How to Start a Dropshipping Business On eBay

Established in 1995, eBay is American multinational online store for consumer-to-consumer and business-to-consumer sales.  eBay is world’s 10th biggest internet based business. eBay has a huge user base.  In the second quarter of 2019, eBay had 180 million active users.

Ebay is an online marketplace for buying and selling anything. When we say “anything” we mean just anything. If you shop online, chances are there that you have already purchased from ebay. If you are thinking to make money online, chances are there that you might have thought about ebay.

You can make money from ebay in number of ways, for instance:

  1. Manufacture products and sell them
  2. Procure products and sell them
  3. Dropshipping

You can create your products and sell on ebay. You can buy products and resell them via ebay. If you want to make money on ebay via these two methods, you will have to spend money on manufacturing or procuring products. The third method to make money on ebay is via dropshipping. Dropshipping is a method where you do not buy or manufacture products, you rather work as a middle man between the buyer and seller. You take order from buyers keep your commission and forward the shipping detail to the actual seller (merchant). Rest of the work is done by the dropship merchant, he packs the item and dispatches to the buyer’s address.

Dropshipping sounds like affiliate marketing where you refer buyers to the seller and earn commission for referring buyers. However, there is a little difference. In affiliate marketing, you are referring buyers to merchants. In dropshipping, you are actually selling products by listing the product on your store. The major difference between direct selling and dropshipping is related to inventory. When you sell direct, you actually have the inventory. However, in dropshipping you do not have inventory. You only have the listing of products on your store.

How to start ebay dropshipping business?

Here are some tips that will help you to own a dropshipping business on eBay.

It all starts with research. You need to do some research and find products that are in great demand. It is easier to sell products that are in great demand rather than the products that no one is buying. However, there is also problem with selling products in great demand. There is a lot of competition. When there is competition, profit margin is small.

Look for dropshipping merchants. One marketplace that we can suggest is Aliexpress. On Aliexpress you can find a lot of merchants willing to work with dropshippers. You can also do some research on SaleHoo, Worldwide Brands, Doba, and Dropship Direct as these are some of the popular dropship suppliers.

Now, create an eBay store. It is easy all you need is paypal or credit card. You can set up your ebay store and list products for sale in less than 5 minutes. When you are listing your products, you can sell it for a fixed price or create an auction.When you create listing, you price your products at least 10 percent more than the price of your dropship supplier.

Just creating an store and listing products does not make you money, you have to do promotion and marketing as well.

When someone buys your product, you receive the money. Sine you have priced the product more than your supplier’s selling price, the additional money paid by the seller is your profit. You send funds to the supplier along with the buyers address. Then the dropship merchant packs the product and sends to the buyer. You can even have your merchant print your store detail on the package.

How to make your dropshipping ebay business a success?

As a dropshipper, you not only have to appeal to the potential buyers, but also build a strong relationship with the dropship suppliers and merchants. Some companies want you to pay a membership fee, some companies even ask for payment in advance. In case the dropshipping supplier is asking membership fee or payment in advance, you might have to spend money before your business grows. However, most of the companies give you a heavy discount if you are a good seller and give you the flexibility to pay only when a product is ordered.

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