For many of us when you're starting out in internet marketing you might find that you are getting frustrated with your lack of income. When each day, week and month that goes by and we're still not making money you might feel like quitting.

Ebay can be a great way to make some quick "now" cash to help you pay your bills and keep some income going while you're building your passive income streams with affiliate marketing.

One way to decide what you want to sell look around your home and find stuff that you no longer use. Each auction needs a good picture so don't sell your digital camera, yet.

If you run out of stuff to sell other places to look are estate sales, garage sales and any way else you can get products at a low cost without stealing.

But one of the best ways I have found is with drop shipping. What this involves is the supplier holds the product for you. You sell it to the customer on Ebay (or your website). They pay you and then you pay the supplier and the supplier ships it to your customer.

The advantages to this are obvious. If you live in an apartment you probably won't have the room to warehouse inventory. You never touch the product until it sells.

Another advantage to drop shipping over buying wholesale lots is you won't be out a lot of money if the product doesn't sell. You'll only be out the listing fee for the product.

Remember though that with pros there are always cons.

A disadvantage to drop shipping is if they don't drop ship blind. In other words if the drop shipper puts their own company information on the packing slips. As long as you are upfront in your auction listing about how it ships from a supplier this is usually not a problem.

The profit margins are usually lower than with wholesale lots as the supplier either adds a drop ship fee or has it worked into their reseller price. Just remember to use one of the many Ebay calculators. With them all you need to do is enter in the price that you're selling, the cost of shipping and your cost to acquire the product. The calculator is programmed to determine the Ebay fees and Pay Pal fees. It will determine if you're profitable or not.

The biggest disadvantage to drop shipping is if they're selling fake or counterfeit products. Many suppliers from Asia and elsewhere offer knock off products for cheap. You can usually spot those for example if they tell you they have Rolex watches for $30 or anything other high end products for too good to be true low prices.

I hope this article helped you out, so go and have a great day.