Pros and Cons of eBay Dropshipping: Learn the Art of Earning with Online Auctions

For those who want to earn with online auctions, eBay dropshipping sings a sweet siren song of potential success…but be aware of the pros and cons.

Knowing the pros and cons of eBay dropshipping is essential for anyone who wants to create a home-based business with this idea. There are many ways to earn with online auctions, but many entrepreneurs will say eBay dropshipping is by far one of the most viable. Perhaps, unfortunately, it’s also one of the more complex. Become acquainted with everything that eBay dropshipping entails, and become aware of the pros and cons.

Make Money with Online Auctions

Highly-successful auction site eBay provides plenty of opportunities for a home-based business. The array of products and interested buyers alone on this site whets the imagination, creating big entrepreneurial success dreams. But how easy is it to make money with eBay dropshipping and online auctions? Dropshipping, a method in which online retailers sell goods wholesale and enjoy the profit from their markups, sounds fantastic.

However, the truth of this method is that only extremely detail-oriented professionals stand a chance of using eBay dropshipping to big success.

Pros and Cons in eBay Dropshipping

There are many pros and cons associated with eBay dropshipping, the best of which may be the potential to earn lots of money (and the worst of which, the possibility to let down customers and make a lousy reputation instead). Get to know some of the perks and consequences associated with this home-based business opportunity.

  • Extra and hidden fees. It’s impossible to make money through eBay dropshipping unless all the various expenses are paid on every end of the deal. Look for eBay fees and fees imposed by the drop shippers themselves. Some may charge sign up fees to their retailers, an added expense that should be compensated for through other sales. Also, be on the lookout for processing (shipping and handling) fees, which could affect final profits on every sale.
  • Advertising. Want to be successful with eBay dropshipping? Doing a brisk business might require spending money on advertising, a definite con as it costs valuable coin. However, this is a con that can eventually turn into a pro by bringing in more business and, therefore, more revenue.
  • Stocking concerns. Through no fault of the eBay retailer, the drop shipper offering the product may run out. This could be a huge negative for the online retailer, which has a reputation among buyers to maintain. Monitor stock carefully and popular pre-order products if the shipper seems to be running low.
  • Fluctuating markets. The pet rock. Friendship bracelets. Trapper keepers. At one time, each of these products was a retail sensation, a huge fad that swept nations and becomes top-earners. And without exception, each one fizzled out. Why? Because the market got saturated. Beware of too-popular products and items that everyone seems to be offering. When there are lots of retailers selling the same thing, eventually, they’re all going to lose.

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