eBay Fees
We should first look at the platform fees to determine the dropship cost on eBay. There are generally two types of eBay fees.
1) eBay Insertion Fee
Also known as the listing fee, eBay charges this fee for every listing that you create beyond the number of zero-insertion fee listings it offers.
You get 200 zero insertion fee listings per month. You pay $0.35 per item to list in most categories.
Many dropshippers who are just starting out don’t have 200 product listings. In fact, many dropshippers sell their first product with less than 10 product listing.
We can conclude that dropshipping on eBay is free until now.
2) Final Value Fee for eBay
These fees, also known as selling fees or commissions, are a percentage from the total sale price of an item. This fee is only charged when an item sells. It’s usually 10% for most sellers, but it can be even lower.
It is important to note that the final value fee does not immediately become due after a sale. Instead, eBay requires payment at the end each month.
This is even more if you can make sales at the end the month.
Dropshipping on eBay for the first time is still free.
PayPal fees
Let’s now look at the payment processor fees after we have looked at the eBay fees. PayPal is an online bank that accepts payments from eBay sellers to buyers.
The amount paid by a buyer for a product is sent to PayPal. After that, it deducts the transaction fees from the purchase price.
Although creating a PayPal account is free, receiving payments from buyers requires us to pay two types fees.
1) PayPal Transaction Fee
PayPal charges 2.9% to process payments from clients and customers in the US.
PayPal charges 4.4% for international payments received outside the USA.
2) Fixed Fee Based On The Currency
PayPal charges a small fixed fee in addition to the percentage charge. Each currency has a different fee.
If the transaction is in US Dollars, the fixed fee will be $0.30. PayPal’s website gives the exact amount for each currency.
Our budget has remained safe until now. You don’t have to pay anything upfront for your PayPal or ebay accounts. Only once you begin making money, do you have to pay?
Dropshipping Automation: How Much Does It Cost?
Dropshipping automation can be a key component of building a dropshipping business that is profitable.
An eBay dropshipping company can automate many aspects. You can automate such things as product listing, price and stock monitoring, auto messaging (trucking uploader, Vero Detector), and trucking uploader.
Dropshipping on eBay is expensive. But don’t worry, we have your back.
AutoDS allows you to get all of these items for just 1 dollar per week. If you’re lucky, you might even be able to start selling within the first week.
1) Product Lister
A product listing tool is essential if you want time and energy to focus on more important tasks, such as product research.
Instead, of copying the title, description, and pictures from a product page, use the AutoDS Uploader to do it all in one click.
The uploader detected a Vero term and alerted us by clicking Grab Details.
A Vero is an eBay product that has been registered and branded. This is why the name Vero stands.
Listing products that are part the Verified Rights Owner Program could result in your account being suspended indefinitely.
This is why you need a product listinger that detects Vero products to minimize the chances of your account being suspended.
AutoDS has the largest Vero list to help you keep your account secure.
To explain, we clicked “Let me Continue!”
Now the product is uploaded and ready for publication. The only thing we need to do is set the desired profit and then let the uploader calculate and price the product. This saves us the effort of manually calculating and profiting for each product that we upload.
Learn more about AutoDS fees and profit calculations. How to calculate the difference between breakeven (or % profit)?
2) Stock and Price Monitor and Up-to-Date
This automation tool can be called either a monitor, or a repricer. The AutoDS Monitor can do both.
It can first monitor your products on their source websites and detect any changes on the product pages; second, it can also track price and stock changes.
The repricer is then in charge. This can adjust your item quantity and price according to changes on the source page.
If the price of the source page increases, the listing price will be automatically updated to reflect the increase so you don’t lose any money.
Stock monitoring is the same. If the product on the source page goes out-of-stock, the monitor will update the listing.
You may be still confused about dropshipping automation tools.
As we mentioned, all of these tools can be used for 1$ the first week.
You will also be able to access AutoDS Finder and 40000 credits. This will enable you to search for 400 000 hot products on eBay.
This tool scans thousands dropshippers and sellers of eBay. Finds the best-selling products and shares them with AutoDS users
AutoDS is an All-In-One Dropshipping Tool. A basic subscription costs only 8 dollars per month.
The Paypal Jail
If you’re just starting an eBay store and don’t use your PayPal account to receive payments, PayPal will add some buyer payments to your on-hold balance.
You will need to wait for the buyer to receive the product before PayPal will release the money to you so that you can use it as you wish.
The money usually holds for three months. After that, transactions begin to flow directly into your account balance and are not held by PayPal.
You will need to pay some money to ship the product to your customer and to pay the supplier for this hold.
You already have the money in your PayPal account.
Even though the money is still in hold, once you receive the product from the customer, the funds are available to withdraw or be used to process any future orders.
As you sell, your PayPal balance will increase and you won’t need to spend cash.
Summary
This article is intended for anyone who has an interest in dropshipping. Want to find out the exact cost to start an eBay dropshipping company?
Dropshipping automation is easy to set up because it costs only 1$ to create an eBay or PayPal account. You will need to spend a few dollars more to ship your first product to customers.
Dropshipping is a great way to start dropshipping. There are very few risks.
Thank you for reading. If dropshipping is something that interests you, take our A–Z dropshipping course. Lior Pozin, CEO of AutoDS shares 11 years of dropshipping experience.
