eBay is a highly appealing marketplace for many first-time sellers and small businesses because it has a constant flow of devoted consumers and tremendous business growth potential. Furthermore, dropshipping on eBay has given access to this massive audience without the need for initial investment.
Dropshipping on eBay is a lot easier than you may think. It requires far less financial investment than a standard store, making it an excellent entry point to internet retail for newcomers or those looking to dip their toes. So, how do you dropship on eBay? What are the advantages and drawbacks of doing so? And ultimately, is it worthwhile?
We’ve outlined our complete eBay selling guide below to determine whether dropshipping on eBay is appropriate for your online business.
What is a dropshipping business?
Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. When a store owner receives an order from a customer, they contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
The Dropshipping Model
Dropshipping is a business model in which eCommerce entrepreneurs sell products without carrying any inventory. When a store owner receives an order from a customer, they contact the supplier, who will then ship the products directly to the customer’s door. Dropshipping apps like Oberlo let you add products from various suppliers into your shop to fuel your product offering.
How to dropship on eBay.
Dropshipping on eBay has gotten more complicated in recent years. This does not imply it is impossible, but it does imply that sellers should be extra cautious to ensure that they do not violate eBay’s dropshipping rules if they want to avoid undesirable outcomes.
So, here’s what the process looks like…
1. Set up an eBay Seller account.
You only need an eBay seller account to get started with dropshipping. Setting up an eBay store might cost more, but this isn’t necessary. Listing fees are a must-have, so be ready to pay them. Remember that there are several eBay sites for many nations worldwide, so double-check which one you’re logging in to before making any purchases.
2. Choose your products and dropshipping supplier.
Start by compiling knowledge and deciding what you wish to offer on eBay.
Then you’ll need to set up an account with the suppliers of your chosen items as a merchant. Contact them and inquire whether they’d want to dropship to your consumers. It’s also vital that the supplier is willing to include a personalized return label (which includes your business name and address) on the box so that your clients know you sent it.
3. Add products to your eBay listing.
It’s critical to go through this carefully. Upload high-quality images from the supplier’s website or, even better, your own if you have samples. Develop thorough product descriptions and optimize your listings for maximum search exposure.
Remember, you’ll be competing against other sellers using the same supplier, so you’ll have to find methods of distinguishing yourself and catching your rivals’ attention.
Choosing the correct price is also crucial. It must be low enough to compete with comparable listings yet high enough to turn a profit.
4. Pass on your customers’ details when you make a sale.
Give your provider the shipping information for your customers each time you make a sale.
You’re still responsible for safely delivering your object within the time frame you stated in your listing, even if your supplier is in charge of packing and sending it straight to your consumer. According to eBay,
If you’re having trouble locating a wholesale supplier willing to drop ship your eBay consumers, consider purchasing bulk from the manufacturer and sending it off to a fulfillment company.
You may leave these items to us, and we’ll take care of everything. We’ll arrange for the pick-up and packing at our store, then ship your purchases across the country on your behalf. Investing in shipping management software would automate this procedure and allow you to get the best prices on couriers.
The most significant drawback of this approach is that you’d have to invest a large sum of money upfront, and there’s no assurance everything will sell. Thus the business risk is considerably greater than traditional dropshipping.
eBay dropshipping policies and requirements.
Since eBay dropshipping involves sending products directly to your customers from a supplier or third party, it’s essential to know the company’s policies and requirements before getting started.
Here are a few things to keep in mind:
- You must disclose that you’re not the manufacturer or retailer of the product in your listing. This avoids customer confusion or misunderstandings about who they’re buying from.
- You must include a disclaimer in your listing that states that you’re not responsible for any delays caused by the supplier. eBay requires this so that customers know the potential risks involved in buying from a dropshipper.
- You must be able to provide customer service and support for the products you’re selling. This includes having a returns policy if the customer is unsatisfied with the purchase.
- You must have a valid physical address and phone number on your eBay account. eBay requires this for customer service purposes.
- You must be able to provide tracking information for the orders you fulfill.
eBay requires this so that customers can track their orders and know when to expect delivery.
Dropshipping is a great way to start an eCommerce business with little upfront investment. It’s also a flexible business model that can be adapted to suit your needs and goals.
Advantages of dropshipping on eBay.
eBay dropshipping has several advantages if you follow the instructions, especially for new merchants and start-ups, because barriers to entry are shallow. There are several advantages of dropshipping on eBay, including:
No upfront investment.
You don’t need to buy large amounts of inventory upfront might be the most appealing aspect of eBay dropshipping.
Easy to get started.
Furthermore, since you won’t have to invest in inventory, starting up is simple and requires little money. All you need to do is create an eBay Seller account and find a dropshipping partner on your behalf.
Take advantage of eBay’s audience.
Because eBay is the most popular and well-known auction site in the world, it already has an extensive, loyal client base. You’ll be able to tap into a vast audience with no effort on your part by starting your dropshipping business on eBay.
Save on marketing efforts.
Dropshipping on eBay also means that you won’t have to spend a lot of money on marketing, as millions of internet customers will see your items whether or not you do so.
Dropshipping is flexible.
Many vendors want to start an internet company while working full-time as a side project. Anyone from anywhere in the world can drop ship on eBay; all you need is access to the internet – so it’s entirely flexible about your schedule.
Grow with minimal risk.
Why? Because as you increase your sales, the work vanishes away from you, allowing you to expand your firm without the risks and expenses involved in traditional growth, such as office space, expenses, extra personnel wages, storage rental, etc.
Disadvantages of dropshipping on eBay.
On the surface, selling on eBay as a dropshipper appears to be a no-brainer. Still, there are several drawbacks to consider before going through with it, especially given eBay’s strict dropshipping policy. Here are some of the drawbacks:
Not easy to find a dropship supplier.
The most significant disadvantage of selling on eBay as a dropshipping provider is that it’s challenging to establish wholesale contracts with merchants since few will offer dropshipping services unless you can show that you can move products.
Often have to buy inventory in bulk.
Building drop ship relationships with wholesalers typically takes time, so you may anticipate that you’ll have to purchase wholesale goods upfront to show them your sales history. This completely defeats the purpose of dropshipping, and it means you risk investing in a stock that won’t sell.
eBay restrictions.
Dropshipping on eBay is a bit more complicated than it appears. You must locate a wholesaler who will handle your dropshipping business; there’s just one legal method.
Not only does eBay have rules in place to ensure that sellers are genuine, but it also has strict terms for them. For example, you must disclose the final value of your items quickly and accurately upon request from a buyer or an auction-site customer service representative. You must also communicate with your clients and professionally present your brand. Failure to do so may result in severe consequences for your eBay business.
You’re responsible when things go wrong.
According to eBay, you are solely responsible for safely delivering your item within the stated time frame.
You’re reliant on the supplier to dropship for you, who is under no obligations to do so by this deadline. This means they could run out of stock and wait a month to ship if they choose, with no adverse consequences.
However, negative feedback you may get on your items might result in account suspension, not to mention a significant drop in sales. Furthermore, any refunds to the buyer are solely the responsibility of the eBay seller.
Don’t own your customers.
Dropshipping with eBay entails relinquishing control of your consumers and enabling eBay to grow its brand whenever you make a sale.
Consider it: If a buddy asks where you obtained something, you’ll tell her “eBay” rather than the seller’s firm.
It is impossible to build an email list to remarket to, but you can’t even do it.
High competition.
Due to its low barrier of entry, eBay dropshipping is a popular business strategy among many internet sellers like you, which has resulted in a lot of competition. Especially since numerous merchants will be selling the same goods as you, you’ll need to focus your efforts on other methods that may be time-consuming to stand out.
Low-profit margins.
With such a fierce market, you may need to cut your rates to stay competitive with the alternatives.
Furthermore, eBay charges listing fees (which are limited to $50 at first) and takes up to 10% of the overall selling price, further reducing your profit margins.
As a result, you’ll need a substantial monthly sales volume to make real money dropshipping on eBay.
Dropshipping on eBay is a fantastic alternative if you’re considering starting an eCommerce business. Just bear in mind the advantages and disadvantages before jumping in.
So, is dropshipping via eBay worth it?
The short answer is yes; dropshipping on eBay can be a great way to start and grow your eCommerce business. However, there are also some potential drawbacks that you should be aware of before getting started.
If you’re looking for a low-risk way to get started in eCommerce and are willing to put in the time and effort to build a successful business, dropshipping on eBay could be an excellent option.
