Many online marketers tout the amazing ability of anyone to make huge sums of money on Ebay with special wholesalers who dropship their products directly to your customers. Dropshipping, they say, is the best way to get into an Ebay business. You do not have to carry any inventory, and you do not have to pay for an item until you sell it yourself.

It sounds almost too good to be true.

The truth of the matter is, it is almost impossible to make money on Ebay with these oft-advertised product sources. The ones that are most popular, and actually recommended by Ebay, are not true wholesale dropshippers at all. Yes, they will ship products to your customers for you, but they are not good product sources.

The vast majority of these Ebay dropship product sources are nothing but middlemen for the real wholesalers. You think the fitness spin bike from Amazon is designed just for dropshippers? Think again… They mark the product prices up, and up again, to prices that are so close to retail as to make it nearly impossible to sell. On top of that, they often inflate shipping prices as well.

After a while, it will be easy to spot them. Most sell similar, low quality products. Their websites often look very similar as well. A huge percentage of search results for “dropship Ebay product source” will return these middlemen and resellers.

Is it possible then, to do business on Ebay with a wholesale dropshipper? Yes, but you have to know the truth.

A reputable wholesale product source will most likely require you to be a licensed business or at least have a reseller’s certificate given by the government. This will make it possible for you to buy in bulk and not pay sales taxes on the purchase. It will also require you to collect and remit sales taxes to your state. Laws vary.

Genuine dropship product sources are the first tier distributors or the actual manufacturers of the product. This is where you get the super low wholesale prices that can bring you a big profit on Ebay.

You will not be able to find dropshippers of certain types of products that are not middlemen. For example, entertainment products, electronics, or any hot trends are only dealt with through bulk purchasing by established companies. They would require a large bulk purchase worth many thousands of dollars.

If you wish to find dropship product sources for your Ebay sales, you will have to do a lot of research. One good way to research is by finding Ebay certified programs. The auction company itself seeks out qualifying dropshippers. Of course, many other sellers are doing the same thing. You should also research the dropshippers through the online Better Business Bureau and see if there are any complaints against them.

If you are careful and persistent, you should be able to find a dropship product source for you Ebay business. The first step is always knowing the truth about the scams and misleading offers. After that, it just comes down to hard work.