Dropshipping is one of the most common ways for online sellers to be successful today. However, there are pros and cons to dropshipping. If you’re thinking about using eBay for dropshipping, there are certain ways to go about the process in order to respect the policies of this giant online selling platform.
Today, we’ll explore what eBay is, what it was designed for, and what dropshipping on eBay can do for your business.
What is eBay?
eBay is one of the longest-standing online auction sites in existence. Anyone can directly sell or auction their items on eBay, whether they are private citizens or businesses.
eBay’s seller base has been steadily growing over the past several years, along with similar sites like AliExpress and Amazon. Currently, eBay hosts around 182 million users on the platform.
How Does eBay Work?
On eBay, users can find and purchase nearly any product, from electronics to furniture to vehicles and everything in between.
Generally, eBay sellers will list their auctioned products with a low starting bid in order to entice buyers to join the bidding. Products will be listed for a certain amount of time, and the highest bidder at the end of the bidding period will be able to purchase the product.
However, many sellers also include an option for buyers to purchase outright for a fixed price that is higher than the original starting bid. This allows serious buyers to bypass the bidding period if they want the item right away, although they may pay a premium for the opportunity to do so.
What is Dropshipping?
Dropshipping is a business model in which the owner of a business resells products from a supplier who takes care of; the manufacturing, storage, and shipping of products. This model allows businesses, sellers, and entrepreneurs to focus more energy on their company’s; marketing efforts and customer relations, leveraging products made by the supplier.
Why People Choose to Dropship
With no minimum orders, dropshipping allows businesses to fill large and small orders with ease. It also means there’s no risk of overproducing.
Generally, the dropshipping process is heavily automated, which makes it easy for business owners to process orders as they come in.
Finally, dropshipping often allows business owners to pay wholesale prices for their products. This is due to the fact that items are bought in bulk from the manufacturer; instead of not being specially designed for any specific company or brand.
Is Dropshipping Allowed on eBay?
It’s important to note that dropshipping is a legal business model in general. However, the question of whether dropshipping on eBay is allowed according to site policy is a separate concept altogether.
eBay Policies on Dropshipping
eBay dropshipping is not banned, but the practice is restricted to specific circumstances. eBay allows sellers to dropship, but only if the seller purchases products in bulk from a wholesale supply source.
If you’re reselling items from another online marketplace that operates in competition with eBay, such as AliExpress or Amazon, dropshipping is not allowed. eBay strictly enforces these rules and reserves the right to; remove listings, lower them in the search results, or lower a seller’s platform status or rating.
What You Can Do on eBay
eBay dropshipping software is still a viable resource for sellers looking to leverage this valuable business model. Here are the guidelines you’ll have to follow for successful dropshipping on eBay.
Buy Wholesale
Purchase your products directly from wholesalers or suppliers, not from competitive online storefronts. If you break this rule, your listing could be removed and your eBay store’s success could take a hit.
Guarantee Fast Delivery
eBay policy states that sellers must guarantee delivery of purchased goods in less than 30 days. This applies to all of the platform’s users, in addition to dropshippers.
Make sure to keep this policy in mind when you’re forming relationships with the wholesalers that are providing your products, as late delivery could mean unsatisfied customers, as well as issues with eBay dropshipping software.
Ensure Safe Arrival
eBay sellers are responsible for any issues with delivery and/or fulfillment. This means that dropshippers and individual sellers alike will accept the responsibility for shipping issues, not eBay itself.
You can prepare yourself to successfully deal with broken or defective products by making sure you have samples of a functioning product on hand, in addition to having a refund or replacement plan at the ready.
Is Dropshipping on eBay Worth It?
To put it plainly, eBay dropshipping is not worth it. eBay dropshipping provides very little control over the supply chain while putting the full responsibility of shipping and fulfillment on the business owner’s shoulders. This could set up your business for fulfillment issues and disappointed customers.
Plus, since eBay dropshipping only allows wholesale product sales, businesses aren’t able to customize their items whatsoever. This means that you can’t offer branded products or packaging, which can affect brand identity and customer retention.
Many eBay dropshipping sellers also get very little profit to match the low overhead costs.
Alternative for eBay Dropshipping and Fulfillment
Instead of eBay dropshipping, consider these alternatives for your company’s shipping and fulfillment processes.
1. Self-Fulfillment
When you have control over the entire fulfillment process, you can customize and brand your products as much as you like, source them from anywhere, and not have to worry about a complex supply chain. This option is best for small businesses with low order volume.
2. Outsourced 3PL Fulfillment
If you want to maintain control over your fulfillment process but have too many orders to handle it yourself, consider hiring a third-party logistics company. A 3PL can assist in task and supply chain management. Moreover, this will allow you to focus on the parts of the process you do best.
Jumpstart Your Business with a 3PL
Though eBay dropshipping can be a good place to start, give your business the chance at growth and prosperity it deserves. You can do so by making the change to a 3PL for your fulfillment processes.
Want to learn more about what a 3PL could do for your business? Contact Print Bind Ship and get in touch with an expert and receive a free quote today.