 What is eBay dropshipping? To better understand what eBay dropshipping is, first we need to get a clear understanding of what dropshipping is in the first place. Dropshipping is a fulfillment method where the seller does not hold any actual products in stock. In other words, it's selling products without the burden of holding inventory. In dropshipping, you do not have physical contact with the products that you are selling. The third party can be the seller or the manufacturer who is responsible for shipping the item to the end customer who is your buyer. So basically a dropshipper is the middleman between the supplier and the end customer. Starting a dropshipping business requires a no-to-low startup investment. That's because creating an online store costs no money whatsoever. Adding products also doesn't cost any money until you reach a certain limit. But PayPal does tend to hold funds temporarily for beginner seller accounts for just a little while. Plus it may take a few days for funds to reach your bank account from your PayPal account. So taking these into consideration, it would be better to start off with a $250 to $500 initial investment. But it is not totally required. In summary, dropshipping requires a no-to-low startup investment. All you need is an online store and the right knowledge. That is exactly what we are going to pass to you in this course. So what is eBay? eBay is a gigantic online marketplace, one of the biggest e-commerce platforms in the world, with millions of active buyers all around the globe. The traffic is completely organic, which means we do not have to pay to bring people to our store and to show our products to them. eBay also has multiple marketplaces all around the world, which means we can have a higher reach to more and more customers, depending on which marketplace we decide to sell on. In this course, we will be focusing on eBay US, but you can choose whichever marketplace you see fit for your dropshipping business. So with eBay, we can create an online presence to advertise our dropshipping products and bring visitors to buy from our store. Now that we have basic proper knowledge of what dropshipping is and what eBay is, let's see how we can combine those two together to create a winning formula of becoming successful eBay dropshippers. So what exactly is dropshipping to eBay? If you've ever bought anything from eBay and noticed that your package came in AliExpress packaging or Amazon packaging or any other supplier that's not eBay, that means that that product was dropshipped to you. There are thousands of sellers all around the world selling on eBay and many of those times you'll notice that the product location is from China or the US, but the seller is from the UK, Bolivia, Israel or many other countries around the world. How do you think that is possible? You are correct. Most of those sellers are dropshipping their products. On the one hand, they can be large companies scaling big. On the other hand, they can be individuals just like us making a fortune without holding any inventory. So how exactly does dropshipping work in your case? The basic steps of dropshipping is finding a supplier or manufacturer that is selling products online, creating an online store and adding those products to your store. And when we get a sale, we ship that product from the seller or manufacturer directly to the end customer. Let me show you a picture example of exactly how that works. Here's a good example to better understand the dropshipping business model. Step one, a customer enters your store and purchases a product that costs $150. Step two, you forward the order details to the supplier and make a payment. That wholesale price is $100. So you paid $100, but you received $150 before you had to pay that $100. Step three, the customer receives the goods. He's happy. You're happy. Your supplier is happy. Everybody is happy and you made your profit. That is basically how the dropshipping business model works. It's been around for a while and it's not going anywhere. The numbers are increasing year by year and it is definitely not too late to enter this market while it is still new, while it is still fresh and while new products are coming out all of the time. So there is always room for everyone and we are definitely glad to have you on board. That is a basic explanation of how dropshipping works and I'll see you in the future videos where we will start creating our store and getting our hands dirty and making some great profit along the way. See you there.