How to Become a Drop Shipper. Drop shipping is an effective business tool used by sellers on auction sites. The way that drop shipping works is that the seller will take a requested order and pay a wholesaler to send out the product directly to the buyer. The seller will pocket the difference between the wholesale and retail price. This can be a great way to make extra cash.
Become a member of an online auction website. You will need to create a seller account in order to list any merchandise. Auction sites will typically require you to fill out a form with your basic details and payment information.
Sign up with a drop shipping company. Once you find a wholesaler that you wish to work with, you will select the items from their inventory that you wish to sell. A drop shipping company will typically provide you with pictures and descriptions.
Post the wholesaler's items on the auction website using the provided descriptions. Sometimes it is better to include additional pictures and reword the description that the wholesaler has provided. This will help your item stand out more.
Choose an ending time for your auction as well as a reserve price. The goal is to make money, so it is important that you decide on the minimum price that you will accept for your item.
Pay the wholesaler following the end of the auction and they will ship the items directly to your customer. As long as the process goes smoothly, you will make a nice profit.
Be sure to read the terms before you sign up to work with a wholesaler.
Expect to experience occasional delays. Many wholesalers will have items on back order and will not be able to ship out the item immediately. Look out for scams. There are companies that offer to sell you a list of wholesale distributors, but the list may be outdated or the individuals on the list are merely middlemen between you and the wholesaler.