What Is The Drop-shipping Business Model?

Aviv Malka
A free video tutorial from Aviv Malka
Platinum Level Seller, Entrepreneur, Trainer and Coach
4.2 instructor rating • 7 courses • 114,001 students

Lecture description

Get acquainted with the eBay Dropshipping Business Model

Learn more from the full course

eBay Amazon Dropshipping The Easy Way To Make Profits

How To Make Money on ebay Online Selling Physical Products Without Having An Inventory Of Your Own Work From Home eBay

04:15:13 of on-demand video • Updated February 2020

  • Setup an eBay store and optimize the correct settings
  • Start to drop ship within a few hours
  • Understand the core concepts of the Drop Shipping Business Model
  • Source products to sell on eBay
  • Find the hottest products on Amazon which will sell profitably on eBay
  • List Amazon items on eBay
  • Use Drop-shipping Software
  • Create automation dropship systems for self sustainability
English [Auto] Hi there you've probably heard of a drop shipping and how one can make money in their spare time working from home. But you aren't sure exactly what it is. This drop shipping method. So in this lecture I'm going to explain to you the drop shipping business model and what it is. According to Wikipedia drop shipping is a supply chain management technique in which the retailer does not keep goods in stock but instead transfers customer orders and shipment details to either the manufacturer another retailer or a wholesaler who then ships the goods directly to the customer. This means that you the ebay seller will not hold on to any stock in your home or in a warehouse or wherever it might be. Not only that you don't even have the money in advance. Instead you wait until the customer buys from you an item on your way on the website on ebay and only then will you pay the source to ship the item directly to your customer to make it a bit clear. Take a look at this graphic. Here's you that resell on the left you look for good items to sell from all kinds of retailers like Wal-Mart. Amazon Home Depot and you list them on e-bay. When you buy or find something that they like they will pay you through paypal. You then send the money and the Order to your drop shipping source but say Amazon who will ship the product directly to the buyer not to you directly to the buyer as if you yourself had sent the item to the buyer. Your proffer then will be the difference between what the buyer pays you which includes also your pay pal and ebay fees and what you pay your dropship for. Amazon let's say this is called arbitrage. When you're the middle man and middle woman in between the source and your buyer on e-bay one should know that it is only a small profit margin usually with each item but it's a numbers game. The more items you list the more you sell the more you sell the more of them you make at the end of the day. That's it for now. See you in next lecture.