Where does the Cost of Goods Sold for the dropshipping model go on Schedule C?

[chipper234]

Hello, 

I am currently filing my schedule C and I need help with figuring out where to enter my cost of the goods I sold. 

Because my business model on ebay was dropshipping, I held no inventory. I only purchased the products (from an online retailer like walmart.com) after I sold the items. I never had the items in my possession because I had the retailer deliver them straight to the customer.

Would I enter this amount in the other business expenses section (since I don't believe I was required to hold an inventory)? 

Thanks in advance

[AnnetteB6]

Even though you did not maintain or hold an inventory, your cost of goods sold can be entered in the Inventory/Cost of Goods Sold section of the Schedule C.  Enter your beginning and ending inventory as '0'.  Then the cost of goods sold will be used to determine your profit or loss when compared to your income.

@chipper234

[chipper234]

Thank you for your reply, but I am still left with two questions. If my cost of goods was say 20,000 , would I enter that number on line 38 or 39? 

Then I would enter that number on line 40 and 42, right?