Today, more and more sellers show interest in such a retail fulfillment type as dropshipping. And even those who already sell on eBay may wonder how to start eBay dropshipping.
In this article, we’ll cover the key facts that a seller needs to know before starting dropshipping on eBay.
How does dropshipping work?
Dropshipping is no rocket science. It’s popular among sellers who have just started exploring e-commerce.
In a nutshell, you find a manufacturer or wholesaler, place their products in your online store and sell them at any marketplace you want. That’s what the dropshipping business model is.
You don’t need a warehouse to store goods. You do not spend money on purchases – orders are transferred to the supplier. They prepare and ship the products to customers.
eBay dropshipping
Can a seller apply the dropshipping model on eBay? Definitely! eBay allows sellers to use various business models, and that’s one of the most significant benefits and often a key factor for many sellers when choosing a channel for selling.
However, there are some peculiarities you need to consider if you want to respect eBay’s policy.
eBay dropshipping policy
A few years back, the auction platform allowed sellers to dropship products without limitations. However, many eBay customers ended up unsatisfied with these sellers. Many customers wrote reviews that they’ve been scammed since, after the purchase, they received their orders with receipts from other marketplaces with prices lower than they paid. As a result, it took a toll on eBay’s reputation.
Naturally, eBay was forced to apply a strict dropshipping policy bringing in one significant restriction for dropshippers. eBay forbids sellers from purchasing products from other retailers and selling platforms (like Amazon or Walmart) that ship directly to a customer.
So, the only legit way a dropshipping seller on eBay is to fulfill orders directly from a wholesale supplier. If you break the rule, the auction platform will hide or even remove all your products. Also, you may end up with a reduced seller rating, selling restrictions, and in some cases, account suspension.
The main rule for direct delivery on eBay is clear and straightforward. If you comply with it, you can dropship on eBay hustle free.
How to start dropshipping on eBay
Once you know the basics, you can start preparing processes. So, what do you need to start selling as a direct delivery on eBay? Let’s break it into steps.
Step 1. Set up an eBay Seller account
First and foremost, and you need to get an eBay Seller account. Choose the type of seller account that suits you most – personal or business. Both are free to create, so everything depends on your purposes on the market.
A personal account works fine for individuals who sell casually. Business account presumes some bigger scale and larger quantities with benefits like increased listings limits, tools for promotion, and better brand displays.
To obtain a business account, be ready to enter your legally registered business name and address and double-check correctness, since eBay will verify these details.
There are 22 eBay sites across the globe for different countries. Choose the site wisely, depending on your customer segment.
Step 2. Choose a type of product and wholesale suppliers
Before you start your business, consumer study is a must. You need to decide what type of products to sell and learn the needs of the customer segment you target. You can start by focusing on a small group of buyers.
Once done, you may begin to contact suppliers. Discuss the conditions and find out how they fulfill orders to your customers. It’s essential to ensure your customers will be satisfied with fulfillment and products since, in case of problems, you will get a bad review.
Ensure the supplier is willing to attach a custom return label with your business name and address to the package, so your customers won’t get confused.
Step 3. List your items on eBay
Before creating eBay listings, remember that you will have significant competition with other retailers buying from the same supplier. Thus, finding ways to distinguish your store to be ahead of the competition is necessary.
To make your products stand out, ensure the following:
- Upload professional images of the products. If you have an opportunity, it’s better to take your pictures so that they will look different from the images from your suppliers’ websites.
- Write detailed product descriptions. It’s better to optimize your product descriptions to ensure maximum search visibility.
- Choose the optimal price. Find a balance when setting up prices. It must be low enough to beat competitors but high enough to generate a good profit.
- Set up your policies. eBay expects that customers will have only a pleasant and positive buying experience on the website. Clear and client-oriented terms of service are a must for a flourishing business. Consider payment and delivery options as well as the return policy in advance.
Step 4. Mind eBay fees
Every month, eBay charges you two types of fees: an insertion fee for the listings you created and the final value fee, a percentage of total sales.
The total amounts depend on various aspects such as price, listing format, category, and, of course, your sales performance.
Undoubtedly, there are other fees eBay charges its sellers. However, they’re mostly optional.
Step 5. Stay in contact with a supplier
Even though dropshipping leaves your supplier in charge of fulfillment processes like packing and shipping products to your customer, it’s still your responsibility to ensure customer satisfaction. eBay policy says it’s your duty to guarantee safe delivery within the established time frame.
Of course, contacting your supplier each time you receive an order would be time-consuming and ineffective. As a solution, you can automate your listing processes using services such as M2E Pro. The software helps retailers and wholesalers list an unlimited number of Magento products on eBay and manage inventory & orders. Moreover, you’ll be able to sell on multiple channels without much effort once there is a need for your business.
Read a detailed guide on how to start selling on eBay for beginners.
Summing up
We hope that this guide was valuable and insightful for you! As you can see, dropshipping on eBay is an easy and painless process, even for beginners. So do not hesitate to start your preparations right away.
Also, if you’re looking for a smart way to start as a seller and automate all processes initially, you should try out M2E Pro extension.
