Selling on Amazon vs Selling on eBay: FEES
Amazon
MORE EXPENSIVE
Listing Fee: Low for high volume
Commissions: High rate of 15%
Better for high volume / High rotation items
eBay
CHEAPER
Listing Fee: Low for individual listings
Commissions: Lower rate of 8%
Better for High price / Low rotation items
Why drop ship on eBay and Amazon?
While drop shipping can be used in many different ways on the web, sites like Amazon and eBay make the process even easier. Each site allows users to create accounts and upload auctions. This means that you have access to a safe, world wide marketplace with a large pre-existing user base.
Amazon and eBay also offer advanced search options that help you find best selling products. This option can help you determine the price, availability and popularity of the products you wish to sell. In some instances a site like these may even offer help in advertising your products.
These sites can also help build your small businesses reputation. Since both use a form of user ratings, where customers rate your performance, a consistently good rating will help your business grow in popularity and increase your profits. While drop shipping can be used to earn money, it can also be used as the start of a business that will later grow.
What is drop shipping and how does it work?
In ecommerce, drop shipping consists of selling a physical product online, but getting your supplier to send the item to the customer for you (which you have bought from them at wholesale price). Many of our clients who use Cascade also employ drop shippers. The software system works in exactly the same way, except that the orders are handled by a different company, and despatched from a different location to that of the person managing the website/Amazon/eBay/Play listings.
The advantage of drop shipping is that you can run an online business without having to own a warehouse, or actually having to ship the goods yourself. Of course there are rates involved because you have to pay the drop shipper, but sometimes this can pay off if you can get decent rates- especially for start up companies who want to avoid making an investment in stock and storage space.
However be warned, not all wholesale providers are genuine. Search engines are peppered with fake wholesale sites who pretend to be a dispenser, but are actually just a middleman who charge falsely inflated rates and get between you and the real supplier.