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Dropshipping is an attractive marketing technique, but when you take it to eBay it becomes a real phenomenon. There are tens of thousands of people running dropshipping business as you are reading this article. Some are making very little profit, some are bringing in decent cash and a few of them are generating huge profits. There are a few ins and outs about dropshipping on eBay that you should be aware of before starting your own dropshipping business.

Let's start with the bad news. First of all, competition is harsh. If you are new at Internet marketing you might have a hard time adapting to the marketing requirements of promoting your new dropshipping venture. Nothing is set in stone here and rules change over night. The dynamics of an online business will keep you on the tips of your toes most of the time as you cannot afford to let your guard down. Another problem that you might run into is scams. If business is thriving you can also expect fraud to be present. Even if you are scammed on eBay, while dropshipping, it is usually for little cash. This is unpleasant but it won't ruin your business - however it might discourage you from further participating on eBay with your dropshipping goods but don't let this put you off.

Now time for the good news, and there is a lot to talk about. Dropshipping allows you to turn into a real marketer without ever worrying about product storage, packaging or shipping. They are all taken care of by the supplier. The ease of using dropshipping gives you more time to concentrate on improving your sales techniques and bringing in more customers. If your business runs well, you may consider, like many have before, to dedicate more time to dropshipping and make this your main income source.

Now even more good news: running your dropshipping business requires a minimal financial investment, usually just an admin fee to cover the administration of setting up your account. With the money you would pay for a night out you can start a successful dropshipping business - you don't need to invest in anything, except for the fees you owe the dropshipper. Of course, you only pay the dropshipper when you make a sale, and you usually get to keep about 50% of the retail price or what ever you set as your percentage mark-up.

Dropshipping is an excellent method to test your entrepreneurial skills and see if you can start a successful business online. With such low financial risks, the only thing that you may loose, if the business doesn't work, is a few hours of research and a lot of hope. However, some careful documentation on the process and a good sense for what the customers want will most likely set you on the right track and turn your online business into the money making machine you always dreamt of.

With dropshipping and any other business, you can only sell what the public will buy. Don't go overboard with obscure products for your first venture, select high volume, everyday products and you too could have your very own dropshipping business. Good Luck.

Steve Dawson is the editor of the online Freelance Network magazine which focuses on eBay, Dropshipping and Homeworking. Forums and a comprehensive wholesale and dropshipping directory are many of the features available. Find out more at http://www.freelance-network.net