You do not have to stock up goods in dropshipping and as a result you can prevent blocking space at your home or office premises. 

You do not have to pay for anything unless you have a confirmed order in your hand, this way you can save the cost of investing in something that does not even sell. 

In order to advertise the product, you will need to have sale graphics and pictures. But you can save the cost of actual buying a product clicking its pictures and writing a detail about its features. Most of the wholesalers will have pictures of their products on their web site, they will also have a detailed description of their products, so all you have to do is to download it from there and save yourself all the time and energy of doing it yourself.  

This is how dropshipping works at eBay. There are a lot of wholesalers who advertise for their goods to be sold. Now you can search a good that has a good margin to provide and is in good demand. Next you have to start advertising the goods at eBay to attract consumers. Once you get the orders from the customer you can send the same to the wholesaler who will pack the goods put your label on it and send it to the consumer. 

Through this process you can gain a lot of profit. As you can approximately keep fifty percent of what the consumer pays you and you have to pay around a fifty percent to the wholesaler. But the entire share that you get is not yours to take home as profit; you have to meet certain expenditures of your business. You have to pay eBay charges that are one of the major costs, next you have to pay for advertising of goods. You can advertise your goods and attract people through forums, discussion boards and through your own web site. You also have to send your label to be attached to the goods and that will also cost you apart from the postal charges. 

It is true that you can make it big with drop shipping at eBay. But it is absolutely untrue that you can do it at the blink of an eyelid. Like all other businesses you do need to invest time and energy in order to succeed. Here it is important that you do your research well. All depends on the product that you choose. If your product is not in demand or does not give you a good profit margin, then all the effort done to advertise it will go in vain. It is equally important that you employ advertising secrets in order to attract new customers. If you put in consistent effort and do your research well then there is no limit to what you can achieve here.

William King is the director of Australia Wholesalers - Australian Wholesale Dropshippers & Suppliers Directory: http://www.australiawholesalers.com, Canadian Wholesalers and Dropshippers Dropshipping Directory: http://www.wholesale-canada.com and Wholesale Dropshippers & Dropshipping Trade Directory: http://www.aidandtrade.com  and French Wholesalers & Wholesale Directory: http://www.francewholesalers.com . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.