Everyone is talking about dropshipping on eBay now. With over 142 million active buyers worldwide and 190 markets around the world, it is no wonder many people want to become online sellers on this popular eCommerce platform.
Dropshipping can be easy for most people, but in order to succeed in this business model, one must be familiar with the newest dropshipping eBay policy.
In this article, we will discuss how the platform operates so that you can confidently jump-start your dropshipping business.
What is dropshipping?
To simplify, dropshipping is a type of retailing business model, in which a seller accepts consumer orders without holding inventory on hand. Instead, the seller sends the orders and their shipment information to the manufacturer/a wholesaler/another retailer, or a fulfillment house, which then ships the goods directly to the customer.
While the seller is now basically in charge of marketing and selling a product, he or she has little to no control over product quality, storage, inventory management, or delivery.
What do you need to know about the dropshipping eBay policy?
Because of how easy it is for new sellers to enter the market and start selling items thanks to eBay’s low requirements for entry, many choose the dropshipping model as a way to start a business.
Can you dropshipping on eBay? Short answer: Yes, you can! With that being said, eBay does have its downside, mainly low-profit margins and high competition. Here are some key things you need to keep in mind when start dropshipping:
The fee that eBay charges can be influenced by the item’s price, the category of the listing, and any additional enhancements you add or occur. eBay charged two main types of selling fees: insertion fee (when creating a listing) & final value fee (when the item is sold), with the latter depending on which category the item falls under, plus 30 dollars per order.
According to eBay, when talking about insertion fees, sellers can get up to 250 free listings per month before being charged 35 cents for most categories. Some exceptions, like heavy equipment, commercial printing presses, and food trucks/trailers/carts are 20 dollars per listing; athletic shoes (both genders) are free if the starting price is 100 dollars; guitars & basses are completely free.
There are also many subtypes of fees and special fees for different classes of products that need to consider, so be sure to check the terms and conditions for additional detail.
2. What items can you dropship on eBay?
There are many things that you can sell on eBay. So when considering what to put in your listings, be sure to check the popular subsection in each group for a clear understanding of what items the majority of eBay’s users are looking for. Currently, these are the most popular categories displayed on the eBay website:
- Electronics: cell phones, consoles, computers & tablets, cameras, drones, and smart home kits.
- Fashion: Men’s and Women’s clothes, shoes, and accessories.
- Health & Beauty: makeup, skincare, fragrances, wellness items, and vitamins & minerals.
- Home & Garden: workshop/gardening tools, interior/exterior decorations, and home equipment.
- Sports: components and gears for different types of sport.
- Collectables & Art: valuable or vintage items, antiques, and entertainment memorabilia.
- Industrial equipment: supplies/equipments/devices/instruments for industrial purposes.
- Motors: usually motorcycle or car parts.
When choosing which product to dropship, consider referring to eBay’s list of prohibited and restricted products. While many items in a category can be dropshipped, some exceptions within that group are not allowed. For example, kitchen knives and letter openers are permitted to listings while switchblades knives and sword canes are not.
If this is the first time you do dropship on eBay, it is best to avoid those and stick to the more neutral one, and always check the guidelines.
3. Service quality and delivery time according to the dropshipping eBay policy
Due to the nature of dropshipping, you will have no control over the quality of the orders or shipping. eBay stated in their policy: “If you use dropshipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing and for the buyer’s overall satisfaction with their purchase.”
In addition to this, it is not permitted to purchase an item on eBay and then have it shipped directly to your consumer from another retailer or marketplace. Any activity that violates the dropshipping eBay policy can result in terminating listings to account suspension.
Some tips when dropshipping on eBay
Customer support: Customers play an integral part when dropshipping on eBay. It is much more important in this context since they likely do not know that it was the supplier who send the order to them. If the supplier failed to meet the expected delivery time or the product’s quality-you need to take full responsibility for it. Always follow up with a response and compensation request as soon as possible to increase customer satisfaction.
Relationship with suppliers/wholesalers: It’s critical to build a relationship and communicate with your seller so that you may be informed if a product is discontinued, out of stock, or the price changes so you don’t offer products you can’t fulfill and subsequently have to cancel.
Inventory management system: The biggest challenge when dropshipping on eBay is to manage inventory and adjust price changes. Selling items that are either out of stock or raised in price means you will need to cancel the order or run the risk of negative feedback from buyers. You can do this manually if the business is still small, but once you scale up, it is recommended to use automation software like Hustle Got Real, Wholesale2b, SkuGrid, and AutoDS to handle such tasks effectively.
Promoted listings: It is always a good idea to give your listings as much exposure as you possibly can. By adding promoted listing features to your products, they can get to more buyers and increase the chances for an order. Fees (or ad rate) can range from 1%-100% of the item’s sale price, and will only be charged when buyers buy it within 30 days.
Don’t give up!: Consistency is key. It is important to understand that some items generate more sales than others, this is due to either seasonality or item attributes. The best thing to do is to keep listings and slowly expand your range of products. Once you start getting positive feedback from past orders, your eCommerce store on eBay will become reliable and your listings will start to appear in search results.
It is more than possible to start a successful business that complied with the dropshipping eBay policy; all you needs is time and a little bit of hard work. You won’t go far wrong if you choose the correct things to sell, discover a dependable source, and understand the dropshipping eBay policy.
Once you have succeeded with your business on this platform, you can always expand to other eCommerce services. Rather than selling exclusively on eBay or any other channel, your ultimate goal should be to sell on many platforms.