It is possible to make money on eBay by selecting the right dropship supplier. There is research involved in finding just that right supplier, however. This is the final article in a 4 part article series that covers methods for screening prospective companies to find just the right one for your business.
1) Is there a charge for establishing an account with the dropshipper? Many dropship suppliers charge an upfront fee. Often the fee is required before you can even see the full line of products and the costs associated with purchasing those products for shipment to your buyers. There are many, many reputable suppliers that provide all of the preliminary information without charging an upfront fee. Don’t pay hundreds of dollars to find out whether a supplier is even an option for you. There are even more suppliers that do not charge you an upfront fee to use their service.
2) Does the dropshipping supplier use other companies as a part of its service? (Using brokers and others in the middle adds to the cost and should be avoided if possible.) There are too many challenges to this type of arrangement. First are the extra costs as noted. Second are the delays associated with you paying a dropship supplier, and then that dropship supplier communicating and paying someone else to ship the product. If you choose to become involved in this type of arrangement be sure you are comfortable there will not be long delays in shipment. Also be sure you are comfortable that out of stock and back order problems will not become unmanageable. After all, to make money on eBay requires that you have extremely happy customers who receive their products promptly after buying and paying for them.
3) Guarantees. Are manufacturer/other product guarantees still valid when using this dropshipper? Be sure you understand the exact guarantee process. Do manufacturer guarantees remain valid? Does the dropship supplier offer any guarantees? How are problems handled? Understand the process, and the timeline for resolving any customer issues and concerns. Remember; your business success demands that all issues be addressed in a satisfactory manner - promptly.
4) Is the inventory stated by the dropship supplier updated and accurate at all times? If you have access to an accurate, real-time product inventory you can minimize many issues. For example, if there is a sudden run on a product that you have listed and there is a risk the dropship company inventory will be at zero by the time your auction is complete you do have options. Those options include cancelling the auction, pre-purchasing the product or locating a backup supplier. Without real-time inventory these options cannot be worked in advance of making the sale which jeopardizes your chance to make money on eBay.
To Your eBay Success!
Find out how you can make money on eBay.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer. 
http://www.marketingsuccesscenter.com
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