Searching for a profitable, low-cost business that takes just a few hours a week? Look no further than eBay dropshipping.
Besides Amazon, eBay is the most visited online marketplace, with more than a billion monthly visitors. With so many active buyers, eBay offers a potentially lucrative customer source for dropshipping businesses.
Here’s what you need to know about eBay dropshipping, from sourcing the right products to maintaining high profit margins.
What is eBay dropshipping?
eBay dropshipping is a business model where sellers list products on eBay without holding inventory. When a customer makes a purchase, the seller forwards the order to its supplier, who ships the items directly to the customer.
Dropshipping has a low barrier to entry and requires little to no upfront costs, so it’s a popular way to start a business. There’s no need to pre-purchase or store the items you’re selling. Once order details are passed to the dropshipping supplier, it’s their job to pick, pack, and ship the order.
eBay’s marketplace allows dropshippers to source products from trade and wholesale suppliers—not other retailers. Violating these rules could result in account suspension.
According to eBay’s dropshipping policy, “If you use dropshipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing and for the buyer’s overall satisfaction with their purchase.”
Is eBay dropshipping allowed?
Yes, dropshipping is allowed on eBay, but with specific conditions:
Allowed:
- If you own the items before listing them
- If you have an agreement with a wholesale supplier to list and sell their items
- If using third-party fulfillment, you must:
- Be clearly identified as the seller on all packing slips/invoices
- Ensure safe delivery within stated timeframes
- Have a contract preventing the provider from misusing eBay order information
Not allowed:
- Listing items you don’t own or have rights to sell
- Listing items at a premium and then purchasing them from other retailers/marketplaces after the sale
- Using another retailer’s or marketplace’s user agreement as proof of permission to sell
Important note: Violating these policies can result in penalties including listing removal, search result demotion, lower seller ratings, restrictions, and possible account suspension.
What to dropship on eBay
As with other ways to sell on eBay, the items you choose to dropship play a large role in your success as a seller. When researching products, consider some of eBay’s most popular product categories:
- Clothing, shoes, and accessories
- Home and garden
- Jewelry and watches
- Collectibles, sporting goods, and toys
- Health and beauty
- Business and industrial
- Automotive
- Electronics
Before choosing your dropshipping products, reference them against eBay’s list of restricted or prohibited products.
Items like alcohol, cosmetics, fertilizer/pesticides, animal products (like leather or feathers), and vehicle parts are under strict regulations. It may be wise to avoid those if it’s your first time dropshipping through eBay.
How to dropship on eBay in 6 steps
Ready to start making money through your dropshipping journey? Here’s a step-by-step guide to opening a successful dropshipping store.
1. Create an eBay seller account
You’ll need a seller account to start selling through an eBay store.
Head to the registration page and enter basic information about your dropshipping business. Next, subscribe to the eBay store option that best suits your needs, and link your checking account to get paid for sales you make.
After you choose an eBay store name, consider if you want to sync eBay to your Shopify store to see inventory levels, sales, and customer info in one place.
Running your eBay dropshipping business through Shopify gives you the option to expand your business across sales channels in the future, like this tech reseller did to achieve six-figure monthly sales.
2. Find profitable products
Next, undertake product research to discover which items will sell best on eBay. Head to eBay’s bestsellers page and investigate whether you can source similar products for lower than the recommended retail price (RRP) on dropshipping sites like Alibaba or AliExpress.
Kristin Stump, marketing manager at MyEnamelPins, has this advice about choosing your products: “Products that are small and lightweight are generally the easiest to ship, and products with a low return rate are less likely to cause issues with your customers.”
If you’re stuck for product ideas, Shopify’s annual list of trending products is a good place to start.
3. Vet your eBay dropshipping suppliers
Once you’ve found a product to dropship on eBay, look for a supplier that can provide you with the item at a lower-than-retail price. There are numerous dropshipping websites that can connect you with wholesalers, including:
The supplier you choose is arguably one of the most important factors when dropshipping on eBay. The marketplace requires brands to deliver items within 30 days of a customer’s order being placed, which makes a reliable supplier a must.
Vet yours by checking each dropshipping suppliers’ seller rating, previous customer reviews, delivery times, and fees.
4. Price your product
eBay dropshipping can be a lucrative business model—but only if you’re leaving enough room between the product’s purchase and resale price. For example, it’ll be hard to make substantial revenue if each item has just a $1 profit margin.
To determine the price of your dropshipping products, consider:
- Product costs
- Competitor pricing
- Other business expenses, such as eBay fees and shipping costs
eBay seller fees when dropshipping through the marketplace include:
- Insertion fees: You get up to 250 free listings per month. After that, it’s 35¢ per listing.
- Final value fees: If an item is sold, eBay takes up to 13.25% of the sale price, plus 40¢ per order. Final value fees vary depending by product category.
Start collecting pricing data and monitoring comparable products on the platform. Tweak your product pricing until you find a profitable middle ground between competitor prices and a customer’s willingness to spend.
5. Create your eBay listing
Create a listing for each of the items you’re dropshipping on eBay.
Pay close attention to the following areas, including keywords that your target customer is searching for. It’ll influence how likely the algorithm is to show your product listing to potential buyers:
- Product title
- Product descriptions
- High-quality images
- Customer reviews
- Returns policies (check whether your dropshipping supplier will handle these)
6. Forward order information to suppliers
With the dropshipping model, your supplier is responsible for picking, packing, and shipping the items you sell.
Use dropshipping software to automate this communication. These apps can automatically feed order details through to your supplier, show the current stage of order fulfillment,, and relay shipping tracking numbers to customers.
Best eBay dropshipping tools
Using these apps can simplify the dropshipping process:
DSers
DSers simplifies eBay dropshipping through a three-step process:
- Export your eBay orders to a CSV file from the eBay Seller Report section.
- Import this CSV into DSers using the Bulk Order feature.
- Use DSers to manage your dropshipping processes, from AI-powered supplier selection to bulk order processing.
The tool streamlines the entire process, handling multiple orders simultaneously and automating order management between eBay and AliExpress. DSers also integrates with Shopify, so you can manage all your sales channels in the Shopify admin.
AutoDS
AutoDS is an all-in-one eBay dropshipping automation platform. It offers product research tools with access to more than 800 million products, AI-powered title and description generation, automated price and stock monitoring, and bulk order processing. The platform also offers the “Fulfilled by AutoDS” service where they handle supplier accounts and order fulfillment directly.
The platform automates tracking number updates, handles customer support, and manages returns in one dashboard. Merchants can start with 200 to 800 products, depending on their plan.
ZIK Analytics
ZIK Analytics is a market research and competitor analysis tool focused on finding profitable products. It allows users to analyze eBay’s best match results and track the top 500 sellers in the past 48 hours to spot emerging trends.
The platform provides lifetime sales data for product research, competitor insights, and keyword optimization. Other useful features include a title builder, product explorer, and dropshipping automation tools. ZIK Analytics users also get access to unlimited product and competitor searches.
Tips for success with eBay dropshipping
- Use an inventory management system
- Prioritize customer support
- Build relationships with suppliers
- Invest in promoted listings
- Add a multi-buy offer
- Automate your eBay dropshipping
eBay dropshipping isn’t an overly complicated process. However, there are some things that will set your new business up for success:
1. Use an inventory management system
Shopify dropshipping apps merge inventory data from sales channels—including your online store and eBay storefront—so you can view sales information in one place.
2. Prioritize customer support
eBay customers likely won’t know that you’re working with dropshipping suppliers. If a supplier fails to meet guaranteed delivery times or ships products that are different from what a customer ordered, take full responsibility. Respond to support requests in a timely manner to increase customer satisfaction.
3. Build relationships with suppliers
It’s important to have a relationship and communication with your seller so they can inform you quickly if a product is discontinued, out of stock, or the price changes.
4. Invest in promoted listings
Depending on profit margins, you can attract more customers through eBay promoted listings. These in-marketplace advertisements boost the chances of target customers seeing your dropshipped products.
5. Add a multi-buy offer
Increase average order value using multi-buy offers, such as one product for $5 or three for $12. This tactic can increase the profitability of your online business; your increased sales should compensate for the discounted price, and you’ll save on shipping and import fees.
6. Automate your eBay dropshipping
Take advantage of automation tools to operate your business easier. Your dropshipping platform can simplify multiple tasks including:
- Processing bulk orders
- Monitoring prices and stock levels
- Handling tracking numbers
- Analyzing competitor data
Automating time-consuming tasks helps you scale more efficiently. Rather than spending hours on manual order processing, you can focus on finding winning products and tending to customers.
Start your eBay dropshipping business
Dropshipping can be a quick and cost-effective way to start a business, and platforms such as eBay allow you to reach millions of potential customers. With Shopify’s dropshipping integration, you can sell on multiple channels and tools while keeping your data and operations centralized. With supplier integrations and built-in marketing tools, Shopify makes it easy to build a successful dropshipping business.
Use the tips in this guide to source popular products, optimize your pricing strategy, and connect with buyers. Then use Shopify’s dropshipping ecosystem to kickstart your journey.
Read more
- How to Start a Dropshipping Business- A Complete Playbook for 2024
- The Ultimate Guide To Dropshipping (2024)
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- How To Find the Best Dropshipping Niches
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eBay dropshipping FAQ
How much do eBay dropshippers make?
Your eBay earnings depend on your sales, eBay fees, and cost of goods sold.
For example, a typical eBay dropshipper might source a kitchen gadget for $15 from a retail site, list it for $28 on eBay, and after accounting for shipping costs ($5 charged to customer), eBay fees (12.9% + 30¢), and payment processing fees (2.9% + 30¢), they could make about $8.28 profit per sale.
Is eBay dropshipping profitable?
Dropshipping on eBay is low-risk and profitable. Maintaining a profit margin through dropshipping requires sourcing items for a low cost and selling them for competitive prices on the marketplace.
How much does it cost to dropship on eBay?
eBay sellers, including dropshippers, pay fees to sell through the marketplace. These include listing fees (35¢ per listing after the 250 free allowance per month), final value fees (up to 13.25% of a product’s sale price), and store subscriptions (starting at $4.95 per month).
Is dropshipping on eBay worth it?
Dropshipping on eBay can be a profitable business model. It’s worth considering if you’re a new entrepreneur looking for a low-cost small business idea.
What are the best eBay dropshipping suppliers?
Reliable suppliers are the key to eBay dropshipping success. Find suppliers on sites like AliExpress, Alibaba, and the Shopify App Store. Check each supplier’s seller rating, customer reviews, and estimated delivery times.