Is Dropshipping Banned in eBay? Yes in Some Cases

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We published last month news about eBay changing its drop shipping policy. This directly impacts accounts using arbitrage to sell items on eBay.

Dropshipping arbitrage refers to the practice of selling an item on eBay and not having it in stock, and then sending it from another online retailer such as Amazon, Walmart or other.

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shopify dropshipping store set up

Last year, arbitrage sellers noticed that many listings were being downgraded on the market.

Dropshipping arbitrage was not prohibited at the time, but eBay was clearly no longer interested in supporting the practice.

Even Amazon, an online retailer that sells products on eBay through arbitrage, has updated its buying policy, which effectively bans this practice.

Fundamentally, online retailers such as Amazon and eBay prefer supply chain sales that are straight forward.

Dropshipping arbitrage sales and consumer transparency seem to increase consumer confusion, complaints and returns.

eBay Crackdown

eBay has changed its policy regarding arbitrage listings. This means that they are stepping up their enforcement of such sales.

A popular Facebook forum has seen a rise in sellers complaining that their accounts have been closed and their items are almost invisible.

After placing a restriction on sales accounts, eBay now requires sellers to verify that they own the products.

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Some forum members claim that their accounts were only functional for a few days until eBay closed them down or severely limited new listings.

Although eBay will never be able to completely eliminate arbitrage sellers who drop ship from retailers, they have tools that allow them to quickly locate such listings and cancel them.

Dropshipping arbitrage sales are no longer an option for sellers. They’ll be spending more time trying to evade ebay detection than actually selling products.

Dropshipping is a very attractive option for sellers and . Dropshipping allows you to make sales on products that you have never seen and you get paid before the product you sell is even purchased. This is how…

  • Very low entry barrier
  • Brand building is not necessary.
  • No inventory handling, shipping, or inspection

It’s not that surprising for marketplaces such as Ebay or Amazon, which in 2018 cracked down on dropshipping.

Dropshipping: Why Amazon and EBay Are Better Than Ever

Dropshipping is frowned on because the seller doesn’t have full control over their storefront or performance. They don’t have the ability to control every aspect of the package.

They are taking the chance that the seller they bought the product from will inspect it and ship it promptly. They hope that the product they are purchasing will be genuine and that the seller is upholding the Ebay quality standards.

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Many issues can arise when dropshipping is done on a large scale. Dropshipping, particularly automated dropshipping can lead to many late shipments, cancellations, and orders that are not as described.

Dropshipping was banned by Ebay?

Technically, no. Ebay did not ban dropshipping entirely. However, they did ban dropshipping in certain forms.

The kind that is taught in most of the make-money-from-home-dropshipping-courses that litter the internet.

Ebay Dropshipping is a Method You Cannot Use

You can sell products you purchase directly from the customer via public marketplaces or 3rd-party retailers.

This is our own Service Offered by the Blog Author.

shopify dropshipping store set up

You cannot list an item, such as a pair of shoes priced at $89., on eBay. After it’s sold, purchase the shoes from Amazon for $59 and change the address for the EBay buyer.

Ebay does not allow the item to appear directly on Amazon. Dropshipping from Amazon to Ebay and Amazon to Ebay are no longer acceptable.

Ebay Dropshipping: What You Can Do

You can sell products you buy from wholesale suppliers, who will ship the product for you.

You have a wholesale agreement with XYZ widgets. If you order inventory, it is allowed that you may sell it. You are responsible for the product’s quality and accuracy as well as shipment.

Dropshipping on Ebay: Is it Dead? Is Dropshipping Even Still Worth It?

Yes, if you use the approved shipping method from a supplier.

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You can’t stop using Ebay dropshipping softwares if you want to continue doing things the traditional way and hope you don’t get banned. Dropshipping isn’t as risky as it sounds. However, it will be terrible.

Dropshipping: The Best Alternative for 2020 and Beyond

Let’s face facts, there are likely to be a dozen dropshippers who do legit dropshipping with suppliers for every legitimate business.

Don’t worry, there’s a better way than dropshipping.

This is called online arbitrage, and it will…

  • Profit margins that are higher
  • Your Amazon or Ebay account should not be suspended
  • You can be just as hands-off as dropshipping.