Dropshipping on eBay might look like a good option to get started on dropshipping. eBay has a large pool of loyal customers ready to buy and is an attractive marketplace for starters. No upfront capital is needed to open an account on eBay and it is easy to open a seller account. So how does it work? How to start dropshipping on eBay and ride the wave of e-commerce?
What is Dropshipping?
Dropshipping is an e-commerce business model where you don’t purchase the products you’re selling. Instead, you sign up with a wholesaler or manufacturer and agree to dropship the merchandise to your customers. The wholesaler or manufacturer ships the product directly to the customer and bills the retailer, including your commission, as a cost of doing business. Retailers using the dropshipping model usually don’t have to carry any inventory.
How to Start Dropshipping on eBay
The first thing you need to do is start with a niche. You want to find something that is going to have relatively low competition, but also something that is easy to sell. It’s also good if the item is something that people will buy on a regular basis. If you can find a niche that you can make money from and do it on the side while working a full-time job, then that’s even better.
Once you’ve found a niche, it’s time to open a seller account. If you are in the USA, then you will want to open an eBay seller account.
Once you have an account, it’s time to find products to sell. You can search to find trending products on eBay or take a look at what is trending on Amazon.com. If you have the extra budget, get a ebay spy tool to help you get more insights on what is popular on eBay.
Key dropshipping products for eBay sellers
Books – You can find lots of different books on Amazon, so there isn’t a ton of competition. They make great gifts, which means you can sell them year-round. Plus, the cost to make each book is super low, so you can make a nice profit on each sale.
CDS and DVDs – You can buy lots of used CDs and DVDs for pennies on the dollar. There is always a demand for physical media in case people don’t want to stream or download their content. Plus, there are tons of people selling their old collections on second-hand websites.
Clothing – This is one of the most popular items to dropship. You can find lots of designer clothes on sale or in clearance at department stores. They make great gifts, which means you can sell them year-round. The best part is that you can mark up the price on these items quite a bit and still make a nice profit. Household items – There is always a demand for household items. You can find lots of clearance items at stores like Walmart or Target. The best part is that you can mark up the price on these items quite a bit and still make a nice profit.
Jewelry – Everyone likes to wear jewelry, which makes it a great item to dropship. You can find lots of clearance jewelry at stores like Walmart or Target. The best part is that you can mark up the price on these items quite a bit and still make a nice profit.
Phone Accessories – Phone accessories is hot as everyone has a smartphone and need phone accessories. Cost of phone casing is low and you can sell at a high margin. Good phone casings can easily sell more than 1,000.
Pros of Dropshipping on eBay
- Easy to get started
- Tap onto eBay large customers
- Easy to sell
- Save on online marketing
- Little risk
Cons of Dropshipping on eBay
- Competitive pricing
- Have to buy bulk inventories
- You don’t owe your customers
- You are responsible for shipping
- Low margin profits
- eBay restrictions
Dropshipping is a popular e-commerce business model that has the potential to make you tons of money. The main advantage of dropshipping is that you don’t have to worry about carrying inventory, which is a costly and time-consuming process.
There are also few upfront costs associated with starting a dropshipping business. However, as you scale up your operation, you will want to consider purchasing your own warehouse to store your products and finding a shipping company that can manage your logistics for you.
So, is eBay dropshipping worthwhile?
This is entirely dependent on your goals for eBay dropshipping. Dropshipping on eBay might be a terrific alternative if you’re just looking to make a little more money on the side, with no upfront commitment and very little risk.
However, if you want to establish a long-term, memorable brand with good profit margins and be entirely in charge of the growth of your online business, eBay dropshipping is not for you. Instead, we propose that you concentrate your efforts on creating your e-commerce store using Shopify that gives you more control over your business.
We hope this tutorial has cleared up any confusion about eBay dropshipping and helped you decide whether it’s worth it for your company goals.