Every day people search the internet looking for that mythical drop shipper that has products at “true” wholesale price. But what does true wholesale price even mean? And, can a drop shipping company ever offer you true wholesale price?

If you want to sell on eBay, the answer is a simple no… No, a drop shipper cannot offer you true wholesale price. It seems everyone has a different definition of what “true” wholesale price means. Does it mean less than retail price? Does it mean the lowest possible price? Does it mean the price the manufacturer charges when selling the product direct? The fact is, there is no literal definition of “true” wholesale price. But for simplicity we will consider the “true” wholesale price to be the price of a product direct from a manufacturer.

So, why is it not possible to get true wholesale price as an eBay seller looking to have products drop shipped? Because wholesale is about quantity… Bulk.

When you have a company drop ship products for you, that means you are generally selling just one at a time. And, while this may equal many product sales over time, it is not viable for a manufacturer or wholesaler to operate their business this way. Sure, there are some exceptions (large items, super-expensive items) but, in general, this is the case.

Now, if you have a large established store that is another story. Then many manufacturers will happily provide you with catalogs full of products that can be drop shipped directly to your store after a customer orders one. A store will often refer to this as a “special order”. When you ask a store “do you carry xyz product” and they might respond “we do not have them in stock, but we can special order one”… That is drop shipping working in all of it’s glory. But, back to eBay…

When you are selling products on eBay you have no established customer base. Manufacturers who drop ship are not going to want to work with you directly because there are no guarantees to the quantities you can sell. Manufacturers often have very little markup on their products and they make their money on bulk sales. Selling 10,000 widgets at a $0.50/profit each will mean $5000 for a manufacturer. Drop shipping one for you means $0.50 for the manufacturer. Nobody wants to bother with a $0.50 profit sale. This is one reason most manufacturers will not sell to eBayers. There is another reason however…

eBay sellers expose their products to a low-ball marketplace.

On eBay everyone is looking for a deal. The market is flooded with small sellers, like yourself, who will constantly lower the price of goods in order to generate more sales. This drives the value of a product down and, as you might expect, manufacturers do not like this. Many manufacturers even have what is called MAP pricing. This means Minimum Advertised Price. When a manufacturer requires their retailers to follow MAP guidelines this means that no retailer can advertise the product for less than the price suggested by the manufacturer. Now you understand why every store seems to sell that Xbox 360 for the same price and why Wal*Mart doesn’t offer iPods for any less than KMart. It all has to do with MAP pricing.

On eBay, it is too difficult to enforce MAP guidelines. When a manufacturer sells to an eBay seller they cannot spend the time to monitor the sales price. Also, since eBay is a auction site, the ending sales price of a product often cannot be controlled.

So, don’t be mislead. You are NOT going to be able to buy a new Xbox 360 from a drop shipper, sell it for $10 less than everybody else and make a killing on eBay. In fact, the drop ship price on an Xbox 360, PlayStation 3, iPod Touch, or any other hot item is almost always MORE than the selling price on eBay. This is one way of assuring some eBayer doesn’t go and destroy the market value of a product.

Even true drop ship companies — that is companies who ONLY sell their products via drop shipping adhere to this rule. A good example is Mary Kay cosmetics. You are NOT allowed, as a Mary Kay rep, to sell your products on eBay. This includes free samples, rewards, and your base catalog products… Why? Because Mary Kay doesn’t want reps destroying the value of their products by selling them for less than their catalog price. Sure, you will find Mary Kay products on eBay. But they are either being sold IN BREACH of their contract or by a third party; resale.

So, where do you find a real drop shipper with “true” wholesale price that will fill your eBay orders? You don’t. And don’t be mislead into thinking they’re out there of you only pay enough for the information. They do not exist — not for the masses.

But if I don’t have a lot of money to invest in products how do I become a successful eBay seller? Is it still possible?… YES!!It is still very possible to get started on your way to eBay PowerSeller success — without drop shipping. There are a couple of good options.

One option is to learn alternative sourcing methods like the ones taught in the Better Sources Guide. Alternative sourcing methods is just a fancy way of saying — you can find products that are profitable and do not require a large investment (if any at all) — just like drop shipping but without the major problems. In fact, with the sourcing methods taught in “Better Sources” you can actually get much BETTER than “true” wholesale price. It is simply the best way to get started selling on eBay while avoiding drop shipping.

Another option is to join a sourcing company like WorldWide Brands. They offer some light-bulk wholesalers which means that you can buy only a small quantity of a product and get wholesale price.

But whatever you decide, please, do not fall for the drop shipping hype. Think of it this way, if you see a company offering access to tons of drop shipped products at the best prices — how many people do you think are using that exact company to compete with you?

To this day I have never, and I mean NEVER seen a drop shipping company that can help someone become successful on eBay. Good luck — don’t let this stop you from getting started selling on eBay. Just use it to help motivate yourself in the right direction. Away from drop shipping and towards real success.