Complete Guide on eBay Dropshipping for Beginners

ebay dropshipping

Omar Founder of OJ Digital Solutions

Table of Contents

eBay dropshipping could be for you if you’re looking for a low-capital start-up business that can exponentially grow.

Today’s fast-paced business environment makes it hard for entrepreneurs to keep up.

You’ll need a business model that allows you to start fast and is automated.

You also want to enter a marketplace with a ready market. Fortunately, you get all those when dropshipping on eBay.

Can you dropship on eBay? How to start a dropshipping business?

I’ve outlined everything you need to know to start dropshipping on eBay and generate considerable revenue from your online store.

What is eBay Dropshipping?

ebay dropshipping

You’ll first need to understand how the dropshipping business model works to become an eBay dropshipper.

Dropshipping is an online business where you sell products and have a supplier manufacture, stock, and ship orders.

With drop shipping, you streamline your operations by outsourcing fulfillment and delivery to a third-party company.

All you do is build and promote a store, and your supplier ships directly to your eBay customers.

The dropshipping industry will make $196 billion by the end of 2022. Accordingly, many entrepreneurs focus on this opportunity and want to find a point of entry.

One promising approach has been dropshipping on eBay, which uses the eBay platform to build a dropshipping business.

Many dropshippers have chosen this route since eBay is one of the most dominant eCommerce platforms.

With eBay dropshipping, you use an eBay seller account as your storefront. You then find a product supplier and sell the product on eBay at a markup.

This approach provides people with a quick solution that gets your dropshipping business off the ground in a matter of moments.

Is Dropshipping on eBay Allowed?

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Before you even start your eBay dropshipping site, you must wonder, “Does eBay allow dropshipping?”

Thankfully, the answer is yes.

But there are certain restrictions to sellers and buyers when dropshipping on eBay to ensure a good experience.

One legal way to dropship on eBay is to find a wholesale supplier or reseller willing to supply products for your online store. You can’t sell products from another retailer at a markup.

eBay dropshippers need to follow eBay’s dropshipping policies religiously to maintain good standing on the platform.

Adhering to those rules will help you avoid account suspension.

According to eBay’s dropshipping policy, you should also be responsible for the safe delivery of the item in the given shipping period.

So while your dropshipping supplier might execute your fulfillment, the store owner should respond to requests and manage the timely delivery of quality products.

You also can’t infringe any copyright issues when dropshipping on eBay. Doing so makes you subject to rules in your country and eBay.

Benefits of Dropshipping on eBay

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There are many advantages to dropshipping on eBay. Here are some benefits to convince you that eBay dropshipping is a good idea.

No Upfront Investment

When you start an eBay dropshipping venture, there’s little to no investment. You don’t hold store inventory and don’t have to create a custom online shop.

So there’s virtually no capital spending to create your eBay dropshipping business.

Low Selling Fees

Besides the cost of the products you sell, eBay will charge you specific selling fees. Still, those expenses are pretty low.

Dropshipping on eBay is a low-cost business, making it easy for anyone to run.

Minimal Risk

eBay sellers stand to lose very little if their store doesn’t fly because of the low selling fees and upfront investment. It would be best to remember that not all business ideas will work out.

But you mitigate your risks with a low-risk business. That makes it easy for you to bounce back and try another venture.

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Easy to Get Started

Learning how to dropship on eBay shouldn’t be too hard, as very little technical knowledge is needed.

As you’ll see further in our step-by-step guide, you can create your eBay dropshipping business within a few hours and start promoting it to buyers.

Tap Into eBay’s Audience

eBay already has a captured audience of high-intent buyers.

There are 147 million active buyers on eBay.

You can tap into that pool of potential buyers the day you start your eBay store.

How to Dropship on eBay (Step-By-Step)

So how does one start dropshipping on eBay?

This step-by-step guide should give you all the necessary steps to build a successful eBay dropshipping business.

1. Create an eBay Seller Account.

The first thing you’ll need to do to start your dropship on eBay is to have your own eBay seller account.

To create an eBay account, head to the registration page and fill in your drop shipping business information.

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You’ll then have to select the best plan for your business needs. Plans are anywhere between $4.95 to $2,999.95, depending on how many free listings you want to add.

Things like eBay customer support, shopfront customizations, and so on change the higher your plan goes.

You will then have to create an eBay store name. eBay is available in multiple countries, so sign up for an account that’s where your potential buyers are.

2. Find Profitable Products to Sell.

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Next, you should start researching what products you can sell on eBay.

You’ll want to check out various industries and niches before you choose your first few products, as trends may change over time.

The easiest way to determine what people like to buy on eBay is to visit the bestsellers page and see which products have many purchases.

Then, head to dropshipping suppliers’ platforms and see the prices wholesale suppliers charge for these items online.

Compute the profit margins and see if you can substantially profit from dropshipping that product. There’s no point in selling a product on eBay if your profit margins are too small.

Some items with excellent profit margins that you can sell on eBay include:

  • Hobbyist merchandise
  • Clothing and fashion accessories
  • Electronics
  • Home and garden items
  • Pet suppliers
  • Products people need to buy repeatedly (For instance, many people bought disposable face masks on eBay at the start of the pandemic)

3. Choose a Dropshipping Supplier.

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You’ll need to find reliable suppliers who can consistently serve you after you’ve decided which products you want to sell on your eBay dropshipping site.

Your dropshipping suppliers should provide products at lower than retail prices. That way, you can make more profit on your sales.

I recommend three drop shipping sites with a list of the best eBay dropshipping suppliers that sellers can trust.

Finding suitable suppliers is highly crucial for your dropshipping store. You will see low customer satisfaction and a lot of product returns if you work with an unreliable one.

A reliable supplier will consistently provide quality products and ship products to online buyers on time.

So, research before deciding which wholesalers you will work with when dropshipping products.

Vet your wholesale suppliers by checking their seller ratings, delivery times, and fees before working with them.

4. Create Your eBay Listing.

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Each of your products will need a separate product listing on eBay. So you should add your listings to your seller account.

Optimize your product title and description by adding keywords to your listing that your potential buyers will search for online.

Make sure to add high-quality photos, as those significantly influence whether people buy your products.

Add a return policy and shipping timeline to your description to let buyers know what to expect when ordering your products.

Check and make sure that your suppliers’ shipping and return policies match yours.

5. Pass Buying Information to Your Suppliers.

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Before people start buying from your online store, you’ll need to tell your suppliers how to fulfill an order successfully.

Those details will include the following:

  • Your customer’s name
  • Contact details
  • Shipping information
  • Order Quantity
  • Special notes from the customer, if any

DSers or AutoDS are excellent dropshipping software for eBay that automate communication. That way, you can focus on finding products and marketing your store.

All the fulfillment tasks now happen automatically in the background with the help of these tools.

Only some suppliers might be willing to dropship your items to eBay customers.

Alternatively, you can order products from them in bulk and have them shipped to a third-party fulfillment service that will deliver products to your customers once they order.

Shipping management software can help you manage orders and deliveries with more structure, so you don’t miss out on any orders.

Remember that your order should carry your business name and branding, not your suppliers’.

Find a dropship supplier that provides white-label service. Those dropshipping suppliers will add your logo, name, branding, and business details to your products’ packaging.

I wrote an article about branded drop shipping if you want to ship your own branded products.

Tips to Get Sales on Your eBay Dropshipping Business

You’ll have to start promoting your business to get sales after successfully setting up an eBay dropshipping store.

Here are some of the most effective ways to start getting sales on your eBay dropshipping store.

1. Get Your eBay Store to Rank on Search Engines.

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Appearing on search results is one of the best ways to get traffic to your store.

This strategy involves search engine optimization, finding keywords you want to rank for, and deliberately using those words in your titles and descriptions to appear on potential buyers’ search queries.

Another way to leverage search is to try and rank on Google search. Prioritize this strategy for your online business because 90% of all search traffic comes through Google.

Other online sellers write blogs that rank on Google search and strategically add links from that blog to their store. You can try this approach.

2. Create a Multi-buy Offer for eBay Customers.

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Online sellers use multi-buy offers to promote their eBay dropshipping site. This feature is eBay’s version of bundles.

For example, instead of selling one product for $10, you can offer two at $16. This approach is excellent for people who want a good deal on their purchases.

They’re a great way to increase your profit margins since you won’t need to pay import or shipping fees several times. You can also choose to lower your shipping costs.

3. Pay Attention to Customer Experience.

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Your aftersales service plays a crucial role in the success of your eBay dropshipping business.

You form a loyal customer base when you take care of your buyers. Those customers will likely buy from you again and tell others about your store.

Try your best to answer questions and support requests as often as possible. Do your best to resolve issues with orders.

You also want to ensure that you maintain a positive seller rating. Doing so will give new visitors a reason to trust you, especially if you’re a new business.

You won’t be a successful eBay business without focusing on customer experience. So make sure to serve your customers as best as possible.

eBay Dropshipping FAQ

Is eBay Dropshipping Profitable?

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Given all the benefits I discussed earlier, there are many good reasons to have your own eBay store and run dropshipping operations.

However, note that dropshipping is a business susceptible to risks and challenges. You’ll have to mitigate those risks and overcome challenges, whether taking a traditional dropshipping route or an eBay store option.

How Much Does It Cost to Dropship on eBay?

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Knowing these corresponding eBay fees when you sell products on the platform will be crucial to your success.

Some fees have a fixed price, while others are commission-based. For some, you pay when customers purchase, and for others, you pay whether your product sells.

Here are the eBay dropshipping fees you should know about when selling on eBay.

Insertion fees

Insertion fees are the eBay listing fees you pay to put your products on the marketplace.

You only start paying this after you exceed the 200 free listings per month. eBay will only charge you $0.35 per listing after that.

Final value fees

Final value fees are commissions eBay takes out of a percentage of your sale. These fees vary depending on your niche and the final sale price.

Store fees

You’ll start paying monthly fees if you ever intend to upgrade your store to get more free listings and discounted seller rates.

eBay’s premium seller accounts start at $4.95/month for 250 free listings.

Payment Method Fees

You’ll also have to pay specific fees when accepting payments for products through PayPal. If you’re using eBay-managed payments, you won’t have to worry.

Can I Offer Free Shipping on eBay?

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You’ll be happy to know there aren’t any eBay dropshipping policies prohibiting free shipping on eBay.

But you’ll have to do the math before offering free product shipping.

Ensure that you’re not losing money by covering eBay fulfillment. Alternatively, you can offer free shipping on a huge sales volume.

The Bottom Line

Dropshipping on eBay is a great business opportunity if you’re looking for a low-risk high-opportunity venture. Hopefully, this guide was helpful to you.

If you don’t think eBay dropshipping is a good business model, an alternative is to learn about branded dropshipping.

Whatever your decision, remember to enjoy the process when starting your dropshipping venture.

Focus on making your journey worthwhile, and you’ll begin to view success as icing on the cake.

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