Dropshipping might be one of the most profitable online ventures today, especially if you do things right, but it isn’t the easiest path to good passive income earnings.
Just like all other income-earning opportunities out there, dropshipping requires you to put in a significant amount of time, money, and efforts.
There are tools you must invest in if you want to make the most out of the venture, but above all, you also need to make sure that you are running the dropshipping business on the right platform and ecommerce site.
Today, we look at one of these ecommerce sites for dropshipping, eBay. Is it the best place for you to kick off dropshipping? Are the terms favorable? What is the earning potential from eBay?
How do you dropship on eBay from AliExpress? But most importantly, is dropshipping on eBay from AliExpress dead as some people claim? Well, in this article, we’ll look at all the important aspects of dropshipping on eBay and hopefully offer you answers to all the questions above.
But before we go down too deep on that road, let’s start by noting that dropshipping on eBay is now regarded as a no-go, especially for new dropshippers, and you may want to look for other alternatives if you are going to make the most out of dropshipping.
One of the reasons for this is that the recent updates to eBay’s dropshipping policies are more averse towards the whole dropshipping thing, and eBay has even gone as far as threatening to remove the listings of dropshippers from their search results.
The new update also includes the threat to display all dropshipping listings at lower prices in the search results, and even worse, eBay is threatening to have the listings removed from the site completely.
As a result of these policy changes, eBay dropshippers are now in search of the next best alternatives to promote their products. All these changes bring us to this – is it worth dropshipping on eBay, and if you are considering dropshipping on eBay, what are some of the things you should know, and how are you expected to handle things on the site?
First things first…
What is eBay?
eBay refers to one of the leading online auction websites that allows you to sell your products online.
And just like all the other ecommerce sites like AliExpress and Amazon, eBay boasts an increasing number of users has reached a high of 182 million users at the end of Q2 of 2019.
As a result of this big number of users, eBay has attracted an increasing number of online sellers, all looking to find new customers and sell products to.
How does eBay work?
eBay has a rather simple setup, and users get to search for, bid on, and then buy the items that tickle their fancy. This ecommerce site represents one of the biggest markets for everything and anything from small items of jewelry to cars.
As a seller, you’d post your products along with the starting bid for those products. Often, the lower the product’s starting bid, the higher the likelihood of customers bidding on those products.
Buyers, on the other hand, get to bid on the listed products for a given number of days that are set by the seller, until the time that the day or time that the seller receives the highest bid for that products. When the highest bid lands, the seller gets to sell that product.
But this is not the only selling option that’s used on eBay. In other cases, the sellers get to add a Buy It Now tag or option on the listed products, and this often means that the seller controls the price of the product, and the buyers buy at the fixed price without bidding.
Dropshipping on eBay
What is dropshipping?
If you are looking for an online business model that allows you to sell and earn money from products without having to do much of the hard work around handling products, then dropshipping could be an excellent place for you to start.
In this business model, dropshipping, the business owner gets to resell selected products from suppliers, while the supplier handles the creation, storage, and shipment of the products to the customers on behalf of the business owner.
Thanks to this business model, you, as the owner of the ecommerce store, get more time to focus on customer service, marketing, and brand growth, with the supplier handling the labor-intensive parts of the job.
At the end of the day, this dropshipping business can be quite beneficial since it is a low-risk business middle with low start-up costs. It is also very automated, meaning that it saves a lot of time, and the best part is that you get to choose from a huge range of products from different suppliers.
You only need to carry out adequate research to make sure that the products you have your eyes on are winning and best-selling products.
Specifics and policies for dropshipping on eBay
Before we look at the things you need do to dropship from AliExpress to eBay, let’s first take a peek at the new dropshipping policies set by eBay and how they will affect your business and earning potential.
So, is dropshipping legal on eBay? Well, whether eBay is accepting of dropshipping or not is a whole topic on its own, but if you are asking whether eBay banned dropshipping, then the answer is ‘not exactly.’
Read the ebay policy on dropshipping –
Yes, our answer doesn’t answer your question as directly as you’d want to, but the truth is that dropshipping on eBay is restricted, meaning that while dropshipping is technically not banned, the policies require you to fulfill your orders from wholesale suppliers directly.
Essentially, you have to buy the product in bulk from reliable wholesale suppliers for you to promote those products on eBay. Are there products you cannot sell on eBay?
Yes. Like most other ecommerce sites, there are restrictions on the products that you may or may not sell. But things are a little different on this auction-based ecommerce store, and you cannot resell products from AliExpress or Amazon on eBay.
Basically, you cannot dropship on eBay. On their policies, eBay states that you can’t purchase items from other marketplaces or retailers directly to customers. In this case, you don’t get to list a product on eBay, source that product from AliExpress or Amazon, the ship that product to an eBay customer.
What if you do? Well, the repercussions of these actions would result in the lowering of your listing in the search results, lowered rating/ status, or worse, the removal of the listing from the search results.
How to Dropship on eBay
You may not like the sound of this, but there is only one way of dropshipping on eBay – first find a wholesale supplier to source your products from.
While you could negotiate with some of the wholesalers to have them ship the products to your customers on your behalf, the chances of rejection are quite high. But you could make it work.
How? After purchasing inventory from the wholesale supplier, ship them to a fulfillment service- This service will handle inventory monitoring, packaging, and the shipment of the products to your customers.
Unfortunately, this model means buying inventory upfront, even without any guarantees of the products actually selling, and this translates to very high business risk, in comparison to what you’d have to deal with in the traditional setting of dropshipping.
Option 2 – Dropshipping from AliExpress to eBay
The good news is that this is a legal option, and there aren’t policies set up to prohibit this arrangement.
How to dropship from AliExpress to eBay
- Go to AliExpress, search for the products you’d like to sell. You can simplify your search by going to the best-seller categories or browsing the product categories to identify the products that get many orders
- Determine the potential product’s value by looking at the average product price on AliExpress and then calculate the estimated price of the product if you are to make any profits. Avoid the products that are either too expensive or too cheap
- Create new product listings then list the SKU to your eBay store. There are eBay tools to help you set up.
- Copy-paste the product descriptions and details and make sure that they are attractive and also persuasive.
- Use the product images if they are unique or just take better photos for your store.
Success Tips for Dropshipping on eBay
- Check your supplier’s ratings and reviews
- Check the product prices
- Make use of the AliPay service
- Focus on a supplier’s responsiveness
- Always edit and then optimize the details of your listed products
Pitfalls to consider
- First, beware of the steep competition for the items sourced from AliExpress, and also the fact that you may end up with very low-profit margins if you fail to identify unique products to sell
- eBay might be a bit expensive since you have to pay a listing fee for product listings exceeding 50 products
- You don’t get to brand or customize your ecommerce store on eBay
- You have to constantly monitor and then relist your products since you are dealing in an auction site
- Also, eBay has many restrictions regarding products, and they also dictate how you can communicate with your customers.
So, if eBay feels like a good fit for you, you may start by dropshipping from AliExpress, but beware of the pitfalls above.