Many people are starting their own online business due to the growing online market and low startup costs. This is why increasing numbers of people around the world are starting home based businesses every day.

To be successful in an online business, it’s essential to find a good drop shipping company that can provide you with high demand products. This is where most people take the wrong route.

Drop shipping companies are really important if you want to be successful doing an online business. However, there are plenty of drop shipping companies available on the Internet that are actually scams. It is very difficult to identify them unless you have done proper research. It is important to verify whether they have a written policy and what their policy actually means. If you are not careful, they can easily take advantage of your business.

Too Many Ebay Sellers and Scams

Now, you may be shocked to learn that eBay can be one of the most dangerous places to sell your products on. Most people think otherwise and use eBay to start a drop shipping business. Ebay should be avoided. The reason is simple; there are too many people selling products on Ebay, from housewives to big reputable companies. With so many people drop shipping the same products, your business might be invisible.

You should remember that the biggest expense on your part here is the customer acquisition cost. In reality, you have to spend a lot of money for Ebay listings, for the photography, ads and more. Apart from their fees, using eBay consumes too much time. After all this effort, you end up giving away your customer information to the fulfillment center. Some drop shippers might even include their ad in their own parcel.

As you can see, dangers arise when dealing with Ebay. There are many Ebay sellers using fulfillment companies and these fulfillment companies in turn upsell to your own customers. You don’t want that to happen. This is why you have to ensure that the company has a written policy that clarifies these points clearly. Make sure, you find a real wholesale company that does blind drop shipping for you.

How to Make Yourself Different from the Ebay Sellers?

The best option is to sell the products as the representative of the manufacturer and have your own website. With your own website, you are building reputation and royalty with your customers. Besides, you don’t need to worry about Ebay fees anymore. With your own website you differentiate from all those resellers on eBay. EBay can be a great place to do business but you have to be very careful about what is happening with your customer information. After all, you don’t want others stealing your customer information and upselling to them.

It is important to do proper research beforehand. Drop shipping can be a very profitable way of doing business. You minimize costs by having no inventory and buying products at the drop ship or wholesale price and you pay the drop shipping company only after you have sold to your customer. In return, they will take care of packaging, shipping and other aspects on behalf of you.

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>> Why Ebay Drop Shipping Sucks and Will Never Work