Many eBay sellers have great success with drop shipping while others do not. Drop shipping requires constant research and staying ahead of the curve with seasonal products, and new products on the market. eBay is a unique environment to sell any product, and drop shipped products are no different.
The first pitfall to avoid is using the drop shipper or supplier’s item title. The title in the product catalog will not be optimized for eBay. In order for your product to appear in eBay searches, the title must be optimized for eBay. For example, let’s say you find a steak knife set that is profitable to sell. The title in the product catalog may read, “6 Piece Knife Set.” To optimize the title to read, “NEW Henckles 6 piece steak knife set with block.” By writing the title in a way that it will be returned in different searches, you are increasing the visibility of your item.
The second pitfall of drop shipping is failure to do research before pricing the item. Unsuccessful eBay sellers often assume that they should just mark up the item a certain percentage. This strategy does not work. Pricing an item to sell on eBay requires researching the price that other sellers are offering, and studying historical results of sales. To be successful selling the item and making a profit, you must determine at what price point the item will sell and if the market is already oversaturated with the product. Assigning an arbitrary price to an item is not a successful selling strategy.
The third mistake to avoid is failure to learn about the supplier. Remember that you will be turning your business over to a third party to fulfill your orders. What percentage of orders are successfully filled? Does the supplier accept returns if the buyer is not happy? What carrier does the supplier use to ship orders? All of these issues must be considered before you put your business in the hands of a drop shipper.
In summary, drop shipping can be a successful venture if you do the proper research and understand the process. Do your homework, ask the right questions, and take your time finding the right drop shipper for your eBay business. For more information about eBay selling, visit the eBay Coach blog.