Are you looking for a profitable online business that doesn’t require a huge investment or inventory? Dropshipping on eBay might be the perfect solution for you. But how can you succeed in this competitive marketplace in 2023?
In this article, we will explore the pros and cons of dropshipping on eBay in 2023 and provide you with some tips to help you succeed as a beginner.
We will cover everything from finding the right products and suppliers to optimizing your listings and dealing with customer service.
So, whether you’re just starting out or looking to improve your existing eBay dropshipping business, you don’t want to miss this. Let’s start!
What Is eBay Dropshipping?
eBay dropshipping is a business model where you list products for sale on eBay without actually holding inventory.
Instead, when a customer purchases a product from you, you forward the order information to a third-party supplier who will then ship the product directly to the customer. Unlike traditional eCommerce, eBay dropshipping requires no upfront investment in inventory.
To get started with eBay dropshipping, you’ll need to find profitable products to sell, choose reliable suppliers, price your products competitively, create eBay listings, and forward order information to your suppliers.
In fact, it’s a step-by-step process, but with some due diligence and effort, you can establish a profitable eBay dropshipping business.
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Is Dropshipping On eBay Allowed In 2023?
Yes, dropshipping on eBay will continue to be allowed past 2023. However, technically, it is not banned, but it is subject to restrictions.
According to eBay rules, dropshipping is allowed as long as you directly fulfill orders from a wholesale supplier. This means that if you purchase products in large quantities from a wholesale supplier, you are free to sell those products on eBay.
However, if you are planning to resell products from other retail websites or marketplaces such as Amazon or AliExpress, dropshipping on eBay is not permitted.
Also, eBay strictly states that buying an item from another retailer or marketplace and shipping it directly to your customer is not permissible on their platform. So, If you violate this policy, eBay will take action by removing or lowering your listings in their search results, which could also negatively impact your seller rating or status on the platform.
What Do You Need To Know Before Dropshipping On eBay?
Before diving into dropshipping on eBay, it’s important to understand the policies and fees associated with the platform.
eBay has strict guidelines on dropshipping, so it’s crucial to follow them in order to avoid account suspension.
Thus, eBay charges various fees for dropshipping, including:
- Final Value Fees: eBay charges a percentage of the final sale price of the item, which can range from 2% to 12%, depending on the category of the item.
- Insertion Fees: eBay charges a fee for listing an item, which can range from $0.10 to $2.00 per listing, depending on the category of the item.
- PayPal Fees: eBay requires sellers to use PayPal to process payments, and PayPal charges a fee of 2.9% plus $0.30 per transaction.
- Shipping Fees: eBay offers discounted shipping rates through its partnership with USPS, but sellers still have to pay for shipping costs.
So, in order to make a profit with dropshipping on eBay, it is important to have high-volume sales. This is because the fees associated with each transaction can add up quickly, and it can be difficult to make a profit with low sales volume.
Additionally, high-volume sales can lead to better feedback and ratings, which can help increase sales and profitability in the long run.
➡ How Much Does It Cost To Start Dropshipping On Ebay?
As someone who has started a dropshipping business on eBay, I can tell you that there are several costs to consider before getting started.
Firstly, you’ll need to factor in eBay seller fees, shipping costs, product sourcing fees, and marketing expenses. 👇
- The fee for selling a product on eBay generally runs between 10% and 13% of the total sale including shipping costs. However, certain items may be subject to additional fees (e.g., for high-end fashion).
- Shipping costs vary depending on the size, weight, and location of the item being shipped. Generally, standard shipping for an item weighing less than 1 lb costs around $2-$5 per order. But, heavier items likely range from $7-$10 or more.
- Sourcing fees depend heavily on a range of factors such as supplier type (manufacturer vs wholesaler vs distributor), seasonality of product demand, etc. Thus, these costs typically range from 5%-15% of the actual retail price of each item sourced from suppliers to be sold on eBay.
In addition, there are upfront costs like purchasing a domain name, website hosting, and dropshipping software. 👇
- The sale price range for a domain name can vary depending on the domain extension and the registrar used but typically ranges from $10 to $50 per year.
- Website hosting prices can vary depending on the hosting provider and the hosting plan selected, but can range from $5 to $50 per month for shared hosting, and up to $500 per month for dedicated hosting.
- Dropshipping software prices can also vary depending on the provider and the features offered but typically range from $30 to $300 per month.
Also, it’s crucial to research and compares the pricing plans of different suppliers to ensure that you get the best deal on products.
➡ Benefits of eBay dropshipping
As someone with experience in eBay dropshipping, I understand the immense benefits this business model offers.
✅ Low startup costs
eBay dropshipping requires minimal investment, making it an accessible option for beginners or those with limited capital.
✅ Wide range of products
As a dropshipper, you have access to a vast selection of products from multiple suppliers, allowing you to offer a diverse range of products to your customers.
✅ No inventory management
With dropshipping, you don’t have to worry about managing inventory or storage space. This saves time and money on logistics and warehousing.
✅ Flexibility and scalability
Dropshipping allows you to operate your business from anywhere and scale up or down as needed without worrying about inventory or storage constraints.
✅ Reduced risk
Since you only order products from suppliers after a customer has placed an order, you don’t have to worry about buying and holding inventory that may not sell. This reduces the risk of unsold inventory and associated costs.
✅ Focus on marketing and sales
With no inventory or storage concerns, you can focus on marketing and sales, which are critical components of any successful business.
✅ Easy to get started
Setting up an eBay dropshipping business is relatively easy, and you can start selling products almost immediately.
✅ Access to suppliers
As a dropshipper, you have access to many suppliers, which can help you negotiate better prices and find unique products to offer your customers.
✅ Minimal order processing time
Since you don’t have to handle inventory or shipping, the order processing time is minimal, which can lead to faster delivery times and increased customer satisfaction.
✅ Low overhead costs
As a dropshipper, you don’t have to worry about the costs associated with maintaining a physical store or office, reducing overhead costs.
➡ Downsides of eBay dropshipping
In addition, there are also some downsides to using eBay dropshipping. So, let’s see what it is!
❌ Limited control over inventory
Since the products are sourced from a third-party supplier, the dropshipper has limited control over the inventory. This can lead to issues such as stockouts, delayed shipments, and canceled orders.
❌ Shipping and handling issues
Dropshippers rely on their suppliers to handle the shipping and handling of products. This can lead to issues such as damaged products, late deliveries, and lost packages.
❌ Low-profit margins
Due to the high competition in the eBay marketplace, dropshippers may have to sell products at a lower price than their competitors, leading to lower profit margins.
❌ Reputation risks
Dropshippers are often at the mercy of their suppliers when it comes to product quality and customer service. If a supplier delivers faulty or low-quality products, it can damage the dropshipper’s reputation on eBay.
❌ Limited customization
Since the products are sourced from a third-party supplier, the dropshipper has limited control over the customization of the products. This can make it difficult to differentiate themselves from their competitors.
❌ Returns and refunds
Dropshippers may face challenges in handling returns and refunds since they are not handling the inventory themselves. This can lead to delays in processing returns and refunds, which can negatively impact the customer experience and lead to negative feedback on eBay.
➡ What Are eBay Dropshipping Policies?
eBay has specific policies and requirements for dropshipping on its platform.
Firstly, it is essential to use a wholesale supplier to fulfill customer orders.
Secondly, purchasing products from another retailer or marketplace is not allowed and can lead to consequences such as hidden listings or account suspension.
Additionally, it’s crucial to pay eBay listing fees for each product regardless of whether they sell or not. Plus, meeting the 30-day guarantee for safe delivery is also essential for customer satisfaction.
In my experience, sticking to eBay’s policies is essential for building a successful dropshipping business on its platform.
How To Dropship On eBay In 6 Easy Steps
As someone who has gone through the process, I can tell you that it’s a relatively simple process, and you can start selling your products within a matter of hours.
👉 Also, read about Dropshipping from AliExpress to eBay: Step-by-Step Guide for Beginners.
1. Create An eBay Seller Account
To sell products through an eBay store, you need to have a seller account.
Creating one is simple: visit the registration page and provide basic information about your online business.
Next, you will land on eBay Dashboard. Choose the eBay store option that best fits your needs and link your checking account to receive payments. 👇
After completing these steps, connect your new store to Shopify with the eBay app. This will allow you to manage inventory levels, communicate with buyers, and handle returns all in one convenient dashboard.
2. Select Products To Sell
How can you find products on eBay? Easy! You can search on through eBay product categories, or you can use the search bar and enter the product’s name.
First and foremost, I always start by checking eBay’s bestsellers page for valuable insights. This helps me identify what products are currently trending and popular. I then look for similar products at a lower price from dropshipping sites like Alibaba or AliExpress.
When selecting products, I always focus on ones that are lightweight and have a low return rate. Hence, some of the popular product categories I consider are clothing, electronics, home and garden, pet supplies, and toys.
Finally, I price my products and constantly test and refine the price range to maximize profits.
💡 Tip: Read about Dropshipping Product Research Tools: How To Find Winning Products In 2023?
3. Find A Dropshipping Supplier
When it comes to dropshipping on eBay, finding a reliable supplier is crucial for your success.
So, if I find a specific product I want to sell, I always start by checking a supplier’s seller rating and customer reviews to ensure they have a positive track record. Therefore, I navigate to the product page and click on it to see detailed Seller information. 👇
Now, I can check on positive feedback, Items sold, followers, and more. 👇
Plus, shipping times and fees are also important to consider, especially since eBay has specific delivery time requirements. Hence, if I like the supplier, I save it by clicking on the ” Save Seller” button.
Furthermore, there are plenty of options to find dropshipping suppliers, including online directories, trade shows, search engines, social media, and referrals. Some popular eBay dropshipping suppliers include:
- Salehoo
- Chinabrands
- Wholesale2b
- Brands Gateway
- Harbor Freight
For example, I usually use CjDropshipping which is a wholesale supplier and is allowed according to eBay policies. So, I scroll down to the Global Warehouses section and search for items and suppliers based on location. 👇
4. Research Competitor Pricing
When dropshipping on eBay, it’s essential to research competitor pricing to price products appropriately.
I suggest checking out similar products on eBay, Amazon, and other online retailers to see what they’re charging. From this information, determine your costs, including listing and shipping fees.
For example, AliExpress has various extensions, like Search by Image, where you can for products using photos. Hence, you can use eBay’s product photo, and find it on AliExpress. This way, you can check on its pricing. 👇
I also recommend setting realistic profit margins while still keeping prices competitive. Don’t be afraid to adjust prices based on data collected until finding the sweet spot.
5. Create An eBay Listing
Creating an eBay listing is crucial to a successful dropshipping business. Taking the time to optimize your listings is important to stand out from competitors and attract potential customers.
Thus, to create a listing, click on the “Sell” tab on the eBay homepage. Then select “List an item”. Hence, you can start creating a list from the Seller Hub. So, once you are there, click on the “Listing” category.👇
Now, I will click on “Create Listing”, and I will choose “Single Listing”.
Hence, key factors to include are a clear product title and description, high-quality images, customer reviews, and a return policy.
Moreover, use keywords that your target customers may use when searching for those items, and take advantage of eBay SEO tips to increase visibility. Trust me, it’s worth the effort to create a compelling listing.
6. Forward Order Information To The Supplier
Forwarding order information to the suppliers is a crucial step in eBay dropshipping. It ensures that the supplier knows exactly what needs to be shipped and when.
Thus, communication with the wholesaler is essential for timely delivery. The use of dropshipping software can automate this process and reduce the chances of errors.
One example of using dropshipping software that can automate the process of forwarding order information to the supplier on eBay is the app called “DSM Tool”. 👇
This app allows eBay sellers to easily import products from various suppliers and automatically forward order information to those suppliers for fulfillment.
👉 Check out the 12 Best Dropshipping Software To Automate Your Store.
Once the order is placed, it’s important to ensure that the items are safely delivered to the customer, even though the supplier handles packaging and shipping. It’s imperative to keep the supplier informed about the delivery status.
Tips For eBay Dropshipping – How To Make Sales And Get Higher Profits?
As someone who has successfully built a dropshipping business on eBay, I have learned a lot about what works and what doesn’t.
Therefore, I want to share with you my top tips for making sales and getting higher profits with eBay dropshipping. Let’s dive in!
🔸 Tip 1: Use High-Quality Photos
As an eBay dropshipper, using high-quality photos is crucial for building trust and confidence with potential buyers.
I suggest utilizing the images provided by your supplier as a starting point but editing the main image to make it stand out from other sellers.
Adding borders or text can be a great way to do this. However, it’s important to confirm with your suppliers before using their images to avoid any potential copyright issues.
🔸 Tip 2: Write Detailed Product Descriptions
When it comes to selling on eBay, I find that writing detailed product descriptions is crucial. I start by outlining all the features and qualities of the product and highlighting what sets it apart from competitors.
This means including details such as the item’s condition, size, and color, as well as any notable features that make it unique. I always try to use descriptive language that paints a picture for potential customers and includes safety warnings or care instructions if necessary. 👇
Overall, detailed product descriptions help me attract more potential buyers and set myself apart from other sellers.
🔸 Tip 3: Be Clear About All Shipping Details
When it comes to dropshipping on eBay, Tip 3 is all about being clear about shipping details. Thus, to ensure customer satisfaction and prevent any confusion, it’s essential to list out all necessary information such as shipping costs and delivery times.
I recommend including any potential delays and special handling instructions as well. It’s also crucial to match your shipping policies with those of your supplier to avoid any discrepancies.
Effectively communicating these details can help build trust with potential buyers and lead to a successful dropshipping business.
🔸 Tip 4: Offer Competitive Prices
Offering competitive prices is one of the most crucial tips for a successful dropshipping business. To achieve this, I suggest researching competitors, analyzing market demand and pricing strategy, and maintaining a reasonable profit margin.
By following these steps, dropshippers can stay ahead of the competition and attract more potential buyers.
🔸 Tip 5: Respond Quickly To Questions
As someone who has experienced the importance of excellent customer service firsthand, Tip 5 is something I cannot stress enough.
👉 Check out Testimonial Advertising: 11 Proven Examples To Sell More.
Responding quickly to customer inquiries is crucial when dropshipping on eBay. I make it a point to regularly check my eBay messages and respond within 24 hours.
This helps me keep my seller rating intact and avoid negative feedback. When addressing questions, I make sure to be clear, concise and provide all necessary information related to the product and shipping.
Additionally, I always strive to remain professional and polite in my responses – it goes a long way in improving the customer experience.
Where To Find Dropshipping Suppliers For eBay?
I remember when I started my dropshipping business on eBay, the first and biggest challenge I faced was sourcing products from reliable suppliers. It can be overwhelming to find a trustworthy supplier that offers competitive pricing, safe delivery, and a variety of products.
However, I learned through trial and error and I’m going to share with you where to find dropshipping suppliers on eBay.
1. Online Directories and Marketplaces
In my experience, one of the most effective ways to find suppliers for eBay dropshipping is by using online directories and marketplaces.
These platforms offer a wealth of information on various suppliers and can help simplify the process of finding reliable partners.
For example, Dropshipping.com has a huge supplier directory, where you can search for wholesale dropshipping suppliers for free. 👇
Furthermore, some of my personal favorites include AliExpress, SaleHoo, and Oberlo. Each platform offers a unique set of features and benefits, so it’s important to evaluate your options and choose the one that best fits your needs.
👉 Check out the 13 Best Directories To Find Wholesale Dropshipping Suppliers.
2. Trade Shows and Exhibitions
As an experienced dropshipper, I highly recommend attending trade shows and exhibitions for sourcing reliable suppliers.
These events provide a unique opportunity to evaluate products, discuss pricing and details directly with suppliers, and network with other sellers in the industry.
Attending events in your dropshipping niche can provide valuable insights into the latest trends and innovations and help you stay ahead of the competition.
3. Search Engines
As someone who has been in the eBay dropshipping business for a while, I know how crucial it is to find reliable suppliers. That’s why I always turn to search engines like Google for my supplier search.
Using relevant keywords like “wholesale suppliers” or “dropshipping suppliers” along with my product category helps me find potential suppliers easily. 👇
Also, I find that using search engines gives me more options and allows me to select the best supplier based on their reviews, pricing, and product offerings.
4. Social Media
When it comes to finding suppliers for my eBay dropshipping business, social media is my go-to solution.
Platforms like Facebook and LinkedIn offer a plethora of opportunities to connect with other sellers and suppliers in my niche.
I join relevant groups and communities and take advantage of the search bar to find accounts and pages that deal with products I’m interested in. For example, you can take advantage of this Facebook group, and get relevant information. 👇
By engaging with these contacts, I establish a network of reliable and trustworthy suppliers who consistently provide high-quality products.
5. Referrals
Finding reliable suppliers is crucial for any successful eBay dropshipping business, and one way to do so is through referrals.
I’ve found that referrals from other sellers or industry experts can be particularly valuable because they come from trusted sources. Therefore, attending industry events and connecting with other sellers to build a network of contacts who can refer you to quality suppliers has worked well for me.
Alternatively, online forums and groups can also be useful for seeking referrals. When evaluating potential suppliers, I consider critical factors such as product quality, pricing, shipping times, customer service, and reputation.
Finally, establishing clear communication and expectations with your supplier is crucial to ensuring a smooth and successful business relationship.
Popular eBay dropshipping suppliers to get started with
Salehoo
As an experienced eBay seller, I highly recommend using Salehoo for dropshipping. With Salehoo, I have access to a network of over 8,000 pre-vetted suppliers who offer high-quality products and reliable shipping.
Plus, Salehoo’s market research tools help me make informed decisions on what products to sell on my eBay store. Joining Salehoo has definitely improved my eBay dropshipping business.
Chinabrands
As a dropshipper who has used Chinabrands as a dropshipping supplier on eBay, I highly recommend their services.
They are a global online wholesale platform with a wide variety of products, ranging from electronics to home and garden items.
Plus, their Scale plan also offers branded packing slips for retailers, which can increase brand recognition. Attending trade shows is another great way to connect with them as potential suppliers, allowing for in-person product evaluation and pricing discussions.
Overall, Chinabrands is a reliable option for any eBay seller looking to expand their product offerings.
Wholesale2b
As a content writer experienced in eBay dropshipping, I highly recommend Wholesale2b as a potential supplier.
Their access to over 1.5 million products from over 100 different suppliers makes them a top contender in the marketplace.
However, it’s important to do extensive research to find profitable products that have a low return rate and are frequently purchased on eBay, which can be achieved with Wholesale2b’s product sourcing capabilities.
BrandsGateway
As an eBay dropshipper, I know how important it is to have access to quality, branded products. That’s why I always turn to Brands Gateway.
With a wide range of high-quality products at a competitive price, I’ve been able to gain my customers’ trust and loyalty.
From clothing and beauty products to shoes and accessories, Brands Gateway has it all. Plus, their fast shipping and reliable customer support seal the deal for me.
👉 Check out our FULL Dropshipping with BrandsGateway Review, Comparison, Pros & Cons, and How-to Guide.
Harbor Freight
As a dropshipper on eBay, I’ve found that using lesser-known suppliers like Harbor Freight can provide a real edge.
There’s less competition and more opportunity to offer truly profitable products. With a range of high-quality products from a US-based supplier, Harbor Freight offers reliability and potential for success.
Overall, I highly recommend considering them as a dropshipping supplier for your eBay business.
My Depot
My Depot is a platform that is both efficient and user-friendly. It can assist you in finding the resources you need to maintain the quality of your products while keeping expenses low. In addition, the website is easy to use and understand.
My Depot has partnerships with major factories in China, Brazil, Malaysia, Taiwan, Vietnam, and Indonesia.
Thanks to their well-established connections, they can offer the most competitive prices in the home organization industry.
This dropshipping supplier is integrated with Amazon and eBay. However, to increase margins, I suggest researching wholesale suppliers, but caution that finding the right one may take more time and effort.
👉 Check out our FULL My Depot Review: Top Dropshipping Furniture Suppliers.
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💡Try Minea For FreeConclusion: Is Dropshipping On eBay Worth It In 2023?
In conclusion, dropshipping on eBay can be a profitable venture, but it depends on various factors such as the niche, competition, and marketing strategies employed.
With the right approach and a thorough understanding of eBay policies, sellers can make a significant income from dropshipping in 2023 and beyond.
However, it’s essential to conduct thorough research and stay up-to-date with the latest trends and regulations to succeed in this highly competitive marketplace.
