If you’re looking to start a home based dropship business, you’ll need to research various products to sell. Dropshipping is simply selling products online for wholesale companies and sending them the address of the person who bought from you. The wholesale dropship company will package the item and ship the product directly to your customer.

Some savvy people are making millions from their home based dropship business via online auction websites. The most successful power sellers can claim dropshipping as their sole source of income.

Using a dropship wholesale company or manufacturer makes it possible for an individual to sell many different types of products on an auction site. A manufacturer, or supplier, delivers products directly to your customers without you ever needing to stock or pre-purchase goods. Many manufacturers offer name brand quality goods at wholesale prices.

Here’s an example of some popular products offered by dropship manufacturers:

**toys
**dvds
**books
**jewelry
**clothing
**cell phones
**mp3 players
**baby products
**designer handbags

Ideally, you will find an honest dropship manufacturer and set up an arrangement where you will select certain products, offer them at the online auction site, collect the money from your customers, forward the orders to the dropshipper, and you keep your profit (the difference between what the drophshipper is charging you per product and what you charge your customer). The customer receives their product in good condition and on time, and then gives you a good rating for excellent service.

Okay, that’s the ideal situation.

Unfortunately, many auction entrepreneurs have found it difficult to locate a legitimate dropship list, or honest dropship wholesalers. Most wholesalers, who are easily found online, act as middlemen between you and the wholesale product manufacturers. Due to the fact that millions of dollars are exchanged between individuals online via auction sites, fraud is rampant among unscrupulous companies and individuals posing as dropshippers. On the milder end of this scam you’ll find fraudsters selling the same outdated and useless list of wholesale product dropship companies to unsuspecting people. Of course, you won’t know the list isn’t any good until you’ve tried contacting several companies to no avail.

A worst case scenario for you, the auction seller, is to think you’ve found an honest wholesale dropship company, so you go ahead and offer several products at auction. The auction closes; you collect the money and follow the dropshipper’s instructions. Next thing you know, your email inbox is filled with complaints from angry customers who have paid, but have not received their merchandise.

These customers don’t care about your dropshipper’s dishonesty, they will focus their entire wrath on you—the seller. This can create a nightmare scenario of bad ratings within the online auction community and even threaten your seller’s account.

To avoid getting your home based dropship business into trouble before it even gets off the ground, you should carefully research the wholesalers and manufacturers you do business with.

Order a couple of products from each dropship company you are considering doing business with. See how long it takes to receive your merchandise. Inspect how the goods are packaged and if everything has survived the journey intact. Make sure you are happy with the quality of your merchandise. Try and put yourself in your potential customer’s shoes.

One of the best ways to ensure your own success as an auction seller of wholesale goods is to learn from other successful sellers. There are many power sellers who avoid using prepared wholesale dropship lists and find their own preferred manufacturers to do business with. Others skip the selling process completely and become wholesale brokers who set up deals between manufacturers and sellers. Both of these methods can be very lucrative, but involve learning what steps to take.

A well-run home based dropship business has great potential to generate huge income—at very little risk. The main advantages are that you do not have to clutter up your home with lots of products, and you don’t have to ship these products to your customers. As long as you are diligent in finding honest companies who can deliver the goods, you’ll one day see your name amongst the online auction world’s top sellers.