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DROPSHIPPING ON EBAY: THINGS TO KNOW BEFORE YOU START

DROPSHIPPING ON EBAY: THINGS TO KNOW BEFORE YOU START
This American company was born in 1995 and has been more than just an auction platform for years. Hundreds of thousands of buyers and sellers gather on eBay every day to sell products of all categories from all over the world. According to information published by the company itself, in 2017 alone the eBay marketplace accumulated nearly 170 million active users.

Just like Amazon, eBay is one of the main marketplaces worldwide

This American company was born in 1995 and has been more than just an auction platform for years. Hundreds of thousands of buyers and sellers gather on eBay every day to sell products of all categories from all over the world. According to information published by the company itself, in 2017 alone the eBay marketplace accumulated nearly 170 million active users.

In this study published by eBay last year

The users of its platform are compared with the total population of different European countries, to highlight the magnitude of its figures. These data and many more things that we will discuss in this article- show the strength that this marketplace has on a global scale. This is why so many people are considering selling on eBay and, if possible, doing so through dropshipping.

Advantages and disadvantages of dropshipping on eBay

Like any sales channel, practicing dropshipping on eBay has advantages and disadvantages. Let’s see them:

Very high user traffic

As we said before, eBay is very well positioned in the minds of your potential customers. That’s why, when selling on eBay we use this strength and the hundreds of thousands of daily users who go on the site to search for products.

Good consumer reputation:

Users trust platforms like eBay or Amazon more than a company you just discovered. By selling on eBay, you can use this good reputation to your advantage to sell more.

Good positioning and promotion

Positioning e-commerce on Google is difficult (if you have tried it, you will know). Moreover, it is not the only task you have to do if you want to sell. You will also have to use SEM, work on your social media profiles, put your products on Google Shopping, set up retargeting… Many independent tasks require a lot of time and knowledge. However, by selling on eBay, you benefit from all the power of this marketplace to promote your products.

Advanced user experience

eBay is a platform that is over 20 years old and has some of the most qualified professionals on its team. By selling on eBay, you will provide your customers with a user experience (fast web browsing, easy checkout, etc.), which is very complicated to have with e-commerce.

Disadvantages of practicing dropshipping on eBay

Like any sales channel, practicing dropshipping on eBay has disadvantages. Let’s see them:

High competition:

Like you, there are many people who have seen these advantages and want to take advantage of them. So, yes, there is competition. But the truth is, today, any online sales channel is highly exposed to competition.

Depend on eBay’s requirements Its house, its rules

When selling on the eBay marketplace, you will have to adapt to what they ask of you. With e-commerce, you have the final say, but here, no. If eBay decides to block your account or restrict it (for whatever reason), there’s not much you can do.

You will have to pay commissions

Of course, selling on eBay isn’t free. You will have to pay a sales commission and, if you have a Sales Store, a fixed monthly cost will be applied. However, these costs are very affordable if you sell enough.

How to start dropshipping on eBay

To start selling on eBay, you must first have a business account on this platform. If you already have an account but are not using it, try to get it back. It’s not uncommon for eBay to block a new account because they consider a user to be repeating their information.

Standard business account

If you start selling with a standard account, you will be charged a fee for each listing you post, independently after you make a sale. In addition, you will pay a commission for each item you sell. If you want to post a small number of listings, this can be a good solution.

eBay Store

There are three different eBay Stores, Basic, Advanced, or Premium. Each one has a fixed monthly cost (ranging from $19.5 to $149.5) and, depending on which one you choose, you will be able to post a series of listings for free. If you exceed this maximum number of free ads, you will have to pay additional fees. It is interesting to calculate how much you are trying to sell per month and calculate the profitability of each one.

How to choose a supplier

When you practice dropshipping on eBay, the supplier you choose is essential. In fact, it is essential to practice dropshipping with any platform: you already have your own e-commerce, you sell on marketplaces or through social networks, dropshipping is a strategy in which the supplier takes undeniable importance.

So, if you want to practice dropshipping on eBay, follow several tips to choose a supplier:

Choose a supplier who is used to working with eBay

Each marketplace has its own rules. Whether it’s Amazon, eBay, or others, you’ll have to adapt to some rules that you don’t understand. So it’s best if your vendor knows them ahead of time and is prepared to give you an answer.

Ask yourself what timing options you have

When practicing dropshipping on eBay, you will need to sync your account with your supplier’s catalog. There are different ways to do this, and each supplier offers some of them. The main way is through CSV files, but some providers offer automated platforms that make the integration much easier. It can also be interesting to do it via an API, but that requires some programming knowledge (or ask someone who does).

Once you’ve created your account, chosen your supplier, and synced the catalog, you’ll need to review your costs and margins.

Costs and margins when dropshipping on eBay

As you probably already know, your profit margin when dropshipping will be the difference between your RRP and the wholesale price at which you buy the product from your supplier. For example: if you buy headphones from your dropshipping supplier at 5 euros and resell them at 10, your profit will be the 5 euros difference.

When selling on eBay there are certain fees you need to consider.

This is not unique to eBay. All marketplaces establish a series of commissions, whether it’s a monthly fee, a sales commission, or some other system for making a profit.

Please note: Depending on the country in which you sell, eBay sets this or that rate.

  • Rates for sellers in Spain
  • Rates for sellers in France
  • Rates for sellers in the UK
  • Rates for sellers in Italy
  • Rates for sellers in Germany

Don’t have time to read? Here are the conclusions

Practicing dropshipping on eBay is a very good option to make profits with online sales. In this article, we have presented some of the main aspects to take into account when selling on its marketplace.

Here is a summary:

Practicing dropshipping on eBay has many advantages

This marketplace has very high buyer traffic, it has a great reputation and it will be much easier for you to reach potential customers.

On the other hand, there are also disadvantages

The competition is tough, you’ll have to adapt to the requirements imposed on you, and, as with any marketplace, you’ll have to pay to post your ads, as well as a sales commission.

You can sell with a standard business account or an eBay Store.

Depending on the volume of listings you want to post – and what you’re trying to sell – this or that option will work for you. Be sure to consider eBay’s commissions for each type of account, or you may end up taking a loss.

The dropshipping provider you choose is critical to your success on eBay.

If your supplier is not prepared to meet your needs, the end consumer will be affected. Consider looking for a supplier that allows you to easily sync their catalog with your account.