eBay is an online marketplace that allows buyers to bid for products from a wide range of categories. It also has the option to enable the seller to fix the price of the product and having customers buy outright.
Dropshipping is a business model that allows you to resell a product for its supplier. The supplier keeps inventory and logistics of the products, while you sell. The article aims to educate you on dropshipping on eBay.
What Is eBay Dropshipping?
In response to the question "What is eBay Dropshipping?" eBay dropshipping is slightly different from what is obtainable on other e-commerce marketplaces. It is because of the unique eBay's policies on dropshipping.
eBay dropshipping involves purchasing large amounts of the supplier's products upfront. It is different from the conventional dropshipping, which doesn't require an upfront inventory purchase. You can make an arrangement with the supplier to ship the goods to the customers on your behalf. However, the reality is that most suppliers won't make the concession.
There are other workarounds as well, like using a fulfillment service to handle the inventory you've purchased from the supplier. Fulfillment services also manage the storage, shipping, and packaging of the products on your behalf.
In general, eBay dropshipping requires that you buy the product you want to dropship in bulk. It poses a higher risk than conventional dropshipping. It is because there is no assurance that there is a ready market for the goods you have in inventory. You also don't have the liberty to buy stock as the customer buys.
eBay Dropshipping Policy: Can You Dropship on eBay?
In the technical aspect of it, you can dropship on eBay. However, you have to understand that eBay policies on dropshipping are a lot different from other marketplaces such as Amazon and Shopify.
One eBay dropshipping policy specifies that you "fulfill orders directly from a wholesale supplier" before it allows you to dropship on its platform. It leaves no other option but to buy in bulk from the wholesaler and promote them on eBay.
Furthermore, if you are reselling from another retail outlet, you cannot dropship on eBay. The platform explicitly states that "purchasing an item from another retailer or marketplace that ships directly to your customer are not allowed on eBay."
eBay typically meets anyone contravening the policy with swift enforcement. They would remove the seller's listings from their search results, and go as far as reducing the seller's rating and platform status.
Guidelines for eBay Dropshipping
eBay makes a substantial amount of money from dropshipping and arbitrage. It is the reason the platform encourages people to become eBay dropshippers. Dropshipping contributes roughly 5% of the entire revenue eBay makes yearly.
In the third quarter of 2018, eBay made $22.7 billion in sales. When they take average fees into account, which is 10% of all product values, the number works out into $100 million of arbitrage and dropshipping sales fees.
It is essential to pick a reliable supplier when starting dropshipping. Consider salient factors such as their shipping options, global availability, and quality control measures. Pay attention to the eBay username policy, and set up a seller account afterward.
Best eBay Dropshipping Suppliers
It can be arduous to choose from the plethora of eBay dropshipping suppliers. The following are some of the best suppliers in the eBay dropshipping business:
1. SaleYee.com
SaleYee is a big eBay dropshipping wholesaler who focuses on global, cross-border e-commerce services. One major feature of their service is the provision of 630,000 square meters of warehouses in the UK and the USA. The combination of warehouses and effective logistics allows you to fulfill orders as soon as two days.
They also eliminate the need for you to search for products that are top-selling manually, you can check eBay best sellers via "Platform Top Sellers." The dropshipping company curates over 30,000 units that are trending on major online marketplaces, including eBay.
However, their warehouse network won’t be limited to the US and UK. SaleYee promises more warehouses in other countries in the future, and it is an advantage if you use their services in the UK or the USA for the moment.
2. Dropship Direct Services
DDS provides around-the-clock dropshipping service. Their product focus is on health, sports, and beauty. It also includes recommendations and guides on market shares and other related concepts. They bundle their dropshipping services along with marketing, and inventory management.
Dropship Direct Services also has a significant level of coverage across the globe. They have a business presence in North America, Europe, and Australia. The platform hosts up to 12 main categories of products, with subcategories running up to a hundred.
However, DDS doesn't work in the USA, despite having one of its bases there. Also, the company does not make specific business data available to its partners.
3. Oberlo
You can consider Oberlo to be one of the best dropshipping companies. Their main advantage is that they offer free lifetime signups for if you want to try dropshipping. You may try out their premium services as well if you're going to go further.
They also offer enterprise-level services, such as auto-order and inventory management. The services allow you to receive orders and automate subsequent operations such as order fulfillment and stock taking.
However, Oberlo limits its operations to a handful of online marketplaces. Unfortunately, it doesn't include eBay as of yet. The official language on the platform is only English, limiting the Oberlo's usability globally.
4. Worldwide Brands
Worldwide Brands specialize in searching for wholesalers and manufacturers. eBay approves of their sourcing techniques, making Worldwide Brands one of the best suppliers for dropshipping on eBay. They link suppliers to dropshippers who need the contact. They offer a wide range of product types and categories.
You should note that the company doesn't physically handle the products. Also, for some reason, the pricing for products listed on Worldwide Brands is very high.
5. Mega Goods
Mega Goods is a dropshipping company that focuses primarily on electronics. They have their headquarters in California, USA. They offer a premium plan which costs around $15 per month. The company also places its cost of the order at $1.50 per good. They would customize the order packages and brand them upon request.
However, the cost of doing business with Mega Goods rises considerably. It is because of the added value of handling, shipping, restocking, and order. Also, the company doesn't automate inventory and call-to-order elements, so you could consider it before beginning your eBay dropshipping business.
6. Sunrise Wholesale Suppliers
It is one of the best dropshipping suppliers you can use for eBay dropshipping. Their strength is in speedy product delivery. They also have a significant amount of product catalogs, at around 20,000 products.
Sunrise Wholesale Suppliers offers free trials for starters, and it lasts for a week. Subsequently, it offers competitive rates for sellers. Their business model works well with eBay and other major online marketplaces.
However, you would have to pay charges for inventory management, and that might drive up your dropshipping business costs. Also, their international shipping operations is minimal.
7. Wholesale2B
Wholesale2B is one of the most suitable dropshipping companies for eBay dropshipping. The company allows you to automate order management, product, and returns information. You can also view the suppliers and products online for free. As a seller, Wholesale2B affords you several delivery options.
You would have to pay inventory control and other operation fees, however, and that can quickly drive up business costs. Also, the company's support is not very capable in urgent situations. They only have a ticket and live chat support.
8. Spocket
Spocket has the peculiarity of giving links to the sources of the products they host. They also give you the ability to track orders in real-time and see inventory as it updates. Their product catalog is robust, boasting of around a million products. On the downside, Spocket only services the US and Europe.
9. Gooten
Gooten has its headquarters in New York, USA. The company's product range is vast, and you are likely to find their policies conducive for dropshipping. Their support team is also robust and suitable for most scenarios.
One thing to point, however, is that Gooten is not suitable for beginners in dropshipping. You also can't partner with the company on a part-time basis; you have to be in all in or nothing.
10. Inventory Source
Inventory Source offers premium services monthly. It comes with inventory and dropshipping automation. You can join the platform for free and access over a million products. It doesn't give you a guide on research on the market; you would have to do it yourself. Also, you have to pay for market access and order fees.
Best eBay Dropshipping Software
Most eBay dropshipping software helps you a lot in the business. Other than helping you avoid issues such as price mistakes, they also help you automate and manage the different operations associated with dropshipping.
The following are some of the best dropshipping software you can start using for dropshipping on eBay:
1. PriceYak
PriceYak allows you to handle arbitrage systems on major e-commerce outlets, including eBay. It offers features such as template customizations, listing preview, advanced filtering, and stock monitoring.
The software is technically free. You won't have to pay for the first hundred repriced listings. Subsequently, you would be paying 10 cents for each repricing or 40 cents for every auto-ordering.
2. PriceFox
The software helps you monitor eBay prices as they change over time. It also has extensive features such as identical listing checker and data extraction API. PriceFox has a 12-point price range from $15 to $600.
3. AutoDS
AutoDS is a dropshipping software with a robust community of users. The software uses graphs and filters for data visualizations, and you can use its premium version to search and save best-selling dropshipping products.
AutoDS's price starts at $8 per month and goes up to $152 a year. However, you can have a trial of the software for $1.
4. DSM Tool
DSM Tool allows you to reprice, source, list, and sell products on eBay. The software supports a wide range of languages and has a community of users from across the world.
Some of the DSM Tool's highlight features include Activity listing management, automated restocking, bulk product listing, and many more. The basic version of the software is free, while the enterprise version costs $499.97 per month (or $399.97 per year).
5. Black Lister
The software is versatile, and you can use it for item listing and repricing for dropshipping on eBay. Black Lister also has a Chrome Extension, which works just as well. It features research for a keyword tool, SEO, Access to a virtual assistant. The software costs a flat $20 a month.
6. Easync
Easync works for eBay arbitrage in particular. The software's main features include Customer Messaging Management, Auto-ordering, Price Scrapping, and more. Pricing for Easync is on the number of active listings, starting at 4 cents for 30,000 active listings.
It also has API access to other e-commerce platforms such as Aliexpress and Amazon.
7. eBay Title Optimizer
The software allows you to have a review of your product title's performance as a dropshipper on eBay. It features optimization for the length of words, identical keyword removal, and keyword suggestion.
eBay Title Optimizer has a free trial, a Silver plan (10 cents for each item title) and an Unlimited plan (7 cents for each item title)
8. ShopMaster
It is a cloud-based Enterprise Resource Planning software suitable for eBay dropshipping. It supports English-to-Chinese auto-translation as well. Other of the software's features include tracking number syncing, staff, and listing management. The starter plan is free, while the Basic, Business, and Enterprise plan costs $19.90, $39.90, and $79.90, respectively.
9. SaleFreaks
SaleFreaks is more suitable for Amazon to eBay dropshipping. It features Research for products, eBay Customer Relationship Management, Optimisation for product titles, and so on.
SaleFreaks price tiers include the Bronze, Gold, and Platinum Plan. Listing ranges determine what you would pay in the price tier. The Bronze plan is for within 100 to 250 listing range; the Gold plan ranges from 500 to 4,500 listings while the Platinum plan is for listings over 5000.
Conclusion
Dropshipping on eBay works well if you are willing to follow eBay's dropshipping policies. It answers the question, "Can you dropship on eBay?" sufficiently. The platform wants dropshippers and other sellers to deliver the best possible customer experience. Dropshipping software plays a crucial role in ensuring all your dropshipping operations go as planned.
