eBay Dropshipping: A Beginner's Guide

Jan 8, 2024
Anna Pham
ebay dropshipping

Dropshipping has grown as an effective company model, providing entrepreneurs with an appealing option to launch an online operation without making major upfront inventory commitments. eBay is a well-known dropshipping platform with a large customer base of 135 million clients from all over the world and millions of daily visitors. However, launching a dropshipping enterprise on eBay might be difficult, especially for newcomers.

Therefore, in this post, we will walk you through the steps of starting a profitable eBay dropshipping business. Our step-by-step approach will show us how to set up our account, identify successful products, and begin generating money right away.

What is eBay Dropshipping?

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eBay dropshipping is an eCommerce approach in which merchants operate as middlemen, listing and selling things on eBay without the need to stock inventories. Instead, sellers work with third-party providers of dropshipping that manage product storage and delivery directly to buyers. 

Dropshipping eBay eliminates financial risk and logistical complications, making it desirable to online merchants looking to launch a low-risk, high-reward eCommerce operation.

Benefits of Dropshipping on eBay

Is it truly worth it to dropship on eBay? No platform is flawless. Shopify, too, has opportunities for improvement. However, eBay dropshipping has several advantages, which I will go over in this part. 

No Need To Create A Website

The main advantage of dropshipping on the eBay platform is that you no longer need to establish a website. Dropshipping experts often advise creating an online store with Shopify or WooCommerce.

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It is difficult to design a website. Though you are not required to learn to code, creating a dropshipping website from scratch has complexities.

Here are several of your worst fears when it comes to designing your dropshipping website:

  • Hackers will break into your store and steal credit card information.
  • Your competitors may launch DDoS (denial of service) assaults against you.
  • Your website's hosting service supplier is untrustworthy; your website loads extremely slowly.
  • Customers don't trust you since they don't know who you are.

As you can see, if you construct an eBay store, you don't have to think about any of these concerns. I'm not suggesting eBay isn't vulnerable to hacking; rather, they have a staff of security specialists working around the clock to combat attempts to access the system.

Increased Profit Via Bidding

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eBay began as a bidding site and later introduced a "Buy Now" option. eBay, on the other hand, has kept the bidding or auction-style selling. 

What exactly does this mean? That is, you can post the item and sell it in an auction. You have the option of setting a minimum reserve cost or the cheapest offer you will accept.

If your items are unusual, such as epoxy resin items that are not possible to imitate, the auction is ideal. Since it is an auction, you might earn more as bidders increase their willingness to spend. 

Web Traffic Is Not a Major Problem

Traffic is the most difficult component of the job. After you've constructed your store, the next challenge is attracting customers. 

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All of these approaches take a lot of money. The unfortunate reality is that it may not work. I've spent $100 on Facebook advertisements and received good impressions and clicks but no revenues. 

You won't have this difficulty if you dropship on eBay, which has been around since 1995. It is one of the world's largest online markets, with millions of visitors each day.

eBay product research tools let you identify the best-selling items on eBay. They also assist you in optimizing your listing. These tools, for example, can advise you on which keywords to include in your product title and description.

Suppliers' Automation Assistance

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Dropshipping on eBay is straightforward because you don't have to copy and paste information from the provider. Some tools enable you to import products straight from vendors into your eBay store. 

Here are a couple of examples: 

The firms I listed are dropship-supplier databases. They are platforms where dropshippers and vendors can work together. They also meet the requirements we have for dependable vendors.

Reduced Dropshipping Fees

Dropshipping on eBay is less expensive than dropshipping on Amazon or dropship on Shopify. You have to pay at least $25/month for your dropshipping business on Shopify, plus expenses if you make a sale utilizing their payment handling system.

Amazon has a couple of accounts. You may pay $39 monthly and list as many products as you wish. Another option is to pay a charge of $0.99 for each item sold, but you can only offer 40 items/ month with this plan.

Furthermore, Amazon collects a referral fee for each item sold, which ranges from 8% to 45% of the product price. 

eBay dropshipping, on the other hand, does not charge either insertion or listing fees for the first 250 items you list. Any item above 250 is merely $0.35. There is also a $0.30 final value fee for each order. 

Please keep in mind that these eBay listing fees only apply to sellers in the United States. Each location or market has a separate charge structure on eBay. In eBay Asia, for example, there are no listing costs. Sellers in Asia can post as many things as they wish and do not have to pay anything if their items sell. 

Other costs are also available on eBay. The "bold" fee is a good illustration. You spend $2 to have the listing title in bold letters in it. The objective is to increase the prominence of your product listing title in search results.

What You Should Know Before Dropshipping on eBay?

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Dropshippers can only purchase goods from authorized trade-only or wholesale suppliers on eBay's marketplace, not from other retailers. Violations of these rules may result in the suspension of your account.

According to eBay's dropshipping policy, If you employ drop shipping, you are still accountable for the item's safe delivery within the time range specified in your ad, as well as the buyer's satisfaction with their purchase.

While dropshipping on eBay, you must also pay eBay fees, which include:

  • Insertion fees: Receive 200 free listings every month. Following that, it is 35 per listing.
  • If an item sells, eBay takes 12.9% of the purchase price up to $7,500, + 30 cents for each order. (This varies by product type.)
  • Fees for the store are $4.95 per month for 250 free listings. Dropshippers with over 1,000 monthly listings can start at $21.95/month.

How to dropship on eBay?

Are you ready to start creating money with eBay dropshipping? Here's a step-by-step guide to starting a successful dropshipping business.

Step 1: Establish an eBay merchant account.

To sell on eBay, you'll need a seller account.

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Go to the registration page and fill out the fundamental data regarding your dropshipping business. Next, sign up for the eBay store option that best meets your needs and connect to your bank account to get paid for sales.

After you've decided on an eBay store name, evaluate if you intend to sync eBay to Shopify with an app like DSers. You'll be able to view inventory levels in one spot, maintain business policies, and interact with buyers all from one dashboard.

Step 2: Discover profitable products.

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Next, conduct product research to determine products to dropship on eBay. Go to eBay's bestsellers page and see if you can get identical products at a lower-than-RRP price through dropshipping sites such as Alibaba or AliExpress. The best items for dropshipping are:

  • Products for the home or business
  • Products that people buy regularly
  • Common items are frequently purchased on eBay.

Step 3: Check out your dropshipping vendors.

When you've identified a product to dropship on eBay, seek out a supplier who can supply the item at a lower-than-retail price. Dropshipping websites that link eBay sellers with wholesalers include:

When dropshipping on eBay, the supplier you select is likely one of the most critical variables. The marketplace encourages brands to ship things within 30 days of receiving a customer's order.

Examine each dropshipping vendor's seller rating, prior customer ratings, delivery times, and costs before selecting one.

Step 4: Price your product

Dropshipping eBay can be a profitable business model—but only if you leave enough gap between the product's purchase and resale cost.  For instance, when each item has a profit margin of $1, it will be difficult to generate significant sales.

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Consider the following when determining the price of your dropshipping items: 

  • Product costs
  • Rival pricing
  • Other company expenses include eBay listing fees and delivery costs.

How much profit do you want to make?

Pricing has become more of an art than a science. Begin gathering data and analyzing what comparable goods are selling on the platform. Adjust the price of your products until you strike a profitable balance between competitive rates and the willingness of a customer to spend.

Step 5: Make your eBay listing.

Pay particular attention to the areas listed below, including keywords that your target buyer is looking for. It will influence the algorithm's likelihood of showing your product listing to prospective buyers:

  • Product name
  • Product specifications
  • High-quality images
  • Customer feedback
  • Returns policies (confirm that your dropshipping supplier handles this)

Step 6: Send order details to suppliers

Your supplier is responsible for choosing, packing, and delivering items sold on eBay.

To automate this connection, use dropshipping software such as DSers or AutoDS. Both apps immediately send order details to your supplier, display its state in the order fulfillment process, and provide clients with shipping tracking numbers.

Tips for eBay Dropshipping Success

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Dropshipping on eBay is not a difficult process. However, some elements will help your new business succeed while using this fulfillment strategy in the marketplace.

Utilize an inventory control system. 

Shopify dropshipping tools such as DSers combine inventory data from every point of sale, including your web store and eBay storefront, so you can examine sales and client data in one location.

Prioritize customer service.

Buyers on eBay are unlikely to be aware that you operate with dropshipping suppliers. Accept complete responsibility if the vendor fails to meet guaranteed delivery schedules or provides products that differ from what a consumer bought. To boost client satisfaction, respond to assist requests on time.

Develop strong supplier connections. 

According to John Frigo, a salesperson, you must maintain a relationship and connection with your supplier so if an item becomes unavailable or out of stock, or price changes, you can be notified of that so you're not offering items you are unable to fulfill and later need to cancel.

Spend money on promoted listings. 

You can attract more buyers using eBay-sponsored listings, depending on your profit margins. This in-marketplace marketing increases the likelihood that target shoppers will see your dropshipped products.

Utilize a multi-buy offer. 

Use multi-buy offers, like one product for $5 or three for $12, to increase average order value. Because you won't have to pay shipping or import costs many times, your dropshipping company will be more profitable

FAQs about eBay Dropshipping

Will I get in trouble for eBay dropshipping?

Drop shipping is permitted on eBay provided you own the things before listing them or have an agreement with a wholesaler to list and sell their products. This criterion is not met by a user agreement from a different store or marketplace.

Is a business license required to dropship on eBay?

To begin dropshipping, you do not need a business license. Simply set up your store and go. However, just because you can does not mean you should

Final Thought

In the end, with its inexpensive initial costs, vast choice of products, and global customers, dropshipping eBay has the potential to be tremendously profitable if done right.

All you need to do is follow the procedures provided in this article and stay up to speed on eBay's dropshipping regulations and policies. A profitable eBay dropshipping business will be established.

With these techniques in place, we hope you have the best of luck on your path to expanding your eBay dropshipping company and achieving long-term prosperity!