Dropshipping via eBay is a popular method to launch a business without any upfront investment. The internet is filled with misleading and unhelpful guides that can make this potential seem bigger than it really is.
Is eBay dropshipping worth the effort? What steps can you take to make your dropshipping successful? This guide will show you how to dropship on eBay in just a few easy steps.
What is eBay dropshipping?
Dropshipping is selling products on eBay and then working with suppliers to ship the items directly to your customers. Instead of creating inventory and holding the product, sellers can focus on eCommerce marketing and customer support. Finding new products for sale.
You will need to locate products, source them, and then list your items on eBay. Many sellers will use exact images, product titles and descriptions from their suppliers. The details of a buyer who purchases from an eBay listing are sent to the supplier. He or she is responsible for shipping the product.
You can make a profit by purchasing products wholesale and then reselling them at higher prices.
Dropshipping on eBay: Rules
Dropshipping is allowed, provided you follow the rules to ensure that your store is managed well. Here are some tips to keep your store running smoothly:
Delivery Guaranteed within 30 Days of Listing End
Sellers may find this a problem as the shipping time is not under your control. It is important to choose a reliable and trustworthy supplier. You must monitor their progress regularly and be alert for any delays.
Do not resell products purchased from other retailers or marketplaces.
An item cannot be sold on eBay. You must order it from Amazon or Walmart, and then ship it directly to your customer. It is confusing for customers to receive Amazon packages in the mail. They also can’t track shipping.
A very important point is that you can still use Amazon FBA to fulfill your eBay orders. You’ll use Amazon’s fulfillment services instead of buying the product from their marketplace. Learn more about eBay dropshipping by reading the article below.
As-advertised, deliver the product at the quality customers demand
Negative reviews and returns can be expected if your description and product are not compatible.
Each negative review that you receive will make it more difficult to rank in eBay’s search engine and could result in your eBay stars being lost. eBay can even close your store if you get too many complaints.
Simply stated, don’t try and trick customers into purchasing your product.
Is eBay dropshipping worth it?
A healthy profit margin is the key to dropshipping success. Dropshippers can make only a small profit on each sale.
This depends on the product that you are selling, but dropshipping shops will often start with low- to medium-ticket items. This is a natural tendency of new sellers who want minimize risk.
eBay is a great place to find low-ticket shoppers if you are looking for a lot of them. They boasted 182,000,000 users in Q2 2019.
Choose your eCommerce niche carefully. While high-ticket items are risky, low-priced products can put your margins at risk. If you lose your margin entirely, you’re in big trouble!
Dropshipping fees for eBay
Dropshipping on eBay comes with a number of costs. eBay’s fees to use their marketplace, as well as those of your suppliers. Below is a table listing the main eBay dropshipping charges.
|Insertion fees||You get 50 items for free each month. The fee to list an item in most categories costs $0.35.|
|Final Value Fees||These fees, also known as selling fees or commissions, are a percentage from the total sale price of an item. It is usually 10% or less for most sellers.|
|Listing upgrades||You can attract more customers with optional upgrades such as international visibility and larger photos.|
|Fees for select categories||There are some exceptions to the rule: fees for motor vehicles, real property, business or industrial items, as well as certain types of fee.|
You should consider the listing fees (the cost of posting your item regardless of whether or not it sells) and the final value fees (calculated based on the item’s final sales price).
An eBay fee calculator can help you calculate the potential fees for your listings.
Dropship the best eBay items
It’s crucial to be strategic when selecting products for eBay dropshipping. It is important to find items that are in high demand but are not being sold by many other sellers. It will be difficult to compete, so lower your prices.
Remember what we mentioned earlier about the dangers associated with margins? It is important to select items you can profit from and can easily source. The $40-$150 price range is the sweet spot. Lower margins mean a shrinking profit margin. It’s harder to convert potential buyers if your profit margin is lower. You should also remember that more expensive products can be more costly to ship which will reduce your profit margin.
Consider looking for products that are multi-item listings. The listing can be made once. You will need to tell eBay how many items you have and they will keep track. You’ll be able to spend less time posting and more time dealing with customer support.
These are just a few examples of great items you can dropship on eBay
- Bluetooth Headphones
- Organic Tea
- Vaporizers & E-Cigarettes
- Waterproof bags
- Resistance bands
- Baby carriers
How to get started with eBay dropshipping
Now you’re ready to go. How can you get started?
Look for a reliable supplier
Your business’s supplier choice can make or break it. Your reputation rests in their hands.
These are the key points to consider when choosing a dropshipping provider:
- What shipping options are they offering? Do they offer expedited shipping options?
- What is the shipping time? Is the supplier known for having satisfied customers in the past?
- What is their quality control process? Are they satisfied customers?
- You can use their marketing materials (photos, specifications, and descriptions) for your eBay listings.
This is an extremely important step to take. You need to find a trustworthy supplier. If you don’t trust your supplier, eBay Dropshipping can be a good business model.
Try your products
Selling on eBay is all about reputation.
Sellers make the common mistake of thinking that a supplier’s goods will be exactly what they say, and then selling immediately. If you place orders for products that you have not seen and then send your customers promotional materials with a different product, you are setting yourself up to receive negative reviews.
Dropshipping on eBay is doomed to fail if you receive customer complaints too early. So make sure that your customers are happy. To ensure that your customers are satisfied with your products, request a sample order from your supplier.
Register your eBay seller account
You will need your own seller account if you don’t have an eBay account. To build your brand, make sure you choose a professional username. An email address is all you need to open an eBay account. You will need to provide a business name, type, address, and phone number in order to open an account for your business.
Choose your payment provider
You will need to connect with a payment provider. Because it’s easy and free, most eBay dropshippers will use Paypal. Stripe is another option. Because Stripe offers greater customization potential, it is more popular with larger businesses.
Make your product listings
Your conversion rate is most affected by your product listings. Your product listings have the greatest impact on your conversion rate. You can convince customers that your product is the best choice by creating professional descriptions and high-quality images. Well-written product descriptions are more likely to rank higher in eBay’s search engine, and will be returned as a best match.
When customers are comparing your product with your competitors, there are many questions that they ask themselves.
- Is this the exact product I am looking for?
- What specific features does this item offer?
- What is the delivery time for my item?
- Are I dealing with a reliable seller?
You’re much more likely to win customers’ business if you can answer all these questions in your product description.
eBay’s unique pricing structure is one of its most appealing features. Customers can bid on items, place a starting bid or offer Buy it Now pricing. Pricing your items on eBay effectively will maximize your profit and allow you to sell more items.
It is best to establish a starting price that covers all fixed costs, such as shipping and product costs, in order to make sure you make a profit. You can then set Buy it Now prices to meet your profit goals.
eBay offers pricing recommendations that are based on similar items. This can be a great starting point. However, it is a good idea to compare similar items. You will be asked by eBay to list your items at the lowest possible price.
Multichannel sellers need to ensure that their eBay prices do not fall below Amazon’s. Amazon will likely suspend your listings if this happens.
repricer.com is a great tool for Amazon sellers who want to expand onto eBay. Multichannel pricing will allow you to replicate your Amazon prices on eBay, so that you can sell at the same price on both platforms.
Maintain and manage your brand
After you have set up your eBay product listings, your goal is to establish a positive, long-lasting relationship with your customers. This can be done by responding quickly to any issues or questions they may have.
The eBay customer service portal was not designed for professional online sellers and has very limited functionality. For example, messages received from the same person cannot be consolidated into one thread. This can lead to a lot of confusion and very fast!
An eCommerce helpdesk can be a must-have for sellers who value customer service. eDesk is compatible with all major online marketplaces, including eBay. It also integrates with inventory management software, social channels, and other tools. You’ll be able to quickly and easily manage customer service with all the information you need in one screen.
These are some tips to help you respond to customer questions.
- Customers don’t like to wait for answers A.I. is available to eDesk customers. One-click answers to quickly solve your queries!
- A polite, friendly email can make a customer happy. To create a positive outcome, use your customer services skills
- To resolve the issue, use order details and tracking information. This will allow you to provide the best possible solution for the customer’s question. These details are included with your communication history and message history in eDesk. You won’t need to travel far to resolve an issue.
After orders begin to come in, ask happy customers for feedback. Positive reviews increase your listings visibility and this will help you sell more eBay products.
xSellco feedback can help you improve your seller rating. It sends smart, targeted feedback requests to build your brand and increase your business’ reputation. Your strategy can be tailored to target orders by product type, SKU, delivery time, destination, and other factors.
Dropshipping is often a buzzword, but it can be a very profitable business model if you put in the work. While there are many factors that can influence dropshipping, the most important is sales volume. Great service is key to sales.
Sellers are responsible for the satisfaction of both their buyers and the item. It’s your responsibility to fix any problems, and not the seller. To avoid problems in the future, it is important to partner with reliable sourcing companies.
You’ll have a great chance of running a successful eBay dropshipping company if you keep your fingers on the pulse and respond quickly to customers.