Create A Virtual Inventory For Online Auctions Using Drop Shippers

To those who are new to the world of online auction sites, the so called power seller is a mysterious creature. These otherwise normal online auction sellers have thousands of past transactions and offer an astounding array of goods for sale on the online auction site. How is it possible that a normal person (i.e. not an online business or established retail chain) can carry such a massive amount of inventory to sell? The truth is that in the vast majority of cases, the power sellers have never even seen the inventory, do not have to warehouse it, and are not responsible for shipping it. The secret is that they have teamed up with a new form of wholesaler known as a drop shipper. Drop shippers have made it possible for online auction site sellers to sell any kind of merchandise without having to warehouse it.

Drop shipping is a method of wholesaling that allows the online vendor to buy items one at a time. Whenever an item is ordered, the drop shipping company will send it to any address that is specified without any markings identifying the wholesaler. In other words, it appears as though the item came directly from the online vendor. Many of those who use drop shippers in online auctions find an item that they wish to sell from the drop ship wholesaler, post pictures and descriptions of the item (usually available from the wholesaler), and open the item up for bidding. When the item is purchased, the vendor will order the item from the drop shipper and give the contact information of the purchaser. The drop shipper will then directly ship the merchandise to the purchaser. In effect, the vendor has listed, sold, and delivered the item without ever actually seeing or touching it!

How is it that drop shippers can sell goods for wholesale price but not in bulk? The reason is that most of the main drop shippers provide access to their goods for a monthly fee. This allows them to provide their items to the online auction vendor at wholesale prices without requiring that the vendor purchase their item in bulk.

For this reason, using a drop shipper can be a great way for someone who is new to online selling to get started. The monthly fee means that the profit margins are lower for those who use drop shipping than for those who go through traditional wholesalers; however, the benefit of not having to pay for the merchandise in advance combined with the fact that the vendor does not have to warehouse the merchandise makes it the perfect choice for many entry level online entrepreneurs.