Dropshipping on eBay: Things You Need to Know

Dropshipping on eBay? How does it work? To find out, check this post.

What is dropshipping?

Dropshipping is a form of retail method where the seller does not keep their products in stock or doesn’t involve inventory. Instead, the seller uses a dropshipping method where the seller purchases the product from a third party (wholesaler or manufacturer), and the latter will ship the item directly to the customer. In other words, the seller will take care of product promotion and will take care of the customer’s queries about the product. Meanwhile, the wholesaler or manufacturer will do the packaging and delivery of the product directly to the customer.

Did you know that you can dropship using eBay?

eBay is one of the highly attractive and well-rounded e-commerce places; there is potential growth. Dropshipping on eBay will open a significant opportunity since there is a huge audience. But how do you dropship on eBay? Is it allowed?

Truthfully, dropshipping on eBay has restrictions, but the business model is allowed. eBay, one of the largest e-marketplace, allows dropshipping. However, they do not allow drop shippers to list items on eBay, and purchase the products from another e-marketplace or retailer and have the item directly ship to the buyer. If eBay finds out, there is a range of actions that you will have to face, including:

  • Canceling the listings
  • Ending the listings
  • Hiding or demoting the listings from the search results.
  • Lowering of the seller rating
  • Selling or buying restrictions
  • Loss of seller and buyer protections
  • Account suspension

So, if you are planning to start dropshipping on eBay, you should know how to dropship on eBay the correct way.

How do you start dropshipping on eBay?

Again, when you dropship on eBay, you have to be extra careful not to break their policies on dropshipping.

Here is how you should start:

#1: Create an eBay seller account

Your first step is to set up a seller account on eBay. Prepare to pay applicable fees, including listing fees. Make sure to read the Terms and Conditions before completing your account to avoid account cancellation.

#2: Choose the product you want to sell and your supplier

Who is your target audience? What are the products you want to sell? Assuming it is your first drop shipping experience, you need to research the best product to dropship until you get used to dropshipping, then you can expand your audience.

Look for a reliable supplier that offers transparent business and security to both seller and the customer. Also, make sure to choose a supplier that attaches a custom return label to the package so that the buyer knows you sent it.

#3: List the products on eBay

Upload images of the items you are selling, preferably images from the supplier’s website. Mark up the right price on the product. Since you are competing with other dropshippers, it is wise to lower your price from the others, but it should generate significant profit.

#4: Be responsible for the shipment

Although the supplier will do the shipment for you, you also need to be responsible for the shipment. Ensure safe delivery of the item. Talk to your supplier if the shipment had been processed.

Dropshipping on eBay is easy, but you need to know how it works first before proceeding to this kind of business method.