Dropshipping is definitely one of the best ways to make some quick money online and it can also turn into a goldmine once you get the hang of it. And for many newcomers, eBay is definitely the best starting point as it costs no upfront money and lets you utilize their millions of visitors.
So, we decided to understand what it takes to start dropshipping on eBay and it just a matter of five simple steps.
Start eBay Dropshipping in Just 5 Steps
But first, for those who have no idea what is eBay, what is dropshipping, and how to start dropshipping on eBay here is the breif intro.
What is eBay?
eBay is an online marketplace where buyers and sellers can trade almost anything. It is prevalent amongst the audience for its C2C and auction-based selling options.
It is free to set up an account on eBay. Although it is not free to sell on eBay, the seller needs to pay the listing fee that varies on product price and listing duration.
eBay has 27 international worldwide sites in which it currently operates.
What is dropshipping?
Dropshipping ecommerce business method in which the retailer does not keep the inventory. The retailer only displays the images of the products on the online store, the suppliers send the order directly on behalf of the retailer and the customer does not get to know the real sender of the product.
Is Dropshipping legal on eBay?
Yes! Dropshipping on eBay is completely legal and there are no illegal elements involved at all. You can dropship anything from anywhere on the platform and as long as you are not breaking any rules or eBay policies, you are good to go.
Does eBay Allow Dropshipping?
Yes, eBay allows to dropship on its platform, but does eBay completely support the dropshipping model? Well, that is complicated.
To better understand eBay dropshipping let’s check out its policy.
EBay Dropshipping Policy
EBay allows dropshipping but it is not the model that eBay supports. eBay clearly shows certain concerns about dropshipping in its policy.
According to the statement, eBay allows dropshipping but does prefer the item to ship directly from wholesaler/retailer/marketplace to the customer. This means dropshipping from Amazon to eBay is allowed as per this policy.
Moreover, the sellers are at high risk of getting thier listing revoked or lowered if the shipment does not fulfill in the given time.
eBay states this as the top takeaway;
If you use drop shipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing and for the buyer’s overall satisfaction with their purchase.
All in all, it is a risky business!
How Does Dropshipping on eBay Work?
There are millions and millions of products available on eBay. However, most of the sellers on eBay don’t even keep the inventory of any items they sell.
They actually source their products from some online supplier who keeps the inventory and fulfills the orders on their behalf. This is your basic dropshipping model which works exactly in the same manner on eBay as well.
Related Article: 38 Best Dropshipping Products
Start Dropshipping on eBay in 5 Steps
There are certain steps involved in starting eBay dropshipping. Here are the steps you need to consider when starting your dropshipping venture on eBay.
1- Set Up Your eBay Seller Account
Setting up an account on eBay just takes a couple of minutes, but there are still some things you should look at when creating your seller’s account.
- Check out eBay’s seller information center because it contains guides and resources for setting up your eBay store.
- Make sure that you don’t choose a crude or offensive username for your seller account.
- You need to provide eBay with a tax ID for the seller account. You need to get a tax ID in your state.
- You also need to set up a payment method on eBay. PayPal works flawlessly on eBay to create a PayPal account if you don’t already have one.
- Create your profile page and add as many details about your shop as possible. Include return and shipping policies to make it easier for buyers to purchase from you.
2- Find a Supplier for Dropshipping on eBay
You can’t run a successful dropshipping business without a quality supplier. The same goes for an eBay dropshipping business as well. If you want to run a successful eBay dropshipping business then you need a reliable and quality supplier for your products.
When looking for a reliable supplier for your eBay dropshipping venture, consider these factors:
- What types of shipping does the supplier offer? Do they offer a faster (expedited) shipping option?
- What are their average shipping times for each order? (If a supplier isn’t consistent with their shipping times then you can be at risk)
- Do they ship worldwide or only to certain countries?
- What are their quality control procedures? Are their products consistently high-quality?
- Is their source material (product titles, descriptions, images, etc) good enough for you to use “as is” in your listings?
- Do they provide private labeling services so you can add your business logo and your business invoices in the package? (Or maybe at the very least, they can send neutral packages without their own branding so the customers don’t find out it was dropshipped.)
Once you get satisfactory answers to these questions, you can go ahead and choose the supplier. Contact them and let them know clearly that you are running a dropshipping model so they understand your requirements.
Related Article: Best Things to Sell on eBay
3- Choose The Best Products to Dropship on eBay
Sometimes this step will come before you find a supplier and sometimes you can just get a supplier and choose from their offerings. It depends on what kind of seller you want to be. If you already have a specific niche or product in mind, or you need to still look for a trending product for your dropshipping business on eBay.
Here are a few examples of the best products dropship on eBay:
- Maxi Dresses
- Breast Pumps
- Matcha Tea
- Sports Bags
- Sports Bra
- Resistance Bands
- Baby Carrier
4- Create Your Listings
It’s very easy to create a listing on eBay. Just click “List an item” from the Dashboard and follow the steps to list your product. Use all the information that’s provided by the supplier. Use their images, descriptions, and titles for the listing. However, we recommend that you use your own descriptions, images, and titles to optimize your listings for sales. Set the price of the item, shipping price, and type of listing (Auction or Buy it Now) to finalize the listing.
5- Manage Your Listings
Now that your eBay listings are up and running and you’ve got yourself a reliable supplier as well, it’s time to make some killing.
The first step to manage and maintain your listings is to gather positive reputation. You can do this by fulfilling the orders as soon as you receive them, also keep tabs on your supplier to ensure that everything is running as smoothly as possible.
Also, do a clean-up of the listings. If products are discontinued or out of stock, replace them with newer products on a regular basis.
Provide the best customer service for all your buyers and potential buyers. Respond to inquiries and complaints as quickly as possible and try to help your customers with their issues. Try to create positive experiences for your customer to encourage repeat buying and loyalty.
Free Dropshipping Companies for eBay
You can use the general dropshipping suppliers to dropship on eBay. When it comes to dropshipping on eBay majority of the seller, prefer to target the US region because of the higher proportion of customer share.
Truthfully, the eBay dropshipping business is capricious so I would not recommend investing money on paid dropshipping companies. Well, that is not a problem; you can use multiple free dropshipping companies for dropshipping on eBay. Check out the list below.
Aliexpress is the most preferred platform for dropshippers to find suppliers and source products. Here you can find all the Chinese suppliers and manufacturer that offers a large variety in a cheap rate that a dropshipper easily sell for higher profit margins. Lately, many dropshippers are shifting from Aliexpress due to extended shipping time, nonetheless, it is still one of the sought after platform for dropshippers all over the world.
Make sure to look ePacket shipment when sourcing products from Aliexpress for cheap and fast shipment.
Wholesale Central is another free dropshipping company to source provide to dropship on eBay. It has over 1000 wholesale stores with over 400,000 products. There is no third party involvement in this platform you get to meet directly with the manufacturer that means you can get the products at a much reasonable cost.
Toptenwholesale is another free source for dropshipping products. You can find distributors, retailers, wholesalers, and resellers from any niche. The majority of the suppliers are US-based and verified that must be a sigh of relief for eBay dropshippers. However, most of the suppliers offer products in bulk so you need to create some negotiation skills and create a good relationship with the suppliers to get products as per your demand.
Dropshipping on eBay: Pros and Cons
It’s quite normal to have both pros and cons which is true for dropshipping as well. eBay dropshipping also comes with its own share of pros and cons which are as follows.
- Quite easy and simple to use. Dropshipping on eBay is as easy as signing up for an account and listing the products. No technical knowledge required.
- Free marketing for your listings. You don’t have to worry about marketing your listings as eBay will put your listings in front of millions of buyers on their platform.
- Customer trust is already available for eBay. All customers trust eBay when it comes to purchasing online so you get to enjoy that free trust.
- The listing fees can cut into your profits. The first 50 listings are free, but after that eBay charges you a small fee per listing. The profit margins are already slim when dropshipping and eBay’s fees can quickly chew into your profits.
- Dropshipping on eBay is a great way to start a business, but there are not many customization options available for you which makes it difficult for sellers to differentiate themselves from the competition.
- You need to frequently monitor your listings and stay on top of the game. There are numerous software available that can help you with the whole process and make re-listing easier for you.
For all the up and coming eBay dropshippers – I hope this article will help you get started on your own with eBay dropshipping without having to waste your time or financial resources on BS guides.
For everyone who’s already been doing dropshipping, hopefully, this article will enlighten you with some new methods or new platform to save more money while dropshipping. I love to know what you think about my articles, so feel free to comment below and let me know about your dropshipping experience with eBay or any other platform.