eBay Dropshipping for Beginners: How to Start eBay Dropshipping 2021 / Dropshipping eBay Tutorial

With a constant stream of loyal customers and great business growth potential, eBay Dropshipping for Beginners is highly attractive for many first-time sellers and small businesses doing eBay Dropshipping and learning How to Start eBay Dropshipping 2021 and How to Start Dropshipping eBay for Beginners.

What’s more, eBay Dropshipping has opened the door to this huge audience without the need for upfront capital.

Requiring far less financial input than a regular store, eBay Dropshipping could provide an excellent gateway to online retail for sellers just starting out or looking to test the water.

So, how do you do Dropshipping on eBay? What are the pros and cons of Dropshipping on eBay? And ultimately, is it worth it?

Below we have outlined our complete guide to Dropshipping on eBay to help you determine whether it’s the right model for your online business or not.

What is a Dropshipping business?
Dropshipping is an order fulfillment method where a business is not required to keep their products in stock.

Instead, every time a customer makes a purchase, the sales order is then passed onto a third-party supplier who prepares and ships the products directly to the customer.

Therefore, the seller never handles the products directly nor do they stock or own inventory.

A Dropshipping business model means that sellers only purchase inventory from a Dropshipping company, typically a wholesaler or manufacturer, as and when needed to fulfill customer orders.

How to dropship on eBay.
Dropshipping on eBay has become highly restricted in recent years.

This doesn’t mean it’s not possible, but it does mean sellers need to be extra careful that they don’t break eBay's Dropshipping policy if they want to avoid damaging consequences.

So, here’s what the process looks like…

1. Set up an eBay Seller account.
All you need to get started with Dropshipping is an eBay Seller account. You could invest more by creating an eBay store, but this isn’t essential. Be prepared to pay listing fees, however.

Remember, there are different eBay sites for different countries all over the world, so make sure you sign up to the right one depending on where your target audience lives.

2. Choose your products and Dropshipping supplier.
Complete some research and decide what you want to sell on eBay first.

Then, you’ll need to create an account as a retailer with the suppliers of your chosen products. Reach out to them and ask if they would dropship to your customers.

It’s important to also ensure the supplier is willing to attach a custom return label (that includes your business name and address) to the package, so that your customers know you sent it.

3. List your items on eBay at a marked-up price.
It's important to take your time over this. Upload professional images of the products, either from the supplier’s website or even better, take your own if you have samples. Write detailed product descriptions and optimize your listings for maximum search visibility.

Remember, you will likely be competing with other sellers using the same supplier, so you'll need to find ways of distinguishing yourself and standing out to your competitors.

Choosing the right price point is also key. It needs to be low enough to compete against similar listings, but high enough to still generate a profit.

3. Pass on your customers' details when you make a sale.
Contact your supplier each time you make a sale and give them your customers’ shipping information.

Even though your supplier is in charge of packing and shipping the product directly to your customer, according to eBay, you're still responsible for the safe delivery of the item within the time frame you stated in your listing.

If you struggle to find a wholesale supplier who is happy to dropship to your eBay customers, then alternatively you could buy in bulk from the supplier and send the inventory off to a fulfillment service.

That service would then monitor the inventory, package and ship products on your behalf.

Investing in shipping management software would help you to automate this process and source the cheapest prices on shipping couriers too.

Of course, the biggest downside to this would be that you’d have to buy a load of stock upfront, and there’s no guarantee it will all sell, meaning the business risk is considerably higher than traditional Dropshipping.

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