How to Set Up an EBay Store
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How to Set Up an EBay Store How to Set Up an EBay Store Document Transcript

  • How to Set Up an EBay Store & Use Drop-Shipping EBay is the biggest E market place that you can find today on the net Starting Out So, you have decided to start an EBay business! Congratulations! Starting an EBay business is perhaps as easy as creating a new email ID. EBay can be a very lucrative marketplace. You need to know that when you build a store on EBay it is not as simple as registering and creating your EBay store pages. There is a lot more involved if you want to achieve success. Before you even go to the EBay website to open your EBay store and build it, you need to know what you are going to sell. However, even that is not enough. You need to know how well your items are going to sell. It's no use going through all the effort of building your store on EBay, and it brings in no sales. For this you do need to do market research and determine what kind of demand there is for your products, what the competition is like, and what competitive pricing would be. The next thing you need to consider is your EBay feedback rating. EBay buyers are very wary of EBay sellers with a very low number of feedbacks against their name. If your EBay id has only a few feedbacks, then spend some time buying and selling items on EBay without an EBay store until you have built up a solid feedback score. Once you've done this, you are ready to build a store on EBay. Once you have a store, the final piece of the puzzle is how to get your product(s) to your customers. One approach is the use of “Drop-Shipping” your products. This approach is discussed in detail in this guide. Nigel Arding
  • How to Set Up an EBay Store and Use Drop-Shipping What is covered in this GUIDE PART 1 – The Store The Advantages of An EBay Store EBay Registration Getting Your Store Up Marketing Your Store Pricing Your Items How to optimize tapping into the 60 million + users on EBay Know the EBay Rules PART 2 – The Drop Shipper How Drop Shipping Works How Wholesale Merchandizing Works Seven Steps Involved in Starting a Drop-Ship E-Business Advantages of Using a Drop-Shipper Disadvantages of using a Drop-Shipper Working with a Drop-Shipper Pricing Items Where to Find Wholesalers Who Drop-Ship Case Studies The Last Word – Things to Watch Out For Resources and References 2
  • How to Set Up an EBay Store and Use Drop-Shipping PART 1 – THE STORE The Advantages of An EBay Store These include cheaper fees, longer listing duration, and much more all for a basic subscription of $15.95 a month. Here are some of the benefits: 1) Cheaper Fees: - The insertion fee for an auction listing on EBay is slightly less than the insertion fee for a buy it now listing. However, the insertion fee for a store listing is quite a bit less. This is the same story for using the gallery feature. If you list your full inventory as EBay store listings, and then your most popular items on the main EBay site as either buy it now or auction style listings you can save money and promote your EBay store. 2) Longer Listing Duration: - The maximum listing duration of a buy it now or auction style listing is ten days. With a store inventory listing you can list for 30 days, 90 days, or Good till Cancelled (the listing renews every 30 days till you cancel it). Not only does this provide the benefit of added value for money, but it also saves you a lot of time. 3) Unlimited Inventory: - When you list an item as an auction or buy it now the insertion fee goes up depending how many items you want to list. When you list in your EBay store the insertion fee remains whether you list 1 item or 1000 items. This will not only save you time but also money. 4) Custom Store Pages: - With a basic EBay store you get 5 custom pages (and even more with anchor and featured stores). These custom pages are useful ways of conveying extra information to your customers. For example the custom pages can be used for a Disclaimer page, a Privacy Policy page, a SPAM Policy page, a Terms and Conditions page, and a Frequently Asked Questions (FAQ) page. However, they can also be used to convey other important information to your customers or to promote one of your products or websites. Having these custom pages available in your EBay store makes you look more professional which in turn generates increased customer trust. 3
  • How to Set Up an EBay Store and Use Drop-Shipping 5) Store Categories: - With an EBay store you get 20 custom categories which you can assign your listings to. This is extremely useful because customers who are looking for a certain type of product will be able to browse by category. If a customer visits my EBay store and only has a general idea of the item that they want, these categories should guide them in the right direction, and then hopefully lead to a sale. Since many people who buy items will be merely browsing, these categories should increase sales and also make your store easier to navigate, meaning customers are more likely to return. 6) Store Cross Promotion: - With an EBay store you can cross-promote your items. This involves a small box appearing at the bottom of your listings promoting some of your other listings. You can do this manually, automatically, or via store category. Doing it by category enables the most relevant listings to appear and so there is more chance of a customer making a repeat purchase. For example, if a customer buys an item and at the bottom of the listing you are promoting 4 more similar items, it is likely that this is something the buyer will be interested in, and so may make another purchase from you. If however, dissimilar items appear, the customer is unlikely to be interested in this, and so is less likely to make a repeat purchase. Repeat business will not only increase your profits but also increase your long-term growth. EBay also has the ability to cross-promote with other sellers. This is very easy to set up and EBay manages the whole process for you. All you have to do is go to the "Cross-Promotion Connections" area of my EBay and then use the request cross- promotions link in order to set them up. If the other seller agrees then a box promoting their products will appear on your listings and vice versa. This is again a valuable opportunity to increase sales. 7) Store Tools: - With an EBay store you get tools such as sales reports, traffic reports, and a basic newsletter tool. The first two tools are very useful for monitoring how your business is growing. The traffic reports shows you your daily traffic for all of your EBay pages, and compare it to the traffic on those pages both 4 weeks prior and 1 year prior. This allows you to monitor both your short term and long-term growth. The sales reports are particularly useful because they incorporate EBay fees and PayPal fees. This means you can see how much actual profit you are making after all fees have been accounted for. 4
  • How to Set Up an EBay Store and Use Drop-Shipping They also show sales growth so you can monitor this also. The newsletter tool whilst basic is also useful. If people opt-in to receive your newsletter then it can automatically be set to send out monthly updates of new items that have been added to your EBay store. This again increases the chance of repeat business. It is particularly useful for sellers who are likely to be adding new products on a regular basis. 8) Store Customizations: - With an EBay store you can customizes the look and feel of the store, making it unique. The ways you can do this include adding a store logo, adding a custom header to all your logos, choosing the layout of your categories and listings, changing the colors, using promotion boxes, and much more. The benefit that this provides is that when customers visit your store it is different and stands out from the rest. This will make them pay more attention to your store, spend more time browsing, and hopefully lead to increased sales and long-term business. 9) Store URL: - When you get an EBay store you get an actual url which you can promote. Not only does this link look much more attractive and professional than the long and clunky View the Sellers Items link, but it also gets listed in the search engines and the EBay stores directory. This means that you will have traffic coming in from outside of EBay also, which is a benefit you do not get without EBay stores. 5
  • How to Set Up an EBay Store and Use Drop-Shipping Anatomy of a Store ( Basic Layout 6
  • How to Set Up an EBay Store and Use Drop-Shipping Advanced Layout Apply these tips now 7
  • How to Set Up an EBay Store and Use Drop-Shipping Design Your Store Display Settings Establish a professional presence by adding your own Store logo, name and description. Create your own brand by selecting a design theme, color scheme and other display settings. Store Categories Help buyers browse your virtual shelves-create and organize up to 300 categories and subcategories for your Store. Custom Pages Build your brand with Custom Pages to create a unique home page, provide a sizing or selection guide, promote special pricing, and more. eBay Stores Design Center Spruce up your Store with the Design Center. Improve your Store’s appearance, or try to build an eye- catching storefront from scratch. Check it out! 8
  • How to Set Up an EBay Store and Use Drop-Shipping Promotion Boxes Grab buyer interest and spur add-on sales by highlighting special offers, email newsletters, Sales, Auctions and more with customizable Promotion Boxes. Countdown Slideshow Custom Store Header Use this simple tool to create a more professional looking Store in minutes. Choose from four templates that promote and highlight your featured items in your Store Header. 9
  • How to Set Up an EBay Store and Use Drop-Shipping EBay Registration To register on EBay, you first find the registration forms’ page. ( The registration requires your contact details including your email and home address. You are required to accept certain terms and conditions of using EBay which also sets out the site’s privacy policies. The conditions also give EBay privileges to contact you. Tell us about yourself - All fields are required First name Last name Street address City State / Province -Select- ZIP / Postal code Country or region United States Primary telephone number - - ext.: Email address Re-enter email address 10
  • How to Set Up an EBay Store and Use Drop-Shipping EBay has a very strict privacy policy, so there is no worry that your private information would be anyway compromised. Your privacy is important to us eBay does not rent or sell your personal information to third parties without your consent. To learn more, read our privacy policy. Your address will be used for shipping your purchase or receiving payment from buyers. Create a themed identity and security for your EBay business. Choose an ID which relates your products. Remember, theme your products and you will be viewed as an authority EBay seller. Choose a hard-to-crack password so that no one else can later access your store and your confidential business data. Set a secret question so that you can retrieve your password, just in case. Use the hint provided there or just be innovative to set this question. Choose your user ID and password - All fields are required Create your eBay user ID Use letters or numbers, but not symbols. Learn more about creating great user IDs. Create your password Re-enter your password Use 6 or more characters or numbers. How to choose a secure password. Pick a secret question Select your secret question... Your secret answer If you forget your password, we'll verify your identity with your secret question Date of birth --Month-- --Day-- Year You must be at least 18 years old to use eBay. 11
  • How to Set Up an EBay Store and Use Drop-Shipping The not-so-fine print For added security, please enter the verification code hidden in the image. Refresh the image | Listen to the verification code I agree that: • I accept the User Agreement and Privacy Policy. • I may receive communications from eBay and can change my notification preferences in My eBay. • I'm at least 18 years old. Register There you go, you have just completed setting up your EBay account. EBay will now want you to verify contact details by asking you to respond to an email sent instantly. This is a one time affair; because email is the easiest and primary communication channel between you the seller and the buyer, EBay insists that sellers provide correct email IDs. You can easily understand the obvious reason behind this important step. The verification mail contains a hyperlink and clicking it will confirm your email as provided as being correct. Getting Your Store UP ( Now, how do you arrange your pages? The SELL link on every EBay page is an easy to finish page. It guides you step-by-step as to how to upload your merchandize details such as description, photos (up to 3 photos free), title and subcategory etc. You can choose a designer storefront from the available templates for greater effect. Best advice is to just follow the flow and order. However, there are a few basic rules you must follow when creating your EBay template. 12
  • How to Set Up an EBay Store and Use Drop-Shipping Marketing Your Store ( Once you reached the point of building your store on EBay, then you cannot sit back and wait for sales. You might wait forever and get zero sales. This is the time that you need to jump in and furiously market and promote your EBay store. There are several ways to do this. 1) Have regular EBay auction listings that appear in the EBay searches. Always include a link to your EBay store in those auction listings. 2) Put out a press release, which you can do free of charge on several websites. 3) Advertise in your local community via flyers, business cards and classified ads. 4) Start your own blog where you write about topics relevant to your EBay store and types of products that you sell. You would then include several links back to your EBay store from your blog. Building a store on EBay involves much more than following the step-by-step instructions on the EBay website. That is the easiest and quickest part of building your EBay store. Most work and the secret to your success lies in what you do before and after you have built your store. Pricing Your Items One of the most common mistakes made is pricing items without taking into account the fees that are involved in completing a transaction. Making a profit on every sale is the ultimate goal, so use the following formula:- Wholesale cost + Shipping Fee + Drop-ship Fee + Profit you desire to make = Preliminary price Preliminary price + 15% = Sale price 13
  • How to Set Up an EBay Store and Use Drop-Shipping It is necessary to add at least 15% to your preliminary price to cover your Paypal fee for payment received and you EBay listing fees and final value fees. Once the additional fees of making a sale are known, the 15% amount can be fine tuned. Having decided on a total sale price, deciding how to break it up is the next step. For example, if your total sale price is going to be $75 you can list the item for $60 with $15 shipping. Use your common sense when deciding how to proceed. Some other things to consider when pricing an item:- Lower item prices are attractive to buyers but outrageous shipping costs will kill your sales. Search for similar items on EBay to see how other sellers are pricing their items and shipping. Some things to think about when selling an item:- Take the time to optimize your listing title. A good title states clearly and concisely what the item is, what condition it is in and if you can squeeze it in, it is a huge bonus to add the MSRP to the title-- especially on items that you can offer a substantial discount. For example: Dyonics D3 Medical Digital Camera w/ extras! NEW! MSRP - $1400 +2GB Bonus Memory Card. FREE shipping! 50% off retail! $699 Set selling prices such as ‘start price’ and either/both of ‘reserve’ and ‘buy now’ prices. Be careful with this; check the EBay guides if unsure. Equally important are offering different payment options, shipping details, and estimated cost of shipping/handling and any other information which is vital for a smooth transaction. Learn some of the common EBay Price Listing Strategies and you will be a long way ahead of your competitors! 14
  • How to Set Up an EBay Store and Use Drop-Shipping Once pricing and titles have been set, you are ready to start driving traffic to your EBay listings. How to optimize tapping into the 60 million plus users on EBay. The wonderful thing about EBay is that you don't have to worry about where to find potential customers as there are already millions of customers at your disposal every day. Optimize your listings and take advantage of a few key insider secrets to drive EBayers to your listings again and again. Review your listings individually and do the following: 1. Spend time on this crucial area. If there is not enough space in the title field to include the necessary information, then add a subtitle. Items with subtitles are more likely to sell. 2. Add a gallery preview photo to your listing. Very Important - items with gallery previews are 35% more likely to sell. 3. If appropriate, use the listing designer to enhance your listing. The more professional the listing looks the more likely you are to win the sale over a competitor who has a dull presentation. 4. Clearly state your return policy! Potential buyers are more likely to purchase if there is a return policy available. 5. Offer combined shipping discounts and clearly state the details in your auction details. 6. Use EBays cross promotion tools to gain exposure for all your listings every time someone views one of your products. This is accomplished by adding a window to the bottom of your listings that constantly scrolls through your other items for sale. The settings are highly customizable to suit your style and needs and it is very easy to set up through EBay. 7. End your listings on Wednesday or Sunday evenings. Statistically items ending on these nights have a higher sale rate since this is when consumers are typically home and using EBay, and buyers love to snatch up items that are ending soon. 15
  • How to Set Up an EBay Store and Use Drop-Shipping 8. Select one or two hot items to send to auction or fixed price. Add a subtitle to those auctions that advertises your EBay store. For example if you are selling handbags send two to fixed price with a subtitle that reads "Many more great deals on handbags at my EBay store". 9. Utilize the ‘Markdown Manager’ tool to create sales on items according to your parameters. Buyers love to see a discount and this will greatly increase your store sales. Know the EBay rules Fees Duration Store Inventory Custom Pages Store Categories Store Tools Store Customization Store Url Title, Gallery Preview, Enhance listing, Return policy, shipping discounts etc, etc Useful Links Track Your Success Store Checklist Tutorials Store Design Centre 16
  • How to Set Up an EBay Store and Use Drop-Shipping PART 2 – THE DROP-SHIPPER Understanding what it is to be a Wholesale Distributor will help you to a better understanding of Drop-Shipping. How Drop-Shipping Works: • A Drop-Ship distributor is a wholesale company that will ship one product at a time directly to your customer. • You don't pay up front for inventory. In fact, you don't pay for an item unless it sells. • You don't stock or ship merchandise. It's all done for you by the drop- shipper. • You simply place an ad in your EBay store, then take orders. • When someone buys the product at your auction they pay you for the product. • You pay the drop-shipper and they ship the product to your customer under your name! • You pay the cost of the item (say $5) which sells for $25 and keep all the profit for yourself - $20! How Wholesale Merchandising works: • You find a wholesale company that will supply you with quality products at wholesale prices. • You purchase only the products you want at wholesale prices and sell them for retail, with as much as a 70% markup. Millions of dollars are made every year with wholesale merchandising! The idea of wholesale distributors has been a marketing tool for a very long time. Companies like the Fuller Brush Company, Sears, Montgomery Wards and J.C. Penny's started the basis of wholesale distributors and especially the idea of drop shipping. Wholesale Products are vastly growing on the internet and becoming one of the leading ways of owning a own business without having to have money, building, and product. 17
  • How to Set Up an EBay Store and Use Drop-Shipping Having a virtual store with a large inventory, without buying one product and the merchandise delivered instantly without anyone from your company getting involved is very compelling. Now you need to get your creative juices working and do some research to find out what you want to do in the wholesale business! Seven Steps Involved in Starting a Drop-Ship E-Business: Step 1: Choose a product to sell. The very first step in any sales process is deciding what product to sell. Many factors should be considered before you make the decision, but for now, let's say that you've decided to sell MP3 players on EBay. Step 2: Locate a supplier who will Drop-Ship for you. You can search on the internet and there are some suggested companies to be found later on in this guide. Make sure you do a good job of researching as you do not want to end up with a company who takes your money and doesn’t deliver your orders on time and without incident. Having found a reputable company, if they offer you a 35 percent markup over cost, which means that they will supply the MP3 players to you for $100 each, then you should be able to retail them for $145 a piece. Make sure the drop-shipper has a good stock of MP3 players on hand so you don't end up selling a product that must be back-ordered. Step 3: Set up an account with the drop-shipper. Now it's time to set up a reseller account with the company that will supply the MP3 players. This can often be done online or by phone, but some companies will require that you complete and return a reseller application to open an account. Some may also require a tax ID and a business license. Step 4: Advertise the product for sale on your EBay store. Now that you have your supplier lined up and you know that the product is in stock, it's time to make a sale. That means it's time to advertise the product using an EBay auction. 18
  • How to Set Up an EBay Store and Use Drop-Shipping Since you know what you must pay the drop-shipper for the product, you also know what minimum amount you will take for the product. In this case, you could start your auction at just over $100, since that is your cost (with selling fees included). If you are confident that you can get more than $100 for the product, you can start with a lower price, but remember that if the product goes for less than what it costs you to fill the order, you will lose money. Also remember that the drop-shipper will charge shipping, so make sure to figure that into your sale. Step 5: The product sells. Great news—your MP3 player has sold for $145, and your customer pays you with a PayPal instant payment. This method of payment allows the customer to pay you faster, which lets you place the order with the drop-shipper faster, which gets the product to your customer faster. Step 6: Place the order with the drop-shipper. Once your customer pays you, you should contact the drop-shipper immediately to order the product on your customer's behalf. The drop-shipper then ships the order to your customer under your company name and address. Step 7: Follow up after the sale. This is where many new e-business entrepreneurs drop the ball. Just because your customer has paid you and you've placed the order with the drop-shipper, does not mean that you are out of the loop. Quite the contrary: If there are problems with the order, you are the one that will be held responsible in the eyes of your customer. It's best to be proactive in your customer relations. Follow up with customers to let them know when a specific item has been shipped. Offer yourself as the personal contact for any issues that may arise. This is also a great way to sell customers more products. Invite them to check out your EBay store. 19
  • How to Set Up an EBay Store and Use Drop-Shipping Advantages of Using a Drop-Shipper The drop shipper is responsible for packaging, labeling, and shipping the products that you sell through EBay, allowing you much more time to set up more auctions, for greater profits. There is essentially minimal financial risk involved – You get paid before you actually order a product and you don’t have to make a large capital investment to have access to inventory A wide variety of products can be offered in your EBay store, without the need to warehouse these products! There is no need to carry packages to a shipper. Disadvantage of Using a Drop-Shipper There is less profit involved compared to supplying and shipping the product yourself. A financial risk from the occasional return, or non-payment. Negative feedback from customers if their purchased product is not delivered when it is supposed to be delivered, due to a product shortage from the Drop-Shipper Fees involved – some Drop-Shippers may charge a sign up fee. There maybe processing fees and shipping & handling fees (although these fees can be built into the selling price of a product) Working with a Drop-Shipper If you can, establish a good working relationship with several drop shipping companies. In the beginning, most Drop-Ship companies will require that products are paid for upfront – say with a credit card – before they are shipped to your customers. Once you have developed trust and a good financial track record, the drop shipper will fill your orders for you, and then bill you later. 20
  • How to Set Up an EBay Store and Use Drop-Shipping Pricing Items After setting up your EBay auctions, set your reserve price for the items higher than the price that the drop shipper will be charging you for the products. The higher price insures you earn a profit, because that is what it is all about! The idea, of course, is to earn a profit, but at least try to break even until you become more experienced at selling through drop-shippers. Where to Find Wholesalers who Drop-Ship Here are a few companies that you might consider working with Salehoo ( In the database of Salehoo there are more then 5437 wholesalers that can get you the cheapest merchandise, which you can sell on EBay for a higher price. You will be able to get from those wholesalers good quality expensive products, cheap. The Salehoo database also lists suppliers in more then 150 different categories. From jewelry, electronics, art, to home and family products. Even if you can't find what you were looking for, once you are a member of Salehoo, the company will look for the product you need. Salehoo has suppliers of real brand names like Gucci, Prada, Dolce & Gebana, Polo, Versace, and more. Once you are a member you get: Help and support with selling on EBay Full technical support while using the website Access to a members forum exclusive only for the members, where ideas can be shared or obtain more information from real people A variety of searching options in the database Real live feedback on the wholesalers and drop shippers selling's and quality of their products. 21
  • How to Set Up an EBay Store and Use Drop-Shipping World Wide Brands ( A low one-time fee gives you lifetime membership to: Over 8,000 pre- screened wholesale suppliers & drop shippers. Each one has been carefully verified, so you know you’re getting only quality products at genuine wholesale prices. Built-in market research that helps pick profitable products and avoids wasting time on money loosing products ‘The Whole Sale’ training series demystifies finding products to sell and answers: ‘What to Sell Online, Where to Get It, and How to Sell It’ A Member Forum with support and guidance from other sellers & Worldwide Brands’ Ongoing bonuses. From buyer trends to marketing, constant access to new resources that can boost your profits (2 ‘example’ bonuses: first 6 months selling on Yahoo! is Free! That’s a $790 value! AND first 2 months Selling on Amazon is also free! An $80 value! This is an opportunity to find real wholesale sources, including small bulk lots and drop-shippers. Also learn about product sourcing so you can profit from a professionally run business. Doba ( Doba claim to be the only drop ship solution certified by eBay® and offer a 7 day free trial to use their services a summary of their features follows:- eBay Certified eBay Live! speaker Lowest Price Guarantee eBay Auctions integrated eBay Stores integrated Free trial available Instant product access Offer blind drop shipping Product data feeds Premium education 5+ years in business 22
  • How to Set Up an EBay Store and Use Drop-Shipping Case Studies All products of case studies below could be personalized and drop shipped by Cherry Press ( This means that you can start making great profits with their reseller program, like other EBay sellers shown below. Drop-Ship made easy and effortless with no shipping or Drop- Ship fees. The most important thing is that the case studies will help you to learn how profitable of these EBay sellers are. Take a closer look and see which business model might match your situation. EBay Seller 1 Sells personalized watches Listings finished per day 50 Sold 12 pieces per day @ $18.46 ($9.99 Total Sales:- $221.52 + $8.47 – item price and shipping cost) PayPal and EBay Commissions 10% of Total Sales - $22.15 Cost of EBay Fees (0.4 insert fee + 0.35 50 x 0.75 = $37.50 Gallery fee) Cost of Reseller Price 12 X 6.99 = $83.88 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $221.52 - $22.15 – 37.50 - $83.88 = $77.99 Net Profit Monthly $2339.70 EBay Seller 2 Sells personalized photo wall clocks Listings finished per day 130 Sold 25 pieces per day @ $21.94 ($15.99 Total Sales:- $548.50 item + $5.95 shipping) PayPal and EBay Commissions 10% of Total Sales - $54.85 Cost of EBay Fees (0.6 insert fee + 0.35 130 x 0.95 = $123.50 Gallery fee) Cost of Reseller Price 25 X 10.99 = $274.75 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $548.50 - $54.85 – 123.50 - $274.75 = $95.40 Net Profit Monthly $2862.00 23
  • How to Set Up an EBay Store and Use Drop-Shipping EBay Seller 3 Sells personalized photo Italian Charms Listings finished per day 100 Sold 60 pieces per day @ $4.00 ($3 item Total Sales:- $240.00 + $1 shipping) PayPal and EBay Commissions 10% of Total Sales - $24.00 Cost of EBay Fees (0.35 insert fee + 0.35 100 x 0.7 = $70.00 Gallery fee) Cost of Reseller Price 60 X 1.00 = $60.00 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $240.00 - $24.00 – 70.00 - $60.00 = $86.00 Net Profit Monthly $2580.00 EBay Seller 4 Sells personalized T Shirts Listings finished per day 150 Sold 30 pieces per day @ $17.94 ($11.99 Total Sales:- $538.20 item + $5.95 shipping) PayPal and EBay Commissions 10% of Total Sales - $53.82 Cost of EBay Fees (0.35 insert fee + 0.35 150 x 0.7 = $105.00 Gallery fee) Cost of Reseller Price 30 X 10.50 = $315.00 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $538.20 - $53.82 – 105.00 - $315.00 = $64.38 Net Profit Monthly $1931.40 EBay Seller 5 Sells personalized Photo Dog Tags Listings finished per day 50 Sold 15 pieces per day @ $9.98 ($5.99 Total Sales:- $149.70 item + $3.99 shipping) PayPal and EBay Commissions 10% of Total Sales - $14.97 Cost of EBay Fees (0.35 insert fee – no 50 x 0.35 = $17.50 gallery fees) Cost of Reseller Price 15 X 4.99 = $74.85 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $149.70 - $14.97 – 17.50 - $74.85 = $42.38 Net Profit Monthly $1271.40 24
  • How to Set Up an EBay Store and Use Drop-Shipping EBay Seller 6 Sells personalized Photo Button Earrings Listings finished per day 50 Sold 25 pieces per day @ $5.70 ($4.20 Total Sales:- $142.50 item + $1.50 shipping) PayPal and EBay Commissions 10% of Total Sales - $14.25 Cost of EBay Fees (0.35 insert fee + 0.35 50 x 0.70 = $35.00 gallery fees) Cost of Reseller Price 25 X 1.50 = $37.50 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $142.50 - $14.25 – 35.00 - $37.50 = $55.75 Net Profit Monthly $1672.50 EBay Seller 7 Sells personalized License Plates Frames Listings finished per day 75 Sold 15 pieces per day @ $14.74 ($10.99 Total Sales:- $221.10 item + $3.75 shipping) PayPal and EBay Commissions 10% of Total Sales - $22.11 Cost of EBay Fees (0.35 insert fee + 0.15 75 x 0.50 = $37.50 half of gallery fees) Cost of Reseller Price 15 X 7.99 = $119.85 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $221.10 - $22.11 – 37.50 - $119.85 = $56.64 Net Profit Monthly $1699.20 EBay Seller 8 (Spends 10 minutes a Sells personalized Mouse Pads and day) Coasters Listings finished per day 2 Sold 6 pieces per day @ $8.90 ($5.95 Total Sales:- $53.40 item + $2.95 shipping) PayPal and EBay Commissions 15% of Total Sales - $8.00 Cost of EBay Fees (0.35 insert fee + 0.35 2 x 0.70 = $1.40 gallery fees) Cost of Reseller Price 6 X 2.95 = $17.70 Cost of Shipping and Drop Ship Fees $0 Net Profits per Day $53.40 - $8.00 – 1.40 - $17.70 = $26.30 Net Profit Monthly $789.00 25
  • How to Set Up an EBay Store and Use Drop-Shipping The Last Word - Things to Watch Out For It is critical that the shipping is on time and there are no damages to the item upon arrival. To succeed in the drop shipping business you have to search for items that are difficult to find and that everyone is looking for. Do not go for products that have lots of competition on EBay. Therefore, you might want to monitor the EBay auction listings from time to time to test the waters. Make sure your drop shipper has stock of an item you are trying to sell on EBay. Remember, your customer will think you have that product in your inventory because it says so on your site. You could get into trouble if your customers are not getting what they are expecting. It is therefore very important to exercise your due diligence on the drop shipping company you decide to use. Ask yourself is there a large enough market for your products? Watch out for the Drop Ship Warehouse Companies known as aggregators. These companies are basically middlemen and list products in a virtual warehouse but don't really have any products in stock. In general, these companies make their money from membership fees or handling fees. When you order something from them, they order it from the real wholesaler, mark up the cost and/or charge you a fee. Resources and Useful Links The following link provides you a free ebook called “EBay Drop Ship Profits” You can locate drop shippers with a new digital directory The Ultimate Drop- Ship & Wholesale Company Directory. 26