Sell a unique product! This may seem obvious, but it is still common to see pages and pages of auctions on eBay selling the exact same mobile phone.  For some cell phone models there are virtually no profits to be made for entry-level drop shippers, simply because the price has been driven down so low.  Don’t sell these types of products!  If you are just starting out, you will never be able to compete with the bulk prices of power sellers.  It is better to do the research first to find out which products are in short supply.  This will allow you to mark up the price on that product, netting yourself a nice profit.  You can easily do research on eBay to see the number of sellers currently offering a certain product.  However, this can be overwhelming given the multitude of products available on eBay.  Another way to find products that may be in high demand is to check SaleHoo’s Research and Analysis Lab.  This site allows you to see the potential success rate of selling specific products.  In addition, it will suggest related niches that might be profitable, and recommend e-commerce sites that have a limited supply of certain items.

Double-check your supplier’s stock. Back orders can kill a sellers feedback rating faster than a scam artist hacking your account.  This occurs when you sell an item online that your supplier does not currently have in stock.  If you are drop shipping exclusively (and have no stock yourself), this can seriously delay delivery of the product that your buyer is expecting.  Don’t let this happen to you!  Make sure to check ahead of time to ensure that your auction items are currently in stock, and have a backup supplier just in case.  This will allow you to complete orders in a timely manner, resulting in a high feedback rating, more buyers, and more profit.

Take advantage of all the e-commerce options. Apart from eBay, there are plenty of other sites available to sell goods online.  Amazon, Craigslist, and Bonanzle are all viable competitors to eBay, and you may find that some products auction for very different prices depending on the site.  Some items that are in constant supply on one site may be rare on another.  Finding which products are most scarce on each website will allow you to maximize your drop shipping profit margin.

Related posts:

1. Good and Bad Points of Drop Ship Wholesale
2. Shopster.com Online Selling Platform – Is It Worth Spending Time on?
3. How to Save Money on Shipping Costs When Buying Wholesale Online

1. eBay.com

The largest online site, consumers know they can buy just about anything on eBay.  Whatever you are selling, it is cheap (only small listing fee and a success fee on items sold are charged) and easy to advertise on eBay.  This site is primarily frequented by Americans, and is therefore probably your best bet for selling goods in the United States.  However, it is also used by people all over the world.  You can advertise goods for a set price, or allow users to bid on the price of your goods.

2. Craigslist.com

Craigslist is another great site for selling any type of good or service imaginable.  The advantage of Craigslist is that your buyers know that you are local.  You can choose the city that you are in and advertise your goods for free.  This instills confidence in buyers, as they know that you are a local retailer.

3. Start your own site

If you would rather not go with the giant Internet advertising websites listed in the other top 5, it is a great idea to start your own website.  While this does require some time and technical expertise, it has the benefit of setting you apart from other online retailers.  You can create your own look and feel on this website, basically creating your own store front online.  You sacrifice the amount of traffic (hits per day) that larger websites provide, but in time may get more purchases per hit if your website and products gain credibility.

4. Oztion.com.au

An eBay competitor, this is an online auction site for retailers in Australia.  This site is dedicated to those selling goods down under, and is a valid alternative to eBay.  If your business is located in Australia, advertising on both eBay and Oztion is probably your best bet.

5. eBid.net

Ebid.net is making a name for itself as a legitimately free advertising site.  While it gets less traffic than, for instance, eBay, they charge no listing fees or final value fees.  On this site, you can also choose your country of origin, and sell to domestic consumers.  This, like on Craigslist, ensures consumers that you are a local retailer.

Related posts:

1. Sick of Ebay? Try out Bonanzle
2. Shopster.com Online Selling Platform – Is It Worth Spending Time on?
3. Ways to Maximize Your Drop Shipping Profit Margins