Product Drop Shipping

Everyday there is a certain number of people who see others making money by selling on eBay and they wonder to themselves how so many people can be so successful on the same website. There are visions of thousands of warehouses all over the world full of products that people sell on eBay and the notion that all of these people must run their own warehouse, and pay a great deal of money to stock those warehouses, is one of the main things that keep people from trying the eBay experience. The truth is that most of those eBay sellers do not stock their own products and they do not maintain their own warehouse at all. Most of those sellers you see on eBay engage in what is called product drop shipping and it is a service anyone can get started in at no cost at all. Much information is available online for dropship prostores.

To understand how product drop shipping works you first must understand how most of the products you buy on eBay get from the seller to your front door. The seller purchases their products from someone called a wholesaler. Ever since the advent and success of eBay there have been many wholesalers that have sprung up all over the world and what a wholesaler does is they maintain a relationship directly with manufacturers and then they sell to their retailers at discounted prices. The sellers on eBay are the retailers and the eBay sellers add a profit to the cost they are charged by the wholesalers and that is what you wind up paying. The seller never sees the product and never handles it, it is handled by the wholesaler who packages and ships the product for the retailer and will even put the retailer's name on the paperwork you receive as well. The retailer is happy because you think they got you the product fast, you are happy because you got your product, and the drop ship wholesaler is happy because they sold and shipped product.

The wholesaler or dropshipper usually enters into agreements with manufacturers that they will only sell to retailers and will not sell to end users. This is why there is a level of trust between the wholesaler and the retailer. The wholesaler needs an army of retailers to help them move product and the retailers need to know that the wholesalers will not suddenly appear on eBay selling product at the cost they are charging the retailers. So the wholesaler is in the warehousing business and they are the ones that do the product drop shipping for the retailer and that is how product gets from so many different sellers on eBay to your front door.