry for drop shipping. They've done a fine job of explaining it in excellent detail.

But before you go looking for eBay drop shippers to expand your business with, it's important that you first get an idea of the types of products you want to have access to. Personally, I originally chose a strategy of obtaining broad access, then narrowed it down by potential profitability, and then narrowed it further according to category.

As to why I took these steps, the first step was because I was just starting out with drop shipping and wasn't sure, exactly, what I could make money from. The second should be obvious. The third was because I wanted to sell in a category that I understood well and could speak intelligently about should a potential buyer have questions.

But what I'm trying to get at is that you'll want to have already answered the question of what to sell on eBay. At least have an idea – choosing a category for example, even a broad one. Something to give you a starting point for your search of a suitable drop shipper.

I chose to work with what some have called a "drop shipper aggregator." That's a company that provides access to many drop shippers via a single account. In this way, you get access to multiple drop shippers without the requirement that you apply for an account to each one separately.

This allowed me to download the product feeds from multiple wholesalers. With that information, I organized the data into a spreadsheet and ordered the products by difference between the MSRP and my cost (the wholesale price). Now of course we all know that virtually nothing sells for MSRP. Not at a retail store, and most definitely not on eBay. But with literally hundreds of thousands of products to sift through, organizing the data this way gave me a place to start my search.

Upon finding several products that piqued my interest, I then conducted research on those items to see how well they would sell on eBay and give me an idea of the profit I might expect. Over time, as I got a feel for the types of products sold well and which ones were more of a struggle, I got better and faster at sifting through my giant spreadsheet of products.

I also tried organizing the data in various ways. For example, I also tried organizing by highest MSRP and highest wholesale price. The reason I did this was because I knew from experience that the more expensive an item is, the lower the percentage of profit was to be made, but the higher the actual dollar amount.

When drop shipping, the percent of profit became a much lesser concern because I didn't have to hold inventory or invest in the products upfront. Making $50 on an item that sells for $1,000 (5% profit) was much more attractive to me than making $5 on an item that sells for $10 (100% profit).

In the end, finding profitable products worth selling through wholesale drop shippers really just comes down to common sense and research. You'll find that the more you sell, the easier it will become to find those profitable items.

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Chapter 1: Driving Traffic to Your Auction Listing
Chapter 2: Listing for Higher Profits
Chapter 3: Does Any of this Stuff Work?
Chapter 4: eBay Stores
Chapter 5: Auction Management
Chapter 6: What to Sell on eBay
Chapter 7: Finding Products to Sell on eBay
Chapter 8: Mining eBay's Traffic
Chapter 9: HTML Tutorial
Chapter 10: Acting Like a PowerSeller
Chapter 11: Final Words