eBay started out as a place to buy and sell things through auctions. Since then, it has grown into a huge eCommerce site.

The platform has attracted entrepreneurs from all over the world because it has more than 159 million active users.

If you also want a piece of this huge market, starting an eBay dropshipping store is one of the easiest ways to do it.

It doesn’t take a lot of money up front, and you can try out different products to see how well they do.

But before you start, you should learn about eBay’s rules for dropshipping as well as its pros and cons.

This guide will cover all of that and a lot more to help you decide if eBay dropshipping is a good way to run a business for you.

Let’s get right into it!

What Is eBay Dropshipping?

eBay is an online shopping site that became popular because it lets people buy and sell from each other through auctions.

But you can also sell “fixed-price” products on the platform right now, just like on a traditional eCommerce marketplace.

The idea behind dropshipping on eBay is pretty much the same.

By paying a small fee, you can add your listings and reach the platform’s large audience.

The only difference is that you wouldn’t have to keep track of stock.

When a customer places an order, you will send the information to your supplier, who will then fill the order.

The catch is that you will have to raise the prices of the items in order to make a certain amount of money from each sale.

Can You Dropship on eBay?

Yes, dropshipping is technically allowed on eBay, but only if you have a wholesaler fill the orders.

What does that mean?

Well, instead of paying for one item at a time, you should buy a lot of them at once from the supplier.

If that sounds hard to understand, don’t worry. We’ll talk more about this in the next section.

But you should know that even though you can dropship on eBay, you still have to follow the site’s rules. It’s not as easy as setting up a dropshipping store on Shopify or WooCommerce.

eBay Dropshipping Policy

Entrepreneurs often don’t understand eBay’s rules on dropshipping. Dropshipping is allowed on eBay, but the site’s rules have gotten stricter over the years. So let’s talk about some of the most common rules about eBay dropshipping:

After getting paid, sellers have 30 days to send the goods to the buyer. Dropshippers can sometimes find it hard to meet this criterion because they aren’t in charge of the shipping.
The products must be bought from a reputable wholesaler, and since most wholesalers have a minimum order quantity (MOQ), you’ll have to buy in bulk. This means that you’ll need more money up front to start dropshipping on eBay.
It is against the law to sell things you buy on AliExpress or Amazon to other people. But you can buy from a direct wholesaler or a professional sourcing service through eBay.
The product must keep up with quality standards and be delivered exactly as promised. We all know that it can be hard to keep an eye on quality when dropshipping. This is why you should always start with a test order from the supplier.
eBay dropshipping policy
Overall, eBay takes its rules very seriously, and if you don’t follow them, your listings could be taken down or lowered. In the worst case, it could even cause your account to be shut down for good.

How Much Does it Cost to Dropship on eBay?

Most of the time, the price of dropshipping on eBay depends on the product you want to sell. It costs a lot less than opening a traditional online store, but it isn’t free. You must pay eBay’s fees, which are:

Fees for stores: If you want to open a store on eBay, you have to buy a subscription. Plans start at $7.95 per month and go up to $349.95 per month. You can also save money by buying subscriptions for a whole year.
Listing Fees: This is the fee you have to pay when you put an item up for sale on eBay. You get 200 free listings per month, and each listing after that costs $0.35. Keep in mind that this is also sometimes called “insertion fees.”
Final Value Fees: You only pay the final value fee when you sell an item you’ve listed. eBay takes 12.9% plus $0.30 per order, which can also change based on the product.
It’s hard to say for sure how much an eBay dropshipping store will cost. But it’s usually cheap because you only have to pay store fees when you start.

It also depends on how much the item you want to dropship costs. If it’s a high-priced item, you’ll need a bigger investment, of course.

The Pros of eBay Dropshipping 

Dropshipping is a great way to run a business, and eBay is a great place to do it. Let’s look at some of its good points to see why:

Easy to Start

Setting up a seller account on eBay is pretty easy. You only need to worry about finding a supplier you can trust.

You don’t have to worry about investing a lot of money, either.

Low Initial Investment

The cheapest monthly eBay subscription starts at $4.95, and you don’t have to pay anything up front.

This makes it easy for small businesses with low budgets to dropship on eBay, especially if they can find a supplier with no minimum order quantity (MOQ).

Huge Audience

eBay is one of the most popular online shopping sites in the world, and millions of buyers visit it every month.

If you use eBay’s dropshipping service, you’ll be able to reach eBay’s huge audience without having to build an online presence.

Save Marketing Time 

It takes a lot of time and money to market a dropshipping business.

But if you run your business on eBay, you wouldn’t have to work as hard to market it.

Just work on how you rank your listings, and buyers will find you easily.

Minimal Risk

It’s much easier to grow an eBay dropshipping store than it is to grow a traditional store.

If you can find a good supplier, you won’t have to keep a lot of stock and spend a lot of money on your business.

At the same time, testing new products would be less risky because you wouldn’t have to buy a lot of them.

Highly Flexible 

You don’t have to do dropshipping on eBay full-time. It’s a flexible way to run a business that you can do on the side of another job.

As long as you have a stable internet connection, you can dropship from anywhere in the world.

The Cons of eBay Dropshipping

You’re probably thinking that eBay dropshipping is the best way to run a business right now. I hate to burst your bubble, but it’s not as easy as it seems. So let’s talk about some of the bad things about it:

Tough to Find Suppliers 

According to eBay’s rules, you can’t sell things you bought on other sites. This can be a problem because AliExpress is where most dropshippers get their products.

You’ll have to find a reliable wholesaler on your own, and most of them have a minimum order quantity (MOQ), which means you’ll have to buy products in bulk, which isn’t the point of dropshipping.

Strict Rules and Policies

According to eBay’s rules, you can’t sell things you bought on other sites. This can be a problem because AliExpress is where most dropshippers get their products.

You’ll have to find a reliable wholesaler on your own, and most of them have a minimum order quantity (MOQ), which means you’ll have to buy products in bulk, which isn’t the point of dropshipping.

Not Building a Brand 

You might be able to reach eBay’s huge audience, but the biggest downside is that you won’t be building your own name.

If you want your business to grow, you will have to build a brand at some point.

Low Profit Margins 

If you aren’t dropshipping expensive items, you probably aren’t making a lot of money yet. On top of that, every time you sell something on eBay, you have to give eBay a 12.9% cut.

This can make you feel down, especially if you don’t make hundreds of sales every month.

High Competition

eBay has a low barrier to entry, so there is a lot of competition on the site. There’s a good chance that at least 5–10 other merchants are selling the same product as you.

This is another reason why eBay sellers don’t make a lot of money. Most of the time, you would have to fight with your competitors over prices.
This is another reason why eBay sellers don’t make a lot of money. Most of the time, you would have to fight with your competitors over prices.

Responsibility on Seller 

How to Find Items to Dropship on eBay?

Finding products is a key part of opening an online store. Finding products to dropship on eBay is pretty much the same as it is on any other platform, which is good news.

We’ve talked about different ways to find products, and using AliExpress is one of them.

You can’t get items to sell on eBay from other marketplaces, but that doesn’t mean you can’t get ideas.

Start your search by looking at the top-selling items on AliExpress and making a list of the items that have the most reviews. This will help you figure out how well-liked and sold the item is.

In the same way, there are many tools that can be used to find products that are popular right now. Just keep in mind that you shouldn’t dropship things like electronics that are likely to break. Also, don’t buy things that are easily broken.

Last but not least, eBay’s “Advanced Search” feature lets you look for items directly. It lets you sort products into different categories, set a price range, and target specific keywords.

Explore the features to find out what kinds of products are most popular and how much they cost. This will help you get ideas for your own dropshipping niche.

How to Start Dropshipping on eBay?

Now that you know how eBay dropshipping works in general, it’s time to get to the fun part: making your own store.

If you’re ready, here are some steps to get you going:

Create a Seller Account on eBay

Before you can start selling on eBay, just like any other marketplace, you need to set up an account.

eBay is easier to use than other platforms like Walmart because it is easy to get started. Start by going to the signup page and entering some basic information about your business.

Then, choose a plan that fits your business needs and your budget. For most small businesses, the Starter Plan would be enough. For $7.95 a month, you can buy a subscription.

Even though the yearly plan would save you money, we don’t think that beginners should buy it right away.

Last, give your dropshipping business a name. If you already have a Shopify store, you can use the eBay app to connect it to your eBay account.

Decide What You Want to Sell

The hardest part of opening an online store is always deciding what to sell. We’ve talked a lot about how to look for something on eBay in the section above.

But these are some of the most popular niches on eBay in general:

Cell Phone Accessories
Things to Grow Auto Parts Indoors
Musical Instruments
Each of these niches has a lot of products in it. You can also look into other options at any time. We suggest that you use eBay’s advanced search filter.

Look for a product in different price ranges and types. This would be a good way to find out what’s popular on the platform.

Find a Dropshipping Supplier

This is the hard part, since most dropshippers use AliExpress to find suppliers. But we already know that you can’t buy items from other marketplaces and sell them on eBay.

So, you need to find a different way to find trustworthy suppliers who will sell you goods at prices lower than retail.

The problem is that most wholesalers have a minimum number of items that must be ordered. And why would you open a dropshipping store if you wanted to buy in bulk?

So, if you’re wondering how to find dropshipping suppliers on eBay, here are some ways:

Supplier Directories

There are a lot of online directories that have lists of suppliers. Sometimes these directories can be very helpful because they put all the information about different suppliers in one place.

You can look through the list of suppliers to see if any of them offer dropshipping. You can also compare prices from different providers to see which one has the best deals.

The biggest problem with these supplier directories, though, is that most of the good ones cost money to join.

Most people don’t think it’s worth it because they can just buy things from AliExpress. But supplier directories are a good choice in this case, especially if you can’t find anything else.

Online Search Engines 

Last but not least, you can also use an online search engine to find a supplier for the products you want.

Just go to Google and type in the name of the product plus the word “supplier.” You can also add the name of a country at the end if you want to be more specific.

If you use this method, you should stay away from the first search results. This is because being on top doesn’t always mean they have the best price.

They could just be dropshippers who have done a great job with SEO for all we know. This is one time when you might want to look at the search results on the second and third pages.

Create Your Listings

Now that you’ve found a supplier, you can make your listings. You don’t want to rush this step because the quality of your listings will affect the algorithm and make you rank higher.

Here are some things to keep in mind as you set up your eBay listings:

Creating a Title 

The title of the product is the most important part of an ad. It needs to tell the customer in as few words as possible what they are about to buy.

What should be in the name of a product? Well, here’s a general rule to follow when coming up with a title:

Brand + Name of Product + Model of Product + Type/Color of Product

All of your product titles should have at least the information we listed above. You can add other things to it, but it should be between 20 and 70 characters.

Product Images

Using attractive pictures is the best way to get people to buy something. The product image is probably the first thing your customers will see, so you might want to spend more time on it.

Most people would get pictures of the product from their supplier, but we won’t suggest that. Because there is a good chance that other sellers are using the same picture.

You don’t want your listings on eBay to look like you just copied and pasted them from somewhere else. So, we suggest you order one unit and have a professional take pictures of it from different angles with a good background.

Product Descriptions

The descriptions of your products will be a big part of how well your eBay listings do. Keep them short and give your audience as much information as you can.

Customers should be able to easily understand all of the product’s features just by reading about it.

Lastly, make sure that the grammar in your product descriptions is correct, and don’t forget to use the keywords in a natural way.

Set the Price

The hardest part of making an eBay listing is setting the price. Because there is so much competition on the platform, you don’t want to start with prices that are too high.

We suggest that you look around the site to see how much your competitors are charging and then take the average of those prices to come up with your own listing price.

You should only raise the price once you have a steady stream of orders and enough reviews.

Forward Orders to Your Supplier

According to eBay’s rules, you only have 30 days to fill an order after the payment has been cleared.

Because of this, you don’t want to wait to tell your supplier about the order.

We recommend doing it the same day, and if it’s too much trouble, you can even use software that automates dropshipping to make your work easier.

Tips to Successfully Dropship on eBay 

Starting an eBay dropshipping store isn’t too hard. The hardest part is making your store stand out from the rest. So, here are five tips that will help you do better in this market:

Invest in Upgraded Listings

You can pay eBay a fee to boost the chances that people will see your products. This is called a “promoted listing.” This can help both new sellers get more attention and experienced sellers make more sales.

Offer Good Customer Support

Dropshipping isn’t a reason to forget about your customers. No matter what, your top priority should be to answer all of your customers’ questions and complaints as soon as possible.

Sometimes, just talking to someone can keep you from getting bad feedback. So don’t keep your customers in the dark, and if a shipment is late or a product arrives broken, it’s your fault.

Find a Communicative Supplier

Price is important, but it shouldn’t be everything. Find a supplier who is easy to talk to and with whom you can build a strong working relationship.

Your supplier should, ideally, keep you up to date on the product’s status, price ranges, and stock levels.

Introduce Multi-Buy Offers

Multi-buy deals have been around for a long time, but they still work like a charm. The plan is to sell a group of products for less money.

For example, you can sell 3 units for $27 instead of 1 unit for $10. Not only will this get you more orders, but it could also save you money on the shipping fee.

Manage Prices and Stock Effectively

Lastly, we don’t think you should depend on a single supplier, no matter how reliable they are. Keep an eye on how many of the product there are and how much it costs.

This will also help you keep your profile’s stock status up to date. If not, you would have to cancel orders, which could lead to bad reviews and unhappy customers.

FAQs about eBay Dropshipping

Is eBay Dropshipping Profitable?

The answer to this question depends on what your plans and goals are for the future. In general, eBay dropshipping can be a good way for a beginner who wants to make money with little risk to do so.

But eBay dropshipping won’t help you if you want to build your own brand and have long-term goals that include making a lot of money.

Can You Dropship from Amazon to eBay?

Dropshipping from Amazon or any other online store is not allowed on eBay. If you don’t follow their rules, you could get harsh punishments or even have your account closed for good.

Can You Dropship from Alibaba to eBay?

You can’t dropship from Alibaba to eBay because the platform doesn’t let you resell from other marketplaces. Also, it wouldn’t be a good idea because Alibaba is a marketplace for business-to-business sales, and most suppliers have a high minimum order quantity (MOQ).

How to Find eBay Dropshipping Suppliers?

Dropshipping suppliers for eBay are usually found in one of two ways. One way is to use wholesale B2B directories, and the other is to hire a professional sourcing agent. You can also search online directly, but that takes more time and work.

Final Thoughts 

It’s pretty easy to start a dropshipping store on eBay, and the site also has a low barrier to entry.

It can be a great way for people who are just starting out to learn and make money.

But the biggest problem with eBay dropshipping is that you would have to rely on the platform for everything.

So, at some point, you should think about building your own brand.