When it comes to starting a dropshipping business, eBay is the platform of choice for most newbie sellers. Having personally generated over 250k in sales dropshipping on eBay, I’m living proof that it works. I’m also a prime example of how literally anyone, even those with limited experience can harness the massive reach of eBay to build a highly profitable dropshipping business.
I’m not the only one either. Thousands of sellers across the globe including many large retailers dropship on eBay, earning big bucks in the process. It’s by far the quickest and easiest way to get products in front of millions of credit card ready buyers, without spending a fortune on marketing.
In this free guide, you’ll learn everything there is to know about eBay dropshipping. From finding suppliers to choosing products and creating listings, I’ll take you through the entire process. Towards the end of the guide, I’ll also provide some real-life examples of profitable dropship products.
- What is Dropshipping?
- Is Dropshipping Allowed on eBay?
- Is eBay Dropshipping Dead?
- eBay Dropshipping Pros & Cons
- How to Build an eBay Dropship Business
- Choose Products
- Find a Supplier
- Start Listing
- Manage Inventory
- Process Orders
- Promote Listings
- Case Study: Finding Profitable Dropship Products on eBay
- Demo: Listing a Dropship Product on eBay
- eBay Dropshipping FAQ’s
- Is eBay against dropshipping?
- Can anyone dropship on eBay?
- Is dropshipping on eBay legal?
- Will eBay ever ban dropshipping?
- Is it better to dropship on my own website?
- Can I dropship from Amazon to eBay?
- How do I manage returns when dropshipping?
What is Dropshipping?
Dropshipping is an order fulfilment technique in which retailers sell products, usually through online channels such as eBay or Amazon, and then source them directly from suppliers, typically wholesalers or manufacturers. Unlike the traditional method of running an ecommerce business, dropshipping doesn’t involve buying products upfront or storing inventory. Instead, products are only purchased (from the supplier) after they’ve been sold to a consumer.
The days of having to invest thousands of dollars to start an ecommerce business are a thing of the past. With dropshipping, you can instantly start selling an entire range of products without spending a single cent on stock. You can also expand your range at a rapid rate without requiring constant cash flow. It’s the perfect business model for newbies to the world of ecommerce, as well as those looking to start a business with limited cash or time.Is Dropshipping Allowed on eBay?
As stated in the first paragraph of eBay’s policy, dropshipping is allowed on the platform. However, sellers who use a dropshipping model are still responsible for the safe delivery of products and overall satisfaction of customers, regardless of where the item originated from. It’s also the seller’s responsibility to effectively manage returns and ensure products are in stock at the time of purchase, something which will be covered more in this guide.
eBay Dropshipping Policy Update (Important)
Over the last few years, dropshipping has become somewhat of a sensation. With the rapid growth in popularity came changes to eBay’s dropshipping policy. Back when dropshipping was in its infancy, sourcing products from other retailers, a technique known as retail arbitrage, was common practice. Thousands of sellers were successfully dropshipping products from popular retailers such as Amazon and Walmart to eBay.
However, at some point in 2019, eBay took notice and eventually concluded that retail arbitrage adds no value to their platform. The marketplace had become bombarded with duplicate listing at highly inflated prices, while complaints of orders arriving in Amazon packaging soared. To combat the issue, eBay swiftly updated their dropshipping policy, which now states:
“Listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay.”
Thankfully, dropshipping on eBay is still allowed, but only when it’s done in the correct way. That means sourcing products from a genuine wholesaler or trade-only dropshipping supplier. It also means avoiding automated software programs which uses eBay’s API, more of which will be discussed later in the guide.
Is eBay Dropshipping Dead?
Absolutely not, eBay dropshipping is very much alive and kicking. In fact, thousands of people are earning full time income selling dropship products on eBay. The business model will always be a big part of the platform as it generates millions of dollars in revenue for eBay and attracts thousands of new sellers each year, including some major retailers. Building a compliant, sustainable and long-term eBay dropshipping business is not only possible, but very much probable. It’s simply a case of learning the policies and implementing the correct way of doing things. It’s important to remember that dropshipping is a business, not a get rich quick scheme. It’s going to take some time, learning and effort to get it right.
The Pros & Cons of Dropshipping on eBay
While dropshipping on eBay can be extremely profitable, it has a fair share of disadvantages, particularly when compared to alternative options such as dropshipping through your own website. To help you determine whether it’s the right business for you, here’s a side-by-side breakdown of both the pros and cons of dropshipping on eBay.
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