How to start dropshipping on eBay: all the Pros and Cons
eBay is one of the most famous auction sites in the world: founded in ’95, it’s a website where millions of visitors buy all kinds of products and where every day thousands of people wander, even without purpose, simply looking for good deals.
This means that on this platform you can find a huge audience without the need for upfront capital and for this reason, eBay is a highly attractive marketplace for first-time buyers, small business owners and it could also be the perfect opportunity for you.
In fact, requiring far less financial input than a regular store, eBay dropshipping could provide an excellent gateway to online retail for sellers just starting out or looking to test some products.
So continue reading our guide to see how to dropship on eBay. What are the pros and cons of dropshipping on eBay? What are eBay rules on dropshipping? And ultimately find a step-by-step guide to starting your dropshipping business on eBay.
What is eBay and how does it work?
In the fourth quarter of 2020, eBay reached over 185 million active buyers worldwide, with 5% growth compared to 2019.
In December 2019, statista.com published a statistic about the most popular retail sites in the US, based on the number of unique monthly visitors. The result was that Amazon was the most popular with 215 million users per month during the quarter and eBay, second at 106,9 million unique monthly visitors.
So eBay is more attractive than other famous websites such as Etsy.com and Apple, with 33,3% of their visitors being on mobile and also ranked as one of the most popular mobile shopping apps in the United States as of September 2019.
Founded in 1995, eBay is a marketplace that offers goods and services to both merchants and buyers.
“From 2000 to 2019, the American Customer Service Index has recorded the level of customer satisfaction with eBay. ASCI scores are calculated on a 100-point scale and during the stated time period, eBay’s ASCI score has remained consistently high. During that time, eBay’s lowest customer satisfaction score was in 2015 with 75 index points. On the other hand, 2004 saw eBay achieve its highest score with 84 index points.” (statista.com).
These statistics can give you an idea of the potential of this platform, which is a huge marketplace, full of visitors that you can reach with minimum effort.
Its unique characteristic is that sellers can decide between an online auction service or a buy-now option. You can bid on almost anything: cars, electronics, clothes to antiques.
Merchants need to post a product with a starting bid and an expiration date and wait for the price to rise. Normally the lower the starting bid, the more likely it is that customers will bid on the product, at the end of the bidding time, the product is sold to the highest bidder.
However, merchants can also sell their products directly, like on Amazon and control the price of the product.
What is a dropshipping business?
There are a huge number of items on eBay, yet did you realize that numerous dealers on eBay never really handle or keep stock of the things they sell online?
They simply source their products from suppliers, normally at B2B prices, and list these items in their own eBay store. Numerous merchants will utilize the same images, item titles, and descriptions given by their outsourced suppliers. This method is called Dropshipping.
Dropshipping is a supply chain method that allows the store owner to sell products without having them physically in their warehouse. When an item is a purchase in his store he simply sends the details of the shipment to a supplier that fulfills and ships the order in his name directly to the final customers.
Since the products are delivered directly to the final clients, the dropshipper basically works as an agent or a retailer between the supplier and the buyer, sourcing items and selling them at an average retail cost on eBay.
Dropshipping is permitted on eBay if the merchant can guarantee delivery within the timeframe indicated on the product listing. However, the delivery time and product quality are not directly in the seller’s control and eBay places full responsibility in their hands.
For this reason, finding the right supplier is essential to dropship o
n eBay, and below we will show you how to do it.
Dropshipping on eBay: eBay’s rules
In the past months, many dropshippers were banned by eBay because they didn’t follow eBay’s requirements. eBay’s definition of dropshipping is “when you buy stock from a supplier and work with them to send items directly to your buyers without ever handling them yourself.
Dropshipping, where you fulfill orders directly from a wholesale supplier, is allowed on eBay. Remember that if you use drop shipping, you’re still responsible for the safe delivery of the item within the time frame stated in your listing and for the buyer’s overall satisfaction with their purchase.
However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay. Activity that doesn’t follow eBay’s policy could result in a range of actions including but not limited to: administratively ending or canceling listings, hiding or demoting all listings from search results, lowering seller rating, buying or selling restrictions, loss of buyer or seller protection, and account suspension. All fees paid or payable in relation to listings or accounts on which we take any action will not be refunded or otherwise credited to your account.” – eBay FAQ –
They want to be sure that you own the products you sell and that you will be able to actually fulfill your orders without the products being out of stock and this means that dropshipping directly from Aliexpress or other marketplaces is not allowed.
But with Yakkyofy, you can easily dropship following eBay rules and even increase your margins in the process.
We will allow you to place orders also for a minimum stock of products, even 5 or 10 pieces is permitted, and get prices lower than on other Chinese Marketplaces.
Plus we offer free warehouse space for your inventory, QC on your items, and a discount on the single product price if you reach the MOQ discount quantity, which you can see in our catalog.
Is it not enough? If you buy a small stock with us your processing time will only be one business day and that you will be able to deliver your products to destinations such as the US and many European countries in just 4-13 working days. Below we will guide you step by step on how to start dropshipping on eBay with Yakkyofy.
Pros and cons of dropshipping on eBay
Obviously dropshipping on eBay has pros and cons and it is better to know them before you start to sell.
- Easy to start: to start dropshipping on eBay is very simple, especially if you use software such as Yakkyofy to automate the fulfillment of your orders.
- Low startup costs: you don’t need to buy a large amount of stock in advance
- A lot of visibility: as mentioned previously, eBay has a huge number of visitors, so if you sell on this platform, you have thousands of potential customers. That means it already has a huge, loyal customer base.
- No technical skills required: to sell on eBay you don’t need to open a store, you don’t need any knowledge of programming or marketing, only business acumen.
- Low marketing costs: dropshipping on eBay means that you don’t need to invest a lot in marketing, like you would do normally to find customers for your store, but only made your listings visible on eBay.
- Flexibility: many people start to sell products online to have a second revenue stream, and dropshipping on eBay is really simple, really flexible, and allows you to have another job or to sell on eBay from wherever you want. You just need a laptop and a good internet connection.
- Minimum risk: you don’t need to spend a lot of money in advance for dropshipping on eBay and if a product is not so sellable anymore, you can easily switch to another one without losing much money. Plus, scaling your dropshipping business on eBay is easier than a traditional online store, providing you have good connections with your supplier, you can grow your business without the risks and costs involved in typical expansion, such as office space, overheads, additional staff wages, warehouse rent and so on.
- Competition: dropshipping on eBay, you will have to face a lot of competitors, in fact, other sellers could find the same product as yours and sell it at a lower price, so it is better to always do some research before choosing which items to sell.
- eBay fee/low profits: when you sell on eBay you need to pay commission to the marketplace, so you have to consider that when selling on this platform your margin will be lower than what you might expect on your own dropshipping store.
- Daily tasks: dropshipping on eBay, you have to check daily for your products, prices, and availability in the supplier’s warehouse.
- No Customer Loyalty: When selling on eBay you don’t have the possibility to customize your store or gain customer loyalty with marketing and sales techniques. Think about it, do you remember the name of the store that you bought an item from on eBay or Amazon?
- Liability: you are responsible for each item you sell, so this means that, if your delivery has some problem or delay, the responsibility is on you not on the supplier.
- Not easy to find a dropship supplier: it is really difficult to establish a wholesale relationship with suppliers, as very few will offer dropshipping services unless you can prove you can have great results.
- Buy a little stock: when dropshipping on eBay you need to own little stock of products.
- eBay policies and restrictions: to legally dropship on eBay you need to find a supplier that keeps your stock and ships them for you, arbitrage is not possible. If you don’t comply with eBay rules you can have serious consequences.
On the face of it, eBay dropshipping seems like a no-brainer, but you should consider the Cons mentioned above.
Dropshipping from Amazon to eBay
Previously, many sellers used to drop ship products from Amazon on eBay, using software such as Easync and PriceYak. This practice had a really negative effect on eBay’s customer satisfaction rate, in fact, many users were angry after ordering from eBay and receiving an Amazon package, blaming the company for this irregular selling strategy put in place by dropshippers.
These serious complaints from customers had hurt the eBay brand and for this reason, the company decided to establish strict rules about dropshipping. The rules that everybody now needs to follow.
How to start dropshipping on eBay with Yakkyofy
Dropshipping on eBay has become highly restricted in recent years but with Yakkyofy you can dropship your products on eBay following all the necessary eBay requirements with minimum stress.
Exactly, and below I’ll explain to you how to create a store on eBay, connect Yakkyofy, Choose your products, import them on eBay and start to sell in a few clicks.
Create your eBay Seller account
To sell on eBay you need to create an account by choosing the eBay Selling plan you wish to use. Remember, there are different eBay sites for different countries all over the world, so make sure you sign up for the right one, depending on where your target audience lives.
After that, you need to create eBay policies for your shipping, fulfillment, and payments, don’t worry eBay offers ready-to-made templates on its dashboard to help you out with this. It is a bit boring but eBay won’t allow you to list a product without them.
Last but not least, you need to set up a payment gateway where eBay will deposit your earnings, after deducting eBay fees. So when you publish the price of the products remember always to add into account the eBay fees, your country taxes (VAT for example), and payment gateway fees.
After creating the structure of your merchant account, you need to find suppliers, products to sell, and find a way to automate the entire fulfillment process of your orders.
All these actions can easily be completed with the help of Yakkyofy, the best dropshipping solution for dropshipping on eBay.
How to connect your eBay store to Yakkyofy
The first thing that you need to do is create an account on Yakkyofy.com and connect your eBay store. To do this, visit the Store Tab and click on the CONNECT NEW STORE button. Choose EBAY and click on INSTALL NOW.
Remember you must already have an active store on eBay to make a successful connection. Great, now that the connection is ready, you can start selling your products!
How to request a quotation for your products?
Due to eBay’s strict policy on dropshipping, before listing an item on eBay, all users are required to own some inventory of the same item in our warehouse in Shenzhen. You don’t need to buy huge amounts of items, even 5 or 10 pieces are enough. Now, to buy this stock, you need to first ask for a quotation. Here you have 2 options:
You can ask for a quotation for a product that you have already found in our catalog or ask for a quotation for a new item outside the catalog.
In the first case, visit PRODUCT >PUBLIC CATALOG, select an item and click on the WHOLESALE button.
In the second case, visit QUOTATIONS>WHOLESALE, click on the NEW REQUEST button and insert the link of a product that you have already found on Aliexpress, Alibaba, or Amazon.
Follow the instructions to send your quotation request. Once done, the Yakkyofy purchasing team will check the availability of your products and approve your request. Once your request has been approved visit QUOTATION> WHOLESALE click on your quote and pay.
At this point, our purchasing team will purchase your items and when they arrive in Shenzhen, update the inventory in your virtual warehouse. As soon as your inventory appears in your account you will be able to visit the product page, list your item on your eBay store and start selling.
How to import a product on eBay
You can list a product on eBay only if you have some pieces of the same item in your virtual warehouse.
Select the item that you have just purchased inside PRODUCTS>MY PRODUCTS and click on the dropshipping button.
- Select your eBay store.
- Select the variants that you want to import and click “Next”.
- Check the shipping price
- Insert your markup
- Choose a title no longer than 80 characters
- Select an eBay category
- Select the correct policies
- Write your description.
- Then just click on the “Import and Publish” Button
Every time an order is fulfilled on Yakkyofy, the related tracking number will be automatically uploaded inside your Yakkyofy Order Tab and also inside eBay.
At the same time, an automatic email will be sent from eBay to notify your customer and give them the tracking numbers of their parcels.
Is Dropshipping on eBay Worth It?
In short, yes, especially if you use Yakkyofy! With our software, you can easily dropship following eBays rules and even increase your margins in the process.
How? Because we will allow you to place orders for even a small amount of stock, even 5 or 10 pieces is permitted, and get prices lower than on other Chinese Marketplaces.
Plus we offer free warehouse space for your inventory, QC on your items, and a discount on the single product price if you reach the MOQ discount quantity.
This means that you will be able to buy a small stock of products with prices lower than on Aliexpress and keep them in a warehouse without additional fees. So, in the end, you will pay less for a single product without having to make a big investment in advance.
Moreover, if you buy a small stock, the processing time of your orders with Yakkyofy will be only one business day, when normally in the dropshipping sector the processing time is around 5 working days, plus thanks to the fast shipping offered by our company you will be able to deliver your products to destinations such as the US and many European countries in just 4-13 working days.
Is it not enough? Using Yakkyofy is completely free, you will pay only for the products and services that you buy from us.
What are you waiting for?