eBay offers a steady stream of loyal customers and high business growth potential. This makes it a lucrative platform for small- and first-time sellers.

Dropshipping on eBay is now possible without having to invest upfront capital. Dropshipping on eBay requires a much lower upfront investment than regular retail stores, and could be a great way to get into online retail for merchants who are just getting started or trying out the waters.

How can you drop ship on this massive marketplace? What are the benefits and drawbacks of eBay dropshipping? Is it worth it?

To help you decide if eBay dropshipping is right for you, we have outlined the complete guide to eBay Dropshipping. Let’s explore!

What is eBay dropshipping?

Dropshipping is selling products on eBay and working with suppliers to ship the items directly to your customers. Instead of manufacturing products and holding inventory, you, the seller, can focus on marketing activities, customer support, and finding products to sell.

You will need to source products from trusted suppliers, list your items on eBay and then start your dropshipping business. Many sellers use exact descriptions, product titles, images, and descriptions from their suppliers. The details of a customer who purchases from your eBay listing will be sent to the supplier. He or she is responsible for shipping the product. 

You can make a profit by buying products wholesale and then reselling them at higher prices.

What is dropshipping on eBay?

Dropshipping is allowed on eBay. Yes. It is limited.

This is to preserve its image as a safe, no-risk marketplace. It has all the right reasons to be so, considering it has 185 million users worldwide.

eBay, an American online auction site, is something you may not have heard of. Sellers will list their products with a starting price, so buyers can search, bid on and then buy. Sellers have the option to add a “Buy It Now” option to set the price and allow customers to purchase it without bidding.

Dropshipping on eBay requires that you purchase bulk products from a wholesaler, and have a fulfillment company store and ship your products.

Dropshipping can be started by anyone who has a seller account. Dropshipping on eBay is a little more complicated because of the obligations. Let’s get to the next section!

eBay dropshipping policies

Dropshipping is technically permitted on eBay, as long as the orders are fulfilled directly by a wholesale supplier.

It is prohibited to buy items directly from your customer via another marketplace or retailer. You can’t sell something on eBay and have it shipped directly to your customer by Amazon. Not only is it confusing for customers to get an Amazon package in the mail but they also cannot track shipping.

Important: You can still use Amazon FBA to fulfill orders on eBay. Amazon FBA will be used to fulfill your order.

Dropshipping is a way to ensure that the product arrives safely within the specified timeframe.

This policy is strictly enforced by eBay. They will not remove or lower any listings from their search results. They may also lower your status or rating if you are a long-standing seller.

What is the cost of dropping shipping on eBay?

Dropshipping on eBay comes with a number of costs. These include eBay’s fees for their marketplace, and the fees from your suppliers. Dropshipping fees for eBay include:

• Insertion fees (or listing fees). You will receive 50 items for free each month. The listing fee in most categories is $0.35.

• Final value fees (or selling fee) These fees represent a percentage of the total product sales price. It is usually 10% for most sellers or lower.

• Listing upgrades. You’ll be able to attract more customers by offering additional upgrades such as larger photos and visibility on international sites.

• Fees for certain categories. Fees may vary for certain categories such as real estate, business, industrial, and motor vehicles.

There are two important fees you should consider: the listing fees (the cost of posting your item regardless of whether it sells) and the final value fees (calculated based on the item’s final selling price).

Dropshipping on eBay: The pros and cons

Dropshipping can be a great option for new sellers and start-ups, provided you adhere to its guidelines. These are some of the benefits:

• There is no upfront investment. Dropshipping on eBay is a great option because you don’t have to purchase stock in large quantities upfront. All you need is a wholesaler willing to dropship your products to customers. If it’s not for you, you have nothing to lose except your time.

• It’s easy to get started. It’s easy to start with very little money, as you don’t have to invest in inventory. You don’t have to go through the hassle of creating an E-commerce store or blog. You only need an eBay seller account to create dropshipping orders for your products.

• Profit from eBay’s large audience. eBay is a well-known and respected online auction site for purchasing goods. This means that it has a large and loyal customer base. Dropshipping is a great way to reach a large audience without any effort on your part.

• You can save on marketing. Dropshipping on eBay allows you to capitalize on a large customer base and save on marketing. Millions of people will see your listings regardless.

Dropshipping on eBay may seem like an easy option, but there are many disadvantages that you should consider before you commit to dropshipping, especially after eBay implemented its strict drop shipping policy. Here are some of the drawbacks.

• Listing fees. eBay charges a listing fee (the first 50 listings are completely free), as well as 10% of the total sale price. These fees can quickly add up due to the low profit margins dropshipping offers.

• You will have less customization. Dropshipping can be a great way for an online business to begin, but there are fewer customization options available for your shop and listings. This can make it harder to stand out from your competitors.

• When things go wrong, you are responsible. The safe delivery of your product within the specified timeframe is entirely up to you. You are dependent on the supplier to dropship your product. Even if they run out and have to wait for a month before shipping, there will be no repercussions. Negative feedback could lead to account suspension and a drop in sales.

• There is a lot of competition. Dropshipping on eBay is a popular option for many online sellers. However, there are high barriers to entry. You will need to concentrate your efforts on other sellers who are selling similar products to you. This can make it difficult to stand out and can lead to high-stress sales.

• Low profit margins. To remain competitive in this fierce market, you might need to continue to lower your prices. You may also lose your profit margins due to eBay dropshipping fees. To make money with eBay dropshipping, it’s necessary to have a large monthly sales volume.

It’s up to you to decide where to put your effort and time, but dropshipping on eBay is still a great way to make money.

Here are 5 steps to get started dropshipping on eBay

Here are five steps to get you started with dropshipping on eBay.

Step 1. Find a supplier

Dropshipping is all about choosing the right supplier. Your reputation rests in their hands.

These are the questions you should ask your supplier before deciding with whom to work together:

• Is the supplier willing to dropship?

• What shipping options does the supplier offer? What is the average time these shipping methods take?

• Are they able to deliver anywhere in the world or only to certain countries?

• How does quality control work?

• What is their reputation like? What support would they offer if there were any problems with the order?

• You can use their source material (product descriptions, photos, specifications) in your listings.

You need to make sure that you are able to find a reliable supplier. Dropshipping via eBay can be a great option if done correctly, but it is possible to get scammed if your supplier is not trustworthy.

After you have selected your supplier(s), locate their contact information and get in touch with them. Make sure to let your supplier(s) know that you are interested in dropshipping and inquire about their policies. For more helpful tips, please refer to How To Find A Dropshipping Supplier?.

Step 2. Choosing products

This step can be taken before or after step 1. It all depends on how you want your online shop to look. You may get some ideas based on what you are interested in selling by browsing through the items offered by your supplier. eBay product search tools will allow you to analyze the statistics and determine which items can make a profit.

To ensure that your products are of high quality, request a sample order first from your supplier. Dropshipping on eBay is not as easy to fail than customer complaints. So make sure you keep your customers happy.

Step 3. Create an eBay seller account

It takes only a few minutes to set up your eBay seller account. Here are some points you need to remember:

• eBay’s seller center contains many helpful links and guidelines to help you set up your store.

• Be careful when choosing your account name. You might lose customers if you choose a crude or offensive name. You might be able to sell more if you have catchy or clever names.

• A tax ID may be required. Google can help you find out how to apply in your state for a tax ID.

• You can set up your own payment method. These payment methods can vary from country to country, but all US sellers must have either a PayPal or merchant credit card account.

• Your profile page should include details about your store, including shipping and return policies. Specific niche markets will appreciate your credentials and background.   

Step 4. Create your product listing

You can create your product listings by using the information you receive from your supplier.

Customers will be convinced if you create converting product descriptions that include high-quality images. Well-written product listings are more likely to rank higher in eBay’s search engine.

Visitors will ask a series of questions when comparing your products with your competitors.

• Do you think this product has the feature(s) that I need?
• What is the delivery time for my item?
• Am I dealing with a trustworthy seller?

You will win more customers’ trust if you can answer all these questions in your product description.

Step 5. Make sales

It’s time to start making money now that you have your eBay listings!

You can build a positive reputation by fulfilling orders quickly. Also, make sure to check with your supplier every week or daily to ensure everything runs smoothly.

You should remove listings for discontinued or out-of-stock items and replace them regularly with new products. Don’t forget about customer complaints and inquiries. You can also respond quickly and professionally to them. This will help you create a positive experience for customers that will encourage loyalty and increase repeat business.

Here are 5 tips to help you dropship eBay products

Below are some tips to help you grow your eBay dropshipping company.

Take control of your pricing

Every day, millions of buyers shop on eBay to find the best prices for their products. Dropshippers can face this challenge as the final sale price of products may fluctuate but the supplier charges a fixed fee.

Additionally, eBay listing fees and a percentage from the final sale price are required, which can reduce your profit margins.

There are many ways to keep your profits high. Dropshipping on eBay allows you to list your item as a Buy It Now listing. This will allow you to make sure you get the maximum profit.

You can still allow eBay buyers to bid on your products, but make a greater profit by setting a reserve price. This is the minimum price buyers will be allowed to auction. You can also set a high start bid to ensure you cover your fixed costs.

Be sure to include costs from your supplier (taxes, shipping, etc.). As well as eBay’s listing fees and final value fees.

Minimize your workload

High volume is key to eBay dropshipping success. Profit margins are often very small, sometimes only a few dollars, so high volumes will help you make money. High volume can lead to more work, especially if you have to process each listing individually.

You can simplify this process and reduce your workload by looking for products that are multi-item. You only need to create the listing once. This allows you to handle fulfillment and returns if needed. To avoid having to relist, you should set the listing for a longer period.

Provide trackability

Most often, eBay customers will be able to track the package easily. You can share your FedEx, UPS or USPS tracking numbers to them. These kinds of problems can be solved by working directly with suppliers.

Ensure availability

Dropshipping is a popular option for many people. However, it can have some disadvantages. The biggest mistake sellers make is not ensuring that items listed on eBay are still in stock. This could lead to financial hardships and drive potential customers away.

To avoid selling out-of-stock or discontinued products, make sure to regularly check the inventories of your suppliers to ensure that they have a complete inventory. You can keep your customers satisfied by collecting daily reports from suppliers.

Ensure fulfillment

Now that you have verified the availability of your items, it is time to make sure customers are happy by fulfilling orders quickly and efficiently. You can build your reputation by being consistent with fulfillment.

Finding reliable suppliers is the key to success. They will not only keep you informed about the status of your orders, but will also be able to quickly shop for products. This allows you to be aware of any delays or problems so that you can communicate the information to customers.

There are always issues that can arise, but if you keep in touch with your customers and suppliers, any negative feedback will be kept to a minimum.

Dropshipping tools for eBay

Automating tasks such as ordering products and fulfilling orders is essential. Below is a list that will help you run your eBay dropshipping company smoothly.

• PriceFox. This tool allows you to monitor and update the pricing and stock levels of your supplier. The tool allows you to edit and update pricing directly from your computer without having to visit eBay.

• EASYNC. The software includes many features such as tracking prices and product availability, shipping dates, tracking prices, etc.

• ShopMaster. ShopMaster allows you to manage product listing, sales management, product sourcing and more. More than 80,000 dropshippers use ShopMaster.

• DSM. DSM can be used to reduce the work involved in listing products on eBay and/or to price them as needed. To get started, you can use the free DSM plan.

• BlackLister. This tool includes a keyword tool and photo editors. Meta tags can also be used to customize the tool for listing on eBay.

• DropshipBeast. Dropshippers can automate their pricing, search engine optimization and product shipping management with this solution. Prices start at $30 per month.

Is dropshipping on eBay really worth it?

This question is heavily dependent on your goals for eBay dropshipping.

Dropshipping is a great way to make extra cash on the side. It requires little upfront investment and has low risk.

Dropshipping is not the best option if you are looking to build a lasting brand with high profit margins and take full responsibility for your online business.

We recommend that you put your effort and resources into finding a platform that offers greater customization.

We hope you found this guide helpful in your eBay dropshipping journey. If you have any questions or concerns, please contact us. We are always glad to hear from our customers!