Drop shipping is not a new concept in business. Thousands of sellers have been using it to make profits, especially on eBay. What is drop shipping actually? Drop shipping is a method of selling where the retailer doesn't stock any goods, but instead passes the buyer's order and shipment details to the wholesaler/ drop shipper. The drop shipper eventually sends the goods to the buyer directly. The profit comes from the difference between the wholesale and retail price.

Here is how it works:

1. Find the product you want to sell on the drop shipper's websites. Please be careful, there are thousands of drop shippers, but many are not reliable.
2. Create an ebay auction. You can get the product's information (including the photos) from the drop shipper's websites.
3. When your auction has been closed and you have selected the winner, you can invoice your buyer and take the payment.
4. The next step is placing an order on the drop shipper's website. Just ask them to ship it to your buyer's address.
5. When your order has been shipped, you have to let your buyer know about it.

That's all. You don't have to stock any goods, or waste time to pack and ship the products. I know you all must be asking the same question now: "Is it really that simple?" Basically, it is really that simple. But in reality, there are many unexpected problems occur and you must be able to handle them.

Here are some of the unexpected problems:

• What if the ordered product is out of stock?
• What if there is delay in the delivery process?
• What if there is complaint from your buyer about the product?
• What if your buyer wants to return the product?
• What if your buyer wants to refunds their money?

Are you curious already? I will tell you how to tackle these problems later. In the next article, I will tell you how to know a drop shipper is legitimate or not, as well as how to choose the correct products to sell.