Interested in dropshipping on eBay, and want some help to get started? In this article, I’m going to show you how easy it is to start your own ebay dropshipping business. It is a 4-step process, and you’re going to need to do the following things:
- Create an eBay account to sell on
- Find cheap dropshippers
- Find cheap items to dropship on ebay
- List the items on ebay and use marketing techniques to make your listing stand out in the crowd.
This article is going to go through all of these 4-steps for you. One thing though: while there is a lot of money to be made by dropshipping on eBay, there is even more money in dropshipping on Amazon. This is because the seller competition on eBay is much stronger than it is on Amazon. There are more sellers and stronger price-competition on the whole. Of course, eBay has more users, so it is a give-take. Amazon is still my preference for traditional dropshipping, which is why I teach in my free ebook how to make $10,127.25 by dropshipping on there.
Step 1: Create an eBay account to sell on
This is pretty straight forward: go ahead and make your account, if you don’t have one. If you do have one already, use that, because you should hopefully have built up some feedback on it.
Here are some tips for creating an eBay account suitable for dropshipping:
- Dropshipping on eBay is useless if you don’t have feedback. Without feedback people won’t trust you. You can list items on there and get your friends to buy it from you to quickly build feedback. You can also buy cheap items and get positive feedback as a buyer too, but that seller feedback is most important. Try to get at least 10 positive pieces of feedback.
- Personalize your profile! Add a picture, add a description of your “business.” If people see you’ve written about your business in your profile, they will trust you more. I go more into this in my article on how to increase your eBay sales.
- Don’t purchase any premium eBay account type yet (such as opening a store) until you’ve made some sales. You don’t want to spend money until you need to since you’re just beginning. In the future when you’ve made more sales, you can turn into an eBay store and save yourself money on fees.
Step 2: Find cheap dropshippers for eBay
You can’t start dropshipping on eBay unless you have access to a list of dropshippers who will sell you items for a lower cost than their going-price on eBay, because you won’t make sales in the beginning if your prices aren’t competitive (in the future you can, but not now!).
For example, if you wanted to dropship Samsung Galaxy tablets on eBay, you’ll need to locate a dropshipper who is dropshipping them for prices lower than their average going price on eBay. That way you can list your item for that price and make a profit from sales.
So where do you find these super-cheap suppliers? I’ll let you in on a secret: PowerSellers use wholesale supplier directories like SaleHoo (which I strongly recommend). SaleHoo contains over 8,000 low-cost suppliers, perfect for dropshipping on eBay:
The reason I strongly suggest you use SaleHoo is because if you try and find suppliers yourself using websites like Google to search for them, you’ll never find the super-cheap suppliers. In this article I explain why: it is because to get to the top of search engines like Google you have to spend a lot of money, and really cheap suppliers cut their marketing budgets to slash their item prices, and rely on wholesale directory lists like SaleHoo to bring in new clients/customers because it is free marketing for them.
Once you’ve purchased a subscription and have access to their supplier list, use their search engine filters to only look for suppliers that are located locally, and are willing to dropship items on their catalogs. You can filter the results in SaleHoo by using this menu:
The reason you only want local suppliers when dropshipping on eBay is because if you use international dropshippers, the shipping time is going to be long and people are going to either
- Get upset if you weren’t upfront about this and leave you negative feedback (which you really DON’T want!).
- If you are upfront, people won’t buy from you because they don’t want to wait 2+ weeks for the item to arrive, and you’ll lose to your competitors located in those countries, and you’ll have wasted your money by listing an item and paying the fee when you were never going to sell it anyway.
Once you do that, SaleHoo will reveal their local dropshippers. Perfect! Now you just need to move onto step 3…
Step 3: Use SaleHoo’s Market Research Lab to identify profitable items in supplier’s catalogs
The next thing you need to do before you start dropshipping on eBay is identify items to list and sell. Because you’ve already identified low-cost, local suppliers in step 2, all you need to do is go through each supplier’s catalog and compare their prices with the going prices on eBay. When you find an item that is priced lower in a supplier’s catalog to it’s going price on eBay, you know you’ve found a winning item that is good to list.
The fastest way to do this is to use SaleHoo’s free tool that include with their subscription, the Market Research Lab. This identifies best-selling items and will also let you know the average selling price for an item. You can look at the stats of up to 5 items at a time, making it a fast way to research the going-price of eBay items.
For example, take this dropshipper that SaleHoo gave me, H&J:
I went through their catalog and discovered this item: A Set of 4 Westar Stainless Steel Lights.
You can see in their catalog they are listed for $60 which includes shipping within the USA. So what I did was I signed into the Market Research Lab, and typed it into the search bar:
The Market Research Lab then gave me the following stats, including the average going-price on eBay. It turns out on average the going price for this on eBay is $87.89:
So each time you sell this, you get $27.89 before fees in profit – awesome. This is a great item to dropship. So go through the supplier’s catalogs and find items like this, that is step 3. Moving onto step 4…
Step 4: Make eBay listings that sell
I won’t go into detail on this, because I’ve already written a whole article on how to increase eBay sales. Here is the gist of that article:
- Use your listing to build trust and authority.
- Draw attention to the most important information in the listing.
- You don’t have to have the prettiest listing for it to sell, so don’t be intimidated by super-professional looking templates and assume you can’t compete.
See? Dropshipping on eBay isn’t that hard.
If you follow these 4 simple steps, you’ll be dropshipping on eBay in no time:
- Set up an eBay account, and build up your eBay feedback!
- Use SaleHoo to locate low-cost, local dropshippers. It has a 60-day money back guarantee so you can go in play around and always get your money back if you don’t like it.
- Go through the catalogs of those dropshippers and find items that are priced lower than their going price on eBay (you can use SaleHoo’s Market Research Lab to identify this fast)
- Put your items up on eBay and SELL THEM!