eBay started off as an auction-based marketplace, but since then, it has gone on to become an eCommerce giant.
With over 159 million active users the platform has attracted entrepreneurs worldwide.
If you also want a piece of this huge market, then one of the easiest ways is by launching an eBay dropshipping store.
It doesn’t require huge upfront capital and you can also try different products to test the water.
But before you get started, you need to familiarize yourself with the dropshipping policies of eBay along with its pros and cons.
Fortunately, this guide will cover all of that and much more to decide if eBay dropshipping is a suitable business model for you.
Let’s get right into it!
What Is eBay Dropshipping?
eBay is a popular online marketplace known for its auction-based C2C (consumer-to-consumer) transactions.
Over the years, it has evolved into a platform that also allows sellers to offer “fixed-price” listings, similar to traditional eCommerce marketplaces.
Dropshipping on eBay leverages this fixed-price feature, but with a unique twist. Instead of holding inventory or managing fulfillment, you list products for sale directly on eBay without purchasing them upfront.
When a customer makes a purchase, you forward the order details to your supplier, who then ships the product directly to the customer.
This method allows you to focus on marketing and customer service, while your supplier handles inventory and shipping.
The key difference between dropshipping on eBay and traditional selling is that you do not keep the items yourself. Instead, you mark up the product’s price to cover your costs and generate a profit margin.
eBay Most Recent Dropshipping Policy
Many entrepreneurs find eBay’s dropshipping policies confusing, especially with the platform’s evolving rules. While dropshipping is allowed, eBay has become more stringent in recent years to make sure that sellers adhere to its guidelines.
Here’s a breakdown of the most important aspects of eBay’s dropshipping policy:
1. Dropshipping is Allowed, but with Conditions
eBay permits dropshipping, but there are specific guidelines that sellers must follow:
- Sourcing from Wholesalers: You must purchase products from reputable wholesalers. Reselling items from other retail marketplaces, such as AliExpress or Amazon, is strictly prohibited. This means that your suppliers should primarily sell to resellers and not directly to consumers.
- Packaging and Branding Compliance: eBay has strict rules about branding and packaging. If your supplier’s name appears on packing slips or invoices sent to customers, instead of your business name, this can be considered a violation of eBay’s dropshipping policies. To stay compliant, ensure that your suppliers are willing to ship products without revealing their identity and that all packaging is neutral or reflects your brand.
2. Compliance with Delivery Standards
As a dropshipper on eBay, it’s crucial to meet the platform’s performance standards to maintain a good standing and avoid penalties. These standards apply to all sellers, including those who don’t handle shipping directly.
- Delivery Timeframe: eBay requires that products be delivered within 30 days of receiving payment. For dropshippers, this can be challenging since they rely on suppliers to handle shipping. To stay compliant, it’s important to partner with suppliers who can consistently meet this 30-day delivery window. Be sure to confirm shipping times and choose suppliers with reliable, timely fulfillment processes.
- Return Policies: eBay has specific requirements for returns and exchanges, and these policies must be clearly communicated to your customers. Your return process should be simple, allowing buyers to return items within the designated return window and receive refunds or exchanges in accordance with eBay’s policies. Failure to comply with these return standards can lead to buyer dissatisfaction and possible account penalties.
3. Quality Control Measures
Maintaining high product quality is essential for running a successful dropshipping business on eBay. Here’s how to ensure your products meet eBay’s quality standards:
- Quality Standards: All products listed on eBay must meet the platform’s quality standards and accurately reflect their descriptions. Misleading listings or low-quality items can lead to negative feedback, returns, and even account suspension.
- Test Orders: To reduce the risk of selling subpar products, always place test orders with your suppliers before listing their items on eBay. This step helps ensure that the product meets your expectations in terms of quality, packaging, and fulfillment. Test orders also allow you to assess the reliability of your supplier’s shipping times, which is crucial for meeting eBay’s 30-day delivery policy.
What Happens If You Fail to Comply With eBay’s Dropshipping Policies?
eBay enforces its dropshipping policies strictly, and failure to comply can lead to serious consequences for sellers. These include:
- Reduced Visibility: Non-compliant listings may be removed or pushed lower in eBay’s search results, significantly reducing their exposure to potential buyers. This can impact your sales and overall business performance.
- Account Suspension: In more severe cases, repeated or serious violations of eBay’s dropshipping policies can lead to a permanent account suspension. This means you would lose access to your eBay seller account and potentially all of your listings, which can be devastating to your business.
It’s essential to stay updated on eBay’s policies and make sure that your dropshipping practices consistently align with their requirements. Regularly reviewing the platform’s guidelines can help you avoid mistakes and contribute to the long-term success of your eBay business.
How Much Does it Cost to Dropship on eBay?
The cost of dropshipping on eBay primarily depends on the product you’re planning to sell. It is much cheaper than launching a traditional eCommerce store, but it isn’t free! You need to pay the eBay fees which include:
- Store Fees – In order to start a store on eBay, you need to purchase one of its subscriptions. The monthly plans start from $7.95 and go up to $349.95. Purchasing yearly subscriptions can save you some money as well.
- Listing Fees – This is the fee that you need while listing an item on eBay. You get 250 free listings per month; after that, you need to pay $0.35 per listing. Note that this is also commonly referred to as insertion fees.
Final Value Fees – The final value fee is charged only after you sell a listed item. eBay takes a cut of 12.9%, along with $0.30 per order. However, some categories, like clothing, have a slightly lower fee (around 9.15%) for items under certain price points, such as $149.99.It’s difficult to determine the exact cost of an eBay dropshipping store. But usually, it’s cheap because you only have to worry about the store fees at the beginning.
It also depends on the value of the product you’re planning to dropship. If it’s a high-ticket product, then you’ll obviously need a bigger investment.
eBay’s Most Popular Product Categories
While eBay allows a wide range of products to be dropshipped, certain categories tend to perform better than others. We’ve extensively discussed this in our best selling items on eBay article.
But in a nutshell, when selecting a product category for your eBay dropshipping business, consider these popular and profitable niches:
Electronics
- Gadgets and Accessories: This category is consistently popular, with high demand for items like phone cases, chargers, and wireless headphones.
- Gaming: Video game consoles, accessories, and gaming merchandise can be lucrative, especially for popular gaming titles.
- Smart Home Devices: The growing trend of smart homes has created a demand for products like smart speakers, smart plugs, and security cameras.
Fashion and Accessories
- Clothing and Apparel: This category offers a wide range of options, from casual wear to formal attire.
- Jewelry and Watches: Stylish and affordable jewelry can be a profitable niche, especially for trendy pieces and personalized items.
- Accessories: Items like hats, scarves, and bags can complement your clothing offerings and increase your overall sales.
Home and Garden
- Home Decor: Decorative items like wall art, throw pillows, and candles can appeal to a wide audience.
- Kitchenware: Kitchen gadgets, cookware, and dining accessories are always in demand.
- Outdoor Living: Products like patio furniture, garden tools, and outdoor lighting can be popular, especially during warmer months.
Toys and Hobbies
- Collectibles: Action figures, trading cards, and vintage toys can be highly sought-after by collectors.
- Board Games and Puzzles: Family-friendly games and puzzles can appeal to a wide audience, especially during holidays and special occasions.
- Remote-Controlled Toys: Drones, RC cars, and other remote-controlled toys can be popular, especially among children and hobbyists.
Health and Beauty
- Skincare and Makeup: Products like skincare serums, moisturizers, and makeup can be popular, especially for niche markets like organic or cruelty-free beauty.
- Hair Care: Hair care products like shampoos, conditioners, and styling tools can be profitable.
- Wellness Products: Items like essential oils, yoga mats, and meditation tools can appeal to health-conscious consumers.
Remember to conduct thorough market research and choose products that align with your target audience’s interests and preferences. By selecting popular categories and unique products, you can increase your chances of success on eBay.
How to Start Dropshipping on eBay?
Now that you know the basics of how eBay dropshipping works, it’s time to get to the good stuff – creating your own store!
If you’re ready, then here’s a 5-step process to help you get started:
Step 1: Create a Seller Account on eBay
Like any other marketplace, before you start selling on eBay, you first need to create an account. Thankfully, unlike platforms like Walmart, the onboarding process of eBay is straightforward:
- Sign Up: Go to the eBay sign-up page and enter your business details. This includes your business name, contact information, and other basic data. Make sure to use a professional business name that aligns with your dropshipping niche.
- Choose a Plan: eBay offers various subscription plans. The Starter Plan is ideal for small businesses, priced at $7.95 per month. This is sufficient if you’re just starting out. You also have the option to go for a yearly subscription for savings, but it’s recommended to start with a monthly plan to keep things flexible as you learn the ropes.
- Set Up Your Store Name: Choose a name that represents your business and resonates with your target audience. If you have an existing Shopify store, you can link it to eBay via the eBay app, simplifying your workflow.
Pro Tip: Keep your eBay store’s branding consistent with your Shopify or other eCommerce channels to help build recognition.
Step 2: Decide What You Want to Sell
Choosing what to sell is always the most difficult part of launching an online store. We’ve extensively covered how to find a product for eBay in the section above.
But in general, the following are some of the most popular niches on eBay:
- Cell Phone Accessories
- Auto Parts
- Indoor Growing Items
- Watches
- Musical Instruments
To refine your product selection process, use eBay’s Advanced Search Filter. This tool allows you to:
- Search by category and price range, helping you spot trending products that align with your business goals.
- See what similar sellers are offering and check their sales volume, which can give you insight into what’s performing well.
Pro Tip: Pay attention to customer reviews and ratings for potential products. High demand with low competition is ideal for dropshipping.
Step 3: Find a Dropshipping Supplier
This is the tricky part because most dropshippers look for suppliers from AliExpress. But as we know already, eBay doesn’t allow you to source products from other marketplaces.
That’s why you need to find another way to vet reliable suppliers who would sell you products at lower than retail prices.
The problem here is that most wholesalers have a minimum order quantity (MOQ). And if you wanted to buy in bulk, then why would you launch a dropshipping store anyway?
So if you’re wondering how you can find suppliers to dropship on eBay, then here are some of your options:
1. Supplier Directories
There are plenty of online directories with suppliers enlisted on them. Sometimes these directories can be quite useful because you can find all the info about different suppliers in one place.
You can browse through the list of suppliers to see whether they offer dropshipping services or not. Moreover, you can also compare different suppliers to see which one of them offers the best rates.
However, the biggest drawback of these supplier directories is that most of the good ones charge a subscription fee.
People usually think it’s not worth it because they can simply source products from AliExpress. But in this case, supplier directories are a viable option, especially if you can’t find anything else.
2. Professional Sourcing Agents
If you don’t want to get into the trouble of product sourcing altogether, then you can simply take the burden off your shoulders.
Just get in touch with a service like NicheDropshipping and let us know the product you’re looking for.
Our professional agents will help you source products at competitive prices while ensuring that they meet your desired quality standards.
3. Online Search Engines
Lastly, you can also find a supplier for your desired products with the help of online search engines.
All you have to do is hop on to Google and type (name of the product + supplier). If you want to make it more specific, then you can also add the name of a country at the end.
If you follow this method, then we would suggest avoiding the top search results. That’s because being at the top doesn’t necessarily mean they’ll offer the best price.
For all we know, they could just be dropshippers who have done a fantastic job with SEO. This is one time where you might want to browse through the second and third pages of the search results.
Step 4: Create Your Listings
Once you’ve finally found a supplier, it’s now time to create your listings. You don’t want to rush this step, because the quality of your listings will influence the algorithm to make you rank higher.
Let’s go over some tips you should keep in mind while setting up your eBay listings:
1. Creating a Title
The product title is the most important part of a listing. It needs to tell the customer what exactly they’re about to purchase in the fewest words possible.
What should a product title include? Well, here’s a general formula to keep in mind while you’re creating a title:
Brand + Product Name + Product Model + Product Type/Colour
All your product titles should contain at least the info that we’ve shared in the formula above. Feel free to add other elements to it, but make sure it’s between 20-70 characters.
2. Product Images
There’s no better way to attract customers than by using attractive visuals. The product image is probably the first thing your customers will see, so you might want to put more effort into it.
Most people would get images from their supplier for the product, but we won’t recommend that. The reason is that there’s a great chance that other sellers are already using the same picture.
You don’t want your eBay store to look like you’ve copy-pasted your listings from somewhere else. So we recommend ordering one unit and professionally capturing its photographs from different angles with a good background.
3. Product Descriptions
Product descriptions will play a major role in helping you rank higher on your eBay listings. Keep them concise and provide as much information as you can to your audience.
The customers should easily be able to understand all the features of the product just by reading the description.
Lastly, make sure your product descriptions are grammatically correct and don’t forget to naturally incorporate the keywords.
4. Set the Price
Setting the price is the trickiest part of creating an eBay listing. The competition is so high on the platform that you don’t want to price your products too high from the get-go.
We suggest browsing through the site to see the prices of your competitors and take an average of that to determine your listing price.
Only increase the price once you start receiving a steady flow of orders and have secured enough reviews.
Step 5: Forward Orders to Your Supplier
According to the policies of eBay, once the payment is cleared, you only have 30 days to fulfill the order.
That’s why you don’t want to delay forwarding the order information to your supplier.
We suggest doing it the very same day, and if it’s too much of a hassle then you can even use dropshipping automation software to make your work easier.
The Pros and Cons of eBay Dropshipping
eBay is a great platform for dropshipping for both big and small businesses alike but it also has some drawbacks. To understand why, let’s go over some advantages and disadvantages of eBay dropshipping. :
The Pros
- Easy to Start: eBay provides a user-friendly platform for new sellers. After setting up your seller account, the only challenge is finding a reliable supplier. There’s no large upfront investment required.
- Low Initial Investment: With subscriptions starting at just $4.95 per month, eBay is an affordable platform for entrepreneurs. If you find suppliers with no MOQ, this makes it easier for businesses with limited budgets to get started.
- Huge Audience: eBay has millions of active buyers worldwide, offering instant access to a large customer base. Unlike starting your own website, you don’t need to spend time or money building an audience from scratch.
- Save Marketing Time: Marketing a dropshipping business can be resource-intensive. On eBay, however, the platform helps drive traffic to your listings, making it easier to gain visibility through search rankings without requiring significant marketing efforts.
- Minimal Risk: Since eBay dropshipping doesn’t require you to hold inventory, it offers a low-risk model compared to traditional eCommerce businesses. You only pay for the products once a customer makes a purchase, and testing new products is low-risk as you won’t have to buy in bulk.
- Highly Flexible: eBay dropshipping offers flexibility in terms of working hours and location. You can run your business part-time or full-time, and all you need is an internet connection.
The Cons:
- Tough to Find Suppliers: eBay prohibits reselling products from marketplaces like AliExpress or Amazon. This means dropshippers must find direct wholesalers, and many of these suppliers require bulk purchases, which conflicts with the dropshipping model.
- Strict Rules and Policies: eBay enforces strict policies that dropshippers must follow. Non-compliance can lead to penalties, including the removal of listings or account suspension. Sellers need to stay up-to-date with changes in eBay’s rules to avoid penalties otherwise search for eBay alternatives.
- Not Building a Brand: Dropshipping on eBay gives access to a broad audience but doesn’t help you build your own brand identity. Over time, creating a unique brand becomes necessary for sustainable growth.
- Low Profit Margins: Due to competition and eBay’s 12.9% final value fee, dropshipping on the platform can result in lower profit margins, especially if you’re not selling high-ticket items or achieving a high sales volume.
- High Competition: Since eBay is open to everyone, there’s often significant competition for products. Many sellers offer the same products, which leads to price wars, further squeezing profit margins.
- Responsibility on Seller: Although you don’t control shipping and fulfillment, you’re responsible for customer satisfaction. Any issues, such as delayed deliveries or defective products, will impact your reputation on the platform.
5 Tips to Successfully Dropship on eBay
Launching an eBay dropshipping store is a fairly simple process – the main challenge is to stand out from your competitors. So here are 5 tips that will increase your chances of success in this marketplace:
1. Invest in Upgraded Listings
eBay has a feature of promoted listings in which you pay a fee to boost the chances of customers seeing your products. This can be beneficial for both beginners to increase their visibility as well as veterans to bag more sales.
2. Offer Good Customer Support
Dropshipping doesn’t mean neglecting customer service. Quick, helpful responses to inquiries and complaints can build customer trust and reduce negative feedback.
Take responsibility for shipping delays or product issues, and always communicate transparently.
3. Find a Communicative Supplier
Although the price matters, it shouldn’t be everything. What’s more important is to find a communicative supplier with whom you can build a strong work relationship.
Ideally, your supplier should keep you updated about the status of the product, price ranges, along with stock availability.
4. Introduce Multi-Buy Offers
Multi-buy offers are an age-old tactic to get more sales, but it still works like a charm. The idea is to sell a bundle of products at a discounted price.
For example, instead of selling 1 unit for $10, you can sell 3 for $27. This will not only get you bulk orders but might also save you additional money on the shipping fee.
5. Manage Prices and Stock Effectively
Lastly, no matter how reliable your supplier is, we won’t recommend completely depending on them. Keep an eye on the availability and price of the product.
This will help you keep the stock status updated on your profile as well. Otherwise, you would have to cancel orders which can lead to negative feedback and customer dissatisfaction.
FAQs about eBay Dropshipping
Is eBay Dropshipping Allowed?
Yes, eBay does allow dropshipping, but there are specific guidelines that sellers must follow. Here are some key points to remember:
- Sourcing from wholesalers: eBay requires that you source your products from wholesalers who sell primarily to businesses, not retail consumers. You can’t resell products from marketplaces.
- No packing slips: If your supplier’s name appears on packing slips instead of your business name, this could be seen as a violation.
- Responsibility for fulfillment: As the seller, you’re responsible for the fulfillment and delivery of the product.
Violating eBay’s policies can potentially lead to penalties and account suspensions.
Is eBay Dropshipping Profitable in 2025?
Yes, eBay dropshipping can still be profitable in 2025, but the platform has certain limitations. In general, if you’re a beginner who wants to make some money with low risk involved, then eBay dropshipping can be profitable.
However, if you want to build your own brand and have long-term goals with expectations of a high profit margin, then eBay dropshipping won’t help you achieve that.
How Much Do eBay Dropshippers Make?
How much eBay dropshippers make depends on several factors, such as the products they sell, pricing strategies, and the level of effort they put into their business.
On average, eBay dropshippers can earn anywhere from $200 to $2,000 per month, with more experienced sellers potentially earning higher profits.
However, profit margins are often thin, typically ranging from 5% to 20%. Success requires careful product selection, competitive pricing, and strong supplier relationships
Can You Dropship from Amazon or Alibaba to eBay?
eBay prohibits dropshipping or reselling from Alibaba, Amazon or any other eCommerce marketplace. Failing to follow their policies can lead to strict penalties and even permanent account suspensions.
How to Find eBay Dropshipping Suppliers?
There are two common ways to find dropshipping suppliers for eBay. One is to use wholesale B2B directories, while the other is to get the help of a professional sourcing agent. You can also directly search online, but that requires more time and research.
How to Dropship on eBay for Beginners?
To dropship on eBay as a beginner, follow these steps:
- Create an eBay Seller Account: Sign up for a seller account on eBay, choose the right plan for your needs, and set up your business profile.
- Choose a Niche and Find Suppliers: Research profitable product categories, then find reliable suppliers (preferably wholesalers, as per eBay’s policy).
- List Products: Create detailed and attractive product listings. Include clear titles, quality images, and concise descriptions.
- Set Prices and Promote Listings: Research competitors’ pricing and set competitive prices. Use eBay’s promoted listings feature to increase visibility.
- Handle Customer Service and Orders: Once you make a sale, ensure your supplier ships the product promptly. Respond to customer queries quickly to maintain positive feedback.
Final Thoughts
Starting a dropshipping store on eBay is pretty easy, and the platform also has a low entry barrier.
It can be a great way for beginners to gain experience and make some money.
But the biggest drawback of eBay dropshipping is that you would completely become dependent on the platform.
As your business grows, you’ll likely want to consider building your own brand.
This is where our private labeling services come in. Not only will we source your products but also customize them so you can start your own brand.
So give us a call today to further discuss how you can build your business.
