The wide popularity enjoyed by eBay stores has been an inspiration to many a people to start home business by opening an eBay store. Entrepreneurs looking towards a no-investment and no-inventory business but still want to do business through an e-bay store could use drop ship business model to start and prosper.
Drop shipping has gained in leaps ad bounds over the past few years making many a successes out of small and home businesses without the headache of stocks and inventory. eBay and drop ship have grown from strength to strength and have become inseparable in many was for most businessmen.
The following steps and their understanding could keep you in good stead to understand and begin a successful drop ship business using an eBay store front.
1. Choosing the right product to sell is of primary importance. A lot of sub factors are involved her like the profile of your target customers, your self interest areas and selling niches, profitability, usefulness of the product etc. The quality of the product, support system of the manufacturer and the sales statistics of various auction sites need to be taken into consideration too.
2. The next important step is to locate a drop ship supplier who will give you full support for sales and service. A lot of tools are available over the internet to facilitate this. Compare the product prices with more than one drop ship suppliers to make sure you are getting the right markups.
3. After you locate your favorite drop ship agent, set up your account with him. Various drop shippers need various kinds of paperwork. Do the needful and set up the account.
4. Begin advertising your products on eBay. Advertise and put up an auction beginning at your cost price. Make sure you sell or close the auction at a price that is your cost price and shipping unless you are charging shipping extra to the buyer.
5. After you get the right buyer for your price, make sure you have a payment gateway setup to accept payments. Payment gateway like PayPal is a preferred option since these will facilitate a buyer to pay you instantly and you need not waste any time in forwarding the order to your drop shipper.
6. Place the order with the drop shipper on behalf of the customer. The drop shipper will ship the product directly to the buyer on your behalf, using your sender details as informed to the drop shipper.
7. Follow up your sale with the buyer. This is extremely important since you are responsible for the product reaching the buyer, not the drop shipper. Make sure the buyer informs you when he receives the material. Many new entrepreneurs have gone bust because of poor after sales service or follow-ups.
Always maintain good customer relations. This is the key to successful online business since it builds goodwill and contributes to repeat orders. In the electronic market place, where physical interactions are missing, the important points of honesty, body language and human relations do not exist. So the importance of goodwill is all the more underlined. Keep in touch with your customers by inviting them to your eBay store front and keep them interested by changing it now and then to keep them abreast.
The internet has a collection of many horror stories relating to drop shipping. These involve a lot of middlemen posing as drop shippers offering hyped rates, collecting money and then going bust, never to be found. People have lately become skeptical in dealing with drop shippers. But all lockers do have rattling skeletons. Dont let these issues bother you, since your presence for a long time and offers of unparalleled customer service will always keep you in good stead and make you prosper in your eBay drop ship business.