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Dropshipping Will not Make you Money on Ebay

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If you are considering using dropshipping to supply your eBay auctions with products then this article might change your mind and send you in the right direction…

Dropshipping is terrible for eBay businesses!

What is dropshipping? Dropshipping is a method of buying-and-selling that requires very little money upfront and very little effort. In theory.

Here is how dropshipping works on eBay.

You look through a dropshipper’s catalog to find products you want to sell on eBay. Then, you post the products as auctions or buy it now listings on eBay. If the product sells, you collect the payment from the buyer and forward the order on to the dropshipper, using your eBay customer’s payment to fund the transaction. The dropshipper then send the product directly to your eBay customer.

The money you have left is your profit.

The profit is the difference in price between what you pay the dropshipper and what you sell the product for on eBay. So if your dropshipper sells the Nintendo Wii for $230 and you sell it on eBay for $250 have $20 in profit. However, to determine your actual profit you need to include and deduct your eBay fees, PayPal fees, etc. So your final profit is under $20 using the example given.

Why is dropshipping bad for my eBay business? Let me start by saying “bad” is an understatement. Dropshipping is not bad, it is deadly. Dropshipping makes no sense in the eBay marketplace… Just think about it!

Dropshipping is based on the concept that you can get just one of an item and pay near wholesale price. But if you just think about it, that doesn’t make any sense. If we look at how the wholesale industry works it will be obvious.

The wholesale industry works on quantity. Wholesale is all about bulk. When a huge company, such as Wal*Mart, places an order it is in huge quantity (to fill all of their stores). I’ll make you an example using dvd players…

Wal*Mart wants to order 5000 ZIP-ZAM DVD PLAYERS which retail for $105 each. Wal*Mart plans to sell them for a little under retail at $98 each. So, they contact their wholesale distributor who offers them a price of $86 each. Wal*Mart places the order and everyone is happy. But…

Using dropshipping you cannot expect to get that DVD player for anywhere near $86. The distributor offered Wal*Mart the $86 price because of the quantity they were agreeing to purchase. At the $86 price the distributor is only profiting $5 per DVD player. But that is ok. One sale of 5000 units to Wal*Mart is $25,000 in profit. But you want just one, and a $5 profit sale is not going to do.

You have to look at it from the dropshipper’s perspective. If a dropshipper had a really hot product — why would they sell it to some small businesses for very little profit? Anyone using dropshipping is not going to sell huge quantities (or they would use wholesale)… So what is in it for the dropship company? The dropshipper could even sell direct to the public and do much better. They could charge a higher price and probably sell more units. Wholesalers could do this too, but remember, they do not sell one item at a time. They have a completely different business model.

So, when you think about it even a little bit - WHY would any company sell you just one of an item for very little profit? WHAT would be the advantage?
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The beginners guide to safely join and use eBay

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I don’t think it matters where you are these days, if you mention the name ‘ eBay ‘, there is someone there who has either bought an item on it, or who has sold something on it, eBay has become a household name around the world. I started buying and selling on ebay around 7 years ago. There are thousands of people living in the U.S. that make full time living’s selling item’s on eBay, and thousands more that buy items on it daily.

eBay was started by one man named ‘ Pierre Omidyar ‘. When Pierre was 28 years old he started writing the programming code that was to become the internet site eBay. The site was launched online on Sep 4, 1995, ‘ Labor Day ‘ here in the U.S. At first it wasn’t called eBay, but was named ‘ Auction Web ‘. Later it was changed to ‘ ebay ‘ , which was a short version of a consulting firm Pierre owned named ‘ Echo Bay ‘. eBay was free at the start, then it started charging fees to help cover it’s internet costs for hosting and other charges. At the time, Pierre was dating a woman that collected PEZ toys, she used the new eBay site in its earliest incarnation to buy and sell rare dispensers. In 1996 Jeffrey Skoll, a Stanford MBA, joined the company and by 1998 eBay had gone public in the stock market, making Omidyar a billionaire. In 2005, Omidyar’s 214 million eBay shares were worth around $8 billion. In March 1998, Meg Whitman was brought in as President and CEO of eBay where she serves still today

Let’s start by going to the eBay site and joining. Just visit: http://www.ebay.com and you will be taken to the main page of the website. Once there look towards the top area of the screen and you will see text that says: ‘ Hello! Sign in or register. ‘, using the mouse button, click on ‘ register ‘. After clicking on ‘ register ‘ you will be taken to a screen with a form on it, enter the information about yourself, such as your name, address, telephone number and email address. Next you will be taken to another screen where you must choose a password and ebay user name, the eBay user-name is the ID or Name you will be known by to other ebay bidders and shoppers.

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Get More Sales for your Ebay Business

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As an eBay seller you can build your seller site around the items you are selling faster and with greater success by using the eBay tools and resources available to you. They can be found on eBay and other auction themed websites.

Using these eBay tools and resources can lead to more eBay sales and greater success as an eBay seller.

eBay Seller Listings

After you have found a product that you want to sell on your eBay auction site search the eBay seller item listings and locate the same and similar items.
Keep track of the items prices on the seller sites that are listed.

Take note on when the auctions began and when they will be ending.

Go back to them many times and check out which of the sites are getting the most sales of the item you also want to sell.

eBay Seller Sites

Take note on the auction sites that get more sales than the others, how they are set up, designed, and their overall look.

You can also compare these seller sites to the other auctions that didn’t do as well as they did.

When you start setting up and designing your own eBay seller site you’ll have alot of other auctions to compare to that have already run or are up and running.

This part of your plan will save you a lot of time and you’ll also get better results.
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A Few Ways to Make Money Online Quickly

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So, you have come online because you need to find some ways to make money online quickly? Perhaps you need to pay off a bill, help with a charity, or make an extra purchase for an upcoming special event. Can money be made online quickly? Or does it take years of learning and application? The answer here is, “yes” money can be made online quickly — and here are a few ways how you could start earning some money online this week!

1. Ebay - Sell something on ebay. Children’s items (clothing) and designer purses and accessories tend to sell quickly online, especially if you market them in lots (for example, put 8-10 children’s outfits up on ebay to sell together). Children’s books also sell quickly on ebay in lots. Nearly all ebay users like to pay by paypal — so you can expect to get your money very quickly and directly paid to your paypal account.

2. Be an affiliate for an ebook or digital product that uses the “$7 dollar script’. These particular affiliate programs pay immediately upon the sale and directly into your paypal account. Search for “$7 dollar ebooks” online and you will find some of these you can immediately turn around and resell.

3. Forex trading. I admittedly do not know much about forex investing personally. But I have a few friends who have turned a profit quite quickly online with forex day trading - so I want to mention it here even though it is not my area of expertise. Do some research first and you can also find some online practice accounts where you can try out your new skills. Remember, never invest more than you can afford to lose!

4. Write your own informational article and design a website to sell it. If you want to, you can even “sell the rights” to the product and this will help you sell it even faster. One place you can sell your articles is at master-resell-rights.com. You can also sell it at the appropriate place at the warrior forum.

5. Find a hungry niche market online and create an informational product you can sell to it. Set your product up so that you receive payment immediately through your paypal account. You can market your product through forums, article marketing, or PPC ads. This will require some research on how to put all of this together. However the time spent to learn the business of niche marketing is worth it because it is a very good way to make potenially a lot of money online quickly.

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17 Tips to Sell Travel on Ebay

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Becoming a seller on ebay can be daunting. Becoming a travel seller can be impossible, unless you know the secrets. My tips on selling on eBay can apply to all categories of items, but some steps are unique to selling travel.

The travel industry is highly regulated on EBay, as it should be. High standards keep out disreputable sellers and scam artists, and adds to your own company’s trustworthiness when you are approved by eBay..

1. Before you are even thinking about selling travel on eBay, it is important to get a username and email address just for eBay. Registration is free and only takes a few minutes. Register as a seller and you can use the same username to buy as well. Choose a name that reflects what you sell i.e., “Bermudabound” rather than “sexyblueeyes”. Other eBay members will come to recognize you by your User ID, so it’s a good idea to choose one you’ll want to use for the long term.

2. Your eBay name has sunglasses (i.e., read “shady character”) for the first 30 days, so don’t try to sell anything while you are wearing shades. Use this time to buy on eBay and learn good practices from other sellers.

3. Set up a PayPal account. EBay buyers feel more confident purchasing something from a seller who accepts PayPal. According to PayPal, “Listings that offer PayPal are 6% more likely to sell and experience a 5% average increase in final price.” Go to www. Paypal.com. Get a business account. Registration is free.

4. In the first 30 days, buy small items on EBay, pay for them promptly. I have always found eBay sellers to offer good values, provided that you check their feedback listing first.

5. Pay your seller promptly, because then you will always get positive feedback from your seller. Your feedback profile is the most important aspect of your reputation at eBay. Feedback is extremely important on eBay, as your future buyers can evaluate you at a glance. Even one strike against you counts heavily.

6. Create your “About Me” page on eBay. Use this page to tell other eBay users about yourself and your interests, your experience and your products.

7. While you are waiting the 30 days, also become a) ID verified and b)square trade approved. a) Get ID Verified through eBay as an extra sign of security for buyers. When a member gets ID Verified, a third-party company working with eBay confirms the member’s identity by cross checking their contact information across consumer and business databases. You’ll see the ID Verify icon in verified members’ profiles.

B) The Square Trade Seal is one way for sellers to show bidders that they are committed to high selling standards and have had their identity verified by a third party. You will need a credit card and your IATA, ARC, or seller of travel number. Both are requirements for selling travel, and you must place these numbers as the first lines of your ads on EBay. All members listing airline tickets, cruises, vacation packages, or lodging must be participants in the Seller Verify by SquareTrade Program. This program combines verification of sellers with ongoing monitoring. For instructions on this, go to eBay.com.

8. When you are ready to list your items at auction, sell small stuff first, building customers and credibility. Sell all items with no reserve, at the lowest price you can afford to accept, and fill all orders promptly.

9. Choose carefully what you will sell. You cannot sell some travel certificates, or vouchers and all listing must list the exceptions, blackout dates, and extra taxes and shipping charges. Travel agents, and other businesses selling travel services are regulated in eBay. According to the eBay rules for selling travel, “Businesses and individuals who sell and/or arrange air or sea travel or accommodations (but do not directly provide the travel service themselves) may list air and ship related travel items (i.e. airplane tickets and cruise trips), along with accommodations, on eBay only if they are licensed as sellers of travel lawfully able to do business in all 50 states and they themselves will be booking the travel for the winning bidder. Their listings should clearly set out their California seller of travel license number as well as any other license information required in other states. It is against eBay policy for travel clearinghouse affiliates, that are not actual agents booking the travel themselves, to list travel auctions on the site. Sellers are required to include the following disclaimer in all listings for travel exactly as it appears below and in a text size and color that can easily be seen and read by all bidders:

“By listing this auction I verify that I am the actual travel agent or travel provider and not a third party affiliate. The travel/accommodations in this auction will be booked directly through me and not an outside agency. I also verify that, other than the government taxes and related government fees stated within the listing description itself, there will be absolutely no additional fees, charges or after auction purchases associated with booking the travel within this listing.”

For travel services other than air or sea travel, businesses and individuals may offer gift certificates or coupons that are issued by a specific provider of travel, such as a gift certificate to a particular hotel. They may not, however, offer travel club memberships or “choice travel” certificates.”

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