DROPSHIPPING ON EBAY: WHAT IS IT AND HOW DO YOU DO IT?
Dropshipping is a very attractive business model allowing sellers to earn income without having to make any large investments, nor worry about stock management, order preparation or shipping.
eBay is the perfect marketplace for these kinds of sales, in which the products offered for sale are stored by a supplier who takes care of ensuring the shipment whenever a sale is made.
Below, we’ll take a look at what dropshipping on eBay consists of, the benefits it offers and the steps you’ll need to follow to implement it on this online-sales platform.
What is dropshipping on eBay?
eBay works as a marketplace in which registered users become sellers and offer their products for other users to buy. One of the key characteristics that makes eBay stand out is its bidding mode, through which users can bid for items until the end of the auction, at which point the user who has placed the highest bid will win the item.
Implementing dropshipping on eBay means uploading items from another supplier to the platform in order to gain a commission from their sale. This supplier takes care of preparing the package and shipping the products to the customer after they place their order.
Why opt for dropshipping on eBay?
Choosing eBay to implement dropshipping offers a series of benefits, including:
- Simplicity. The entire process is very quick and easy, with no need for any technical knowledge, nor any significant investments of time and effort in order to create a seller account and start uploading items to the platform.
- Access to a huge number of customers. eBay is one of the most popular marketplaces in the world, with millions of users visiting every day in search of products to buy. Selling on this platform offers access to these potential customers looking to buy items online.
- Minimal risk. Selling on eBay under this business model reduces risk, as the selected dropshipping supplier bears all responsibility for logistics.
Despite the various advantages of selling on eBay, there are also a few downsides:
- eBay commissions. The platform takes commissions from your 50th item uploaded to the site onwards. This commission will reduce the small profit margin offered by dropshipping even further.
- High level of interaction. This form of selling requires constant monitoring of the platform to stay on top of bids, competition, prices and various other tasks that may increase sales.
- Limited customisation. Selling on eBay does not allow a high level of customisation, as you may find on other e-commerce sites, and as such it can be more difficult to stand out from other sellers.
How to implement dropshipping on eBay
On eBay, dropshipping is a practice that may be implemented as long as product delivery is ensured within 30 days. The first step to implement dropshipping on eBay is to become a registered user.
How to sell on eBay as a business
Creating a professional or business seller account allows you to sell regularly on the platform and implement dropshipping as a business model. While individual eBay accounts are recommended for making sporadic sales, business or professional seller accounts are required to sell more regularly on the platform.
To create a professional seller account on eBay, you’ll need to fill in the required information in the following platform registration page and select the option Professional Account.
Complying with the eBay selling policy
Once you’ve registered your business account, you’ll need to read the platform’s selling policy in order to implement dropshipping in accordance with the rules and avoid the risk of having your account blocked or even deleted.
Some important points for dropshipping within the selling policy are:
- You’ll need to use a professional seller account if you’re going to implement dropshipping on eBay.
- You must include a returns policy, making it important to bear this mind when it comes to selecting your supplier to implement dropshipping on eBay.
- Don’t charge customers returns fees.
- Provide post-sales support to customers.
Uploading dropshipping items to eBay
One of the main characteristics of eBay is its simplicity when it comes to uploading items for sale. With your account created – and bearing in mind the selling policy – all you need to do is start uploading the dropshipping supplier’s various products and promote them in order to make sales and start earning commissions.
Tips for implementing dropshipping on eBay
With the following recommendations we’ve put together, you’ll be able to get the most out of dropshipping on eBay.
Sales volume is the most important aspect
Sales commissions are your source of income within a dropshipping business model. These commissions are not very high, and so in order to be successful selling products on eBay from a dropshipping supplier, you’ll need to have a high sales volume.
Fortunately, as you won’t need to worry about any of the processes related with product purchases, stock management or the preparation and shipment of products, you’ll have much more free time to dedicate to promoting items on the platform in order to increase visibility and reach users truly interested in buying your items.
Watch your prices
eBay provides access to a huge quantity of potential customers looking to buy products on the platform every day. However, it also features a high number of sellers, meaning that competition is very high.
To be competitive, it’s important to carry out a price study for the articles you’ll be uploading to eBay and which are already offered by other sellers. This way, you’ll be able to set competitive prices in order to attract customers.
Select a reliable supplier
Within a dropshipping model, your choice of supplier is fundamental. A serious supplier who satisfies crucial aspects such as product availability, delivery within the established time periods and returns management is essential in order to successfully take on a dropshipping project on eBay.
eBay and timing
On eBay, products can be offered in auction mode, which means that users bid to reach a final price when the period ends. Adjusting the end of the bidding period to hours with the greatest traffic on the platform will allow you to make more sales at higher prices if you opt for this model.
Take care of product descriptions and images
On eBay, there are two fundamental elements that help users make their purchasing decision. On the one hand, the description is important in order to offer as much information about the product as possible to users and, on the other hand, the product images uploaded are key to convincing the customer to buy.
We’ve taken a look at how you can implement dropshipping on eBay in order to obtain income through this platform without the need to invest in stock nor bear the responsibility of preparing and shipping orders.
Despite the fact that there is a huge volume of competition on eBay, with dedication and by searching for a good dropshipping supplier, you can ensure considerable profits by applying this business model within the platform.