eBay Dropshipping Policy Detailed Guide and Tips

Reading Time: 9 minutes

It was possible to sell on eBay before January 2019, when eBay introduced their new drop shipping policy. You could also source products from other marketplaces such as Amazon, Walmart, Ali Express, etc. DSM Tool also allowed this. We had a personal account manager who dealt with dropshipping sellers from Amazon to eBay.

Then, in 2019 eBay released a new

This article will help you understand the benefits and risks associated with dropshipping if you’re considering opening a business. Dropshipping on eBay is an exciting opportunity. You can use retailers like AliExpress and Home Depot to sell your products. However, every great opportunity comes with some risk in business.

eBay Drop Shipping Policy

The new eBay dropshipping policy , which was published at the beginning 2019 , begins by explaining the concept of “dropshipping”. Drop shipping is where you purchase stock from a supplier, and then work with them in order to ship the goods directly to your customers. Dropshipping may sound trivial, but it was not even a term that existed a few years ago.

According to eBay, wholesale dropshipping is allowed

Dropshipping policy continues with a list of dropshipping activities eBay allows and does not allow. Let’s start by defining what you can do when dropshipping to eBay. Drop shipping is where orders are fulfilled directly from wholesaler suppliers, is permitted on eBay. To emphasize its importance, they even highlighted this sentence in yellow.

Also Read  Shopify PCI Compliance Explained for Merchants

What is the role of wholesale suppliers for eBay?

Dropshipping is a relatively new term in the marketplace, as wholesale dropshipping. Dropshipping is something you should consider if you’re starting dropshipping.

First, not all wholesale suppliers you buy inventory from are considered legit. According to the policy’s first sentence, this is the most accurate definition. This is the CJ Dropshipping service that allows you to inquire, purchase stock and have it stored. CJ’s will then process your orders and drop ship directly to your customer.

The second option is to consider suppliers you don’t purchase inventory from but rather enter into a contract with wholesale suppliers. There are many ways to enter into a contract with these suppliers, depending on where you live. If you want to sell to the US market, you will first need a reseller certificate. Next, you can contact suppliers that you find in directories and then enter into an agreement. Although it is cheaper than purchasing actual inventory, it can be a hassle. Google search for wholesale suppliers is a popular way to locate wholesale suppliers for your eBay shop.

Many, including myself, consider wholesale suppliers to eBay dropshipping as those mentioned above and what I call dropshipping-friendly suppliers. These suppliers include Banggood and China Brands. Costway is another example.

These are all dropshipping websites that you can buy from and ship products to your customers. However, unlike retail suppliers, they are geared towards dropshippers. They ship the goods in dropshipping-friendly packages without invoices or branding from other retailers, as opposed to Amazon, Walmart, and Home Depot which ship the goods with branded packaging.

Also Read  Commercial CCTV Cameras Technology Trends & Analysis in E-commerce

Dropshipping from retailers and marketplaces is not allowed on eBay, but it works.

This policy continues to explain what is prohibited on eBay: Selling an item on eBay, and then buying the item from another seller or marketplace. This sentence was the first time I read it. I thought my eBay dropshipping software DSM Tool had been sentenced to death.

However, this is not true. You will soon find out that eBay did not decide to stop dropshipping from other retailers. It seems that eBay is telling dropshippers to be more ethical, to provide great support to buyers, and to add value to the eBay platform to generate sales.

You can still operate an eBay dropshipping company using dropshipping suppliers even after the policy is published. You should be fine as long as your account metrics are in good shape. You are safe as long as you realize that dropshipping from retailers comes with limitations. To further grow, you will need to source from wholesalers.

However, I do not want to paint a negative picture. Dropshipping from eBay retailers is against eBay’s policy. This means that you take some risk by doing so. Although it’s not a huge risk, I find it to be a problem when people who dropship from eBay have the desire to “sell their dreams.” It is one of the most effective ways to start an online business.

Also Read  Debutify Dropshipping Free Theme Review for Shopify Stores

What happens if you dropship from retailers? It’s a great business model, even though it has been criticized by others like me. But what is the catch?

What are eBay Flagged Accounts?

Flagged accounts are eBay shops whose owners received the selling practices policy violation emails. These stores will be affected in two ways. First, they lose the ability to rank as top-rated sellers on eBay. They may also lose visibility in Promoted Listings, which is one of eBay’s most popular features. There is still a way to make a lot of money with an account flagged for great market research and optimization.

Email explanation of eBay Selling Practices

This email was sent to all dropshippers on eBay who source their products from other marketplaces or retailers like Ali Express, Amazon and Home Depot. The email’s full contents are below

This email was also sent to sellers that are not ranked among the top-rated sellers. It is very strange indeed. It means that your account has been “flagged”, and you are not eligible to receive the status as long you continue dropshipping. Is that really so bad? Let me tell you why.

Dropshipping is not dependent on the status of top-rated seller.

eBay’s top-rated seller status, is considered a status of luxury by all sellers. Two reasons top-rated sellers are more likely to make sales: Customers who see top-rated sellers are more likely trust them and to make the purchase. The second reason is that top-rated sellers appear higher in search results on eBay. This status helps them gain organic traffic.

Also Read  5 Best and Global Wholesale Tablecloths Suppliers

Dropshipping is a way to make your store more popular than other sellers. It doesn’t matter. Here is why. Dropshippers can replace all of their inventory in a single click. You can find new products by not keeping stock. This is possible through market research and the sourcing of cheap products from trusted dropshipping suppliers.

It is possible that eBay promoted listings could be affected.

In the middle of 2018, eBay began to flag accounts before the dropshipping policy was published or emails were sent. Dropshippers from both the DSM dropshipping group as well as other online businesses communities started to report a decrease in views generated by the Promoted Listings feature on eBay.

What are eBay Promoted Listings?

You must get potential buyers to view the products you have to sell. There are several ways that you can get your products noticed by potential buyers on eBay and make sales.

  • Optimizing your listing for organic traffic with SEO techniques
  • Use the eBay Promoted Listings feature
  • Advertise the products yourself

I do not know of any dropshipping sellers on eBay who charge for advertising their products. This is done when you create your own store with a website builder such as Shopify. You can offer eBay a fee to advertise your products. If you raise it to 20%, and eBay then advertises the product and makes a sale from the ads directly, you’ll pay 20% from the price of the promotion.

Also Read  BigCommerce to WooCommerce Migration Step by Step

The reason eBay removed the promoted listings views of dropshipping sellers from their site was not an intentional action, but rather an algorithm update. It was because they didn’t want to promote products with higher prices than those on other websites. These products were probably flagged as unprofitable and they have likely made some changes to their algorithm.

Is this the truth? It’s not something I know. However, we know that eBay dropshipping using promoted listings is no longer as popular as it was. We are left with the last source of traffic, which is eBay SEO.

How to Generate Sales with eBay Flagged Accounts

Search engine optimization, or SEO for short, is a technique that optimizes eBay listings before adding them to your store. DSM Tool allows you to import product information from the source site. Let’s say Ali Express. Then you can optimize the results.

  • Editing the title with keywords from a keyword research
  • Complete missing item details
  • Optimizing the main picture
  • Collecting more images and creating collages
  • Use an eBay template in your product description.

The “List in DSM” button allows you to import product information from any source website that you are using as a dropshipping provider. Next, you will optimize the product information.

These optimizations are key to generating sales on eBay dropshipping.

Also Read  Dropshipping Suppliers for Stickers & Decals Products

It’s simple. As long as you are able to generate value for the eBay platform, even without the promoted listings feature or the top-rated seller status, you can still generate organic sales. You can do this by doing market research and sourcing reliable and cheap suppliers. Also, optimizing your listings before publishing them will help you do that.

Another theory was also suggested at the time that the dropshipping policy was being released. This is because eBay dropshipping accounts are being flagged as software-managed. This is not only false, but it can also cause damage to your account.

Manual eBay Dropshipping and Software Without An API

Dropshipping manually or using a non-API eBay dropshipping program can be a risky way to manage an eBay dropshipping shop. I believe that the fact that some eBay dropshipping software vendors have developed such features is a reckless decision. The video below explains the myth surrounding eBay dropshipping software.

The phenomenon of the 2018 drop in visibility for eBay promoted listings is what I am referring to. It feels like people interested in eBay dropshipping 2021 aren’t always being told the truth. This overview is valuable to you. I would appreciate it if others found it useful.

Dropshipping on eBay is a business that has many illegal activities. Some people are reluctant to share the truth.

Also Read  Matt Gambrell Amazon Assassin Drop Shipping Course Review

Is Dropshipping Illegal

Dropshipping is an legal method. The term dropshipping is how you handle the order after you have made a sale. There are legal and illegal activities that you can do when running your business, just as in any other industry. Dropshipping is an example of this.

Dropshipping eBay products from retailers is legal. Your store’s failure to comply with eBay’s dropshipping policy does not make it illegal. It is only against eBay’s policy. An eBay-sized company would not permit illegal activities to continue unabated. They would immediately shut down the store and report any account that they flag to the authorities. Dropshipping accounts are flagged more as an alert to sellers. You guys better provide a remarkable experience for eBay customers or you’re out.

Dropshipping is Illegal

Illegal Activities You might be offered the opportunity to participate in either directly or indirectly:

  • Buy discounted gift cards on the black market using Bitcoin and other cryptocurrencies (e.g. Amazon gift cards).
  • You can build a network of unlinked stealth accounts by duplicating listings among them
  • To steal eBay accounts, you can use fake identities
  • To promote fake watches in eBay search results, add fake watches to your eBay listings
  • To avoid competition analysis, you can use fake UPC numbers for your listings
Also Read  Shopify Debut Theme Review, Examples, and Customization

It is easy to identify people involved in illegal activities by hearing someone say they have multiple eBay shops (30+). These are typically fake-identity stealth accounts that are managed remotely from desktop computers. It is impossible for small businesses such as an eBay dropshipping shop to have more than one eBay store , while large companies like Overstock only own one eBay store .

I cannot tell you whether or not to engage in these illegal activities. It is ultimately your choice. It is not something I will promote, nor do I advocate it. Instead, I would rather talk to you about safe and legal ways to dropship on eBay

Dropshipping on eBay: How to Avoid Suspensions

You must maintain high standards of account security in order to protect your eBay store. You can ensure your business runs smoothly and makes money by choosing the best products to market. If you want your eBay dropshipping business to continue to thrive, there are many things you must do to ensure its safety.

Keep the eBay Seller Level Metrics

Monitor the seller-level metrics to ensure your eBay account is in top shape.

  • Do not ship late. Make sure that the supplier ships the product within the time specified in your shipping policies. Drop shipping to Ali Express is a good example. Offer economy/standard shipping and use ePacket for shipping. It is better to surprise customers with early shipments rather than with late shipments.
  • Don’t cancel transactions because items are out of stock. Before cancelling an order, look for the exact item from another supplier.
  • Avoid defects by answering all inquiries made on eBay or PayPal.
  • Avoid cases closed with seller resolution by looking out for your customers even though it sometimes costs you.
  • Tracking numbers must be updated according to the shipping policies handling time. If you have a 3 day handling time, that means you must update your tracking number within 3 business days.
Also Read  Bamboo Products Dropshipping is Really Worth it?

No matter how big or small your online business is, there will be times when it feels unfair to repay customers. Sometimes technical problems can cause you to charge a lower price than the cost of the product from the supplier. As a business owner, this is part of the risk that you take when you start your business.

Do not try to manipulate the system. This would push your account towards the “below-standard” seller tank. This could impact the organic traffic that your listings receive.

Offer excellent customer support

You must be responsive. Try to establish a routine where you answer customer inquiries on a daily basis. You should not only respond to customers before they buy, but also keep in touch with them after the sale. DSM Tool allows you to automate post-sale messages to to increase your eBay feedback rate

eBay Dropshipping Return Policy

Dropshippers must obtain a return label with the correct address from their supplier. You won’t need to deal with returned products. The seller will refund the buyer as soon as the product is returned to the supplier.

Dropshippers shouldn’t be using eBay automatic returns. Dropshippers panicked when this update was released. They didn’t want eBay to issue a label with their address and they didn’t want them to have to pay eBay for it. Sellers who own their stock are only helped by buyers sending packages to their address.

Also Read  Note on Dropshipping Home Goods Manufacturers and Companies

eBay recognizes that this may not be practical in every case. There are exceptions that can make things more complicated.

Dropshippers find solutions to every problem, just like any other problem that may arise over the years. Dropshippers are able to make a living from this trade, so there’s a solution for every problem.

To avoid eBay’s automatic returns, you can check the “RMA Number” box on the Seller Return Preferences Page.

eBay will allow you to upload your return label once your account is activated. Instead of charging you for your return address, eBay will provide you with the time and space to do so.

You can navigate there manually by clicking Account Settings-Site Preferences. Scroll down to Returned Preferences, and then click on the Edit link.

Scroll down to the RMA code checkbox and click it in. It’s easy!

These steps will ensure that eBay stops automatically approving returns from buyers. This will allow you to upload the return label from your supplier and then handle the case properly.

Remember that the buyer will only see your return address if you do not provide a return label for the return box. You must provide a return label as soon as possible.

To avoid confusion, you can change the name of your address and add something like “Do not return to this address.” Shortly .”, the seller will issue a return label.

Also Read  Bamboo Products Dropshipping is Really Worth it?

You can be sure that the buyer doesn’t confuse your address with the return address as you wait for your supplier to send you a return label


The main message of the eBay dropshipping policy is that you are responsible to ensure safe delivery within the specified timeframe , and to ensure buyer satisfaction with their purchase. I highlighted the most important thing I believed eBay was trying to accomplish.

Dropshipping is a great opportunity for eBay. Dropshipping is a great way to start an online company and has low risks. It comes with its own set of requirements and complications, just like any business.

This article is for anyone who is considering starting a dropshipping company. I hope that it will be helpful and honest.

Table of Contents