Can you make money selling merchandise on ebay that you do not own? It is called dropshipping and there are tons of people listing items right now on ebay who are selling, collecting the money and then having merchandise shipped direct to their ebay buyers. Can you be successful doing this?

Here we have a Powerseller on ebay who is dropshipping merchandise from a wholesale liquidator. This seller has listed a wholesale lot of shelf pull cosmetics with the following title:

500 PC New Revlon and Almay Cosmetics - Wholesale Makeup

The ebay seller has listed a “Buy it Now” price of $717.00 with a flat shipping fee $40.00

This seller is listing merchandise found at Via Trading where his cost is .99 per unit or $495.00 for the case of 500 pieces. Gross profit from this auction would then be $717.00 (BIN price) - $625.00 (Sellers Cost) = $222.00

You also need to take into consideration the fees Ebay would charge for this auction:

Ebay Listing Fee $4.00 (Item over $500) + Final Value Fee of $26.41 = $30.41

$222.00 (Gross profit) – $30.41 (Ebay Fees ) = $191.59 to the Ebay seller

This seller would have Paypal fees as well so the $191.59 is not the final net profit, but still represents a nice transaction for the ebay seller who does not have to warehouse inventory or pack and ship items out.

This particular ebay seller simply lists merchandise found at Via Trading on ebay making sure enough markup is added. There are hundreds of thousands of ebay sellers dropshipping merchandise from many wholesalers….