Your Guide to eBay Drop Shipping

Sellbery
8 min readOct 12, 2021

The term drop shipping refers to a seller selling a product that they’ve sourced from another supplier. Many people wonder, “Can you drop ship on eBay?” The answer is yes, you can, but how? What rules and regulations apply to eBay drop shippers? If you’re wondering how to start drop shipping on eBay, you’ve come to the right place!

Take your business to the next level with eBay drop shipping. Find out how to sell on eBay successfully, eBay drop shipping policy, what the benefits and drawbacks of the platform are, learn about eBay drop shipping tools and tips that will make your business even more successful.

It doesn’t matter if you just started as a seller or you’ve been in the business for years. Even the most experienced sellers can benefit from the right platform and product. You can’t deny the success of multichannel selling. Amazon to eBay drop shipping has never been more popular. Learn all about it with Sellbery and keep reading to find out everything you need to know about eBay.

Is Drop shipping on eBay Allowed?

Drop shipping can be very convenient for many sellers, as you never have to physically handle the product. That removes all the stress of having to find a space for your inventory, as well as trying to sell every last bit of it. But, is drop shipping allowed on eBay? Working with eBay drop shipping suppliers allows you to rely on them for sending the product to the customer. All you have to do is work as a middleman and find the customer. You also get to decide how much you want to charge for the product and how much you’re going to end up keeping after paying the supplier. Drop shipping is an entirely online business.

What is drop shipping on eBay?

So, can you drop ship on eBay? Drop shipping is allowed on eBay, but you have to follow eBay drop shipping policy. If you’re listing a product on the platform, you have to accept full responsibility for the delivery. You have to ensure that the delivery time corresponds to the delivery time stated in the product description on eBay. In other words, if the buyer doesn’t get their item on time, you are entirely responsible for the compensation and so on.

Even though eBay drop shipping is allowed, the platform doesn’t allow its users to list a product, buy it from another marketplace, and ship it to the customer’s address directly. Therefore, drop shipping from Amazon to eBay is not allowed. If you’d like to do product sourcing, you need to actually work with eBay drop shipping suppliers who will take care of the deliveries. Failure to comply with eBay drop shipping policies may result in deleted listings and even account suspension.

How to Drop ship on eBay

eBay drop shipping has become more difficult in recent years. It’s important to make sure you’re not breaking any rules every step of the way. In the opposite case, your account can get suspended and even permanently deleted. Here is how to start drop shipping on eBay.

  1. Create an eBay seller account or an eBay store. You don’t have to go for a store, as that option is paid, but remember that you’ll have to pay listing fees anyway. While you’re at it, make sure to register on your country’s eBay website to appeal to the right audience.
  2. Find suppliers that are willing to work through eBay and add them to your eBay account. Make sure your suppliers are willing to ship directly to your customers and attach a custom return label to every package that will indicate that the package is from your store.
  3. List your products on eBay. This is the tricky part, as you have to compete against other sellers that are selling the exact same products. Figure out a price that’s low enough but still generates profit. Upload quality images and optimize your product description for SEO. Use eBay dropshipping software to make your job easier.
  4. Once you’ve made a sale, contact your supplier and ask them to send the package to your buyer. Even though the supplier is in charge of the shipment, it is still your responsibility as long as you’re selling through eBay.

Pros of eBay Drop shipping

Is drop shipping on eBay worth it? Even though drop shipping on eBay is not always easy, you can make a lot of money for your business that way. Plus, automated eBay drop shipping is not too difficult. Once you’ve established a good system on eBay, there are several pros to operating this way. Here are some of them:

  • Once you’ve established a good system and learned how to use eBay drop shipping tools, you can ask your supplier to drop the prices for you. If they see that you are consistently making sales, they are better off taking a smaller cut and keeping you on than dropping you completely. With consistent growth, you can make them a lot more money, even if they take a smaller cut per item.
  • Once you get into the groove of listing items and contacting your supplier to ship them to buyers, you don’t have to be very hands-on. Let your supplier handle the shipping, and collect checks without really putting in a lot of time. It takes some time to set up your eBay account and upload all the product listings, but even that can be made easier with a drop shipping software for eBay like Sellbery. Eventually, drop shipping can just become a side hustle that will allow you to focus on your dreams and goals.
  • If you use the right programs and cooperate with trustworthy suppliers, it is quite easy to start your drop shipping business on eBay. eBay is not a complicated platform, so it shouldn’t take you months to understand it. All you need is some time.
  • You don’t need to invest a lot of money upfront. Yes, there are some eBay fees that you have to pay. You might also have to pay your supplier to start working together, but that depends on your individual agreement. If you don’t want to invest lots of money, this is the perfect business to start with.

Cons of eBay Drop shipping

It’s not difficult to learn how to drop ship on eBay, but it is a bit of a challenge to become very successful at it. eBay is a competitive platform that can be quite tough on newcomers. If you’re ready for the challenge, you should know what you’re going to have to face. Here are some cons of eBay drop shipping:

  • Choosing the right product to sell can be more difficult than you think. You have to find something that people want and not many sellers are offering yet. If you can predict what’s going to sell, you will be very successful. In the opposite case, you will have a difficult time growing your business.
  • The competition is fierce! You might come across sellers that are working with the same suppliers as you and offering the same products at a lower price. If that’s the case, all the customers are going to go to them. Do your research before you settle on a product and don’t rely on your luck. Find a way to differentiate your store and make it more appealing.
  • With eBay’s fees, you will make a lot less money than you could selling in your own online store. It can give you great exposure, but consider if it’s going to be worth it for you. You need to pay a fee for listing a product, another one for accepting a payment from a buyer, another one for upgrading your listing, and a percentage of the sale too. All of this can add up to a hefty sum. Many people choose to invest in their own online store, as that allows them to keep 100% of the profit.
  • It’s very difficult to differentiate your store and get your customers to come back to you. Most buyers don’t remember the sellers they buy from, so they usually go for the cheapest product. You can be reliable, trustworthy, and fast, but eBay will get all the credit. Next time you’re listing a product, it’s like you’re starting from zero again.

How to Start a Successful eBay Drop shipping Business

If you’re wondering how to sell on eBay successfully, we’ve prepared some steps that should get you started. Follow these tips if you need direction and guidance. If you feel as though it’s not working out for you, don’t give up just yet! It takes some time to get a store up and running, so your business can still be successful.

Choose the right product

It is so important to choose a desirable product. At the end of the day, if nobody wants your product, you’re not going to make any money. Instead, you will just be paying eBay for having your listing up. Similarly, you can end up in a situation where lots of sellers are using the same supplier and selling the exact same product at a lower price. Sometimes, there is no way to make a profit in that situation. Do your research before you start selling on eBay and don’t rush into it. The product can make or break your business.

Find the right supplier

Much like the product, your supplier can make or break your store. Other platforms are more lenient, but eBay is quite strict. If your supplier fails to ship the product in time, you are risking your reputation on the platform and even your whole account. Find a supplier that will agree to your terms. Negotiate the price and don’t pay your supplier more than you have to.

Use helpful software

Multichannel selling is great, but the process of migrating all of your product listings from one platform to another can get tedious. Use an eBay dropshipping tool like Sellbery to stay organized and upload all of your listings to eBay. Automated eBay dropshipping can take care of everything. Make Amazon to eBay dropshipping easy. Save yourself some time and enjoy the beauty of automation.

Is Drop shipping on eBay Worth It?

After learning all about the pros and cons of eBay drop shipping, you might be tempted to stick to one marketplace. Don’t! In doing so you will be limiting yourself and your potential income. Selling through multiple channels gives you an opportunity to access a wider audience and earn more in the process.

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Sellbery

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