There are many eBay drop shipping scams on the internet, and unfortunately, sellers who want the easy road often buy into these courses or information products. Before you purchase an eBay drop shipping course or information product, do some research on the person offering the course and the method they are promoting. If it were really as easy and profitable as they say, everyone would be doing it.
What do the scams look like?
One common eBay drop shipping course floating around on the internet is the "Amazon phantom product" scheme. Someone will put together a flashy video explaining how to use Amazon as a product source, copy and paste the photos, titles, and descriptions into eBay, and how to price the item slightly higher than on Amazon because the eBay marketplace might support a higher price. Basically, the eBay seller is being instructed to use Amazon as the drop shipper. When the product sells on eBay, the seller then logs into his Amazon account, places an order for the item, and has it shipped to the eBay buyer rather than to himself. This may sound like a good idea in theory, since the seller is not required to have any inventory on hand or any upfront investment in inventory. This strategy is doomed to fail because Amazon might not have a product in stock when an eBay buyer purchases it, therefore it can't be shipped. Amazon may discontinue the item. Amazon may catch on to what the individual is doing and close his buying account, especially if the person is using his Prime Account to fulfill eBay orders. It is against the Amazon Prime Terms & Conditions to use the Prime account to ship orders to customers. This whole scheme is a bad idea on many levels.
Can drop shipping ever work on eBay?
In some situations, yes. Successful eBay sellers using drop shipping must do a great deal of research to find products that can be sold at a profit. The major drawback of drop shipping on eBay is that everyone wants to do it - so eBay is flooded with too many listings of the exact same product, which then drives the price down. The challenge is to find a niche product with very few competitors that can be sold at a high enough price to cover the cost from the drop shipper. Once sellers begin investigating the real way to successfully drop ship, they discover it is a very time consuming process, because there are literally millions of products to choose from with the drop ship companies. The drop ship companies usually charge a membership fee to even see the catalog, so unsuspecting sellers may pay this fee then never find any products worth selling. That is part of the way drop shipping companies make their money, with the registration fee.
Watch for affiliate links
The internet is rampant with offers for eBay drop shipping courses and information products because internet marketers are getting a cut of the sale price. If you read about an eBay drop shipping program and see a link to find out more, mouse over the link and look in the lower left corner of your screen by the toolbar. If you see a very long link that doesn't make sense, or maybe has a person's name embedded in the code, it is probably an affiliate code. That means the person trying to sell you the drop shipping program from his blog, website, Facebook post, or even through an email, is trying to sell the item strictly to get paid - not because he believes it is a good thing. That is how internet marketing works - products are being advertised because the advertiser makes money when a sale happens.
Learn to sell on eBay the right way from experienced sellers
Skip the drop shipping nonsense all together. Experienced sellers know that eBay is hard work and there is no easy road. The good news is that gently used products like clothing, shoes, household items, and vintage items are great sellers with high profit margins. There are plenty of these types of items at local thrift stores, garage sales, and flea markets but the work is learning to find and sell those types of items. An online school called Unite Commerce holds weekly classes to teach new sellers exactly how to sell on eBay, including classes on selling used items sourced locally. Classes are held using GoTo Meeting and are taught by experienced sellers who have expertise in different product niches. Visit the Unite Commerce Course Catalog to find classes where you are able to learn how to sell on eBay.