Drop shipping business

Hello all!
I am new to the drop shipping business. I have 2 questions :
1- How come some sellers on eBay can sell with prices cheaper than the prices i get from drop shippers?
2- How can sellers on eBay have hundreds or thousands of items on their eBay store. Do they add them one by one? or there is a method to add a huge list of items at once?

please help answering these questions or giving any advice about drop shipping in general as i am still new .

 

1- if they buy like 1,000 Processors - that can be 40% cheaper than buying 10 Processors.
2- i can only guess they add it one by one over the time and then they just increase the number of items

 

The people that have thousands of listings usually have people working for them to post them online.

 

1. Depends how close the ebay seller is to the 'original' drop shipper. You may be buying from a drop shipper who buys from a drop shipper who buys from a drop shipper.

I would not bother with the drop shipping arena unless you found a small niche that was not being oversold. With the cost of ebay fees and the risk of your auctions going unsold it isnt worth the return especially if you are competeting with people selling at or below your cost to purchase.

 

great responses!
Thanks a lot guys.
I will test the water with some listings on eBay. Even though the profit margin is very low..
It could be better if i can find a niche item oneday as your advice ceaseer.