Is It Worth It to Dropshipping on Ebay? The Answer Is Yes
There is a popular product fulfillment technology on ebay, that is, dropshipping. For many sellers, dropshipping is very attractive. You can sell products you have never seen before, and you can even get paid without hoarding product inventory, it means:
- Lower barriers to entry
- Almost no inventory cost
- No need to deal with transportation services
Is it worth it to dropshipping on ebay? Dropshipping on ebay is not new, and eBay has many restrictions on this form. This is a lot of risk for sellers. If you want to reduce these risks in dropshipping on ebay, you can look down to understand why there are risks in dropshipping on ebay, and how to reduce these risks.
Does ebay really prohibit dropshipping?
Technically speaking, no.
Ebay does not completely prohibit dropshipping, but they do prohibit some form of drop shipping.
You can’t make a dropshipping form on ebay
Sell the products you will buy from public third-party retailers or markets. For example, you can’t list an item on ebay (assuming the price of a piece of clothing is $59), and after the buyer orders it, buy it from Amazon for $29 and change the address to the ebay buyer’s address.
Forms of dropshipping allowed by ebay
Sell the products you buy from a wholesaler, and they will deliver the goods on your behalf. For example, you signed a contract with a wholesaler. You can sell inventory that does not belong to you, and the order will be sent directly by the wholesaler. However, you are responsible for the quality and accuracy of your products and shipments.
What are the risks of dropshipping on ebay?
1. The seller cannot control the supplier
One of the main reasons for the unpopularity of dropshipping is that sellers cannot fully control their stores and performance, and they cannot manage the business from beginning to end. Especially for the quality of the product.
Sellers take the risk that the source of the product they buy has already inspected the product and will ship it on time. They hope that the product is genuine and the supplier can meet the quality standards set by ebay. However, because the goods are shipped by eaby, the seller cannot supervise, so in fact, the seller cannot fully confirm the quality standard of the goods, which is likely to face ebay penalties.
2. Can't build own brand
On ebay, the supplier will not print the seller’s store logo on the product, which means that if the product is approved by the customer, it has no direct relationship with you, and the customer will not associate the positive image of the product with you.Once there is a problem with the product, the seller has to bear the risk alone.
3. Longer shipping time risk
What customers want most for online shopping is fast delivery of goods. dropshipping on ebay is very fast because it saves intermediate links, such as the time to deliver goods to retail stores. However, many problems will arise in large-scale implementation. Examples include delayed shipments, cancellations, and orders that do not match the description. This will have a direct negative impact on the seller, and the supplier’s previous transaction has been completed with you, at this time you will face disputes with the customer alone.
4. Greater competitive pressure
Ebay suppliers cooperate with multiple sellers, which means that they are not only you as a retailer, but multiple stores will sell the same product with you. You will face huge price pressure and delivery time pressure. After all, customers care about the product most. The price, followed by the delivery time.
The ebay platform is very concerned about customer satisfaction. If the above reasons occur, the seller is likely to be punished by ebay because of customer complaints. In severe cases, the seller’s goods will be removed from the shelves, and it is more likely to delete your store list directly.
Ebay's dropshipping risk reduction plan
Many sellers who are engaged in ebay delivery do not choose this old method. There is a new method that can avoid the above risks well. It is called online arbitrage. Its advantages are:
- Have a higher profit margin
- Will not let your ebay account be suspended for sale
- Same as the past form of delivery, it is more relaxed
How to start online arbitrage trading?
1. Open an Amazon professional sales plan account
Although there is a free sales plan, it is recommended that you get a professional seller account at a monthly price of $39.99, which is more cost-effective than the free plan.
2. Find seller list & product analysis
You need to understand the prices of products that you can afford. There is a website that can help you solve this problem. It can not only analyze store rankings, let you know more about your competitors and increase your competitiveness. In addition, the analysis of products can also allow you to easily grasp the initiative of purchasing. The successful selection of products can make your store's performance better, so that you can choose suppliers independently, which can facilitate you to take the initiative.
For example, using FindNiche you can track their target country, number of ads, Facebook page and Alexa ranking. A thorough understanding of competitors can make a better sales strategy.
You can also use FindNiche to select products, such as looking at the recent hot items on the market. The filtering conditions include product classification, total order number, order growth, delivery country and more than 20 items. You can find what you want very conveniently and accurately. For potentially explosive products, high demand, rapid growth and other commodities, you can be a step ahead of others.
After initially determining the products to be sold, you can also quickly check the product's price, reviews, orders, countries with the highest sales, last month's sales history, and which stores are selling these products. Through the degree of competition with the same product, analyze the products sold online by other stores, study their pricing, layout, and even advertising.
3. Find a preparatory center that cooperates with online arbitrage sellers
The preparation center is a third-party warehouse, and most preparation centers charge a fixed fee for each unit product you provide. When you are considering what to buy, simply factor these costs into your plan.
4. Start arbitrage testing
You don't need online arbitrage software. It is recommended that you browse various e-commerce websites or product selection tools to find those profitable products and test them in your Amazon or ebay accounts.
5. Start buying, test the process and reinvest profits
Selling physical products is always a business that requires a lot of cash. The more cash you accumulate for reinvestment, the more profit you make every month.
Is it worth it to dropshipping on ebay? The answer is yes, but you must be cautious to avoid risks, use product research to analyze the situation of your market competitors, and choose products that are suitable for your sales, which will allow you to reduce these risks a lot. It can increase your competitiveness and help you dropshipping on ebay with less effort.