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TIP: Dropshipping on eBay is about to become easier as of September 16th. The reason is because the upfront cost to list a Fixed Price item, even multiple quantities, will be reduced to only $0.35 for each 30 day cycle. So you'll be able list, for example, quantity 100 of a $300. item and pay only $0.35/month to keep that item listed on eBay. Do be aware that the Final Value Fees when items sell will be steep, so be sure to take that into account when pricing your items. This new fee structure will make it easier to experiment with listing a lot of different products to get a feel for what is lucrative and what is not. After you get a good feel for this, and when you get tired of giving eBay such a large percentage of your earnings, I recommend expanding your business to Wagglepop.com. Sellers there pay only $29.95/month for UNLIMITED listings and NO Final Value Fees! That's right, costs are fixed at $29.95/month whereas eBay fees can easily top a few hundred dollars a month and more once you start selling well. While Wagglepop does not get the foot traffic that eBay does, the site has excellent SEO. Sellers who write good item titles and descriptions, and work consistently at building their business over time, can do very well on Wagglepop and save a lot of money on fees overall.
WORLDWIDEBRANDS is another company that offers wholesale dropshipping. They have some very helpful eCommerce tools including this FREE Video Course on Finding Wholesale Products To Sell Online.
On the other hand, if you feel more comfortable physically having all of your merchandise in your possession, and you DO have enough capital to invest in a few hundred dollars or more of merchandise at a time, you may prefer other methods of product sourcing. Liquidation.com offers products in bulk that are auctioned off in lots starting at just $100.
I won an auction last year for my first lot of items from this site. Although I still haven't had the time to finish listing all of the merchandise, I feel that I got a great deal. If I divide my total cost on the lot by the number of different items included, my average cost per item ranges from under a dollar to a dollar and change (for items that are best sold in pairs). One such item sold for $52.99 on Wagglepop.com! While not every item in the lot will be so profitable, I still consider the acquisition of the lot to be a smart move.