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EBay Powersellers
How EBay Powersellers use Dropshipping to Boost Their Profits

Dropshipping is a highly profitable, low-risk, easy to set up method of delivering products to customers. Because you hold no inventory, you preserve valuable capital that you can invest into other areas of your business. This is especially important with eBay businesses, where cash on hand is often limited and can't afford to be tied up in inventory.

How do "The Pros," i.e. powersellers, use dropshipping to boost their profits? Here are a few ways.

==> Launching a New Business

If you're launching a new business, there's no sense in sinking a bunch of money into it before you know if it'll work.

Instead, why not try it through dropshipping? The margins will be slimmer and you may even risk losing money. But you'll be able to prove how much volume you'll be able to generate before you risk cash in inventory.

It's much better to risk 30 cents per sale through dropshipping, than it is to risk $30,000 in inventory by stocking a thousand units.

==> Testing What to Upsell

Let's say you're selling fishing rods. What else should you sell? Hooks? Lines? Sinkers? Books on fishing? Bait boxes?

You never know. And you probably shouldn't buy 500 of each just to test out selling each one.

Instead, establish a dropshipping relationship with your wholesaler and try each of them. It won't cost you anything to figure out which products don't work. Once you find the ones that do, you can continue dropshipping, or order wholesale.

==> Seeing Customer Response for a New Product

Will they love it or hate it? Again, you don't have to take a financial risk to find out.

You can launch new products without risking your hard-earned cash by dropshipping. Read the reviews and talk to your customers to figure out if the product is up to snuff.

Once it's proven it's earning potential, then and only then do you stock up on hard inventory.

==> Testing a Vendor Relationship

Apart from the product itself, dropshipping is a great way to test out a new vendor relationship.

How "on the ball" are they with requests? Do they fulfill dropshipping orders promptly? Do they hassle you about billing before your net 30/60/90 period is up? Do you feel like you have connection and rapport?

It's much better to ferret out any problems in the relationship on a $20 dropshipping relationship than on a $20,000 wholesaling relationship.

These are just a few of the methods that smart eBay powersellers are using to boost their profits. Dropshipping can be a very powerful way of increasing your profits while decreasing your risks. You can use it to launch new businesses, test upsells, test new products and even test a new vendor relationship. You can do all this without tying up any significant amount of cash.


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