Last Updated on May 05, 2021
Tips for Creating a eBay Dropshipping Strategy
Dropshipping is nearly as old as mail orders and direct marketing. The premise is straightforward. First of all, you put an ad selling what you do not have. Then, by sending the money for it, the customer “buys” the item. You will then collect a part of the money and buy it at a lower cost (usually wholesale) from your provider, with your supplier shipping going directly to your customer. Everybody’s ideally glad.
If it works well, drop shipping is a business dream, an opportunity to play with the perfect intermediary without an overhead–you have no inventory, no shipping hassles, and no shopfront. You simply accept money in quantity and send the money you accept to a third party a little smaller and keep it as a profit.
Tips to avoid errors when dropshipping via eBay
Naturally, things are seldom so simple in actual life and the direct marketers who experience dropshipping know that in most retail shipping companies that do any volume usually have a constant stream of “carcasses” to deal with.
While such hiccups may not have a statistical impact on a traditional dropshipping scenario for your business, they can differ from success to failure on eBay so you must treat your eBay dropshipping business like an eBay business first and a dropshipping shipping business a distant second.
Keep Close Tabs in Completion Times
The best way to this is to send active emails requesting feedback from your customers, or to complete a kind of satisfaction survey after a reasonable time is spent to do so. You will soon hear again if the orders take longer than you think.
This is important as online buyers and eBay generally expect a better service as other direct marketing buyers and, if shipments are delayed for whatever reason before shipments are sent, negative feedback and reversals in payment charges may seriously damage your prospects for success.
Monitoring stock issues
You need to monitor stock problems in the marketing on eBay much more critically than you do when selling via other direct marketing channels. Coordination of the means available to you with your supplier(s), but do not give your supplier exclusive fulfillment times and availability. Sales of eBay are contracts and “backorder” or “cancelation” cannot be allowed due to non-disposable situations.
Once someone purchases an item, you will deliver the item promptly or a non-performance violation is possible for the seller— a process which can be started by buyers only ten days after an auction is complete if they haven’t received their order yet. Just a few of these (usually in numbers you can count on, even if it depends on the volume of sales) and eBay will close you down for good as a seller.
Be ready for communication with Returns
On eBay, your sales and ability to make both depend on your feedback score— an initial score given to you not as a provider. If your customer has a return problem, or is not happy with it, then it will be publicly accepted by yourself as a seller–and will have a negative effect on future sales.
That is why as an eBay seller, you could consider it absolutely necessary to mediate in return and exchange problems after they have been fulfilled in ways not needed to sell through other pathways.
Beware of product quality and purchaser expectations
In the traditional Direct Marketing environment, eBay and online purchasers have higher trading expectations than their customers. You expect a photo and a clearly defined list of items in your auctions and you expect to receive an item the same as the one that you “purchased” via your auction listing.
Thus, you must select a wholesaler and a product catalog that will not change stock or suppliers without telling yourself — or on the other hand you must make clear in your lists that when your customers receive the item it may vary significantly from the listing— things that will be bad for eBay and will likely harm sales.
It can seem as a matter of course, but too often it has returned to bite new eBay sellers, so mention should be made. You must fulfill the order regardless of how much the final price is, even if it is below your cost if you list using the auction format.
If you can’t satisfy this requirement, sell only with fixed-price listings (i.e. Buy It Now) or ask to get serious financial rapid sand and to lose your shirt or to shut down for non-performance — which took up some of the best and lightest eBay almost overnight.
As you can start seeing, running a successful eBay business involves two major concerns— first, retaining your good feedback and compliance under eBay policy to ensure you are able to send further and secondly, having to fulfill your auction expenses quickly and at the cost of closing. This includes all costs, overheads and/or unforeseen losses that can accompany a proposal.
Take these two tensions between e-Bay culture and business models and you will be on your way to a successful e-Bay shipping company as are so many others.