There are two main eBay Dropship Business strategies. Although opposite in direction of scaling up or scaling down, both are valid methods to sustain a 6-figure income.
So what's the difference?
Scaling up to create a high volume of listings, priced low at minimum profits, ($2-$5) substituting profit gains per sale with Gift Cards and Cashback websites is a strategy based on shear numbers.
It takes a person with high management skills or knowledge to manage a large inventory
eBay provides higher ranking in search placements for under trending pricing, yet sales profits are minimal. meaning you always have to infinitely end products that don't sell and add to your inventory.
In my opinion, staying a slave to your business is not what I define as financial freedom! :>))
Scaling down with minimal listings, priced moderately higher than competitors, averaging $15-$20 profit/sale takes more upfront focused energy to build high ranking Mobile-Friendly Listings with Keyword Relevancy between Photos, title, item specifics and descriptions. now King in eBay's Cassini Mobile ranking scoring.
Once sold at a moderately higher price above competitors, ranking goes higher for visibility in front of more potential buyers, selling multiple times, profiting $15 - $20 each time from one listing.
Every product has a shelf life of high and low market demand.
When a SOLD listing sells multiple times, yet sales slack off, its time to SAVE all details information and list again in the same quarter next year by simple copy/paste saved detailed information.
Eventually you will have an inventory of your own HOT products to list in each quarter, taking the guess game out of the equation and almost eliminating to research new product.
The Scaling Down Strategy is a method used to FINE-TUNE your business, as it grows offering less time to manage, higher profits and in the end.....more freedom to enjoy your success! :>)))
Using the Scale Up Strategy, even though you'll receive sales more often profiting $2-$5 per sale and if its sells multiple times, the time and energy to process the sales; maintain On-time Shipping Standards; manage return claims: new listings and collect cashback....is it worth it?
Using the Scale Down Strategy makes economic sense to process sales, less often, yet more profitable averaging $15 -$20 per sale and enjoy multiple sales, too! The freedom of more time gives you the luxury of time to focus and build high ranking quality listings in front of more potential buyer visibility and less time in processing sales, maintain On-time Shipping Standards, manage returns earning higher than average profits.
Of course, every online retail store should offer low-priced products ($2-$5 profit) along with higher priced products ($15- $20) to maintain a 40% to 60% inventory ratio balance. Maintaining this inventory ratio allows the low profit listings to provide higher profit listings to receive an even higher overall listing ranking in front of more potential buyer audience.
Either way you decide on which strategy is best for you, it comes down to working upfront or working forever. There is not much in learning techniques in using the Scale-Up Strategy, as you just create a high volume product listings at the lowest price possible. Scaling-Down Strategy requires learning techniques set by eBay for listings to rank high in search engines across their selling platform to sell multiple times at the highest price possible.