Since being founded in 1995, eBay has been known for people selling old or unwanted items.

Although eBay started as an auction-based marketplace and was famous for used products, it is now a general online platform with brand-new items.

Since this transition from second-hand items to eCommerce giant, eBay now serves as a selling channel for sellers of all types, and dropshippers are no exception.

Additionally, due to its worldwide presence, a significant amount of buyers, and organic traffic, you can sell items faster and more efficiently than most other platforms.

Furthermore, no initial investment is needed compared to other dropshipping methods like starting your online store. Without the need for marketing or even a domain, you eliminate upfront costs and can begin to create and scale a profitable business without any worries.

So, if you’ve been thinking about starting an eBay dropshipping business, or if we’ve piqued your interest to learn more about it, keep reading. This article goes over all the steps of how to sell on eBay for beginners.

Why Sell on eBay?

A lot of people hesitate to start dropshipping on eBay and for many different reasons. One of the everyday worries and questions we get is, “Do people still actually buy stuff off of eBay?”

The answer is yes! Absolutely.

With an average of 880 million visits per month, it is safe to say eBay is here to stay. Additionally, in 2020, eBay had 183 million active buyers worldwide, with over 70% of that traffic coming from the US.

Furthermore, although eBay US is the more common choice to sell on, other regions such as eBay AU, eBay UK, and many more are gaining popularity.

Now, putting aside statistics, let’s talk about exposure. As mentioned before, by selling on eBay, you can reach hundreds of millions of shoppers worldwide. Your items will get views without you spending any money, time, or effort.

And now that you have a better understanding of the potential of selling on eBay, it’s time to show you how to sell on eBay.

Q4 Dropshipping:
Events, Trending
Products, Tips & Tricks

Advantages & Disadvantages Of eBay Dropshipping

In general, there are both benefits and drawbacks of eBay dropshipping. With that said, let’s take a look at the advantages and disadvantages to have a clearer picture:

Advantages

  • Free organic traffic
  • Easy to start
  • Zero upfront investment
  • Promoted listings

As eBay is one of the largest eCommerce platforms, the site has over 180 million eBay users. This means we’ll have plenty of organic traffic, helping us to generate sales. On top of that, it is easy to start dropshipping on eBay. All we need to do is open an eBay account and start selling. Also, we can start selling on eBay for free. Thus, we don’t need an initial investment.

Additionally, we can easily promote our products with the promoted listings standard and promoted listings advanced features. Thus, we can scale our earnings on eBay.

Disadvantages

  • High competition
  • Limited customization options
  • Selling limits

On the downside, eBay has a high level of competition since selling on eBay is free. Moreover, unlike Shopify and Wix, eBay is not a customizable eCommerce platform. Hence, we will have limited customization options when building our dropshipping store. Nonetheless, AutoDS has a wide selection of professional templates to help us differentiate our store from the competition.

Furthermore, eBay restricts sellers with selling limits. For instance, if we are a new eBay seller, we can only sell ten products for up to $500. However, restrictions are in place only to filter our unreliable sellers. Therefore, if we stay within the website’s rules and regulations, we can gradually gain eBay’s trust and increase our limits.

eBay Dropshipping Policies

Now that we know the pros and cons of eBay, let’s learn about eBay’s dropshipping policies.

In essence, eBay states that the platform supports dropshipping, but only when we are dropshipping from wholesale suppliers to our customers. 

On the other hand, eBay mentions that fulfilling orders from another retailer or marketplace that ships products directly to our customers are not allowed. Thus, if we dropship from another retailer, our account may be flagged or suspended temporarily or permanently. 

While there are ways to overcome this, it is better to dropship from a wholesale supplier if we are a beginner dropshipper. If we are experienced dropshippers, we can dropship from retailers and use different methods to overcome the challenges. Nevertheless, we should always try to upgrade our selling limits from the get-go to avoid future issues.

Tips For Dropshipping On eBay

To summarize what we went over in the article and emphasize the key points, follow this checklist, and you’re golden.

  • Product Research – Besides finding the right product finding method for yourself, always look into the product’s demand and profitability and check your competition. This way, you won’t waste time on products that won’t perform well.
  • Customer Satisfaction – Process orders as they come in without delay, always answer your buyer’s questions, and handle any cases you might have.
  • Knowing Your Fees – Calculating final value fees, subscription fees, and promotion fees are a must.
  • Using Multiple Suppliers – One supplier can generate some sales, but 2-3 suppliers are ideal for use in the long run. This will help you profit more, diversify products to stay competitive and keep your store safe.
  • Fast Shipping & Free Returns – These may seem basic, but they are significant. Buyers often choose to go with a different seller for the same product, even at a higher price, due to faster shipping and/or free returns.
  • Scaling With Automation – As mentioned above, product importing, order fulfillment and customer service can all be done manually for some time. You will notice how it can slow you down, though, and eventually take too much of your time.

How Do I Sell On eBay For The First Time?

ebay main screen

To sell on eBay, there are a few things you will need to know. The fundamental but crucial aspects of how to sell on eBay for beginners include finding dropshipping products, automating your dropshipping business, and scaling it.

Here are the steps to starting a successful eBay dropshipping business:

We cover all of that and more, but let’s start with the basics.

1. Sign Up for eBay

How to Sell on eBay For Beginners #1

The first step to start selling on eBay is signing up. Head over to eBay.com and click ‘Register’ on the top left corner to create your account.

Once you fill in your name, email address and click ‘Create Account,’ you’ll be redirected to eBay’s home page. This is where you will see ‘My eBay.’

That is your account settings and preferences where you will continue to set up your selling account—things such as payment methods, business policies, and more.

Once you complete this step, you will be ready to start listing products in your new dropshipping store.

2. List Your First Item Manually

How to Sell on eBay For Beginners #2

The second step to getting your store going is listing an item to sell. Although you are creating a dropshipping store, we highly recommend you start by selling something from home.

It is best to list at least three items from home every other day to start slow. The reason for this is because eBay expects new sellers to start slowly to minimize risks.

If you start fast and list too many items from the get-go, you will likely get a temporary suspension while they look into your account.

Beginner’s Tip: Dropshippers with new seller accounts should conduct all actions manually in the beginning. At this stage, it is essential you create and publish listings manually and not automatically through dropshipping software.

After about two weeks, you can start listing dropshipping products and upgrade from manual listing to automated product importing to save time and scale correctly (we’ll get to that soon). 

3. Product Research

Moving on to our second step, we have product research. This is where things start getting serious. Once you have listed a few items from home, you will be ready to start sourcing products and truly begin dropshipping.

Keep in mind that product research requires a lot of work. The more you research, the more gems you’ll find.

Therefore, don’t be shy to dig deep and put in the time to research. At the end of the day, the products in your store have a significant effect on your store’s success.

What Is the Most Profitable Product to Sell on eBay?

The most profitable product to sell on eBay is not just one product. Ebay’s best-sellers are the most profitable products, as they’re holding a rich selling history with profit coming in daily. The secret is to find those hidden gems and sell them, as well as products similar to them.

Here’s a list of the best-selling items on eBay in 2021. Use them to get inspiration on the type of products that have the highest profitability selling on eBay:

  • Jewelry & Watches (Watches, Engagement Rings, Earrings)
  • Computer Accessories (and replacement parts)
  • Cell Phone Accessories
  • Clothing (Men/Women’s Clothing, Women’s Bags)
  • Health & Beauty
  • Automotive (Car parts & accessories)

Don’t forget that finding the right items to sell is one of the biggest and most important tasks for dropshippers to master to have a successful dropshipping business.

That is why we share numerous methods and strategies for finding best-selling dropshipping products through our blog and our YouTube channel.

Furthermore, besides all the product finding techniques we teach, we have a Hot Products Research Tool. From here, you can easily find winning products to add to your store in seconds!

What Are The Best Dropshipping Niches for eBay?

best dropshipping niches

When starting a dropshipping store on eBay, it is essential to get familiar with all of the best-selling niches on eBay.

Although we’re not allowed to sell certain products, there are hundreds of millions of products that we can sell! However, the safety of your dropshipping business must know which not to sell as well.

It would be endless if we were to mention every product you can safely sell in your eBay dropshipping store, so here are the top product niches to focus your attention on:

  • Arts, Crafts & Sewing
  • Automotive
  • Baby
  • Beauty & Personal Care
  • Cell Phones & Accessories
  • Clothing, Shoes & Jewelry
  • Computer Accessories
  • Electronics
  • Health & Household
  • Home & Kitchen
  • Kitchen & Dining
  • Musical Instruments
  • Office Products
  • Patio, Lawn & Garden
  • Pet Supplies
  • Sports & Outdoors
  • Tools & Home Improvement
  • Toys & Games

Within each one of these categories, there are hundreds of thousands of products to choose from. Pick any one of these to select and start your search for your next best-seller. 

Which Dropshipping Products Should I Avoid?

Now to the products/product categories that we need to stay away from. Although there are no direct or written rules, these can be potentially dangerous to your customers, therefore dangerous to your dropshipping business.

Here is the list of products to avoid selling in your dropshipping store:

  • Unregulated and regulated supplements
  • Adult products
  • Third-Party infringements
  • Counterfeit products
  • Health products: “Before-and-After.”
  • Weapons
  • Tobacco products
  • Drugs and drug-related products

4. Selecting Dropshipping Suppliers

The general process is to choose a product/niche, then select a supplier, and once on your supplier site, narrow down your search by going into subcategories of your niche in a few moments.

AutoDS supports over twenty-five suppliers, which gives you access to millions of potential dropshipping products. 

After that, look for items that have proven to sell well and have good reviews. To branch out using that exact item, you can go for similar products.

To simplify the product research process, here’s what you need to do:

  • Select a product/niche
  • Choose a reliable supplier
  • Narrow down your search
  • Import the product to your store
  • Sell and profit!

Additionally, there is a quick and easy way to find products with a good track record on eBay.

If you want to check if a product is selling well before adding it to your store, look for the same product or similar ones on eBay.

Search for an item and then use the filter “Sold Items” under “Show only” to see only products that have sold.

Filter Sold Items

After that, you can click on an item, see precisely how many times the item has sold, and click ‘Sold’ to see when.

How Many Times an Item Sold

Beginner’s Tip: Keep in mind one golden rule when selecting products for your store – Don’t try to reinvent the wheel. Focus on looking for trendy and/or high-demand items, always check product reviews and stick to a certain level of quality.

5. How To Calculate Profit When Selling On eBay?

There are a few basic things to keep in mind and look after to conduct proper profit calculations.

This step is critical for calculating our real profit correctly, but it can also help when pricing our products.

Overall, we have six parameters to consider to calculate our profits correctly:

  1. eBay Store Fees
  2. Category Fees
  3. Final Value Fees
  4. Payment Processor Fees
  5. Promotion Fees
  6. Buy/Sell Price

So, how can we know what our fees are and how much we’re profiting?

Simply by using our free AutoDS eBay Fee Calculator. Enter the required information, and you will know your expenses and profits from your eBay business. Enjoy this free, time-saving tool!

6. Import Products Quickly & Easily

So, how do we import products to our eBay store once we have researched and found items to list?

To list items in your eBay store manually, you’ll need to download the images, copy and paste the title and description, and keep track of price and stock movements.

However, these activities take up precious time and can keep us from scaling our dropshipping business. Therefore, here is how to save hours of time on manual work and automate your dropshipping tasks.

Dropshipping Automation

Automate Your Dropshipping Business

Once you get things rolling and get the hang of managing your dropshipping store, it’s time to upgrade your dropshipping business.

There is no doubt that a successful dropshipping business comes from hard work, determination, and dedication, but what if there was something to help scale your store?

Well, lucky for us, there is. Over the years, dropshipping has developed into a whole industry with dropshipping software to help dropshippers save time, increase productivity, and ultimately increase sales and profits.

The main dropshipping business tasks and aspects you want to be automated to save yourself hours of manual work, which will free up time to focus on scaling your business further, are as follows:

  • Finding hot products to sell 
  • Importing them to your store
  • Order fulfillment 
  • Store optimization 
  • Customer service management

Learn more about AutoDS’ eBay dropshipping software and all of its time-saving features to take advantage of dropshipping automation truly.

So, now that we explained the benefits of automation, let’s go over some of the critical automation features and services AutoDS offers that will significantly improve your dropshipping experience.

How To Automate Product Importing?

The first step to automating your dropshipping tasks is to automate your product importing process. To begin, add the AutoDS Dropshipping Helper Extension to your Chrome browser.

Our Helper extension provides you the option to automatically import the product with its title, images, and description to AutoDS.

There are three different ways to import products automatically.

  • Use the One-Click importer, which sends any product you like directly to the AutoDS drafts page.
  • Copy the Product URL/ID and paste it into AutoDS. (one by one or in Bulk)
  • Utilize the Bulk Importer by CSV to import as many products as you want in a few clicks.

By far, the quickest method is by using our One-Click importer. Here is a quick how-to. As mentioned, make sure you have our AutoDS Dropshipping Helper Extension.

Then head over to your favorite supplier and search for a product you’d like to sell in your eBay dropshipping store. Once you find it, click on the product page, and you will see the AutoDS logo in the right-hand corner.

Import Products with 1 Click

Upon clicking the Import button, the product begins importing to AutoDS. In a few moments, AutoDS completes the import process, and you can start editing and optimizing it on the drafts page.

Edit & Optimize Your New Product

7. Order Fulfillment

After importing products, customers will undoubtedly visit our stores. So, we need to fulfill customer orders. In general, there are two different methods to fulfill orders: manual and automatic.

To clarify, the manual fulfillment method includes visiting our supplier’s website, filling in customer information, and placing customer orders. Since we are fulfilling orders one at a time, multiple daily orders mean fulfilling them is time-consuming and tedious.

On the other hand, the automatic method saves time and labor by letting dropshipping software fulfill our customer’s orders. Therefore, the automatic order fulfillment method offers an efficient and swift solution for order fulfillment.

With that in mind, the AutoDS order fulfillment tool is one of the best-automated order fulfillment solutions. Furthermore, there are two ways to automatically fulfill orders: Automatic Orders and Fulfilled By AutoDS.

Automatic Orders

Essentially, Automatic Orders is an automated order fulfillment feature that uses our buyer accounts. To clarify, buyer accounts are our accounts on supplier’s websites with integrated payment options such as Paypal or credit cards.

Plus, this feature also displays order statuses according to where our customer’s orders are in the fulfillment process.  On top of that, Automatic Orders automatically sends tracking information to our customers.

Fulfilled By AutoDS

Another automatic fulfillment method that offers a complete order fulfillment solution is Fulfilled By AutoDS. This feature includes order fulfillment, tracking information updates, and one-click returns.

Unlike Automated Orders, Fulfilled by AutoDS doesn’t use our buyer accounts and payment methods to fulfill customers’ orders. Instead, it uses AutoDS’ buyer accounts to process orders from our suppliers. Therefore, our buyer accounts are fully secured from getting locked.

Also, with Fulfilled By AutoDS, we can automatically process customers’ orders using a balance (AutoCredits) on the AutoDS platform. On top of that, Fulfilled by AutoDS automatically sends tracking information updates to the customers when they purchase.

With tracking information, our customers can quickly track their orders without contacting us. Furthermore, Fulfilled by AutoDS offers one-click returns, which process returns and refunds in a single click. 

All in all, the AutoDS order fulfillment tools allow us to fulfill orders swiftly and efficiently. With efficient order fulfillment, we can build a loyal customer base that keeps returning for more.

8. Customer Service

The last step is customer support. Customer service doesn’t end with completing your buyer’s order. To keep customers coming back and give them a reason to refer us to their family and friends, we need to give stellar service.

Firstly, you may get messages or questions from your customer regarding their order status, purchased item, shipping, etc. Additionally, you might have a buyer wanting to return an item or cancel an order.

Checking your messages, replying, answering cases, and handling returns must be done on time. Following up is crucial to keeping a good relationship with customers and earning and keeping a Top Rated Seller Status.

Just like with order fulfillment, when you see your inbox starting to fill up quickly, it will be time to move to a more productive customer support system.

That is why AutoDS went ahead and created an automated eBay Customer Service Management System.

AutoDS Customer Service Management System

AutoDS Customer Service System

With the AutoDS eBay Customer Service Management System, you can manage and reply to all your eBay customer messages through AutoDS.

Our advanced built-in customer service management system allows you to –

  • Quickly solve cases
  • Handle order cancelations
  • And paired with our Fulfilled by Service, even automatically process returns.

Furthermore, you can create and save your message templates or use the numerous templates we have created for different situations.

This helps drastically minimize the time spent managing your customer support and provides the best customer experience possible.

Frequently Asked Questions

Is Dropshipping Allowed On eBay?

Of course! eBay allows dropshipping as long as sellers are sourcing from wholesale suppliers. However, selling products from another retailer or marketplace will result in our accounts getting flagged or suspended. However there are various ways to overcome this challenge, but for beginners, it’s best to stick to sourcing from wholesalers. 

How Can I Start Dropshipping On eBay? 

We can start dropshipping on eBay by opening an eBay seller account and searching for a reliable dropshipping supplier. Then, we can source products and list them in our eBay store. From here, we’ll fulfill the orders and watch the money roll in! 

What Happens If My Dropshipping Account On eBay Is Flagged? 

Don’t worry! We can still work with a flagged eBay account. However, it’s best to revise why our account was flagged and adjust our dropshipping processes accordingly to avoid our account from being flagged again.

How Much Does It Cost To Dropship On eBay? 

Dropshipping on eBay using a regular account comes with zero subscription fees. That means we can start selling without any initial investment. But once we start dropshipping as a business, we will have to pay final value fees, store subscription fees, and insertion fees.

Conclusion

If you’ve made it this far, we hope this article helped spark some motivation by showing just how easy it is to start dropshipping on eBay for beginners. You now know why eBay is such an excellent choice for dropshippers, and how to get started.

Additionally, we hope you see the power and importance of automation tools and how they work. Take advantage of this incredible business model and start your own dropshipping business with no initial investment.

And if you want guidance along the way, join our A-Z eBay Dropshipping course, or sign up for our mentorship program to learn from the best in the business.

Good luck and happy dropshipping!