eBay Dropshipping: The Ultimate Guide to Dropshipping on eBay

What is Dropshipping on eBay?

Dropshipping on eBay refers to a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a product is sold, it purchases the item from a third party and has it shipped directly to the customer. This means that the seller or dropshipper doesn’t have to handle the product directly. This model is a boon for sellers as they don’t have to invest in inventory.

Understanding the Concept of Dropshipping

The concept of dropshipping involves the seller acting as a middleman, connecting customers with products but not actually handling the inventory or shipment. This business model allows for flexibility and low start-up costs.

How does Dropshipping Work on eBay?

Dropshipping on eBay works by finding a product from a supplier, listing it on your eBay store, and selling it to an eBay customer. Once the product is sold, the seller then purchases the item from the supplier who ships it directly to the customer. The seller makes a profit on the price difference.

Benefits of Dropshipping on eBay

The benefits of dropshipping on eBay include low start-up costs, no inventory management, and the ability to test different products without significant financial risk. Moreover, it allows sellers to operate from anywhere with an internet connection and offers a wide range of products to sell.

How to Start a Dropshipping Business on eBay

Starting a dropshipping business on eBay involves several key steps, from setting up your eBay seller account to finding the right dropshipping supplier for eBay and listing products for dropshipping.

Setting Up Your eBay Seller Account

To start dropshipping on eBay, you need to set up an eBay seller account. This involves providing personal information, verifying your identity, and agreeing to the seller terms and conditions. Creating a seller account is the first step towards launching your dropshipping store on eBay.

Finding the Right Dropshipping Supplier for eBay

Finding a reliable dropshipping supplier is crucial for your eBay dropshipping business. You need to evaluate potential suppliers based on product quality, shipping times, and reliability. Researching and communicating with different suppliers to find the best fit is essential.

Listing Products for Dropshipping on eBay

List your chosen products on your eBay store to make them available for sale. Use engaging product descriptions and high-quality images to attract potential buyers. Your pricing strategy should also consider the competition and the profit margin you aim to achieve.

eBay Dropshipping Policies and Best Practices

Understanding eBay dropshipping policies and best practices is fundamental to maintaining a successful dropshipping business on the platform.

Understanding eBay Dropshipping Policies

eBay has specific policies for dropshippers to follow, and it’s important to adhere to these guidelines to avoid any issues. Sellers need to clearly state that items will be shipped directly from the supplier and ensure that the supplier’s return policy aligns with eBay’s policy.

Tips for Successful eBay Dropshipping

To succeed in eBay dropshipping, it’s important to perform thorough product research, maintain good communication with your suppliers and provide excellent customer service. Additionally, monitoring your competition and adapting your strategies accordingly is crucial for success.

Profitable Strategies for eBay Dropshipping

Implementing profitable strategies such as bundling related products, offering promotions, and optimizing your listings for search can help increase your sales and profit margins on eBay.

Tools and Resources for eBay Dropshipping

Utilizing the right tools and resources can significantly enhance the efficiency and profitability of your eBay dropshipping business.

Essential Tools for eBay Dropshipping Success

There are various tools available to help manage your dropshipping business, from order and inventory management systems to pricing and research tools. These tools streamline processes and improve the overall performance of your eBay dropshipping store.

Finding the Best eBay Dropshipping Suppliers

Identifying the best suppliers for your eBay dropshipping business can be accomplished through industry trade shows, professional networks, and online supplier directories. Building strong relationships with reliable suppliers is key to maintaining a successful dropshipping operation.

Conducting Product Research for eBay Dropshipping

Thorough product research is crucial to determine which items will sell well on eBay. Utilize eBay’s search and completed listings feature to understand the demand for a product as well as the selling prices. This information will help you make informed decisions about which products to list.

Frequently Asked Questions About eBay Dropshipping

Here are common concerns and queries regarding eBay dropshipping that every dropshipper should be aware of.

Common Concerns for eBay Dropshippers

Common concerns for eBay dropshippers revolve around product quality, shipping times, and competition. It’s important to address these concerns effectively to maintain customer satisfaction and retention.

Earning Potential and Profit Margins on eBay

Earning potential and profit margins on eBay can vary based on the product niche, competition, and marketing strategies. Understanding your market and managing your expenses can help maximize your earning potential.

Managing Operational Costs and eBay Fees

Dropshippers need to consider the operational costs and eBay fees associated with their business. These costs include final value fees, listing fees, and PayPal transaction fees, which should be factored into the pricing strategy.

eBay Dropshipping Policies

So, the crucial question is, “Does eBay allow dropshipping?” Essentially, eBay states that it supports dropshipping. However, it prefers dropshippers to source from wholesale suppliers rather than retailers.

That means fulfilling orders from another retailer or marketplace that ships products directly to our customers is not allowed. Thus, if we dropship from a 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. If we are experienced dropshippers, we can dropship from retailers and use different methods to overcome the challenges.

New ‘Item not received’ eBay Policy and How To Avoid Suspension

In line with understanding eBay’s dropshipping policies, there’s a new update that sellers absolutely need to know about. eBay just announced a new Shipping Performance Policy called ‘Item not received.’ But what exactly does this mean for us?

Sellers with high ‘Item not received’ rates can face restrictions on their accounts. These restrictions can include limitations on listing items, editing and removing listings, and even selling altogether. With that in mind, here are some tips on how to avoid suspension with this new policy.

First, we have to update our shipping policies accordingly. Managing expectations and communicating clearly with our customers regarding shipping times is crucial. The second tip goes without saying, but we must ship our products on time.

Next, we can use order automation tools such as AutoDS Automatic Orders. This tool helps us process orders as they come in and update tracking information as soon as it’s available.

Lastly, we need to work with suppliers offering fast shipping already. Knowing they already provide this service gives us peace of mind that products will arrive to our customers on time.

Remember, always stay informed and updated with eBay policies to avoid further restrictions on your account. Taking proactive measures and providing excellent customer service gives us better chances of success with eBay dropshipping.

Updated eBay International Shipping Program

Plus, eBay is also rolling out a new international shipping policy, making it easier than ever for sellers to earn more profit. What used to be eBay’s Global Shipping Program will be replaced with the new eBay International Shipping.

This new policy helps sellers ship products worldwide. All we need to do is send the product to the eBay Hub, and they’ll take care of everything else. The best part? There’s no additional cost for this service.

On top of that, eBay now handles returns at no cost to sellers. Therefore, if a buyer wants to return an item, eBay issues the return label and refund. Meanwhile, the sellers keep the sale.

Tips For eBay Dropshipping

When dropshipping on eBay, many factors, such as competition, product demand, and market trends, can impact our profit. With that in mind, here are some tips for eBay dropshipping:

  • eBay Product Research
  • Provide Excellent Customer Service
  • Offer Fast Shipping & Free Returns
  • Know Your eBay Fees
  • Use Multiple Suppliers
  • Scale with Dropshipping Automation

Besides finding a suitable product research method, we should always look into the product’s demand, profitability, and competitors. Additionally, we must provide excellent customer service.

So, always answer buyers’ questions, and handle any cases that may arise. Similarly, offering fast shipping and free returns helps us build our customer base.

Plus, calculating eBay fees such as final value, subscription, and promotion fees are also necessary. On top of that, we should work with 2-3 suppliers as multiple suppliers offer more variety of products. It is always good to have a backup in case one of the suppliers faces issues.

Finally, using dropshipping automation software like AutoDS can help streamline and optimize various tasks, leading to more productivity. For example, it can help with automating tasks such as inventory management, product importing, order fulfillment, and customer service. By utilizing dropshipping automation software, businesses can increase their capacity to scale and grow faster.

How To Dropship On eBay For The First Time

Now that we have all the necessary info, let’s set up our eBay store. Don’t worry. It’s easier than you think to start dropshipping on eBay as a complete beginner. More importantly, beginning our eBay dropshipping journey with the right approach is highly rewarding. So, here are the 8 key steps when dropshipping on eBay for the first time:

1. Sign Up For eBay

Sign Up For an eBay dropshipping account

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

Once we fill in our name and email address, click Create Account. Now, we’ll be redirected to eBay’s homepage, where we will see ‘My eBay.’ On this page, we can see our account settings and preferences where we will continue to set up our selling account—payment methods, business policies, and more.

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

2. List Your First Item Manually

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

It is best to list at least three items from home every other day because eBay expects new sellers to start slowly to minimize risks. If we start fast and list too many items from the get-go, we risk getting a temporary suspension while they look into our account.

Beginner’s Tip: Dropshippers with new seller accounts should conduct all tasks manually initially. At this stage, it is essential that we create and publish listings manually and not automatically through dropshipping software.

After about two weeks, we can start listing dropshipping products and upgrade from manual listing to automated product importing to save time and scale correctly.

3. Find Your Best Sellers: eBay Product Research

eBay Product Research to find best sellers

Conducting thorough product research is crucial for the success of any eBay dropshipping business. Understanding what products are in-demand and what sells well on the platform is necessary to make a profit. Furthermore, product research also enables us to understand the market trends, what are the seasonal products, and how to capitalize on them.

With that in mind, here are some essential product research methods for our eBay stores:

  • AutoDS TikTok Spy
    eBay Best-Selling Categories
    AutoDS Winning Products Hub
    eBay manual product research
    Google Trends
    Google Lens
    Analyze successful eBay dropshippers
    eBay Terapeak
    AutoDS Product Finding Blog
    AutoDS Youtube Best Sellers

We can conduct product research on eBay by looking through Best-Selling Categories and analyzing top-selling dropshippers on the platform. Additionally, we can conduct manual product research by searching for products that are selling well. On top of that, we can utilize eBay Terapeak, an insight tool, to provide us with market data on supply, demand, and pricing.

Moreover, we can use AutoDS product-finding blogs on their website and best-seller playlists on Youtube as references for our store.

Now, while these methods effectively find trending items, AutoDS TikTok Spy is by far the easiest way to find hot products. With this tool, we can browse the latest popular TikTok videos and ads with trending products. Powerful filters allow us to sort videos by likes, impressions, and interaction rate. Plus, we can even search by keywords. AutoDS TikTok Spy gives you ideas on what to sell in just a few minutes.

AutoDS TikTok Spy

AutoDS Winning Products Hub

The AutoDS Winning Products Hub is also invaluable for conducting product research. It helps us identify popular and in-demand products for our eBay dropshipping store. With its in-depth product analysis capabilities, the platform provides us with a thorough examination of each product. We get information like the source price, retail price, profit margin, key insights into the target market, and a closer look at how competitors market the product. As a result, we can quickly spot winning products and import them to our eBay store.

Similarly, another excellent method to find winning products on eBay is to analyze successful eBay dropshippers. To do so, we must search for a dropshipping product on a supplier’s website. In this scenario, we will search for a massage gun on CJDropshipping.

Find in-demand eBay dropshipping products

Then, copy and paste the product title on eBay, where we will find a dropshipper selling it for a higher price. Here, we can see search filters on the left-hand side. Now, scroll down the page, tick on Sold items, and uncheck Completed Items from the menu. To clarify, this allows us to find items that the dropshipper sells for profit. Also, this is the method to follow for conducting manual product research on eBay.

Analyzing successful eBay dropshippers

Once we discover a good dropshipper, go to the seller details from the eBay product page. This allows us to see the range of products the dropshipper offers in their store.

Analyze successful dropshippers eBay store

By incorporating similar products they sell, we can find profitable products to add to our eBay store.

4. Select An eBay Dropshipping Supplier

Select An eBay Dropshipping Supplier

After finding best-selling products, we need to select a trustworthy dropshipping supplier to source the products. Plus, a reliable supplier is paramount to the success of our eBay business. So, to ensure our dropshipping suppliers are reliable, we have to analyze them under these criteria:

  • International warehouses
  • Practical return, shipping, and payment policies
  • Wide product selection
  • Affordable products
  • Positive reviews
  • Excellent customer service

In summary, choosing a supplier that meets all the necessary criteria is vital to ensure they are credible. To streamline our search for reliable suppliers, we can leverage the support of AutoDS. The AutoDS warehouse and extensive private supplier network are essential for dropshipping businesses on eBay.

With access to unique products, exclusive discounts, and branding solutions through the AutoDS warehouse and private suppliers, dropshippers gain a competitive advantage and can maximize their profits. By relying on the AutoDS warehouse and private suppliers, dropshippers can focus on growing their eBay business while AutoDS takes care of the logistics, ensuring a smooth and successful dropshipping experience on the eBay platform.

Furthermore, with AutoDS Product Sourcing, dropshippers working with Chinese suppliers can avoid common issues like long delivery, poor product quality, and communication difficulties. Users can request a quote that includes various product variations, prices, available shipping methods, associated costs, and estimated delivery times to find the best option and maximize profits. Combine with quality inspection through our warehouse, and you can elevate your eBay business to new heights.

Another feature that helps AutoDS users stand out from competitors is the ability to source products from Shopify stores. With the latest updates, AutoDS now supports Shopify as the dropshipping supplier. Indeed, this feature is a game changer, enabling sellers to source products from the best online stores.

Bonus: AutoDS now supports Kohl’s, Catch, and Macy’s for all your dropshipping needs! These suppliers offer top-notch quality products and you can quickly import and fulfill orders with AutoDS’ all-in-one solution.

5. Calculate Your eBay Fees & Profit

Undeniably, our profits rely on how well we can set the product price and profit margin. Overall, we have five 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

Since there are varying fees, it is challenging to determine how much we’re profiting. However, the AutoDS eBay Fees Calculator makes it easy to calculate our eBay dropshipping profit margins.

The calculator considers all relevant fees and calculates them automatically to give us a clear picture of our profits. This eliminates the need to manually calculate these fees, saving us time and effort.

6. Import eBay Dropshipping Products

So, how do we import products to our eBay store once we have items to list? In general, there are two methods to import products: manual and automatic.

With the manual method, we’ll need to go to the supplier’s website, copy and paste the title, descriptions, and images, and repeat that for each product. In short, it is a tedious process that takes up time.

Meanwhile, the automatic method can save hours spent on manual work. For instance, dropshipping tools like the AutoDS product importer automatically extracts product details and uploads them to our store. This tool has four different features:

  • One-click Importer
  • Single Product Importer
  • Multiple Product Importer
  • Bulk Upload with a CSV file

To clarify, let’s see how the one-click importer works by importing a massage gun. First, sign up for an AutoDS account and integrate your eBay store. Then, install the AutoDS Chrome Helper Extension in our browser.

Next, navigate suppliers’ websites like CJDropshipping and look for a product to import. Once we have found the product, click on the Import to AutoDS button above the product title.

Import eBay Dropshipping Products from suppliers

Now, the product’s details will be automatically extracted and uploaded to the AutoDS drafts page. Next, the AutoDS drafts page enables us to enhance our product’s images and descriptions to beat our competition. If you don’t want to optimize each title manually, use the AI Rewrite tool to help. With this powerful feature, we can enhance product titles and descriptions in a few clicks. After optimization, we can publish to our eBay store by clicking on Import.

 AutoDS drafts page eBay dropshipping

And voila! With just a few simple steps, we’ve Imported products into our eBay store. With AutoDS’ Product Importer, we save can efficiently manage our eBay dropshipping store.

Moreover, we can improve the visibility of our products on eBay by using AutoDS’ eBay title builder to optimize product titles for search engines. This tool ensures our products appear at the top of search results, helping drive more traffic and ultimately increasing sales.

7. Fulfill Customer Orders

Fulfill Customer's orders eBay dropshipping

Undeniably, customers expect to receive their orders promptly. If an order doesn’t arrive in time, it can harm our eBay seller account rating. In a competitive marketplace like eBay, having a positive seller rating is crucial for standing out and attracting new customers. Additionally, fulfilling orders on time can help prevent disputes and refunds.

With that in mind, here are three methods to fulfill customer orders on eBay:

  • Manual
  • Automatic
  • Fulfilled By AutoDS

To elaborate, manual order fulfillment entails manually inputting customer information such as shipping address and payment details on the supplier’s website. However, this can be tedious and time-consuming, particularly for large orders.

In contrast, we can utilize automatic tools such as the AutoDS Automatic Orders to simplify this process. This method uses our buyer accounts to process orders automatically. Buyer accounts are our accounts on the supplier’s website linked to our preferred payment options like Paypal or credit cards.

Another alternative to manual order fulfillment is Fulfilled By AutoDS (FBA), a fully automatic feature that does not use buyer accounts. Instead, it utilizes our balance on the AutoDS platform. Thus, FBA keeps our buyer accounts secure from account locks or suspension.

Both these automatic methods efficiently provide customers with order tracking and status updates, resulting in improved customer satisfaction and an efficient order fulfillment experience.

Product Sourcing Quotes

Due to multiple advantages and low entrance criteria, eBay attracts many sellers looking to start their online business. Because of this, the competition there is fierce, and it is difficult to stand out. Running a successful eBay store requires competitive pricing, quality products, and fast & cheap shipping. Where do you get all of those? The answer is AutoDS’s Product Sourcing Quotes service.

This innovative service from AutoDS transforms fulfillment and addresses common pain points dropshippers face. It simplifies and optimizes the order fulfillment process, particularly when dealing with Chinese suppliers. Here is how it works:

1. When you receive an order from a Chinese supplier or an unmonitored source, you can request a quote from AutoDS.

autods product sourcing quotes

2. Our team swiftly processes your request, typically within 48 hours.

3. After processing, you’ll receive a range of options to choose from, including product variations, shipping methods, and associated costs.

autods product shipping options

4. Once you decide to source a product, its status changes to “linked.” You can connect only your product to the chosen AutoDS-sourced item (for future orders) or link existing pending orders.

The Product Sourcing Quotes service can provide eBay sellers with faster shipping options, possibly cheaper products, and ensure product quality. Here is why you should use this feature for dropshipping:

  • Quality Assurance: We established a warehouse where products undergo thorough inspections before shipping to your end customers.
  • Faster Delivery: We’ve streamlined the sourcing process, allowing you to choose from various shipping options and prices and enjoy faster delivery times for your customers.
  • Effortless Process: The process is quick and efficient. Within 48 hours, you’ll have multiple options at your fingertips.
  • Customization: Tailor your sourcing with various options for product variations, shipping methods, and costs, meeting your specific needs.
  • Cost Savings: Find competitive and often lower-priced products, maximizing your profitability.

You get quality products with fast shipping and lower prices than other eBay sellers. Therefore, you can stand out from the crowd and thrive on the competitive eBay marketplace.

8. Provide Excellent Customer Support On eBay

At the end of the day, delivering outstanding customer service is essential for eBay dropshipping. To have repeat customers and referrals, we must provide stellar customer service. Here’s how:

  • Address customer concerns and complaints swiftly
  • Handle returns and reimbursements promptly
  • Tailor our communication to the individual customer
  • Offer a comprehensive FAQ section
  • Utilize a customer service management system

With these tips, we can satisfy customer needs, allowing us to earn and keep a top-rated seller status. Now, let’s elaborate on how AutoDS’ eBay Customer Service Management System helps us provide exceptional customer service.

AutoDS Customer Service Management System

AutoDS eBay dropshipping Customer Service Management System

With the AutoDS eBay Customer Service Management System, we can manage and reply to all our eBay customer messages through the AutoDS platform. Here are some features of this tool:

  • View all our eBay messages on a single dashboard
  • Quickly solve cases
  • Handle order cancellations
  • Automatically process returns with the Fulfilled by AutoDS service

Furthermore, we can create and save our message templates or use the numerous templates we have created for different situations. This helps drastically minimize the time spent on customer support while providing the best customer experience possible.

Overall, the eight steps provide an excellent route to creating a successful eBay dropshipping business. Coupled with AutoDS’ Free eBay Dropshipping Course, we can master these steps and get our business running in no time!

Frequently Asked Questions

How To Start Dropshipping on eBay

Dropshipping on eBay starts with setting up your seller account. The eight steps mentioned above might seem intimidating, but launching an eBay dropshipping business is easier than you think. Plus, AutoDS offers plenty of resources and a free eBay dropshipping course to guide you through.

Is Starting a Dropshipping Business Still Worth It in 2023?

The short answer is yes! Dropshipping is still profiting many online business owners this 2023. But keep in mind that we must continually evolve to keep up as the market becomes increasingly popular. It helps to have a dropshipping automation tool to manage our online dropshipping business better.

Do I Need a Seller License To Dropship on eBay?

No. You do not need a seller license to dropship on eBay. However, abiding by the website’s policies is a must to avoid getting penalties. Remember that business license regulations can vary depending on where you are. It’s best to look into your local area business laws just to be extra sure.


Congratulations! We hope this article helped spark some motivation by showing just how to dropship on eBay. Now, we know why eBay is an excellent choice for dropshippers.

Not only does eBay dropshipping provide a great starting point for beginners, but we can also scale it with dropshipping automation tools. With minimal investment and freedom to work on our own terms, now is the perfect time to launch our own dropshipping business on eBay.

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