Show All Articles

How to Start Dropshipping on eBay

Amber • Sell on eBay

Mar 26,2020 21 min read

As the uncertainty and confusion mount with the COVID-19 pandemic, it's becoming more important to find ways to earn money from home. Is starting an eBay dropshipping business something you have considered? Great news! Here you will learn how to start dropshipping on eBay step by step. A lot of people are making significant incomes online with dropshipping on eBay, and it's not that hard to do. Let's dive in. 

 

How Does Dropshipping on eBay Work?

If you were looking for how to start dropshipping on eBay, then you've come to the right place. Dropshipping on eBay is a simple and straight forward process. Dropshipping (often referred to as product sourcing), is the process of purchasing stock from your supplier, which then ships the product to your customer. The supplier does most of the work for you, as it creates, stores, and ships the products. There are specific rules for dropshipping on eBay you need to consider before deciding whether or not to deal with them.

According to eBay, there are restrictions about dropshipping. You can't purchase a product from a retailer and sell it on eBay if that retailer ships the item straight to your customer. This is not allowed on eBay. What you can do, however, is fulfill orders from wholesalers and work with those suppliers to send the items to customers. Something to consider however is eBay makes product quality and shipping time your responsibility even though it's out of your control. So, you want to make sure your supplier ensures fast and reliable shipping. You never have to own the product before listing it when dropshipping.

When considering how to get started dropshipping on eBay, you must first be at least 18 years of age. Anyone who meets that minimum requirement can dropship on eBay. To receive your pay from eBay, you need to have a PayPal account. You'll also need to set up an eBay seller account, select products to sell, source products from a supplier, create listings and make posts. Trust me, that sounds way more daunting than it is. Once you get the hang of it, you can start making serious loot.

 

How to Set up Dropshipping on eBay

 

Start a New Business

A legitimate business name, entity, and registration is something you'll need to start dropshipping on eBay. This is how the IRS keeps track of the taxes you'll be responsible for at the end of the year. It's also how your customers will distinguish and recognize you through your deals and communications.

To do this, you need to register the new business entity in your state. The Secretary of State is who you need to contact to get registered in your state. Then it's a must to apply for an EIN with the IRS through their official website. The form you will need to fill out is Form SS-4.

 

Find Wholesalers

eBay's rules and policies on dropshipping has turned off many dropshippers, but profits are much greater selling wholesale items at retail prices. The problem with this is Wholesale providers are not easy to come by. They are too immersed in being suppliers rather than marketers, so the best ones probably won't show up in a Google search. By sniping other sellers on eBay, you can find wholesaler options.

 

Choose an eBay Package

The first thing you want to do is sign up for an eBay store. You'll notice eBay offers 5 different types of packages to subscribe to. There is the Starter, Basic, Premium, Anchor, and Enterprise package. Each package varies in price range, but for the sake of this tutorial, just select a starter ($4.94 per month). After choosing your package, eBay will then display to you its discounts. There are listing fees on eBay by the way. By sniping other sellers on eBay, you can find wholesaler options.

Under the starter subscription, you will receive your first 100 listings of every month for free. After that, each listing costs 30 cents. The other 4 subscriptions cost more per month, but the listing fee decreases 5 cents with each level you move up. What you want to do is concentrate on having as many listings at your eBay store as possible. After you have made 10 or 15 profits, take that money and use it to move up to the Basic package so your listing fee will only be 25 cents.

Since eBay does the marketing for you, there isn't any branding involved. With that in mind, there's not much reason to have a beautiful or professional looking store. All you have to do is start listing. This is probably the most difficult part of the process which you will learn how to accomplish next.

 

How to Create Your Listing

Listing creation is the necessary step to get your products in front of buyers. eBay has a multitude of tools and resources to help you make sure the listing sells. The information on the product from your wholesaler is what you use to create your listing. It will take a bit of product research to determine things like price, and whether or not to sell in an auction or buy it now.

 

How to Find Profitable Items to Dropship on eBay

The next important step is to find profitable products that you can list on your eBay page. The following is a good process to go through to find items that will sell on eBay. According to BigCommerce two of the most popular wholesale suppliers for dropshipping on eBay are Wholesale Central and Sunrise Wholesale.

These suppliers have tools and modes to help you find the most profitable products on eBay. This is an important feature from a supplier for the simple reason it lets you see which products are already in demand. Consider choosing high-ticket products so that you will make a higher profit from a sale.

Think about what type of products may be trending too. With the COVID-19 crisis grappling the world, cleaning supplies, surgical masks, and ventilators are items that should be trending. These are just examples, however, as you have thousands of products to choose from. If you ask someone how to start dropshipping on eBay, they will tell you to pick trending products to increase your odds for success.

How Does GoTen Help with eBay Dropshipping?

Online sellers can easily find the top-selling products on eBay by checking them out in "Platform Top Sellers." eBay sellers can also take advantage of GoTen’s big data-based product research, promotional events, and clearance to gain large profit margins while benefiting the free membership and huge discounts.  

More importantly, instead of paying an excessive amount for overseas warehouses, working with GoTen.com is a much better choice because GoTen has over 450,000 square meters of local US/UK warehouses and offers fast and free delivery. Additionally, you don’t have to deal with multiple dropshipping suppliers and you can get help at any time with our 24/7 customer service.

All in all, with GoTen, dropshipping made easy! 

 GoTen.com Sign Up

 

 

How to Dropship with AliExpress on eBay

Since it's against eBay's rules to resell items you buy from retailers and send them directly to the customer, dropshipping with AliExpress on eBay is prohibited. Unless you purchase the products beforehand, handle the inventory, list the items, and provide your shipping of course.

If you violate this rule, it will drop your listing towards the bottom of the rankings and could remove the listing entirely. Once before, customers were purchasing items from eBay which arrived in the incorrect packaging. This created a lot of angry people (because they felt deceived), which caused eBay to update its policy and enforce these rules.

 

Reference:
Information from salehoo.com, crazylister.com, wikihow.com, blog.edesk.com, and the Youtube channels of The Financial Wolf, Paul J Lipsky, Carter Maxwell, Rules For Rebels, and Wholesale Dropshipping Champions was used in this article.

Dropshipping Business Made Easier

We help fulfill your dropshipping business from products, stock, delivery to aftersales service.

  • Over 20,000 Quality

    Profitable SKUs

  • 24-hour Dispatch Via

    Local Warehouses

  • 2~7 Working Days

    Fast Delivery

  • Professional

    System Support

  • Worry-free 24/7

    After-sales Service