How Can People Sell for Less Than Wholesale in eBay?

Well, you cannot sell for less than wholesale if you are drop shipping. Forget about it.

At the beginning, I felt frustrated as everybody did. I saw a popular auction for a name brand of digital cameras for less than I could even get it for at any drop shipper. How could they do that?

There could be tens of reasons. Perhaps the seller bought thousands of products from an overseas source and therefore, he can still get a very decent profit when he sells at a very low price. Perhaps the seller was selling at loss for some items as a way to advertise his other items. Perhaps the seller worked at the factory and got a great deal on reconditioned items.

The answer is: DO NOT TRY TO USE DROP SHIPPING FOR POPULAR NAME BRAND DIGITAL CAMERAS, OR IPODS, or things like that. You can never compete with the big retailers.

Then what should you sell? The answer is: unique items that your customers cannot find the exactly same ones from other places easily. You can define your profit margin freely without the need to worry about the price war out there.

How to find such items? Just take a look at this company first: Wow Gift Mart

Try to get some ideas on your own first. I'm going to share more detail and experience at a later time. Have fun.