Ebay dropshipping is a popular way to start a business with a minimum amount of money investment or risk upfront. Unfortunately, the internet is full of exaggerated (less than helpful) guides that may make this opportunity seem larger than it is.
Is ebay dropshipping really worth it?
And if so, what steps should you take to be successful?
In this guide, we’ll walk you through how to start your eBay dropshipping business in just a few steps.
eBay dropshipping involves selling items on eBay, then working with your supplier to ship them directly to customers. Instead of holding inventory or creating the product, sellers focus on merchandising E-Commerce Customer service and creating new products to sell.
To start your eBay dropshipping business, you will need to find and source products from a supplier and list your items on eBay.
Many sellers will use the exact images, product titles, and descriptions provided by their suppliers. When a shopper buys from your eBay listing, the details are passed on to the supplier, who is then responsible for shipping the product to the customer.
Your profit comes from buying products at a wholesale price and then reselling them at a higher price.
Dropshipping is allowed on eBay, provided you follow the instructions the rules To ensure the management of your store with a good reputation. Here’s how to stay on top:
This can be a challenge for sellers because the shipping time is not under your control. You need to find an efficient and trustworthy supplier. Make sure you are constantly monitoring their progress and keeping track of any delays.
You can’t sell an item on eBay, then order the item from Amazon or Walmart and have it shipped directly to your customer. Not only does it confuse the customer to receive an Amazon package in the mail, but it also means they can’t track the shipment.
important point: You can still use Amazon FBA To do that on eBay. The difference is that you will use Amazon fulfillment services instead of buying the product from the marketplace.
If your description and product do not match, you can expect negative reviews and returns.
Every negative review you receive will make it harder to rank well in the eBay search algorithm and risk losing eBay stars! If you get too many complaints, eBay will close your store.
Simply; Don’t try to trick customers into buying your product!
See also: Create a Shopify dropshipping store
The key to dropshipping success is a slightly higher profit margin. In many cases, shoppers will only make a few dollars from each purchase.
Obviously, this depends on the price of the product you’re selling, but many dropshipping stores will start with mid-to-low ticket items. This is a natural tendency for new sellers who want to reduce risk.
If you’re looking for a lot of low ticket sales, eBay can provide as many shoppers as you need.
Be careful when choosing your e-commerce niche. High-ticket items can be risky, but cheap products put your margins at risk. If you lose margin entirely, you’re in big trouble!
See also: Amazon Dropshipping Guide
You have a few different costs to deal with when starting an eBay dropshipping store. eBay’s own fee for using the marketplace in addition to supplier fees. The main eBay dropshipping fees are shown below:
You can calculate potential fees for your listings using eBay fee calculator.
See also: Drop shipping guide on Ali Express
When choosing products for your eBay dropshipping business, it’s important to be strategic. You will need to select items that are in demand, but are not already sold by a large number of other sellers. Otherwise, it will be hard to compete and that means lowering your prices.
Remember what we said about margin risk earlier?
You will need to choose items that you can make a profit on and that you can get easily. The sweet spot is in the $40 to $150 range. Less than that means your profit margin will shrink. Higher than that will be difficult to convert potential buyers. Remember that shipping more expensive items can be more expensive, which again reduces your profit margin.
Finally, consider looking for products that can be posted as multi-item lists. You can create the listing once, tell eBay the size of your inventory and they will track it down for you. This way, you will spend less time dealing with posting and listing and have more time dealing with customer service.
Here are just a few examples of some great items that ship on eBay:
See also: How to earn money from YouTube
You’ve found your products and you’re ready to go. How do you get started?
The supplier you choose can make or break your business. They are responsible for storing and shipping the product, so your reputation is in their hands.
When choosing a dropshipping supplier, consider these key factors:
A word of caution here: This is a very important stage to have a winning streak in your business. Make sure to find a supplier that you can trust. eBay Dropshipping is a great business model when you get it right, but there is a chance you can get scammed if you partner with a dodgy supplier!
Reputation is everything when selling on eBay.
Sellers often make the mistake of assuming that the supplier’s goods are exactly as advertised and start selling immediately. But if you get orders for products you haven’t seen, and your customers receive something different from your promotional materials, you’re setting yourself up for bad reviews.
Nothing kills an eBay dropshipping business faster than getting customer complaints early, so always keep those buyers happy. Ask for an order form from your supplier first to ensure that you are satisfied with the quality of your future products.
If you are not already selling on eBay, you will need your own seller account. Make sure you choose a professional username to build your brand with. To open an eBay account, you only need an email address. To open a business account, you will need the name, type, and address of the business.
At this point, you will need to contact a provider Payment service. Most first-time eBay dropshippers will use PayPal, because it’s free and easy to get started with. Another option is Stripe. Large companies tend to prefer Stripe because it offers more customization.
Your product listings have the biggest impact on your conversion rate. By creating professional product descriptions with high-quality images, you can convince shoppers that your product is the best choice for them.
Well-written product listings are more likely to rank higher on the eBay search engine and be returned as the best match.
When shoppers compare your product to your competition, they have a list of questions to ask themselves:
If you can answer all of these questions with your product description, you are more likely to win business for the customer.
One of eBay’s most interesting features is its unique pricing structure. You can choose to allow customers to bid on items, set a specific starting bid, or a buy-now bid. By effectively pricing your items on eBay, you can increase your profits and sell more items.
The best way to ensure you’ll make a profit is to set an initial bid that guarantees you’ll cover any fixed costs (such as product cost, shipping, and eBay listing fees). From there, you can set buy-now prices that meet your profit goals.
eBay also makes pricing recommendations based on other similar items that can help give you a good starting point. Make sure to have similar items as an additional reference point. eBay will naturally want you to sell as low as possible.
If you’re a multi-channel seller, you need to be very careful that your eBay prices don’t fall below Amazon prices. If this happens, Amazon will likely put your listings on hold.
For Amazon sellers considering eBay expansion, try repricer.com. Multi-Channel Pricing will replicate Amazon prices to eBay so that you sell at a fixed price in both marketplaces.
Once you’ve made your product listings on eBay, your priority is to build a strong, positive relationship with your customers. You can do this by quickly dealing with any questions or issues they may have.
eBay’s customer service portal isn’t really designed for professional online sellers, so it has limited functionality. For example, messages from the same person are not merged into a thread – this can get very messy, very fast!
Using an e-commerce help desk is essential for sellers who take customer service seriously.
When responding to customer inquiries, remember to keep the following tips in mind:
Once orders start rolling in, don’t forget to ask for feedback from happy customers. Remember that positive reviews help your listings appear and increase your sales on eBay.
xSellco Feedback helps increase your seller rating by sending intelligent selective feedback requests that improve your brand reputation and grow your business.
Tailor your strategy to target orders by SKU, product type, delivery time, destination, and more.
There is a lot of hype surrounding eBay dropshipping, but if you put the effort into it, it can be a very profitable business model. There are many factors influencing, but sales volume is the key to profit and great service is the key the sales.
As with anything on eBay, sellers are responsible for both the item and buyer satisfaction. If there is a problem, it is up to you to solve it, not the supplier. This is why it is important to work with a reliable sourcing company to avoid any problems in the first place.
Keep your finger up to date, respond to customers quickly, and you’ll be on your way to running a successful eBay dropshipping business.
Is dropshipping allowed on eBay? Yes, eBay allows dropshipping, but eBay dropshipping and dropshipping suppliers must follow the rules and policies. Dropshipping on eBay can be risky and you will need to make sure that you follow all the rules to the letter, including shipping rules that the manufacturer or supplier may have.
While there is certainly less financial risk up front than drop shipping, it is far from 100% safe. Risks include high shipping costs, low profit margins, and poor quality control.
Is dropshipping profitable? Yes, dropshipping can be profitable for merchants. Dropshipping is a low-risk business model that allows you to sell products to your customers without incurring huge operating costs like a wholesaler.
Yes, as you read above, dropshipping is definitely not “dead” or “saturated” yet. However, the days of picking one product up on AliExpress are up and running Facebook ads And making it crazy numbers they tell you about on YouTube is pretty much gone.