Drop shipping on eBay is one of the most common ways to sell on eBay. It's very simple to get into, and the upfront cost is very little. For those of you who don't already know drop shipping is just another way to get eBay products. The idea is that you would join a drop shipping company and you would in return get thousands of products at wholesale price to sell online, or on eBay. If you were going to sell them on eBay you would list whatever it is you want to sell before you buy it. That is the best feature of drop shipping, you never have to buy eBay products up front. You only buy what you have already sold.

Once your item sells, you go to your drop shipping company and order the eBay product that you have already sold. With most drop shipping companies, you can pay for the item through PayPal. So you take the money that the buyer sent to your PayPal account to purchase the item, then you keep whatever is left over as profit for yourself. Then there is the next greatest feature of drop shipping. The drop shipping company will ship the item straight to your buyer, so you never have to do any shipping or packaging yourself. So it's no wonder that drop shipping is so popular among eBay sellers.

As easy as it sounds to use the technique to make money on eBay, it really isn't that easy. It takes a lot of work, and a lot of research. Many people don't have the right mindset to sell this way on eBay. It isn't as easy as just signing up for a drop shipping company and then throwing stuff up on eBay; that just won't work.

The first, and most important thing to understand about drop shipping is to realize that you are not going to get anywhere unless you find a GOOD drop shipping company. The majority of the drop shipping companies are complete rip offs. I have joined a few myself, and I must confess that I have had my share of getting ripped off by these companies. I guess that is what I developed my eBay Mysteries website for though; to make sure that other people don't have to make the same mistakes as I have in my dealing with eBay.

Things to look for to find a good drop shipping company

Money-Back guarantee. Make sure the company offers a money back guarantee, so if you don't like what you get from the service you can get your money back. You deserve to know what the service is like, before you get stuck with it.

Phone Support. Make sure there is good customer service and phone support. Many drop shipping companies don't have phone support and have terrible customer service. Never go with a company that has no phone service.

Good wholesale prices. The prices for the products will not be as cheap as large bulk wholesale suppliers, but they should definitely be cheaper then your local retail store. (Remember, do the research)

Fast Shipping. Make sure the products will get shipped in a reasonable time. I had a drop shipping company one time that took an average of two weeks before they even shipped the item out.

Quality Products. Make sure the products you are going to be selling are brand named products. Sounds simple, but you would be surprised.

United States Based. For those of you who are from the United States, and are primarily targeting US customers, make sure the company is based in the United States.

The next most important part of running a successful business on eBay using drop shipping would be to find your niche. Like I said before, don't go and just throw stuff up on eBay hoping to make a quick buck. It takes time, and work. Once you get it going, it takes very little work and a minimal effort. Until you get to that point, expect to be doing some work. Now lets back up a little bit, I mentioned not throwing just anything up on eBay a couple times already. What you do want to do is pick a category to sell in, and stick to it. I wouldn't suggest going into consumer electronics either, because it's way to crowded and you won't be very successful. Stick to what you know and love. If you don't know anything, then learn. Pick something that you enjoy and become an expert of your field. For example, if you enjoy poker the way that I do, you may want to consider selling poker supplies. Whatever it is, just stick to that and offer the best products and services. You will be much more successful taking this route.

Although drop shipping is one of the most popular ways to go, and can be a competitive field on eBay it is still a good way to go. Many more people end up giving up before they even have a chance to do well, then those who succeed. If you have what it takes to do well with drop shipping, then you can create a good source of income using drop shipping companies.

Recommended Dropshipping Companies

Dropshipping Wholesalers
~ Check this one out if you are looking for strictly dropshipping, and would like to have your own website. Not a bad choice of dropshipping.

The Ultimate eBay Dropship Power Pack
~ This is recommended if you are looking for a great deal. Very affordable. Perfect for a beginner.

OneSource~ This is by far the best way to go in dropshipping. Not only do you get access to hundreds of dropshipping companies, but also light-bulk wholesalers, large volume wholesalers, liquidation wholesalers, instant import buys, and liquidation auctions. They also have great customer support, and several market research tools. If there is any interest in dropshipping, or any kind of selling wholesale products, you must check this one out.