Low set up cost, easy to start, eBay dropshipping is one of the most flexible and convenient business models to do any online business. If you’re thinking of boosting your money flow & have a side hustle, this business is definitely worth trying.
However, the road is not smooth due to the nature of dropshipping business and the platform’s obligations. So, if you are serious about starting a new online business, think of having your own online store with a platform like Shopify or you can also start dropshipping on eBay by using our software.
The Pros & Cons of Dropshipping on eBay Platform
Dropshipping on eBay platform can be very profitable. However, it also has a fair share of disadvantages which should also be considered, particularly when compared to alternative dropshipping options like dropshipping products through your own ecommerce site.
To help you determine whether it is the right online business opportunity for you, here’s a side-by-side breakdown of both the pros & cons of dropshipping on the eBay.
Pros of eBay Dropshipping
- No need to spend more money on external marketing
- Reasonable selling fees with pretty simple billing system for sellers
- Get your own customizable eBay store with exclusive offers and benefits
- Well-established online marketplace with seller protection policies
- More than 100 million online buyers & over 1.5 billion live listings
- Start selling online products in seconds with no tech skills needed
Cons of eBay Dropshipping
- eBay dropshipping is often biased towards buyers with lack of fair resolution system
- Increasing number of mandatory policies & listing requirements
- Constantly changing selling and buying policies with little warnings and notice
- Significant competition from other online sellers in most major categories
How to Dropship on eBay?
There is only one method to dropship on eBay – but it is not what you think. To dropship on eBay platform, you will first need to purchase bulk inventory from a wholesaler.
You can also negotiate with your wholesaler to ship out products to buyers on your behalf. One downside, of course, is that you probably need to buy inventory up front. And there is no real guarantee that your dropshipping products will sell.
The business risk is a much higher than traditional dropshipping models, as you won’t only be purchasing inventory customers have purchased. You can also start your dropshipping business by using our software – All you have to do is to register on our website and that’s it, you’re ready to start your new dropshipping business.
Some Tips on eBay Dropshipping
Control the pricing
Millions of buyer’s flock to eBay every day in the hope of getting the best possible price for the items they buy. So you should be extra careful and must not get carried away in the pricing battle, since the supplier charges a fixed price no matter what.
If you want to allow eBay buyers to bid for your online products and get a higher profit ratio, try setting a reserve price as the minimum price that a buyer can auction. Or you can just set a high starting bid that ensures you’ll cover your fixed costs.
Minimize the workload
As profit margins tend to be very small, high volume is the key to money with eBay dropshipping. And this means more work if you must process and fulfill every listing individually.
If you want to minimize the workload, look for products that can be posted as multiple-item listings. So you won’t have to make many listings and have time to take care of fulfillment or marketing.
Time your listing
With eBay, you need to master the art of timing to make a lot of money. Learn the best times to release your listings and set up your auctions. One way to do this is to pay attention to when high traffic hours take place and fight the competition.
Another thing to consider is your target demographic; millennials may not be on their computers till late at night, many like to shop on weekends. Research and find when your audience is most likely to be online, then place your auctions around that.
Share your UPS, FedEx, or USPS tracking numbers to customers is a great way to increase credibility. Work directly with suppliers to have complications needed like this.
Online directories are the places to find reliable suppliers that can help with tracking of shipping like that.
Ensure fulfillment and availability
Reputation is everything on eBay, so try to keep your customers happy by fulfilling orders quickly, ensuring all items listed available, keeping inventory in check. Avoid the pitfalls of having discontinued items or slow-responding suppliers, since this only hurt your eBay account.
Issues will inevitably arise now and then, but make sure to have a good relationship with both suppliers and customers, so you can keep negative feedback to a minimum. This is the way to success in eBay dropshipping.