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Make Money On eBay With Dropshipping: Full Guide

eBay is one of the biggest e-commerce websites in the world. Everyday, millions of people shop on eBay. You can find any product or item you can think of there. There are millions of sellers on eBay, some make a full living from it. One of the easiest and safest ways to earn from eBay – is with drop-shipping. In this guide I will teach you how you can do it as well and earn money selling on eBay.

What Is Dropshipping?

Dropshipping is a product fulfillment method where a seller/ store does not keep the products in stock, but actually purchase them from a third party, when an order is received. So, that pretty much means that when someone buys a product from you on eBay, you purchase it from your supplier (“drop-hipper”) – that most of the times will also send it directly to your customer.

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Drop Shipping Benefits

  • No Upfront Investment – You don’t need to keep products you sell in stock. You pay the supplier only when an order on eBay is placed and you already earned money.
  • Low Risk – Let’s say you sell smartphone cases on eBay, and after some days you see it does not work as well as you expected. You can start selling other products in no time. You won’t be stuck with a huge stock of products you have hard time selling.
  • Easy To Get Started – You can start selling products on eBay with dropshipping today. All things like packing the products and shipping them – are handled by the supplier.
  • Huge Selection Of Products – Since you can work with as many suppliers as you want, you can sell pretty much any product you can only think of.
  • Growth Potential – Since you don’t handle important things like shipping and re-stocking, when your drop-shipping business grows, it will be easier for to handle everything. For example – you won’t need to hire more employees that will handle shipping. Your supplier handles everything – professionally.

 

Drop Shipping Disadvantages

  • Profit Margins – Suppliers work with many retailers and individuals. In other words, you won’t be the only one selling their product online or on eBay. Therefore, your profit margins in many cases are slim. In these cases, it’s all about how many units per day you sell, and not how much you sell each one for.
  • Stock Management – Since you don’t keep any products in stock, you don’t have any control over it. If a product you dropship goes out of stock – there is nothing you can do about it. When you stock all your own products, you can easily track which products are in or out of stock. But with dropshipping – that’s not something you will be able to do.

Does eBay Allow Drop Shipping ?


Yes
they do. Many eBay sellers use the dropshipping method. It’s pretty common actually. But -you must remember that you still have to provide the customer support. And, in case a product is not delivered- the responsibility is yours. You can’t blame the supplier !

You don’t have to tell your eBay buyers that your item is from a sourcer  (third party supplier). You can read more about this topic on this eBay page.

Can You Start Drop Shipping Today ?

If you already have an eBay account – you can start selling today ! All you have to do is find a supplier, do your research and find the best products to sell. In this guide I will show you how to do that. But before that – you have to know that there are some limits placed on any eBay account. When you start, you won’t be able to sell hundreds of items a month, but usually 10 or 15. After you establish a positive selling history – those limits may be lifted. This can take weeks or month. Building a successful eBay business takes time – but it’s totally worth it !

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How To Choose Products To Sell

So, you found a good supplier, and now you only need to choose products to promote. This step is crucial. If you do it right – you may have your first sale on eBay today. Do it wrong – and you won’t earn nothing but frustration. But – don’t get me wrong  -most people fail at first. Don’t give up. Over time,you will become better at it. The more you practice, the better and more you earn in the future.

That’s how I define a good product to sell with dropshipping :

  1. Low Competition – Search on eBay and see how many sellers sell the specific product you chose. In some cases, you will even find sellers that sell the item for less than the cost price (in order to gain reputation and ratings on eBay). The less competition – the better !
  2. Market Demand – If you target market is VERY narrow, you can’t expect a lot of sales daily. Especially if on top of that there are many sellers already selling related items. The bigger the target market is – the better.
  3. Profit Margin – Some products have very high profit margins. Combined with low competition and wide target market – a lot of money can be made ! If you sell your own eBook for example, you pretty much earn %100 of each sale.
  4. Multi Suppliers – It’s always good to have few suppliers that can supply the product. So in case one of them run out of stock, you will be fine !

Drop Shipping On eBay Tips

  • Always make sure your customers/ buyers are satisfied. Provide them with a good and fast customer support, and solve any problem that occurs quickly. It’s better to lose few dollars than lose the customer.
  • I recommend most people that start dropshipping to sell cheaper items that don’t cost hundreds of dollars. As a beginner, you will make mistakes. You definitely don’t want them to be expensive.
  • Choose your suppliers wisely.
  • Don’t always choose the products you can make the biggest profit on, but those that you can sell consistently.

Dropshipping Suppliers

The following websites mostly sell consumer electronics and gadgets :

  1. DX  – Dealextreme is a very well known and popular website that sells over 300,000 products, most of them are shipped from China. Offers a dropshipping program
  2. Banggood – A well known website as well. Very cheap prices, shipping is faster than average. Offers a dropshipping program.
  3. GeekBuying -A popular website, cheap prices with good customer support. Offers a dropshipping program.
  4. EverBuying

All the websites mentioned above are well known and reliable. You can find many other online stores,in any niche, that offer drop shipping programs. The Chinese ones are almost always the cheapest ones.

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