Dropshipping is one of the most popular e-commerce ideas out there as people find it easy to generate some income. It's hassle-free and, if done right, can become a viable career option for anyone. So naturally, dropshipping on eBay is one of the questions we face regularly. We here at the Dropship USA work with e-commerce hopefuls who look for innovative dropshipping platforms to ensure sustainable growth.
Our team has faced countless questions about how to dropship on eBay. Questions about dropshipping from AliExpress to eBay and eBay dropshipping suppliers are constantly piling up in our inquiries section. So we thought we should answer all you need to know on how to dropship on eBay. Hopefully, by the end, you will have a complete understanding of eBay dropshipping. So without further ado, let's begin!
What Is eBay?
eBay is an auction-style e-commerce marketplace that allows its users to sell and buy products through a bidding system. eBay is one of the e-commerce pioneers of the digital world along with Amazon and is one of the biggest e-commerce platforms in the market with 180 million active users. Usually, sellers post a small bidding amount that starts the process with the highest bid finally landing the sale.
However, you can also directly sell your products on eBay as sellers can add a "Buy Now" option on the product page to allow buyers to get a product at a fixed rate. Given that eBay is one of the biggest e-commerce marketplaces around, obviously, dropshippers are interested in using the platform to generate revenue for their brand. However, the question remains, does eBay allow dropshipping? Well, let's talk about that next!
Can You Dropship On eBay?
In simple terms, yes, dropshipping is allowed on eBay, but certain conditions have to be met. If you want to dropship on eBay, then you can do so by only using wholesale suppliers, which means that you can only sell products sourced from distributors and not a retail shop or marketplace. There is a clear dropshipping guideline that eBay explained on their website you can check out. Since you have to sell products through wholesalers, that means selling products from marketplaces like Amazon, Walmart or AliExpress is prohibited on the website.
As you can see, you cannot technically list a product on eBay that you yourself bought from Amazon. If eBay finds out you did, then the eBay team will remove your listings altogether. It can have a substantial negative impact on your seller account. It can lower the feedback rating or status on the platform and reduce your listings' visibility altogether.
Why Dropshipping From Amazon & AliExpress To eBay Is Banned?
There was once a group of dropshippers who wanted to make a quick buck by fulfilling their auctions directly from Amazon and AliExpress. However, since they did not handle the shipping themselves, the customers would constantly receive products from Amazon with receipts in the package citing free Prime delivery even though they paid for shipping on eBay. Customers buying from these dropshippers also got deliveries in Amazon Prime boxes, adding to the confusion and anger of eBay faithfuls.
Dropshipping from AliExpress to eBay caused even more trouble as most of the product is shipped from China, and it usually takes 3-4 weeks for the order to be delivered. This group of dropshipper and the lack of quality service they provided hampered eBay's reputation. Now, we are not saying that there is no dropshipping from Amazon and AliExpress to eBay. There are still plenty of dropshippers who do it.
eBay isn't monitoring the situation tightly, but they tend to punish them if they discover one. Even though you can only dropship from sourced wholesalers, the other two types still bring in a big chunk of eBay's revenue. Dropshipping from Amazon to eBay, dropshipping from AliExpress to eBay, and eBay dropshipping wholesale suppliers make up all three types of dropshipping operations on eBay.
Dropshipping From Amazon To eBay
eBay dropshipping from Amazon is exactly what it sounds like. You source a product from Amazon and then list it on eBay. All you need to do is find a product on Amazon that's priced lower than an identical item on eBay. So why would people buy from eBay if they could find a cheaper listing on Amazon? Well, because some people like to shop on eBay while others prefer Amazon, and usually, the marketplaces don't overlap. Pricing inefficiencies are common throughout all marketplaces. After all the fees are deducted, you can make a five-dollar profit for doing practically nothing. One of the main reasons why eBay dropshipping from Amazon is popular is because of its lightning-fast fulfillment.
With an Amazon Prime subscription, you can have products delivered to any address within the US in 2 business days. Since Amazon has one of the most lenient return policies, your customer can issue a product return from you, and you can issue a return authorization to Amazon. Usually, you will get your money back. Now the downside to having Amazon as your supplier is that the product will be delivered in a branded Amazon box. Besides, there is no guarantee of inventory. Along with the absolute ban on dropshipping from Amazon to eBay is clearly banned by the platform.
Dropshipping From AliExpress To eBay
AliExpress is also known as the eBay of China. It is a popular platform for dropshippers to source products on the cheap. Owned by Alibaba, it is one of the biggest e-commerce platforms globally, and the dropshipping process is similar to Amazon. Dropshipping from AliExpress to eBay works by the seller sourcing out a cheap listing on the site and then having that product directly sent to the customer.
With AliExpress, dropshippers can enjoy good profit margins. Some products can even fetch up to eight times markup on your products versus the retail price. However, AliExpress often tends to be a game of product Russian roulette. There is no quality control on the site, and it can take more than three weeks to get the product delivered to the customer. That means ongoing customer support problems for any dropshipping entrepreneur. Also, eBay clearly banned AliExpress as a supplier for eBay.
eBay Dropshipping Wholesale Suppliers
eBay dropshipping suppliers have to use third-party wholesalers to be entirely legitimate. Simply source out the suppliers that meet your demands and can fulfill your needs. Depending on your sales volume, wholesale suppliers often offer special prices. Once there is a sale, the dropshipping supplier will fulfill the order on behalf of the dropshipper and charge them a pre-agreed per-order dropshipping fee.
The most significant upside to working with third-party dropshipping suppliers is that they have eBay's approval. So there is no reason for eBay to shut down your dropshipping operation. In addition to that, since you are working with wholesalers, you will receive wholesale pricing, meaning you will get better profits. Now, the only bad thing we can say about working with third-party dropshipping suppliers is that it can be hard to establish a relationship with them.
Suppliers tend to be iffy about choosing dropshippers, and if they believe that you cannot move their products, then they will not work with you. So to build a rapport, you may need to buy the wholesale inventory upfront to establish a sales record. Add to the fact that there will be many dropshippers selling the same product as you, and it can become tough to establish yourself in the market. That's not all though, you as a dropshipper might have to follow specific rules set by manufacturers in terms of MAP pricing, advertising copy, and other operational aspects.
Is Dropshipping On eBay Viable?
We are big believers in dropshipping as a viable career option for aspiring e-commerce entrepreneurs. There are plenty of reasons to get into it, primarily because of the low-cost entry point it offers people. So is dropshipping on eBay viable? Well, before we get into that, let's talk about some of the advantages of dropshipping!
- Dropshipping software helps you automate everything for your convenience. You can list, de-list, and update other aspects of your business with just a click. This sort of automation frees up much time, meaning you can focus on different aspects of growing your business, like a comprehensive dropshipping marketing strategy.
- It's a minimum risk venture where you only buy products that your customers purchase. This eliminates the risk of overstocking or being stuck with products that aren't moving if you were to order and store your own inventory. Dropshipping ensures you never have anything more than what was offered.
- Dropshipping is one of the most cost-effective business models out there, as dropshipping suppliers will usually charge you wholesale prices instead of retail ones. That means you can ensure a higher profit margin while also offering products at a lower price for your customer.
- You can drop ship anything. Dropshipping liberates your choices, and the options are endless. You will never be limited to the storage or a product you create. So you can sell anything from any niche, whether it is toothbrushes or car parts.
As you can see, dropshipping is a viable option but dropshipping on eBay with Amazon and AliExpress is a bad option if you want a sustainable business model. However, we do believe dropshipping on eBay can be an additional option to your overall e-commerce operation.
As we said earlier, dropshipping suppliers and distributors require a show of faith, and they usually accept minimum buys of as little as 100 dollars. So start out with smaller amounts, build rapport and build your brand from there. We suggest you use dropshipping on eBay, other marketplaces, and social media as a means to drive traffic to your dropshipping website as it is the best way to ensure sustainability.
Comprehensive Dropshipping Solutions Near You
So there you go, that's all you need to know about dropshipping on eBay. Hopefully, by now, you already know that dropshipping on eBay can only be supplementary. If you want to know how to find items to dropship on eBay, then all you need to do is source out third-party dropshipping suppliers who will sell you products at a wholesale rate.
But the success of your dropshipping operation hinges on having comprehensive dropshipping solutions. We at Dropship US specialize in providing dynamic dropshipping websites to aspiring e-commerce entrepreneurs. So if you want comprehensive dropshipping web solutions, then please contact us.
And with that being said, that's all we have for you today. Let us know in the comments below what products you want to dropship. Also, hit us up on our socials with your ideas and suggestions so that we can let you know how you can create a successful dropshipping business. We are eagerly waiting for your feedback, and it means a lot to us when you send in your thoughts, so please do so. We will come back soon with something new for you. Until then, see ya!