Are you looking for a low-cost, successful business concept that you can run in only a few hours each week? Look no farther than dropshipping on eBay.
For good reason, eBay is the premier marketplace for internet retailers. Dropshipping on eBay allows company owners to connect to eBay’s ready-made client base and sell products—even if they don’t have physical inventory to offer. The site has 159 million active consumers and 1.7 billion monthly views.
Do you want to come in? From acquiring the correct items to maintaining high-profit margins, this book covers all you need to know about eBay dropshipping.
What is eBay dropshipping?
Entrepreneurs that buy things from a dropshipping source, mark them up, then resell them on eBay employ the fulfillment model known as eBay dropshipping.
Because dropshipping offers a minimal barrier to entry, it’s a popular option to start a business with no money. You don’t need to handle the things you’re selling, and you don’t need to keep inventory in your own warehouse. Your dropshipping supplier receives the order data directly and is responsible for picking, packing, and delivering the order to your eBay consumer.
Dropshipping allows us to carry a variety of brands and goods that we otherwise wouldn’t be able to carry since we don’t have the room in our warehouse or the finances to purchase all of the inventory.John Frigo, ecommerce manager at Best Price Nutrition
However, there are also disadvantages to eBay dropshipping, including low-profit margins and fierce competition. Your eBay dropshipping success is mostly determined by the things you pick and how you obtain them.
What to dropship on eBay
The internet marketplace of eBay sells practically anything you can imagine. Consider the following categories while looking for a product to dropship:
- Disposable face masks
- Men’s fragrances
- Video games
Check eBay’s list of restricted or forbidden items before selecting your dropshipping products. Alcohol, cosmetics, fertilizer/pesticides, jewelry, and automobile parts are all subject to stringent controls. If this is your first time dropshipping through eBay, it’s advisable to avoid them.
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Things to know before dropshipping on eBay
Dropshippers can only buy items from a verified trade-only or wholesale supplier on eBay’s marketplace, not from another store. The account suspension may be imposed if these rules are broken.
You’re still responsible for the safe delivery of the item within the time range you specified in your ad, as well as the buyer’s general happiness with their purchase if you employ drop shipping.eBay dropshipping policy
When dropshipping on eBay, you’ll additionally have to pay eBay fees, which include:
Insertion fees: Each month, you’ll get 200 free listings. Then it’s 35 cents for each listing after that.
Final value fees: If an item sells, eBay keeps 12.9 percent of the sale price up to $7,500, plus 30 percent for each order. (Depending on the product type, this may differ).
Store fees: For $4.95 each month, you get 250 free listings. Dropshippers with more than 1,000 monthly listings can start for as little as $21.95 per month.
How to dropship on eBay
Are you ready to start profiting from eBay dropshipping? Here’s how to start a successful dropshipping business step by step.
1- Create an eBay seller account
To start selling through your own eBay store, you’ll need a seller account.
Fill up the essential details regarding your dropshipping business on the registration page. Then, choose the eBay store option that best meets your needs and link your bank account to receive payment for any sales you make.
Finally, pick an eBay store name and use the eBay app to link the new site to Shopify. All of your inventory levels will be visible in one spot, and you’ll be able to manage business policies and connect with purchasers all from one dashboard.
2- Find profitable products
The next step is to do product research to determine which things will sell best on eBay. Investigate whether you can get identical items at a lower-than-RRP through dropshipping sites like Alibaba or AliExpress by going to eBay’s bestsellers page.
The best dropshipping products are:
- Hobbyist or business products
- Items people purchase repeatedly
- Popular products often bought through eBay
You should also select items that are simple to transport and have a low return rate. Small and light items are the simplest to ship, and products with a low return rate are less likely to cause problems with your clients.Kristin Stump, marketing manager at MyEnamelPins
3- Vet your dropshipping suppliers
Look for a supplier that can give you the item at a lower-than-retail price once you’ve discovered a product to dropship on eBay. There are dropshipping websites that link eBay business owners with wholesalers, such as:
When dropshipping on eBay, the supplier you pick is undoubtedly one of the most critical considerations. Brands must deliver things within 30 days of a customer’s purchase being placed, according to the marketplace.
Check each dropshipping supplier’s seller rating, prior customer reviews, delivery timeframes, and costs before you choose one.
4- Price your product
Dropshipping on eBay may be a profitable business model—but only if you leave enough margin between the buy price and the resale price. If each item has a $1 profit margin, for example, it will be difficult to generate significant sales.
Consider the following factors when determining the pricing of your dropshipping products:
- Product costs
- Competitor pricing
- How much profit do you want to make
- Other business expenses, such as eBay listing fees and shipping costs
Pricing is more of a work of art than a science. Begin gathering data and keeping track of what similar things are selling for on the site. Adjust your product pricing until you’ve found a profitable balance between competitive prices and the willingness to spend of your customers.
5- Create your eBay listing
Create an eBay listing for each item you’re dropshipping.
Pay special attention to the sections below, especially the keywords that your target buyer is looking for. It will have an impact on the algorithm’s likelihood of showing your product listing to potential buyers:
- Product title
- Product descriptions
- High-quality images
- Customer reviews
- Returns policies
6- Forward order information to suppliers
Your supplier is in charge of selecting, packaging, and delivering products sold on eBay.
To automate this communication, use dropshipping software like DSers or AutoDS. Both applications send order data to your supplier, show where it is in the order fulfillment process, and provide clients with delivery tracking numbers.
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Tips for success with eBay dropshipping
Dropshipping on eBay isn’t a difficult process. However, there are a few factors that will help your new firm succeed in the marketplace if you use this fulfillment approach.
Use an inventory management system. Dropshipping tools for Shopify, such as DSers, combine inventory data from all sales channels, including your webshop and eBay site, so you can see sales and customer information in one location.
Prioritize customer support. Customers on eBay are unlikely to be aware that you operate with dropshipping providers. Take full responsibility if a supplier fails to fulfill specified delivery schedules or provides items that differ from what a consumer bought. Increase customer satisfaction by promptly responding to support queries.
Build strong relationships with suppliers. “It’s crucial to establish a connection and contact with your seller so you may be alerted if a product is discontinued, out of stock, or the price changes,” says John Frigo. “You don’t want to sell products you can’t fulfill and subsequently have to cancel.”
Invest in promoted listings. Depending on your business margins, eBay-sponsored listings can help you attract more buyers. These in-marketplace ads increase the likelihood that target buyers will see your dropshipped items.
Add a multi-buy offer. Multi-buy offers, such as one product for $5 or three for $12, can boost average order value. Because you won’t have to pay shipping or import costs many times, your dropshipping business will be more profitable.
Start your eBay dropshipping business
Because so many people use eBay to find new things, the dropshipping business model allows you to profit from their purchasing.
To locate bestselling items, price each item, and select the correct supplier, follow the advice in this tutorial. If you cover all of your bases, eBay dropshipping may be a successful company.
Dropshipping on eBay FAQ
Dropshipping on eBay is a low-risk, high-reward venture. The key to making a living in this industry is to find low-cost things and resell them for a larger profit in the marketplace.
Alongside the cost of each good, eBay dropshippers do pay extra fees to sell through the marketplace. That includes listing costs (35¢ per listing after the 250 free listings each month), final value fees (up to 12.9 percent of a product’s sale price), and store subscriptions (beginning at $4.95 per month).
Dropshipping is a viable business concept on eBay. If you’re a rookie entrepreneur searching for a low-cost company concept, it’s worth exploring.
The key to eBay dropshipping success is having dependable suppliers. Suppliers may be found on sites such as AliExpress, Alibaba, and Oberlo. Check the seller rating, customer ratings, and anticipated delivery timeframes for each provider.