eBay Dropshipping in 2021 Guide

When you think of dropshipping, eBay probably isn’t the first thing that comes to mind. You’re more inclined to think about selling on Amazon or, better yet, launching your own dropshipping Shopify store. That makes sense because this is where the actual income is generated

.Despite its low visibility and a tumultuous past with dropshipping, eBay dropshipping still has a lot going for it. It’s ideal to think of it as a stepping stone to a career as an e-commerce entrepreneur. Dropshipping on eBay may not provide a six-figure income, but it may certainly provide a four- or five-figure income.

Furthermore, when compared to selling on Amazon or opening your own e-commerce store, eBay has several advantages in terms of ease and cost.

So, here’s what you need to know about eBay dropshipping in 2021.

What is eBay Dropshipping?

ebay dropshipping guide website

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Dropshipping, in general, is when you buy stock from suppliers and collaborate with them to ship items directly to your customers. And you don’t handle anything yourself but promoting things on the storefront.

Sellers put their products on eBay with a starting bid, and you may search for them, bid on them, and buy them. Sellers can also include a “Buy It Now” option to keep control of the pricing and allow customers to buy without having to bid. On the site, there are millions of things ranging from jewelry to high-end automobiles.

In comparison to traditional drop shipping, dropshipping on eBay requires bulk purchases from a wholesaler and the use of a fulfillment service to store and distribute products on your behalf.

Sellers put their products on eBay with a starting bid, and you may search for them, bid on them, and buy them. Sellers can also include a “Buy It Now” option to keep control of the pricing and allow customers to buy without having to bid. On the site, there are millions of things ranging from jewelry to high-end automobiles.

In comparison to traditional drop shipping, dropshipping on eBay requires bulk purchases from a wholesaler and the use of a fulfillment service to store and distribute products on your behalf.

Anyone with an eBay seller account may start dropshipping on the marketplace, and many do so effectively in their first year, making millions of dollars in sales. However, the platform’s responsibilities make things more challenging than typical dropshipping.

Why Should You Dropship on eBay?

There are several compelling reasons why eBay is the chosen marketplace for dropshippers all over the world.

1. No Upfront Costs

Dropshipping on eBay is a low-risk, low-barrier-to-entry business. It costs nothing to open an eBay account, and you, the dropshipper, just have to buy the things after you’ve made sales.

This means that your dropshipping business can grow at an exponential rate.

2. Free Traffic

eBay generates a lot of organic traffic for your store without you having to pay for sponsored ads to get out to your customers (Facebook Ads, Google Ads, etc.).

3. Countless Niche Markets To Sell

You may sell practically anything from a wide range of categories. From domestic items to outdoor and camping gear, technology, fashion, sports, and more, there’s something for everyone.

Some products are prohibited from being offered on eBay unless the maker has given permission. VERO goods are the brand name for these items.

Furthermore, there are a number of prohibited categories on eBay. Drugs, guns, branded products (Apple, Nike, etc. ), replica or counterfeit goods, tobacco, and other items are among them.

4. Easy Automation

Without technologies to assist them automate many aspects of their stores, even the most successful dropshippers can’t survive. eBay APIs allow developers to create software that allows sellers to work with them without having to go to eBay. AutoDS, for example, is a popular dropshipping solution that allows you to automate your entire dropshipping operation, saving you time and money.

What Is The Best Way To Begin Dropshipping On eBay?

The method is actually fairly straightforward, but depending on how you go about it, you’ll get varied outcomes. The following are the steps to get started dropshipping on eBay:

Step 1. Start searching for potential supplier(s)

ebay dropshipping guide finding supplier

Why choose suppliers before determining what you’ll sell? Because a successful eBay dropshipping business is built on excellent customer service and finding the correct supplier.

Because you’ll be trying a lot of products to see which ones deliver the best outcomes, product selections aren’t that important in the first place.

You have the option of finding local suppliers or searching for wholesale vendors from all around the world. A good place to start is Google. You can also look for suppliers via wholesaler directories.

You should think about hiring a private supplier because you’ll be able to bring things to market with less competition and at a lower price. Looking through supplier directories and making contact with them may take some time.

Step 2: Determine which product will be profitable

You might receive some ideas for what to sell when skimming through the products offered by your provider. You can evaluate the information using market research software like Google Trends and Google Shopping to see which things are profitable on eBay.

It’s great if you’ve already decided on a product niche. It’s entirely up to you what you want to sell. If you don’t have time to scan and find additional stuff to sell, there are tools to help you!

Step 3: Look for tools that will help you automate the dropshipping process

Automation software can help you scale your eBay dropshipping business by reducing time-consuming chores like finding products and fulfilling orders.

Step 4: Set up your seller account

Although it only takes a few minutes to complete, there are a few points to keep in mind:

Remember to visit eBay’s seller information section, where you’ll find a wealth of helpful links and instructions for getting your store up and running.

The name of your account should be carefully chosen. eBay has a username policy, and names that are witty or catchy may result in more sales. It’s possible that you’ll need a tax ID to open a seller account.

Examine your payment option. eBay requires all U.S. sellers to have a PayPal account or a merchant credit card account, and sellers from other countries will need a credit card at the very least.

Details about your shop and its policies, such as shipping and return policies, should be included on your profile page. In certain specialist areas, such as health, technology, and beauty, having a background and credentials might be beneficial.

Step 5: Create your listings

Your software should now be able to post the ideal things you’ve discovered to eBay and assist you in creating listings. Use the images, descriptions, and sizes provided by your supplier for each product.

Pricing, time, and auction vs. With a little study, you can figure out if you should Buy It Now.

Step 6: Make your sales

That’s all there is to it in terms of the basics, and you can start making sales right now. Your products can demonstrate their potential in a short amount of time with some promotion and marketing.

Begin by promptly completing customer orders and checking in with your supplier on a weekly or daily basis to ensure everything is running smoothly.

The Disadvantages of eBay Dropshipping

While getting started is low-risk and low-cost, dropshipping on eBay has a number of drawbacks as well.

1. They’re not your customers; they’re eBay’s.

ebay dropshipping guide customer

It’s difficult to develop brand loyalty on eBay (or Amazon for that matter). And profitability depends on customer loyalty. Return customers are substantially more profitable than new customers since they demand less marketing spend.

But how can you develop a devoted eBay consumer base? Customers will associate the product with eBay rather than you because there is no possibility to have your brand on the packaging. So if it’s a nice experience, you don’t receive any credit, but if it’s a horrible one, you bear full responsibility.

2. Very high competition

There is a lot of rivalry on eBay since the barriers to entry are so low.

On eBay, there are an estimated 1.3 billion products for sale. This means there’s a considerable chance you’ll be competing with other sellers for the same things. Worse yet, if you’re using dropshipper supplier software to source your product, others are undoubtedly already dropshipping the identical items on eBay.

All of this implies you’ll have to keep your prices low, which will reduce your profit margins. Furthermore, there may be dirty practices involved, such as competitors purchasing your products and then leaving negative reviews or returning them, which can harm your listing position and make you more difficult to locate.

3. eBay receives up to 10% of every sale

There won’t be much left for you after eBay fees and the percentage taken by your dropshipping provider. This is especially difficult when there is a lot of competition and you need to keep your rates low.

Dropshipping on eBay: Some Pointers

Here are some tips to help you grow your eBay dropshipping business.

1. Time your listing

To make a lot of money on eBay, you must master the art of timing. Find out what the optimum times are to publish your advertisements and hold auctions. One approach to do this is to pay attention to when the busiest times are and compete with them.

Another factor to consider is your target demographic; while millennials may not be online until late at night, many enjoy shopping on weekends. Find out when your target audience is most likely to be online and schedule your auctions accordingly.

2. Maintain price control

Every day, millions of online shoppers visit eBay in the hopes of receiving the best deal on the things they want to buy. So be cautious and don’t get too caught up in the pricing war, because the supplier will always charge a fixed price.

You can use the Buy It Now option with things to ensure that they are sold at a preset price and that you make the necessary profit.

Set a reserve price as the minimum price that a buyer can auction if you still want to allow eBay buyers to bid for your products and make a bigger profit. Alternatively, you can just set a high starting bid to ensure that your fixed expenditures are covered.

3. Reduce your workload as much as possible

Because profit margins on eBay dropshipping are typically low, great volume is the key to making money. And if you have to process and fulfill each listing individually, this means more work.

Look for products that can be listed as multiple-item listings to reduce your workload. As a result, you won’t have to create as many listings and will have more time to focus on fulfillment and marketing.

4. Ensure availability and fulfillment

On eBay, reputation is everything, so try to keep your customers happy by quickly fulfilling orders, ensuring that all items listed are available, and keeping inventory under control. Avoid the hazards of having discontinued items or suppliers who take a long time to respond, as this will only harm your eBay account.

Issues may inevitably emerge, but maintain a positive relationship with both suppliers and consumers so that negative feedback is kept to a minimum. This is the path to eBay dropshipping success.

5. Provide trackability

ebay dropshipping guide shipment tracking

Giving customers your UPS, FedEx, or USPS tracking information is an excellent approach to build trust. To avoid issues like this, work directly with suppliers.

Online directories are good places to look for dependable vendors who can assist with cargo tracking.

Dropshipping on eBay Wrap Up

When it comes to effective dropshipping on eBay, it’s important to understand the benefits and drawbacks.

On the one hand, it’s a vast market that’s simple, quick, and inexpensive to enter. On the other hand, high levels of competition and minimal consumer loyalty make it difficult to generate a profit or a big profit.

As a result, the ideal strategy is to think of it as a proving ground. Take advantage of the low entry hurdles and get some experimental goods up and running. Once you’ve got a few sure-fire hits under your belt, move them to your own Shopify site, where you can turn big sales into big profits.

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