How to Start Dropshipping on eBay: A Beginner’s Guide

With its solid base of millions of active buyers visiting the site every day and an endless number of suppliers that cater to all niches, eBay makes dropshipping a very effective business model for ecommerce entrepreneurs and small businesses.

Although dropshipping on eBay is relatively simple and has minimal costs for your business if you do business with the right suppliers, of course—there are some details you need to be aware of before starting your eBay dropshipping business.

Interested in the nitty gritty? Keep reading and find out everything you need to know to start dropshipping on eBay.

How Does Dropshipping on eBay Work?

To put it simply, dropshipping on eBay is just like other platforms: you don’t need to physically deal with any products to sell them. What you do, among other things, is set up your eBay account to market products that a third-party vendor will ship to the customer once the sale is completed.

When the transaction is done and PayPal sends your money and you keep the profits. Because of this, dropshipping on eBay can be considered a fairly low-risk and low-investment business model.

Despite technically working like other marketplaces, eBay is one of the largest ones and has approximately 1.21 billion visitors each month. That practically guarantees that you can find something to sell and someone to buy.

But to actually succeed with eBay dropshipping, there’s things you need to know before starting.

What to Know Before You Start Dropshipping on eBay

One question that dropshipping beginners often have is whether the business model is legal and allowed by eBay. Dropshipping is perfectly legal and allowed by eBay, but the platform does have strict rules that it expects you to follow.

Disrespecting any of these rules can result in the items you’re selling being removed from the site or even your merchant account being suspended, among other legal actions. So even before beginning to dropship on eBay, be aware that:

You’re Still Responsible for the Safe Delivery of the Item You’re Selling

eBay has a policy that merchants must deliver the product purchased within 30 days of payment when the eBay listing ends. So, even though you’re not the person physically sending the product, it’s still your responsibility to make sure the product actually arrives to the buyer.

This could potentially be an issue when dealers with overseas suppliers who by default have longer lead times.

You’re Not Allowed to Use Another Marketplace

This is where it gets tricky.

When dropshipping you’re not supposed to purchase items from other retailers or marketplaces, such as Amazon or Walmart for example, to ship them directly to your customer at a premium. AliExpress, the main product source for dropshippers everywhere, could technically be considered a marketplace, so you need to make sure that your eBay store policies reflect the policies of your supplier on AliExpress.

Additionally, you (the seller) need to be clearly identified on the packing slips and invoices.

You Need to Pay Fees

To sell on eBay, you must pay the fees. eBay charges insertion fees starting at 35 cents per listing if you list over 250 items per month. Additionally, they take 13.25% of the final sale plus 30 cents per order. So make sure you include these fees and the product cost in your pricing to ensure the profitability on your business.

You’re Not the Only One Dropshipping on eBay

There's always competition in business, and dropshipping is no different. Consider the type of product you want to work with, and the target audience you want to reach, and define your prices well so that you remain competitive in the market and most importantly: profitable.

Among other regulations, by following eBay's dropshipping policies and adhering to legal requirements, you can operate a successful and compliant dropshipping business on eBay.

Ebay Dropshipping Versus Traditional Dropshipping

In addition, dropshipping on eBay has several differences compared to traditional dropshipping that are important for you to be aware of if you want to operate on eBay:

How to start Dropshipping on eBay in 7 Steps

Starting a dropshipping business on eBay involves finding reliable suppliers, pricing your products at a competitive level and managing your listings effectively. Here’s the step-by-step guide to help you get started.

1. Create your eBay Seller Account

Sign up. Go to eBay’s website and create your seller account. Verify your account following the verification process, which may include providing identification and payment details.

After that, set up your store. Choose a store subscription if you plan to list a large number of items. eBay offers various subscription levels with different benefits.

2.  Find Reliable Suppliers

Evaluate reliability by checking supplier reviews, shipping times, and return policies to ensure they can meet your standards. You need to establish a business relationship with your chosen supplier, ensuring they understand your expectations for product quality, shipping times, and inventory updates.

A clear agreement on pricing, shipping, and handling is very important to avoid possible misunderstandings. eBay also encourages sellers to have formal contracts with their suppliers.

3. Select and List Products

Do your market research. Identify trending and profitable products using tools like eBay’s marketplace research, Google Trends, or even Amazon’s best sellers list.

Create listings with detailed descriptions, high-quality images, and competitive pricing. Optimize your listings with relevant keywords for better search visibility.

4. Set Competitive Prices for the Products

Calculate your costs, including the cost of the product, eBay fees, shipping, and any other overheads to determine your pricing. Also compare the pricing between similar items offered on eBay, ensuring that you’re setting competitive prices and making profits.

5. Write Enticing eBay Listings 

Use keywords! Writing product titles and descriptions with relevant keywords can improve search visibility and attract more shoppers. Provide clear, concise, and detailed product descriptions that highlight key features and benefits of what you’re offering.

Using keywords is vital to put you on top of any search list. You can also consult an SEO specialist for that.   

Don’t forget to use clear, professional images of each of the products you’re selling, showing their dimensions and every angle.

6. Create a Stellar Reputation With Efficient Shipping and Quality Customer Service

Always provide quick service. When a customer places an order, purchase the item from your supplier and provide the customer’s shipping details as quickly as you can. And regularly check with your supplier to make sure everything is in order.

Always maintain good communication. Keep your customers informed about their order status and always provide tracking information. You may attract some buyers with your products and prices, but you’ll retain them with great customer service.

Be responsive to customer inquiries and resolve any issues they might have as soon as possible. This will maintain a positive relationship between shopper and provider and create well-deserved positive feedback.

7. Sell, Grow, Repeat!

Track your business’s performance by regularly reviewing your sales data, and customer feedback, and always checking with your suppliers on their inventory levels to make sure you never run out of anything. Never stop selling is the objective after all.

Keep evolving your game. Adjust your product listings, pricing, and marketing strategies based on market trends and overall economy and gradually add new products to your store to attract a wider audience and increase sales.

In short, don't worry about starting small in the beginning. Test the market with a few products to understand the process before scaling up. Never forget to focus on customer service. After all, your customers are the main basis for your business growth through purchases and old-fashioned recommendations.

The Best eBay Dropshipping Products in 2024

Choosing the best products to dropship on eBay requires careful consideration of market trends, competition, profit margins, and customer demand. A useful tip - in addition to always keeping an eye on what's in fashion, is to use search engines like Google Trends whenever you want to search for the most sought-after products online.

Here are some categories and specific products that are considered the best eBay dropshipping products in 2024:

Electronics

A common need in the modern era. Consumers are always after all types of electronic devices, and they are always on the list of the most sold products on eBay. A big advantage is that higher prices for certain devices can yield higher profit margins and even guarantee customer loyalty with the right pricing.

Products like wireless headphones, smartwatches, laptops, and smartphones are always on the top of the list.

Home Products 

Improving the comfort and aesthetics of your home is always relevant and this is perfectly reflected by the fact that "Home & Garden" is one of the most visited categories on eBay. In fact, it accounts for nearly half of eBay’s revenue. With numerous suppliers available for this type of product, you can search for unique items and set yourself apart.

Products like handheld fans, coffee makers, insulated water bottles and bath mats are typically pretty popular.

Gardening Products

The other half of “Home & Garden,” gardening can be a career, a hobby, or even a therapeutic activity. Tools and other gardening supplies are always in high demand on eBay, especially when the gardening season is in full swing.

Products like electric shovels, bird fountains, and solar panels are trending in 2024.

Clothing & Shoes

Dropshipping fashion apparel and footwear is a little nuanced on eBay because people are most likely coming to the marketplace to bid on a new release of limited-edition Air Jordans or to score a deal on designer brands.

But, there’s still a market for high-quality, generic gear. The important part is finding a supplier with great designs that are unlike anything else available on the market.

Health & Wellness Products

Whether it’s on eBay, Amazon, or a brand’s page, there’s always a new trend in health products. It could be skincare with a new ingredient or some piece of exercise equipment.

The great thing about skincare and other consumable products is that if customers truly love the product, they’ll want to buy it again. When you offer great service, they’ll come right back to you.

Camping Gear

In recent years, interest in camping and hiking has grown significantly in the United States, as has the demand for these types of items on various marketplaces, including eBay. This is an excellent category for dropshipping.

The demand for tents, camping chairs, bags and other equipment grows, especially during spring and summer.

One thing to consider—and something already said in this article—is that you’re not the only one who’s going to work with dropshipping on eBay, so adjust the pricing of what you sell to be competitive and profitable.

Pros of eBay Dropshipping

Dropshipping on eBay can be an attractive and accessible business model, especially for new entrepreneurs looking to enter the ecommerce market with minimal risk and investment.

Established Marketplace 

eBay has a large and active customer base with millions of active buyers, providing immediate access to a vast audience without needing to invest in SEO or paid ads.

Low Initial Investment 

Setting up an eBay store and listing products requires minimal upfront costs. You don’t need to invest in inventory upfront, reducing initial financial risk. Expenses like warehousing, packaging, and shipping are handled by the supplier.

Trust and Credibility 

eBay’s reputation and buyer protection policies can help build trust with potential customers. With the positive feedback and ratings system, eBay can enhance your credibility and encourage new sales from new buyers—something that’s a lot harder if you’re selling from your own brand.

Cons of eBay Dropshipping

Dropshipping with eBay has its difficulties. By understanding them, you can better prepare for the realities of eBay dropshipping and develop strategies to mitigate potential downsides while leveraging the benefits.

High Competition 

Many sellers list similar products, making it challenging to stand out in a saturated market. The intense competition can lead to price undercutting, squeezing your profit margins.

Policy Restrictions

eBay has specific dropshipping policies, and not complying with them can result in account suspension. Adhering to eBay’s rules and policies can limit your flexibility in managing your business.

Fees

eBay charges listing fees, final value fees, and possibly other fees, which can eat into profit margins quite drastically if not managed with caution. It's crucial to understand the various fees involved to correctly price your products on a competitive level without losing profitability.

Start Dropshipping on Ebay with Whop

If you’re thinking about starting your own dropshipping business, Whop can give you access to communities that will help you get started and move towards success. Courses, effective strategies, product lists and much more, Whop’s dropshipping communities will provide you with everything you need to help you thrive in your business.

Whether you're looking to join a thriving community, read an ebook, or take a self-led course, you can find it all here on Whop. There's a group for every niche and every budget - head to Whop and find yours today.

eBay Dropshipping FAQs

Here are answers to some of the most asked questions about dropshipping on eBay:

What is eBay Dropshipping?

eBay dropshipping is a retail fulfillment method where you sell products on eBay without holding inventory. When a product is sold, you purchase it from a third-party supplier, who then ships it directly to the customer.

Is Dropshipping Legal and Allowed on eBay?

Yes, dropshipping is legal and allowed by eBay, but there are specific guidelines and policies you must follow to ensure compliance with their rules. Like using wholesale suppliers and not listing items from other marketplaces like Amazon or Walmart. Not complying with the terms can result in your account being suspended.

What are the Costs Associated with Dropshipping on eBay?

Costs include eBay listing fees, final value fees (13.25% of the sale plus 30 cents per order), and PayPal/Stripe transaction fees. Additionally, consider the cost of the products from your suppliers and any shipping fees.

Can I Dropship Internationally on eBay?

Yes, you can offer international shipping, but ensure your suppliers can fulfill international orders efficiently. So consideration of additional costs and potential delays associated with international shipping is necessary.