Dropshipping on eBay: What You Should Know Before You Start

eBay Dropshipping Guide

Are you considering doing dropshipping on eBay ? Along with Amazon, eBay is one of the world’s leading marketplaces. This American company, born in 1995, years ago since it went from being an auction platform to be much more than that.

Hundreds of thousands of sellers and buyers meet daily on eBay to exchange products of all categories, from all over the world.

As published by the company itself, only in 2017 the eBay marketplace accumulated around 170 million active users. In a study published by eBay last year, they compare the users of their platform with the total population of different European countries, to show the magnitude of their figures.

dropshipping on ebay

Source: ebay for business. Inside the eBay Economy .

These data – and many more in which we will not go into this article – make clear the strength of this marketplace worldwide. And for that reason, there are many people who consider selling on eBay and, if possible, doing so through dropshipping.

Advantages and disadvantages of doing dropshipping on eBay

Like any sales channel, doing dropshipping on eBay has advantages and disadvantages.

Let’s see them below:

Advantages of doing dropshipping on eBay

  • A very high user traffic : As we mentioned before, eBay is very well positioned in the head of your potential customers. That is why, when selling on eBay, we take advantage of this force and the hundreds of thousands of daily users who come to search for products.
  • Good reputation for the consumer : Users rely more on platforms such as eBay or Amazon than on a company they have just met. By selling on eBay, you can take advantage of this good reputation to sell more.
  • Good positioning and promotion : Positioning your own ecommerce on Google is difficult (if you have tried it, you will know). And it’s not the only task you have to carry out if you want to sell. You will also have to do SEM, work your profiles in social networks, upload your products to Google Shopping, configure retargeting … Many independent tasks that require a lot of time and knowledge. However, when selling on eBay you take full advantage of this marketplace to promote your products.
  • Advanced user experience : eBay is a platform with more than 20 years old and some of the most skilled professionals on your team. When selling on eBay, you will be giving your customers a user experience (fast web, ease of payment, etc.), very complicated to get in an own ecommerce.

Disadvantages of doing dropshipping on eBay

  • Strong competition: Like you, there are many people who have seen these advantages and who want to take advantage of them. So, yes, there is competition. But the truth is that, to date, any online sales channel is strongly competitive.
  • You depend on eBay’s demands: Your house, your rules. When selling on the eBay marketplace, you will have to adapt to what they ask for. In your own ecommerce you have the last word, but not here. If eBay decides to block your account, or put a restriction on you (for whatever reason), there is not much you can do.
  • You will have to pay commissions: Of course, selling on eBay is not free. You will have to pay a commission for sale and, if you have a Seller Store, a fixed monthly cost. However, these costs are easily affordable if you sell enough.

How to start doing dropshipping on eBay

To start selling on eBay, the first thing is to have a professional account on this platform . If you already have a created one but do not use it, try to recover it. It is not uncommon for eBay to block a new account because it considers that a user is duplicating their information.

What kind of account do you hire?

Once you have created your account, you should ask yourself if you want to do dropshipping on eBay with a standard account or half an eBay Store.

  • Standard professional account: If you start selling with a standard account, you will have to pay a fee for each advertisement you post, regardless of whether you make a sale afterwards. In addition, you will pay a commission for each item you sell. If you want to publish a low volume of ads, this could be a good solution.
  • EBay Store: There are three different eBay Stores, Basic, Advanced or Premium. Each one has a fixed monthly cost and, depending on the one you choose, you can publish a series of ads for free. If you exceed that maximum number of free ads, you will have to pay an extra fee. It is interesting to calculate how much you intend to sell per month and calculate the profitability of each of them.

How to choose a provider

When doing dropshipping on eBay, the provider you choose is basic. Actually, it is basic to do dropshipping through any platform: you already have your own ecommerce, sell in marketplaces or through social networks, dropshipping is a strategy in which the supplier acquires an undeniable importance.

Therefore, if you want to do dropshipping on eBay, keep in mind several tips to choose a provider:

Find a supplier that is used to working with eBay

Each marketplace has its own rules. Whether it’s Amazon, eBay, or any other, you’ll have to adapt to rules that are foreign to you. Therefore, it is convenient that your supplier knows them in advance and is prepared to answer them.

Ask what sync options you have

When doing dropshipping on eBay, you must synchronize your account with your supplier’s catalog. There are different ways of doing it, and each provider offers some of them. The most basic is through CSV files, but there are providers that offer automatic platforms with which to make the integration with eBay much easier. It can also be interesting to do it through an API, but this would mean having programming knowledge (or hiring someone who has them).

Once you have your created account, your chosen provider and the synchronized catalog, you should review the costs and your margins.

Costs and margins when doing dropshipping on eBay

As we imagine you already know, your profit margin when doing dropshipping will be the difference between your PVP and the wholesale price at which you buy the product from your supplier. For example: if you buy your headphones dropshipping at 5 euros and resells to 10, your benefit would be those 5 euros difference.

As we mentioned before, when selling on eBay there are certain expenses that you have to take into account. This is not typical of eBay. All the marketplaces establish a series of commissions, be it a monthly price, a commission for sale or any other system to achieve profit.

Do not have time to read? These are the conclusions

Do dropshipping on eBay is a very good option to start and get benefits with online sales. In this article we have told you some of the main aspects to keep in mind when you sell in your marketplace.

Here, we summarize them:

  • Doing dropshipping on eBay has many advantages . This marketplace has a high traffic of buyers, has a great reputation and it will be much easier to reach potential customers.
  • In return, it also has some disadvantage : The competition is high, you will have to adapt to the demands they impose on you and, as in any marketplace, you will have to pay to publish your ads, as well as a commission for sale.
  • You can sell with a standard professional account or with an eBay Store . Depending on the volume of ads you want to publish – and what you intend to sell – one or another option will suit you. Take into account eBay’s commissions for each type of account, or you could end up recording losses.
  • The dropshipping provider you choose is the key to success on eBay . If your supplier is not prepared to respond to your needs, the final consumer will be harmed. Remember to look for a provider that allows you to synchronize your catalog with your account in a simple way.

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