To find out the cost to dropship on eBay, we should start by the platform fees first. In general, There are two types of eBay fees:
1) eBay Insertion Fee
Also called the listing fee, eBay charges this fee on every listing you post beyond the number of zero insertion fee listings that eBay offers.
You get 200 zero insertion fee listings per month. And beyond that, the fee for listing an item in most categories is just $0.35.
Most ebay dropshippers that are just starting don’t reach 200 product listings; in fact, many dropshippers make their first sale with less than 10 product listings on their account.
Considering that, we can say that the cost to dropship on ebay until now is zero.
2) eBay Final Value Fee
Also known as selling fees, these fees are a percentage of an item’s total sales price. You pay this fee only when you make a sale, and it’s just 10% for most sellers or even lower.
The important thing to know about the final value fee is that we don’t immediately pay it after the sale; instead, eBay requires its payment at the end of the month.
It is even better because maybe at the end of the month, you are already making sales.
Again, the cost to dropship on ebay for the first time until now is still zero.
After looking at the fees required by eBay, let us look at our payment processor fees. PayPal is the online bank that processes payments from buyers to sellers on eBay.
When a buyer pays for a product, the amount is sent to our PayPal account, which then deducts the transaction fee from the sale price.
Creating a PayPal account is completely free; however, when receiving payments from buyers, we pay two types of fees:
1) PayPal Transaction Fee
If you are a merchant that uses PayPal to accept payments online from customers and clients in the US, then PayPal takes 2.9% of the payment, before putting the money in your account.
If you receive international payments outside of the US, then PayPal takes 4.4% of the payment.
Here are the PayPal standard transaction fees:
2) Fixed Fee Based on The Currency
In addition to the percentage fee, there is a small fixed fee that PayPal charges. The fee amount differs for each currency.
For example, if the transaction is made in US Dollars, then the fixed fee is $0.30. You can get the exact amounts for each currency on PayPal’s page.
Until now, our budget is still safe. ebay and PayPal accounts creation is free, and you don’t pay any upfront fees. You only pay once you start making profits.
Dropshipping Automation Costs
Dropshipping automation is critical if you want to build a successful dropshipping business without wasting a lot of time or risking your accounts.
There are many parts that you can automate in an eBay dropshipping business. For example, product listing, price, and stock monitoring, auto messaging, trucking uploader, Vero Detector, etc.
These automation tools surely cost some money to dropship on eBay, but don’t worry; we’ve got your back.
With AutoDS, you can get all these for 1 Dollar for the first week. And if you are lucky enough, you would start making sales in that first week.
1) Product Lister
A product lister is a must if you want to save time and energy to spend on other important things like product research.
Instead of going to a product page and copying the title, the description, the item specifics, the pictures; do that with one click using the AutoDS Uploader.
Let us try to upload a random product from amazon, for example.
Here is the AutoDS Uploader, past any product link from the supported suppliers, choose the source website, and the eBay marketplace.
With one click, we can upload the product to our store.
After clicking Grab Details, the uploader detected a Vero word and warned us.
A Vero is a branded and registered product in an ebay program called the Verified Rights Owner Program. Which is what the word Vero stands for.
Listing these products that are part of the Verified Rights Owner Program can get your account suspended indefinitely.
That is why you need a product lister that detects Vero products and minimizes the risks of your account getting suspended.
AutoDS got the biggest Vero list that can help you keep your account safe.
For the purpose of explaining, we clicked, “Let Me Continue!”.
The product was uploaded and now it is ready to publish. We just have to set our desired profit and let the uploader do the calculations and price the product for us, rather than manually calculating the fees and profits of every product we want to upload.
To learn more about fees and profit calculations using AutoDS, please refer to this article about the difference between breakeven and % profit and how to calculate It?
2) Stock and Price Monitor and Updater
We can call this automation tool a monitor or a repricer. The AutoDS Monitor does both jobs.
First, it can monitor the products you listed on their source website and detect any changes that happen on the product page; most importantly, the price and stock changes.
Then comes the role of the repricer. Which can update your listings price and item quantity according to the changes happening in the source page.
For example, if the price increases in the source page, it will automatically update your listing price accordingly so that you don’t lose money.
And the same for stock monitoring, if the product in the source page goes out of stock, the monitor will update your listing, making it out of stock.
Now that we saw dropshipping automation tools, you may still be confused about the cost to dropship on ebay using these tools.
But as we said before, you can use all these tools for the first week for only 1$.
Not only that, but you will also get access to AutoDS Finder with 400 hundred free credits. Which will allow you to find 400 hundred hot products that are selling well on eBay.
The tool scans thousands of dropshippers and sellers on eBay, finds their best selling products, and sharing them with AutoDS users.
Because AutoDS is an All In One Dropshipping Tool, you can get all the above automation tools in a basic subscription that costs as little as 8 dollars a month.
The Paypal Jail
When you are just starting eBay, and your PayPal account is not used to receiving payments, PayPal will load some buyers’ payments to the on-hold balance in your account.
And you will have to wait until the buyer receives the product, for PayPal to release the money so you can use it freely.
This money holds usually lasts for the first three months. After that, transactions start going directly to your account balance without PayPal holding them.
To deal with this hold, you will have to spend some cash to pay the supplier and ship the product to the customer.
The good thing about it is that you already got the money on your PayPal account.
Although the money is in the hold, once the customer receives the product, the funds will be available for you to withdraw or use to process future orders.
So as you make sales, your PayPal balance increases, and you will no longer need to use the cash.
As a Summary
This article is for all the people out there who have an interest in dropshipping. And want to know the exact cost of starting an eBay dropshipping business.
Since the creation of eBay and PayPal accounts is free, you will have to spend only 1$ to start with dropshipping automation. And few more bucks to ship the first sold products to customers.
The best thing about dropshipping when you are just beginning is that it has little to no risk.
Thanks for reading, if you are interested in mastering dropshipping, check our A-Z step-by-step dropshipping course by Lior Pozin the CEO of AutoDS, sharing 11 years of his dropshipping experience.