If you already know what dropshipping is, you’ve probably heard about selling on marketplaces.
In this guide, we will talk about the eBay dropshipping process, the particularities of this platform, and what is interesting to know.
Let’s start from the beginning.
eBay allows the sale through dropshipping on its website, where sellers use a supply source of products without the need to have the items in hand. These are sent directly from the warehouse to the user, without the seller having to take care of them and without having to invest in stocks.
In exchange, eBay imposes the condition that the seller guarantees the delivery of the product within 30 days of the transaction and also imposes selling rates.
If as a seller you choose this selling mechanism, you should be aware that in the eyes of eBay you are completely responsible for the order, as well as for the satisfaction of your customers, and that you must handle any incident during the shipping process yourself, or with the supplier.
What do I need to do to start selling via dropshipping on eBay?
The first thing to do is to find out about suppliers. Do some research on the Internet, ask your friends and acquaintances, participate in e-commerce and dropshipping forums on eBay. In short: do a field study!
You should know that there are two types of dropshippers, intermediaries, and manufacturers or main distributors, who behave differently in the dropshipping process.
Intermediaries offer products of different brands for sale online but do not have an actual inventory. They usually have an online inventory supported by physical warehouses mostly owned by wholesalers.
The main disadvantage of working with this type of dropshipper is that often you can find the merchandise they sell on the marketplace at the same price offered to the seller, which hinders the possibilities of making money on eBay.
The main manufacturers or distributors are the wholesalers who have physical stock in their warehouses.
By working with this type of dropshipper, you ensure purchases at the lowest possible price, which is much more profitable than the previous one. On the other hand, you avoid the risks inherent in the shipping process, since the product goes directly from the warehouse to its destination: the final buyer.
Advantages of dropshipping on eBay.
Low initial investment: it is not necessary to have an e-commerce, nor to invest in online marketing. You can forget about KPIs and focus only on sales. This system is therefore very recommendable if you have no knowledge of the digital world and want to learn about dropshipping.
Great business potential.
the eBay platform surpassed itself in 2013 with 16,047 million sold. Only with the market entry of its mobile apps, eBay got 3.2 million new customers in the last quarter of 2013.
compared to the low initial investment, in this case, you only risk the sales rates.
Greater variety of products.
by not needing to store the goods, you have a greater variety of products than if you were to buy the physical products from the wholesaler and then resell them, which makes the typology of items all the more flexible.
eBay does not require the seller to indicate the name of the supplier on the item’s packaging, so shipping can be completely anonymous.
Disadvantages – surmountable – of dropshipping on eBay.
Sales rates and commissions per sale made: consider that sales rates are much lower than the initial investment of setting up an e-commerce business and that commissions only apply when the sale is completed.
If you work directly with a wholesaler, you will have enough profit margin to cover this cost, but you will have to study the cost in detail if you choose an intermediary.
Need for constant monitoring.
selling on eBay requires time, as you need to monitor the auctions to get better profits. The more time you spend, the better the results.
For the seller’s convenience, the platform provides several tracking tools that allow him to obtain information in real-time, and there is a lot of information on the Internet to learn how to do this tracking comprehensively and efficiently.
Lack of control over merchandise and delivery.
Some wholesale suppliers offer to track shipments, so you can follow the route of the items until they are received by the customer. We insist on the need to avoid intermediaries and always work with wholesalers or manufacturers.