The Complete Guide to Dropshipping on Amazon and eBay

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Dropshipping is a business opportunity that you are considering.

“Should I dropship on Amazon or eBay?”

To answer this question correctly, you need to consider many factors. This article will help you decide which platform is right for you. We’ll review each platform and discuss their unique offerings to make it easier for users to decide which platform is best.

You’ll be able to decide if you want your Amazon or eBay business to grow.

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Be aware that these marketplaces can be a bit overwhelming. These markets often charge subscriptions or other fees, but they could have higher profit margins than you realize.

We’ll start by defining the dropshipping model. We’ll then look at Amazon, eBay, and other well-known eCommerce platforms.

Final word: There will be a bonus section. Make sure to stay until the end.

Dropshipping: What does it mean?

Let’s first explain dropshipping to those who don’t know what it is. You must understand the industry before you can succeed in dropshipping.

Dropshipping allows you to sell products online without having to store them in a warehouse. Dropshipping allows you to sell products online without the need to package them or deliver them. Your goods provider will be responsible for managing your inventory and delivering your products.

You send your order to your supplier after a customer places an order in your shop. Your provider will then ship the package.

This strategy for an eCommerce company guarantees low startup costs, increased security, and no inventory costs.

What are Amazon’s and eBay’s responsibilities when it comes to dropshipping on Amazon or eBay? It is possible to build an online shop and then start a dropshipping company on these platforms. It’s likely that you are deciding which one to use. Continue reading to learn more about dropshipping on Amazon and eBay.

Amazon

Even if your business is not in eCommerce, chances are you have heard of Amazon. Amazon is the most widely used eCommerce platform in the world, attracting all online sellers like a magnet.

According to Similar Web, Amazon is the most visited eCommerce and Shopping Marketplace worldwide. You don’t need any more proof of Amazon’s ubiquitousness.

Statista reports that Amazon’s eCommerce sales in America reached $222.6 billion in 2019, and will reach $302 billion by 2021.

Amazon also reported that 50.000 sellers earned more than $500.000 in 2019 while almost 200.000 small- and medium-sized businesses earned over $100.000 in 2018. Good news: Amazon reported that small and medium-sized businesses produced over half of all the items sold on its e-stores. This means that any seller can make money by investing their time and money.

About eBay

Similar to Amazon, eBay is familiar to almost all people. Even if you aren’t an eCommerce seller, this marketplace is easily accessible. eBay ranks second on the list of most popular eCommerce and Shopping Marketplaces.

Additionally, eBay’s latest data shows that there are 182,000,000 active eBay buyers worldwide, which is a huge benefit for dropshippers.

Statista data shows that eBay’s US eCommerce sales declined in 2019. The total sales were $33.33 billion, a decrease of $35.63 billion in 2018.

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Which of these two major eCommerce marketplaces should I choose?

Both Amazon and eBay are well-known, but they have their own characteristics and strengths. This doesn’t necessarily mean that Amazon is the best choice for you, just because it has the highest annual sales.

Different firms have different needs so you need to compare all features of different platforms. Then you will be able determine which marketplace is best suited to your needs and interests.

Let’s look at the details of dropshipping Amazon and eBay to help you make a decision.

First, it is important to be familiar with dropshipping policies before you consider selling on Amazon and eBay.

Dropshipping Policy at Amazon

Let’s look closer at Amazon’s dropshipping rules. Dropshipping on Amazon can be accepted and legal. However, there are a few rules you need to follow in order to sell on Amazon’s marketplace.

  • On any information regarding the product (invoices and packaging slips etc.), be sure to identify yourself by selling it.
  • Remove all information that could reveal your supplier’s identity (product slips or invoices, packaging, etc.) before shipping.
  • Resolve any problems that may arise from product defects or returns.
  • You must also adhere to all other Amazon seller terms.

Amazon also prohibits you to order items from other retailers and have them shipped directly to your customers.

These guidelines will help you to be a successful Amazon seller.

Dropshipping Policy – eBay

This is also true if you want to become a member eBay’s seller network. Make sure you read eBay’s Dropshipping Policy before opening your store.

Dropshipping on eBay is permitted as long as the orders come directly from a wholesale supplier.

  • You must ensure that your products reach your customers safely.
  • You can ensure that your products arrive on time.
  • Problems and returns are taken care of.

eBay is similar to Amazon in that you cannot sell an item in your shop and then purchase it from another retailer to ship it to customers.

Amazon Selling Fees

Amazon charges a fee, just like other eCommerce platforms. Amazon’s selling costs depend on many factors including product categories and selling plans. The two main selling plans on Amazon are the Individual Plan (which costs $0.99 per item) and the Professional Plan (39.99 for undetermined numbers of units).

They also charge a referral fee per item sold. The amount is determined by product type. Amazon charges a referral fee of between 8% and 15%.

Amazon’s shipping costs can vary depending on whether Amazon fulfills orders or uses Amazon Fulfillment By Amazon (FBA) service.

The expenses associated with selling on Amazon depend on the type of product that you sell, the fulfillment services you use, as well as any additional services you select.

eBay selling fees

eBay has a different approach to selling fees than Amazon. They have two costs, insertion and final values fees. These vary depending on product categories.

Sellers with a basic account on eBay are charged a 10% final value fee for most items. If the selling price of a book, music, DVD, or movie exceeds $100, the final value fee is 12 percent. The final value fee is 0% for select women’s or men’s apparel. If the selling price is below $100, the final value fee equals 10%.

Amazon International Selling

Amazon is quite flexible when it comes to international sales. Amazon is an eCommerce giant that has 16 online marketplaces that provide access to some of the most important markets in the world. This is an excellent option for dropshipping businesses looking to expand overseas. It also allows you to reach millions of buyers.

You can also sell to Europe (Germany and the United Kingdom), France, Spain and Italy as well as North America (the United States of America, Canada, Mexico and Brazil), Asia-Pacific(Japan and China), India and Australia through Amazon (Turkey) and UAE.

You might consider merging your accounts. Amazon offers two types of unified accounts: one for North America, and one for Europe. This allows you to sell on all European and North American market. You will need to open a separate account for each country in the Asia-Pacific region if you wish to sell to them.

Before you sell on Amazon, make sure to understand the requirements of each marketplace. You can then think about expanding your business into new markets.

Sell internationally on eBay

eBay, unlike Amazon, has a stricter international market policy. You must fulfill several requirements to be eligible to sell on eBay overseas.

You must first have a current, in good standing, account. You will need a PayPal account to start. PayPal is a good option.

Your seller account must also have at least 10 feedback points. Additionally, your first transaction must have taken place within the past three months.

There are a few categories that you can sell on eBay’s international marketplaces.

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Exclusions were made for certain items such as parts of cars, vehicles, DVDs and video games.

International sales can be made possible by shipping to Europe, the United Kingdom or other parts of the world. To improve your search engine rankings, it’s important to determine which shipping company will deliver to these areas.

You can sell your products worldwide or in a restricted number of countries. You must have products that meet the eligibility requirements for each country/region you want to sell your products in. Visit eBay’s website to learn more about their international trading policies.

eBay has several websites that cater to different regions of the globe. You can sell in Australia, Australia, Belgium, China, France and Germany. As long as you comply with the cross-border regulations and rules, you can sell in any country.

Overview of Amazon’s Product Categories

Here are some examples to give you an idea about what you can sell on Amazon.

  • Electronics
  • Luggage
  • Fashion for women
  • Samples of products
  • Pet supplies
  • Software
  • Outdoors and sports
  • Baby products
  • Tools & Home Improvements
  • Automotive
  • Health & Household
  • Toys and Games
  • Smart home
  • Arts & Crafts
  • Home & Kitchen
  • Video games
  • Industrial & Scientific
  • Beauty & personal care
  • Computers

While selling in a particular category is not required to be approved by Amazon, some products might. Before you decide what products or categories to sell, it is important to know which ones require approval from Amazon.

A look at the product categories available on eBay

Here is a list of items that you can sell on ebay:

  • Motors
  • Fashion
  • Books
  • Movies and Music
  • Electronics
  • Collectibles & Art
  • Home & Garden
  • Sporting Goods
  • Toys & Hobbies
  • Business & Industrial
  • Health & Beauty
  • Other

You can also sell many items on eBay. However, eBay has a list that prohibits you from selling certain items. This is to ensure compliance with local laws. Double-check the product’s nature before you sell it on the eBay marketplace.

Amazon appears to have splintered its product categories without adding too many subcategories. eBay offers fewer product categories with multiple subcategories to make it appear more organized.

Amazon customers claim it is superior in all product categories because it follows global market demand trends. Due to the popularity of automobile electrical parts and accessories, eBay’s eBay motors category is much more popular than its competitors.

Amazon is the top seller because it’s more focused on market trends than total sales per category. However, eBay’s marketing team will likely verify the statistics for each category before listing any new products.

Fulfillment By Amazon (FBA)

Fulfillment By Amazon (FBA) was established in 2006. It is Amazon’s fulfillment company. Their service has been providing sellers with storage, shipping, and packaging services since 2006. Amazon’s Fulfillment by Amazon service (FBA), allows sellers to ship their products directly to Amazon’s fulfillment centers. These products are stored in these facilities until the customer orders them. After that, Amazon prepares, packages and ships the product(s), to the customer (s).

FBA means that you are responsible for Amazon fees. FBA sellers will be able to ship all the packaging and shipping themselves. This service comes at a cost. FBA fees vary depending on the size and weight of your items. They range from $2.41 to $5.26 standard-sized items. Additional fees may apply to large products. These fees can range from $8.26 for small oversized items up to $137.32 if you have special oversized products.

Other than that, Amazon charges storage fees for any space that your products take up within its fulfillment centers. These fees can be charged on a monthly basis or long-term for products that are kept longer than 365 calendar days.

Fulfillment by eBay (Managed Delivery).

eBay will also create Managed Delivery, its fulfillment service, by 2020. The goal is to deliver reliable and timely delivery to end-users.

eBay, unlike Amazon, will not own and operate its warehouse network. Instead, it will create a network (3PL) of third-party logistics partners to handle product storage, packaging, and delivery.

To make it easier for sellers to keep their products closer to customers, eBay plans to build warehouses. This will ensure that customers receive their merchandise on time and at lower shipping costs.

Bonus: Dropshipping Amazon and eBay using keyword tools

We’ve listed the main differences between dropshipping on Amazon.com and eBay to help you make the right decision for your online business. This additional section will discuss how to get the most out Amazon and eBay by using useful keyword tools.

Dropshipping on Amazon or eBay may become easier if you invest in keyword tools. This is how Amazon sellers and eBay sellers make millions each year. These tools are essential if you want to quickly make money on these marketplaces.

Most keyword tools can provide useful phrase combinations that when used strategically, can help products or services rank higher in search results. This list contains the best tools that you can use to create a profitable online company based on your chosen platform.

Keyword Tool (Amazon & eBay)

Over 4 million SEO professionals use the Keyword Tool every month. It is available in both a paid and free edition. The tool provides over 750 long-tail keywords recommendations for every term that you type in the search box. Search Tool provides many keyword results that help consumers learn about their competitors on Amazon and eBay.

Merchant Words (Amazon)

MerchantWords can be a valuable tool that provides precise results and highlights prominent categories. However, it is not free. Search engine optimization professionals and businesses pay $60 per month to find the top keywords on Amazon. It does have some benefits, like ‘autocomplete’, which can be useful in speeding up the process.

Algopix (Amazon & eBay)

Algopix can be a useful and efficient solution for Amazon and eBay online retailers. It is designed to help you save time and money, while increasing your sales. It can be used to do bulk research, compare pricing estimates and learn about the firms of your competitors.

AMZ Tracker (Amazon)

AMZ Tracker is a great tool, but it’s also the most expensive. Prices range from $40 to $400 per month with basic packages starting at $40. (When billed annually). This Amazon SEO tool can not only show results for popular phrases but may also predict which keywords will become more popular in the future.

Keysearch (eBay)

Keysearch can help you maximize your SEO efforts and eBay experience. This is a simple keyword generator that lets you search for keywords and find those that will help you stand out from your competitors. After a free one-month trial, you can choose from two pricing options: Pro for $34/month or Starter at $17 per Month.

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Helium 10 (Amazon)

The Helium 10 Chrome extension is a web application that provides a complete package. It includes keywords trackers, processors and research. You can have multiple users working on it at once. However, to get the best experience, install their Chrome extension. Prices range from zero to $297 per monthly. It’s one the most powerful Amazon keyword tools available.

Terrapeak (eBay)

Terrapeak is one of the most popular tools eBay sellers use. Terrapeak helps users decide which items to sell and when to market them.

It also allows you to analyze the efforts of your competitors and determine the best prices for your products. Terrapeak allows you to search for information by keyword, product and filter.

Sonar (Amazon)

Sonar is available as both a Chrome extension and a web application. Sonar’s sophisticated algorithms, which use only top-page Amazon Standard Identification Numbers (ASIN) results to analyze more than 110,000,000 keywords and 156,000,000 products, have so far analyzed more that 156,000,000 products. This provides valuable information to the user about their competitors.

KTD (Amazon & eBay)

Keyword Tool Dominator (KTD), which you can try for free, will require you to pay a one time fee after your trial ends. You can use it to search for product keywords or auction listing keywords on Amazon. KTD is able to help you identify niches, long-tail keywords and short-tail keywords regardless of which platform you use.

Keyword Inspector (Amazon)

KeywordInspector costs $39.95 per monthly and comes with a free trial. It provides a unique reverse ASIN tool that has over 72 million keyword combinations. It is available in Amazon’s web editions for the United States, Canada, Mexico and Canada. It is rated highly by many reviewers as one of the most powerful Amazon keyword tools. If you are interested in joining Amazon, it’s worth a look.

Zic Analytics (eBay)

ZIK Analytics was launched in 2016 and is used by more than 20,000 eBay drop shippers, wholesalers, and resellers. This tool will help you become a better eBay seller. It will allow you to identify the most profitable items to sell.

Zic Analytics can help you rank higher than your competition. You have two options for pricing the tool: either $59.99 per month or $40 annually.

AMZ.one (Amazon)

Amazon SEO Tool (with paid editions) is available for free to help you rank higher in the market. The pricing ranges between $20 and $180 per month, but the free edition can still be used if it is done correctly. If you wish to upgrade this tool, you can get a free week’s trial of all pricing options. You can also keep track of keywords, sales, and other information.

AmaSuite (Amazon)

AmaSuite can be purchased in many countries including the United States, Canada and Italy. It is compatible with both Windows and Mac operating systems. It comes with a 30-day money back guarantee and is available at $268 (4 monthly payments) or $197 (1 full purchase). This will save you $100. The designers promise that you will ‘discover undiscovered product possibilities’ and that you’ll have access to bonus tools.

Kparser (Amazon & eBay)

A keyword tool that can be used in both eCommerce systems is Kparser. Kparser can be used to increase sales, regardless of whether you sell on Amazon or eBay. This tool will help you determine the most relevant keywords for product titles and descriptions.

Keyword Keg (eBay)

Over 4,500 SEO professionals use Keyword Keg to perform keyword research and analysis. It allows you search for listing ideas, compare listings and even compare products as an eBay seller. Keyword Keg will help you to save time by quickly improving your eBay listings.

Summary

Let’s summarize: each market has its own set characteristics and services to help you launch and grow a profitable online company. Dropshipping on Amazon or eBay is a popular topic on numerous forums, where eCommerce experts share their stories and experience. It’s clear that each online shop owner has their preferred marketplace to sell their products. You shouldn’t accept everyone’s opinion as fact.

It is best to compare the benefits and drawbacks of each marketplace and to determine which one suits your needs. You won’t regret reading my guide to dropshipping Amazon and eBay.

Your decision should also be based on what type of goods and fulfillment methods you prefer, as well as your desire to expand internationally.

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