1. E-bay Selling - Buying and selling products online is one of the most common and well known methods of making money online. The key is to find a product that is in high demand, for example: electronics, apparel, video games, etc. You then need to out think your competition, and on sites such as Ebay, competition can be fierce. The most important step here is to find a product you are familiar with both so you can more knowledgably market the product and so you can accurately answer your customer's questions. This establishes their faith and trust in you as a competent seller. If you're having trouble finding a product start by asking yourself what you're knowledgeable and passionate about. You can then research accompanying products and see how well they are selling on Ebay already. Ebay also offers tools to help you get started such as an inexpensive storefront if you don't want to build your own.
Drawbacks to Ebay selling are:
Finding or creating a profitable product
Ebay can be very time consuming (Plan to spend 20-30 hrs/week)
This is a very competitive market so you will have to find a way to stand out above the others
2. Drop-ship- Drop shipping can be done on Ebay as well with several other marketing ideas such as your own web site. With drop shipping you act as the "middle man" between buyer and vendor. The benefits are that you never have to mess with inventory and shipping. You simply find a product, sell it, then rely on the vendor to ship it. This can save you time and money in that you have no inventory to worry about and you do not have to make constant trips to the post office or UPS to ship your items. Another benefit is that you're never stuck with a garage full of products that won't sell. Your first step is to obtain a drop ship directory to find vendors who will drop ship. With enough research this can be done free of charge if you're willing to put the time in yourself, or you can pay approximately $50 - $90 to obtain a legit directory. That money will save you more in the long run as you know they will be legitimate vendors. Use caution here, as there are a lot of fake drop shippers who are actually just middlemen themselves trying to earn a commission. WorldwideBrands is a good place to start your search as they are certified drop shippers, registered with the BBB, and offer over 8 million products to choose from.