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Ebay Dropshipping in 2022: All You Need to Know

Outsourcing can be an extraordinary method for bringing in cash on the web, in addition to extremely simple to set up, and for the overwhelming majority online dealers, eBay is the ideal beginning stage. This eBay outsourcing guide examines the difficulties most drop transporters will confront, how to battle them, and how to begin an effective outsourcing business on eBay.

What is eBay Dropshipping?

eBay is an internet shopping webpage posting pretty much every item under the sun. Most postings are set as a closeout where dealers list a thing, clients bid and the victor brings back home the item. Nonetheless, there is likewise a choice to ‘purchase things now’ at a decent cost.

Outsourcing on eBay includes a comparable cycle to having your own store with the exception of you use eBay as your selling stage. Web based business sites, for example, eBay and Amazon permit dealers to put their postings before a huge crowd with negligible handling charges.

Customarily, retailers keep a stock of the items they offer close by, frequently buying these items in mass at a discount cost from a producer. Outsourcing kills the step of keeping stock, rather empowering the vender to buy discount items independently and afterward sell these for a benefit on the web.

There are many benefits to the dropshipping model including: 

  • Low start up costs
  • It’s an easy and fast way to start a business
  • No need to store inventory
  • Low risk
  • Time saving (suppliers handle the packing and shipping!)
  • Variety of products to sell

And eBay almost conforms to the traditional dropshipping method. Except sellers will need to purchase items from wholesalers and this usually means buying in bulk. This doesn’t mean they have to store the products but they must pre-purchase bulk items.

How Does Dropshipping on eBay Work?

There are a large number of items on eBay, yet did you had at least some idea that numerous venders who are on eBay never really handle or keep load of the things they sell on the web?

All things considered, they source their items from a different web-based dealer, frequently at a discount cost, and rundown the obtained things in their own eBay store. Numerous merchants will utilize the specific pictures, item titles, and portrayals given by their outsource providers.

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When a deal has been made, the dropshipper will satisfy the request through their outsource organization (once in a while this is the distributer yet frequently a satisfaction administration), which will supply and transport the thing to the client.

Since the merchandise are sent straightforwardly to your clients, you as the dropshipper basically go about as a kind of mediator between the provider and the purchaser, obtaining items in mass and selling them at a decent retail cost on eBay.

The greatest advantage of having an outsource store is that you don’t need to be in control of the items you’re selling before you show them.

eBay dropshipping policies: 

Dropshipping is allowed on eBay however it has tightened its rules in recent years.

  • Sellers must guarantee delivery within 30 days of the end of the listing. Although the shipping time and item quality are not directly in the seller’s control, eBay places full responsibility in their hands.
  • Sellers have to make sure the products they are listing are purchased from a wholesaler and this usually means purchasing items in bulk. One of the most attractive things about the dropshipping method is not purchasing items until you make a sale so eBay dropshipping isn’t for everyone.
  • Absolutely no selling products from retail websites like Amazon and AliExpress. Some sellers used to purchase items for cheap on these platforms and mark them up and sell them on eBay. Not anymore!
  • Deliver the product as advertised. The quality and description of the product must line up!

There are penalties if you don’t adhere to their regulations even resulting in account suspension.

eBay dropshipping fees: 

While dropshipping on eBay is pretty cheap. It isn’t free! The main eBay fees are outlined below.

  • Listing fees (or insertion fees)- This is a fee you pay to list an item on eBay. The cost depends on a number of factors such as the category of your item, price, any upgrades and seller performance. However, you do get 200 free per month which is heaps for beginner sellers! Check out more information about listing fees on eBay’s website here.
  • Final value fee- This is when the item you had listed sells! It is calculated by the item price and any shipping or handling charges. It also depends on what category your item is under but for most the cost is 12.55%.
  • Listing upgrades- This is where you add certain upgrades to your listing such as larger and more photos, pay for better visibility on the site, can list your item in more than one category and more!
  • Category fees- The cost to list an item depends on which category it is a part of. Motor vehicles, real estate, printing and graphic arts for example cost more than general items such as books and clothing.
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This isn’t including any directories or software you might be using for your dropshipping business!

How to get started dropshipping on eBay: 

Anyone with an eBay seller account can start dropshipping on eBay! You’ll want to begin by deciding on what products to sell, and then sourcing those products from a wholesaler or other supplier that can guarantee quick and reliable shipping.

Once you’ve sourced a reliable supplier to use for order fulfillment, simply create your eBay listings and decide when to post, how to market, and what price point you think will get you a high volume of sales and earn a profit.

You won’t see a huge return with just a few sales; the key to successful dropshipping is volume. Most dropshippers only net a few dollars per sale.

Factors such as pricing, marketing efforts, and timing can make or break a dropshipping strategy.

Once you’ve listed your products on eBay and the sales start coming in, your next priority is to build and maintain a fabulous reputation with your customers by fulfilling their orders and promptly dealing with any issues that may arise.

Dropshipping on eBay: Pros and Cons

There are pros and cons to dropshipping on eBay rather than creating an eCommerce store:

PROS

It’s Easy. Dropshipping on eBay is as easy as making an account and setting up your first listing. There’s no need to face the hassle and costs of setting up your own online store or eCommerce blog.

Less Need for Marketing. Your eBay listings will be placed in front of millions of online buyers, saving you time and money on marketing, SEO, and paid traffic.

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More Traffic for Less Effort. The much larger audience ensures you make sales more easily and get the best prices for your products.

CONS

Listing Fees. eBay charges a small fee per listing as well as a percentage fee of your total sale price (known as a “final value fee”). With the already-slim profit margins through dropshipping, these fees can quickly add up. Keep in mind that the key to making money by dropshipping is volume.

Less Customization. Selling products on eBay is a great way to start an online business, but fewer customization options for your shop and listings can make it more difficult to stand apart from your competitors.

Frequent Monitoring Needed. You’ll need to stay on top of your listings if you want to maintain the volume needed to make money through eBay sales. There are online tools available that can help you streamline the re-listing process.

Sellers must pre-purchase inventory from wholesale suppliers. This usually means purchasing items in bulk and can be risky if the product doesn’t sell.

So, is dropshipping on eBay worth it? 

Yes and no.

It is incredibly easy to set up a seller account on eBay and have access to millions of buyers. If you want to get started with dropshipping quickly and easily then perhaps eBay is for you. However, having your own store and owning your customer base might be appealing to you in the long run and give you more freedom. There are many dropshippers who start out on eBay and build up their online store in the process or scale their business by adding products to other platforms.

Ultimately, it’s up to you to decide where you want to place the bulk of your time and effort when selling wholesale products online, but for many sellers, dropshipping on eBay is a simple and effective way to make money.

Here are our top tips for how to set up a dropship business on eBay.

 

 

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