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Dropshippers are used by entrepreneurs who want to sell a product but don’t want to keep their own stock or perform delivery. The whole delivery process is performed via the ‘dropshipper’. The entrepreneur after making the sale will contact the dropshipper with the delivery details of the end customer. The Dropshipper will then deliver the product to the customer.

Example of Making Money on eBay Using Dropshippers.

You’ve seen a market to sell Gold Watches via eBay and found a drop shipper that offers a good quality Gold Watch at a price that you think you can make a profit on.

You set it up on eBay with a starting bid of $70 with $7 postage and packaging. Someone buys it and you receive the money via PayPal.

You pass on the buyer’s details via email to the distributor (dropshipper). The distributor then packages up the watch and puts your shipping label on the package and then sends it via recorded courier to the address of the customer you provided in the email.

You are then billed via the distributor for the wholesale price of the gold watch that is $50 plus $7 for postage and packaging.

You have made a net profit of $20 for setting up an auction on eBay and sending the distributor an email!

You don’t have the risk of having unsold stock as you only purchase from the dropshipper after you’ve made a sale and received payment.