How to Dropship on eBay? Explained for beginners by Digimagg

What is eBay Dropshipping?

Dropshipping on eBay entails establishing your eBay seller account to showcase products that a supplier ships after a sale is made. Operating similarly to other dropshipping platforms, it operates within the eBay ecosystem. You have the flexibility to list items for immediate purchase or through auctions, determining pricing and marketing strategies. Upon completion of a sale, you use the proceeds to purchase the product from the supplier, retaining the markup as profit. Importantly, you do not handle the physical product, as this is handled by the supplier.

What to know before dropshipping on eBay?

eBay enforces strict regulations for sellers, and non-compliance can lead to item removal or suspension of your merchant account. Here are the key points to remember:

Avoid using other marketplaces

While dropshipping involves sourcing products from wholesalers, it's essential to use vendors specifically set up for dropshipping. Avoid purchasing from platforms like Amazon or Walmart.com, as eBay prohibits this practice. Using unauthorized sources may result in eBay removing the product listing or even suspending your account.

Ensure timely delivery

eBay requires merchants to deliver purchased items within 30 days of payment when a listing ends. Although dropshippers don't physically ship the products, they are responsible for ensuring timely delivery. This responsibility becomes crucial, especially if your wholesale vendor utilizes inexpensive shipping methods from overseas. Failure to meet delivery deadlines could lead to penalties on your eBay account.

Consider eBay fees in Markup

Selling products on eBay comes with fees that should be factored into your pricing strategy. Insertion fees apply, costing 35 cents per listing for more than 250 items per month. Additionally, eBay charges a percentage of the final sale, amounting to 13.25% along with 30 cents per order. It's essential to calculate these costs to ensure your listed prices cover expenses and generate profits.

Intense competition on eBay

Competition on eBay is intense, with numerous sellers offering similar products. For dropshippers, this means setting competitive prices to attract buyers amidst the sea of listings. Larger sellers often negotiate better prices from suppliers, making it challenging for new dropshippers to enter the market with competitive pricing. To succeed, dropshippers must find a balance between competitiveness and offering desirable products that appeal to buyers.

What items are popular for Dropshipping?

Utilize Google Trends data to analyze the search volume of specific products you intend to list on eBay. Higher search volumes indicate greater demand, making those products more attractive for potential sales. Keep an eye out for upward trends in the data, signaling growing popularity and potential for increased sales. However, bear in mind that popular items often come with stiff competition, so focus on offering products that you can sell profitably.

Home goods

Home décor items perform exceptionally well on eBay, as consumers are constantly seeking products to enhance their living spaces. A particularly popular item is the bath mat, a versatile product that can differentiate itself through quality and design. Other home goods like kitchenware, pillows, and slipcovers also have strong market demand.

Small appliances and utility items

Appliances such as blenders and air fryers are sought-after items with higher price points, offering opportunities for lucrative sales. Additionally, utility items like generators witness increased demand during times of weather-related emergencies, as people prioritize maintaining power supply. Listing such in-demand products can drive sales on your eBay store.

Clothing items

Clothing, especially in the "Clothing, Shoes & Accessories" category, is a perennially popular segment on eBay. Cargo pants, in particular, are experiencing sustained popularity according to ZIK Analytics, making them a worthwhile inclusion in your inventory. Both men and boys opt for cargo pants due to their functionality and versatility, suitable for various activities.

Camping gear

Building a niche store around camping gear presents opportunities for selling a wide range of products, from hunting knives to tents and sleeping bags. With an increasing number of consumers seeking outdoor experiences, there's a growing demand for quality camping gear. Expect peak sales during the spring and summer months, with a slowdown in fall and winter as outdoor activities decrease.

How to Dropship on eBay?

Starting a dropshipping business on eBay is straightforward. Here are the steps to get you started:

1. Create an eBay Seller’s account

Sign up as a seller on eBay by registering for an account. During the registration process, specify whether it's a personal or business account. Link your checking account to collect payments. If you're using a dropshipper like Shopify, integrate your platform with the new store using the Spocket app for transaction management.

2. Select profitable products to sell

Use Google Trends to identify products with growing search volumes, indicating their market demand. Explore eBay's bestsellers page to discover regularly selling items. Focus on lightweight, popular products with good profit margins to ensure success.

3. Select Dropshipping suppliers

Integrate your platform with your new store using apps like Spocket or DSers if using a dropshipper. These apps provide a centralized dashboard for transaction management. Research and choose reputable wholesalers based on their reputation and customer reviews to ensure a positive user experience for eBay buyers.

4. List your products on eBay 

Create individual listings for each product with detailed descriptions and high-quality images. Optimize descriptions with relevant keywords for search visibility. Incorporate customer reviews to boost product credibility. Align your return policy with your wholesaler's policy.

5. Price the Product

Determine your desired profit margin for each product or overall store pricing strategy. Factor in eBay's transaction fees to ensure profitability. Consider markup percentage or fixed price adjustments based on your business model and goals.