eBay Dropshipping is the easiest online business model to start your career in eCommerce and try to build your own business to generate an income that can support your lifestyle and avoid working for somebody else as well as living the life on your own terms.
This article will help you to understand how to dropship in eBay UK or US correctly , how to find the best items to dropship , what dropshipping websites you should use and what are the essential dropshipping tools that you will need to start your ebay dropshipping business.
What is dropshipping?
Dropshipping is an online business in which you don’t need to hold any inventory , only use dropshipping suppliers to send the products to your customers , therefore is a very easy to set up business as you don’t have a lot of running costs as there is no need to have a warehouse or buying stock in bulk from the suppliers.
Because the drop shipping business model is a very low barrier entry online business you will have a lot of competition and therefore your margins are going to be low but we will show you how to make money dropshipping and how to set up your drop shipping business on ebay that you will be able to automate and create a passive income which will generate you money 24/7.
Selling on eBay:
eBay is an online marketplace that has been around for ages , because we are trying to set up our ebay dropshipping business we need to know the basics of selling on eBay as well as how to sell on ebay and what to sell on ebay.
Selling on eBay is a very simple process as you create your own listing although they are now in the process of changing to a catalog system you still need to create your own ebay listing for a product that you are trying to sell. The key performance factors of selling on eBay are Delivery times , Out of stocks and Customer Cases.
Delivery times: You need to set your ebay shipping times accordingly to what your dropshipping supplier will take to send the item to your customer , as eBay will take very seriously the Late delivery rate and will make your account go below standard if you have many products being deliver late, which can cause your account to have less views and therefore less sales as eBay will rank higher Top Rated Accounts or Above standard accounts from below Standard accounts.
Out Of Stock Sales: There is nothing worse than having a sale and not being able to post it due to your dropshipping supplier being out of stock , that’s why you need to use a listing tool to monitor your items and avoid this situations as eBay will count the number of cancellations your account have and if you go over the maximum allowed which in ebay uk is 0.30% your account will go below standard and therefore you will lose views and sales.
Customer Cases : Having a top quality customer service is imperative if you want to succeed in your ebay dropshipping business , as your customers can open a case for various reasons ( most common one’s Item not as described or wanting to return the item). You need to respond this cases as soon as possible and avoid by any mean eBay getting involved in it ,as this will also count in your seller performance and can also make your eBay Account go below standard.
Dropshipping on eBay does not require of a lot of things to get you started but here are the basics that you will need to have in order to be able to start this online business today , please bear in mind that this is the Minimum you require to get started and it’s for people who are in a tight budget and need to create some side income , but if you have some money available to invest in this business we also suggest you to get a listing software as well as a product sourcing tool to help you find products to dropship.
eBay Account: You will need to register an eBay account in order to be able to start creating listings of your drop ship products to be able to sell them , at the beginning you will have low limits (usually 10 items only) therefore you DON’T NEED to pay for an store , only do that when you have around 200 listings up for sell , make sure you only select the best dropshipping products to have the highest chance to sell them as this will help you to get an increase of your eBay listing allowance quicker.
PayPal Account : PayPal is the preferred method of payment for most eBay Customers therefore is a must that you need to have in order to start your drop shipping business on eBay , Ideally try to use an old PayPal account to avoid what is call PayPal Jail (PayPal holding you money until the buyer confirm the reception of the item or after 21 days).
Credit Card or 200$ : Unfortunately for new sellers PayPal will hold the money they receive for the item they sell on eBay for a period of 21 days , this is because they want to cover themselves in case you don’t send the item or you are trying to scam people therefore we recommend you to have some sort of money available in order to be able to send the orders , this holds does not happen to everybody but it’s better to be safe than sorry.
How to find products to dropship:
To find the top dropshipping products is actually very easy if you know how to do it , there are numerous way of doing it as ebay dropshipping has been around for a while , below we will show you the ways we know are working in 2018.
Amazon to eBay dropshipping : Dropshipping from amazon to ebay is the easiest way to get your feet weet and to start generating some sales that will help your products and your eBay store to rank higher and start getting reviews in your account but , is drop shipping from amazon to ebay legal ? if you check their terms of service you will find that you can not use your prime membership to order items in order to resale them but we know that many people use amazon and they are very successful with it , below is a video on how to do it manually or with the help of the zik Analytics software one of the best softwares to find what to sell on ebay.
Using Retailers as your dropshipping suppliers : You want to use a supplier that is reliable because you are dropshipping and item which means that you aren’t going to send the item therefore you need to make sure your item it’s going to be as described and it’s going to be shipped on time , that’s why we recommend you to use retailers as they are top droshipping suppliers and avoid using wholesale suppliers as they are not focus on the final customer they are used to deal with businesses below , also to access to a wholesaler you usually need to be already a business or pay a fee i.e. salehoo , the retailers are free dropshipping suppliers as they are for the end customer , below is a free dropshipping supplier list for the UK and the US market to help you get started.
Dropshipping Suppliers UK:
- SmythsToys – Excellent Toy Supplier , toys are one of the best dropshipping products as they sale all year round so you definitely want list some of them
- Domu – Household and Garden Furniture another top dropshipping products for your store that will bring you sales.
- Asda (Wallmart in the US) – You can find anything in there , perfect supplier to find drop ship products to sell.
Dropshipping Suppliers US:
- Sams Club – Great us dropshipping supplier , you can find any product at a really good price.
- HomeDepot – Household every day products at a really good price and fast shipping one of the best dropshipping suppliers to use in the US.
- Wallmart – Lots of products to drop ship on ebay , make sure you only chose the one’s sold by Wallmart avoid using any third party suppliers
Dropship Aliexpress to ebay: This last method is the most advance method for dropshipping on ebay and it’s the one we DO NOT recommend if you are just starting out with your dropshipping business in ebay due to the long shipping times as they are China dropshipping suppliers and problem with the items not being as described. The advantages about dropshipping from aliexpress to ebay is that the margins are higher than the other two as the competition is not that high due to the fact that Chinese Sellers only focus on price and don’t optimize their ebay listings correctly , here you can find a video on how to dropship from aliexpress to ebay:
How to be a successful dropshipper?
The key for being a successful dropshipper is to be constant and work on your ebay dropshipping business every day , it is better to list 5 items a day than 100 items in one day as eBay likes accounts with Activity. Other important factors are your Sell trough rate on ebay which is the number of listings sold on your ebay by the numbers of listings you have listed on your ebay , as well as , what products are you listing , as you need to be able to find products that are selling or are likely to be sold and not just fill your ebay account with a lot of products with no optimization whatsoever.
As profit margins are low , is dropshipping worth it? There are a lot of reasons why people think that dropshipping on eBay is not profitable due to low margins and high competition but we can guarantee you that there is still room for profit as we are doing it ourselves and we are making more than a full time income from the confort of our home , below you can find a printscreen of our sales for the last 12 months on ebay.
Obviously as you can see in the image there are 54159 transactions , which means this eBay account has a lot of activity and therefore a lot of work which we couldn’t manage by ourselves that’s why another Key point to be successful with your eBay dropshipping business is to be able to automate or outsource the daily tasks so you can free up your time to manage and focus on grow your ebay dropshipping account and make more money each month.