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Dropshipping On eBay in 2024 – Pros, Cons & Tips for Beginners
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by
Aleksandra -
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Chief of Content Marketing
Aleksandra teaches marketing and management at various levels in High School. She writes about marketing, the economics and logistics of the dropshipping business and ecommerce in general.
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Chief of Content Marketing
35 minutes

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 2024?

In this article, I will explore the pros and cons of dropshipping on eBay in 2024. Also, I will provide you with some tips to help you succeed as a beginner.

Not only that but are you aware of eBay’s changes in 2024? Let’s find out!

I 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!

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Table of Contents

Key Takeaways

In this blog post, you will delve into the world of eBay dropshipping in 2024, gaining valuable insights to navigate this lucrative but competitive field successfully.

  • Understanding eBay Dropshipping: You will learn about the basics and benefits of the dropshipping business model on eBay. Also, it includes how to start without requiring inventory.
  • eBay’s Policy on Dropshipping: You will discover eBay’s specific rules for dropshipping.
  • Navigating eBay’s Policies and Fees: You will gain a clear understanding of the policies and fees associated with eBay dropshipping.
  • 2024 Changes on eBay: You will be updated on the significant fee adjustments for orders over $10 and the introduction of new regulatory fees in Europe.
  • Costs Involved in Starting eBay Dropshipping: You will get an overview of the financial considerations, including listing fees, seller fees, shipping costs, and more.
  • Pros and Cons of eBay Dropshipping: You will examine the advantages and challenges of dropshipping on eBay, helping you to weigh your options carefully.
  • Finding Dropshipping Suppliers: You will learn strategies for identifying reliable suppliers through various channels, ensuring the success of your dropshipping business.
  • Success Stories: You will find inspiration in the success stories of individuals who have made a significant impact through eBay dropshipping, motivating you to pursue your own success.
  • Dropshipping on eBay FAQs: You will explore answers to frequently asked questions about dropshipping on eBay.
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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.

👉 Learn about Home Depot Dropshipping: How To Dropship To Ebay or Amazon?

Is Dropshipping On eBay Allowed In 2024?

Yes, dropshipping on eBay will continue to be allowed past 2024. 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.

👉 Read about Poshmark Review: Is Poshmark Legit For Buying & Selling?

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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.

💡  Tip: Discover the 17 Best Multi Vendor Marketplace Platforms For Ecommerce.

eBay Big Changes in 2024

Fee Increase for Orders Over $10

Starting from March 15, 2024, eBay will adjust its fee structure. For any order that exceeds $10, including shipping and tax, the fixed per-order fee will see an increase from $0.30 to $0.40.

To put this into perspective, selling an item like a jacket for $25 will now result in a fee of $3.71 instead of $3.61, marking a $0.10 increase.

This adjustment is part of eBay’s Winter 2024 Seller Update. Alongside this change, eBay is introducing a new regulation-related fee in Europe.

Managed Payments and Payment-Processing Fees

eBay has streamlined its payment processes under its Managed Payments system. This integration combines payment-processing with commission fees while maintaining a fixed per-transaction fee structure.

New UK Tax Reporting Requirements

As of January 1, 2024, eBay and similar online platforms are mandated to report certain seller activities to UK tax authorities.

This regulation targets those who may not declare income from online sales, aiming to combat tax evasion.

eBay is now required to automatically provide information to HMRC if a seller either sells 30 or more items in a year or earns more than €2,000 (approximately £1,700).

This could affect anyone from occasional sellers to regular vendors on the platform.

Seller Implications

For sellers, this means a closer examination of their sales may be necessary to comply with local tax regulations.

eBay acknowledges the impact of these changes, especially on sellers of lower-priced items, affirming that orders $10 and under will remain at the current fee rate of $0.30.

What Sellers Need to Know?

eBay is implementing these changes to streamline transactions and reduce instances of unpaid items.

The platform is introducing mechanisms requiring buyers to complete payment upon accepting an offer, ensuring items remain available for sale if a buyer exits the checkout process.

Winter Seller Update Enhancements

Furthermore, eBay’s Winter Update brings several improvements for sellers, including:

  • New tools for business growth, such as “Sell it faster” tips and simplified access to sale events. For example, Terapeak is one of these tools. This tool helps you find what to sell when to sell it, and at what price. 
  • Enhanced security for transactions and account management, with updates aimed at minimizing unpaid item instances and providing better account access controls for team collaboration.

These updates are designed to bolster the selling experience on eBay, providing both new opportunities and increased responsibilities for sellers.

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 listing fees, seller fees, shipping costs, product sourcing fees, eBay subscription fees, and marketing expenses.  👇

However, here are some fees to consider. So, I will explain the one that can drag on your earnings.

➡ Sourcing fees

These 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.

➡ Listing Fees on eBay

Initially, every eBay user receives 250 free listings each month, these are known as “zero listing fees”.

However, once you’ve used these up, there’s a twist: you must pay 35 cents for each additional listing you want to add or relist.

This fee is steadfast; you’re required to pay it regardless of whether your item sells.

Additionally, it’s important to note that if you decide to list the same item in multiple categories or post duplicate listings, you’ll incur a listing fee for each additional category or duplicate post.

Special Features and Upgrades

Moreover, eBay offers the option to enhance your listings with special features.

These include options like extending the visibility of your listing, applying bold text, adding subtitles, and setting a reserve price, among others. While these features come at an extra cost—ranging from a few cents to several dollars—they play a crucial role in making your listings more attractive and can significantly increase your chances of selling.

➡ Final Sale Fees

When it comes to final sale fees, eBay implements a structured approach. Once you make a sale, you’re charged a fee that combines a flat rate of 30 cents plus a percentage of the total sale amount.

This percentage usually falls between 10% and 15% and is calculated based on the item’s price, shipping, handling charges, and taxes.

This fee structure is designed to vary depending on the category of the listing, the final sale price, and your overall activity and conduct on the platform.

➡ Shipping costs

Thus, these 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.

➡ eBay Store Subscriptions

For those looking to dive deeper into the eBay selling experience, subscribing to an eBay Store might be a worthwhile consideration.

Not only does it unlock additional tools for managing and promoting your business on eBay, but it also offers an increase in the number of zero-listing fee listings per month.

Furthermore, it reduces the cost of listing fees for additional items and decreases the final sale fees you owe per transaction. The cost of subscribing to an eBay Store varies by tier:

  • Starter: Priced at $7.95 monthly or a reduced rate of $4.95 per month with an annual commitment.
  • Basic: Available at $27.95 monthly or $21.95 per month with an annual commitment.
  • Premium: Costs $74.95 monthly or $56.95 per month with an annual commitment.
  • Anchor: Priced at $349.95 monthly or $299.95 per month with an annual commitment.
  • Enterprise: The top tier, at $2,999.95 monthly, is only available with a year-long commitment.

These structured plans cater to a range of seller needs, from those just starting out to large-scale enterprises, providing a pathway to optimize sales and maximize profits.

➡ Upfront Costs

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 compare the pricing plans of different suppliers to ensure that you get the best deal on products.

Pros & Cons Of eBay Dropshipping

Next, I will list and explain the most common benefits and pitfalls of eBay dropshipping in 2024.

PROS
Low startup costs

Wide range of products

No inventory management

Reduced risk

Focus on marketing and sales

Easy to get started

Access to suppliers

Minimal order processing time

Low overhead costs

CONS
Limited control over inventory

Shipping and handling issues

Low-profit margins

Reputation risks

Limited customization

Returns and refunds

➡ 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.

Thus, this allows 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.

create an account

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. 👇

ebay dashboard

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. 

select products

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.

dropshipping on ebay

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 2024?

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. 👇

dropshipping on ebay

Now, I can check on positive feedback, Items sold, followers, and more. 👇

seller rating

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. 👇

cjdropshipping

However, I’ve found a method that significantly cuts down the time it takes me to source products from leading US and Chinese global suppliers, allowing me to add them to my store almost instantly. What’s my strategy?

The AutoDS Product Research tool empowers me to discover products using various filters, including price, customer reviews, and delivery durations. However, you will read all about it in the next section.

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. 👇

dropshipping on ebay

I also recommend setting realistic profit margins while still keeping prices competitive. Don’t be afraid to adjust prices based on data collected until you find 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.👇

ebay listings

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.

dropshipping on ebay

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.

Also, as already mentioned above, by utilizing AutoDS’ AI Rewrite tool, you can select the desired tone and emotion to receive improved, AI-crafted product titles and descriptions, all aimed at enhancing conversion rates.

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 AutoDS. 👇

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.

How To Automate Your eBay Dropshipping Process? (My Approach)

Creating a successful eBay dropshipping business involves a series of well-defined steps, especially when using automation tools like AutoDS to streamline the process.

Here’s a detailed guide on how to automate your eBay dropshipping business effectively.

Picking a Dropshipping Supplier

So, let’s say that you choose AliExpress as your sourcing platform.

So, finding the right supplier on platforms like AliExpress is critical. Begin by adjusting your “Ship To” location to the USA on AliExpress, which helps in filtering products available for shipping to the United States.

Filter your search to include only products with over 4-star rating and free shipping. This approach helps in identifying high-quality products and suppliers.

 Choose a supplier based on the product’s sales volume, customer ratings, and shipping policies.

For example, if searching for a “resistance band,” opt for a product that has a high number of units sold, excellent reviews, and free shipping.

Also, evaluating suppliers is a crucial next step. Ensure the seller has been active for at least one year and maintains a store rating of 96% or higher. This is a good indicator of reliability and quality.

 Thus, establishing communication with your supplier outside of AliExpress, through channels like WhatsApp, Wechat, or Skype, is essential for building a strong business relationship.

💡 Tip: Learn about Dropshipping from AliExpress to eBay: Pro Guide for Beginners.

Integrating Your eBay Store with AutoDS

After signing into your AutoDS account, navigate to the sidebar menu and select the “Add Store” option.

Proceed by selecting “Add your first eBay store”, determine your geographical location from the options provided, and then click “Finish”.

You will then be prompted to log into your eBay account. Enter the necessary credentials to proceed with the login process.

Following this, AutoDS will require permission to access your eBay store. Ensure you click on “Accept” to grant this access.

With this step completed, your eBay store is now successfully connected to AutoDS, and you’re all set to start automating your dropshipping business.

Finding Your First Winning Product

The AutoDS Finder tool is a robust solution for identifying hot-selling products across multiple suppliers.

Access the AutoDS Finder through the “Add Products” section followed by “AutoDS Finder”.

Select a product category that fits your market demand and interests. Pick a supplier from over 15 options available within the AutoDS platform.

Configure your upload settings, including break-even, profit, quantity, and policies, with the help of AutoDS’s eBay Calculator Tool for precise profitability calculations.

Listing Your Product

When uploading your product to eBay, AutoDS’s uploader tool simplifies the process by allowing you to enter the product URL or ID.

It automatically extracts all necessary information from the source site and converts it into an eBay listing.

 You have the flexibility to edit product details like the title, variations, and pricing.

Setting up your eBay listing involves choosing the right category and item specifics, which AutoDS largely automates. However, you can make manual adjustments to better match your product description.

Product images are also managed through AutoDS, enabling you to select the main image, upload new ones, create image collages, and apply watermarks.

Finalize your listing by selecting the item’s location and setting your business policies related to shipping, returns, and payments.

These settings should be configured according to your eBay account preferences. You also have the option to tag your products for easier organization and to schedule uploads at specific times.

Fulfilling Orders

With your listings live, order management becomes the next focus. AutoDS facilitates monitoring orders and notifies you upon sales.

For order fulfillment, you can either let AutoDS automate the process or manually handle purchases from your supplier and shipping details to your customer.

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. 👇

dropshipping on ebay

Overall, detailed product descriptions help me attract more potential buyers and set myself apart from other sellers.

Moreover, you can request ChatGPT to craft a succinct overview of features and advantages. For example, if you’re marketing a portable blender, you could initiate the prompt with:

📝 “Craft an SEO-optimized product description for my portable blender, highlighting its features and benefits: One Touch Switch Portable Blender, USB Rechargeable, Enhanced 6 Blades for Mixing, Easy One Touch Switch for Cleaning, and Intelligent Safety Protection.”

Let’s put it to the test. 👇

This way, you can leverage ChatGPT to generate SEO-friendly product descriptions for your dropshipping items.

👉 Read about GPT-4 for Ecommerce: What You Should Know in 2024.

🔸 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.

shipping details

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 to source 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 “eBay wholesale suppliers” or “eBay 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. 👇

dropshipping on ebay

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.

Salehoo

dropshipping on ebay

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.

Made-in-China (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

dropshipping on ebay

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

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

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

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.

Real-Life Examples of Success With eBay Dropshipping

Harry Coleman – Making Millions with Three Stores

Harry Coleman kicked off his journey in the dropshipping world by initially focusing on a store dedicated to nail products on eBay. However, he soon diversified, opening two more stores that offered a wide range of items. Today, Harry stands as one of the top earners in dropshipping, with a fortune to show for it.

In 2018 alone, he saw a massive inflow, earning around $5 million.

Harry picked up several key strategies:

  • the knack for identifying winning products,
  • mastering the art of engaging advertising,
  • importance of perseverance in the face of challenges.

Before diving into the dropshipping arena, Harry had a modest start, importing hats and selling them on eBay in the UK.

He began with a budget of just $500-$800 for advertising, discovering the potent impact of Facebook ads on his sales.

His relentless experimentation with different products and marketing approaches led to a steady climb in his sales figures. So, he managed to earn from $1,000 to $10,000 a day.

From his wealth of experience, Harry advises new entrants in the field to stay adaptable, test a variety of products, and prioritize building a trustworthy brand.

Jen Thomas – The Rise of Smudgy Monkey

Similarly, Jen Thomas’s venture, Smudgy Monkey Gifts & Accessories, began about a decade ago amidst personal challenges when her husband was laid off. Turning to eBay as a means to bridge their financial gap, Jen embarked on selling a variety of items.

Fortuitously, she stumbled upon a trending product, which propelled her eBay store to steady growth year after year.

Yet, Jen aimed higher, aspiring to transition her eBay customers to her standalone ecommerce store, all while continuing to sell on eBay.

Her success, she believes, stems from her commitment to exceptional customer service and value, alongside leveraging her eBay sales to foster strong customer relationships.

Nick Borrelli – Charting a New Course with Nu Wave Marine

Lastly, Nick Borrelli’s journey took a significant turn following a motorcycle accident and subsequent job loss. Returning to work at his father’s marine mechanic shop, he found himself surrounded by spare parts, sparking an innovative business idea.

Without prior experience in ecommerce or boating, Nick ventured into selling these parts on eBay.

Surprisingly, his business flourished, encouraging him to expand his eBay listings with new products and eventually turning it into his primary occupation.

Recognizing the opportunity to increase profitability, Nick decided to expand beyond eBay, establishing a dedicated online presence for his business.

With the assistance of BigCommerce, he developed a website, delved into SEO and PPC strategies, and carved a niche for himself in the marine industry.

Though eBay remains a valuable sales channel, Nick’s focus has shifted towards maximizing profits and strengthening his brand identity through his independent ecommerce platform.

Dropshipping on eBay FAQs

1. How does eBay’s Managed Payments System impact dropshippers?

eBay’s transition to its Managed Payments system has streamlined financial transactions for sellers, including dropshippers.

This change means that eBay now directly handles all payment processing, consolidating fees, and payouts.

For dropshippers, this simplification can lead to more predictable expenses and easier accounting.

However, it also introduces concerns about payment processing times, as funds may not be instantly available after a sale.

Typically, eBay disburses payments to sellers’ bank accounts within two business days after the buyer’s payment clears.

This delay is crucial for dropshippers to consider, especially when they need to pay suppliers promptly to fulfill orders.

Despite these changes, the system can ultimately benefit dropshippers by providing a more unified and straightforward payment process, albeit with a slight adaptation period to manage cash flow effectively.

👉 Read about Dropshipping PayPal: How To Use It & Not Get Banned.

2. What Are Some Of The Strategies for Handling Returns and Exchanges for Dropshippers?

Managing returns and exchanges pose a unique challenge for dropshippers, given the absence of physical inventory control.

The key to addressing this lies in creating clear, upfront agreements with suppliers regarding how returns and exchanges are handled.

This agreement should cover who bears the return shipping costs and the process for inspecting returned items for damage or misuse.

Dropshippers should also clarify these policies in their eBay listings, ensuring customers are aware of the procedures and responsibilities.

Communication is critical; dropshippers must act as intermediaries between the customer and supplier to facilitate smooth returns or exchanges.

This process includes providing customers with return shipping labels and instructions.

💡 Tip: Read about Amazon Pallets For Sale: How Much It Costs And Where To Buy?

Although dropshippers do not handle the products directly, taking an active role in managing returns and exchanges can help maintain high customer satisfaction and protect the seller’s reputation on eBay.

3. How Do eBay’s Fee Changes Affect Dropshipping Profit Margins?

With eBay announcing adjustments to its fee structure, such as the increase of the per-order fee for orders over $10, dropshippers are understandably concerned about the impact on their profit margins.

This fee increase, from $0.30 to $0.40, may seem small, but it can add up, especially for sellers dealing in high volumes of low-margin products.

To mitigate the effects of these fee changes, dropshippers should focus on optimizing their operations.

This could involve negotiating better rates with suppliers, increasing product prices judiciously to cover the additional costs, or focusing on higher-margin products that can absorb the fee increases more easily.

Additionally, taking advantage of eBay’s promotional tools and optimizing listings for better visibility can help increase sales volume, potentially offsetting the impact of higher fees on overall profitability.

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Conclusion: Is Dropshipping On eBay Worth It In 2024?

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 2024 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.

About the Author

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Aleksandra Miteva
Aleksandra teaches marketing and management at various levels in High School. She writes about marketing, the economics and logistics of the dropshipping business and ecommerce in general.