We don’t suggest using eBay to drop ship for several reasons
- “Out of Stock” = Bad Feedback on eBay - Your suppliers can and will run out of stock on popular items. So when one of your customers buy something on eBay through you and you find out that your supplier is out of stock then you have to tell the customer and they usually write you bad feedback on eBay. This can happen with suppliers regardless, but if your customers put bad feedback on eBay about you other customers won’t want to buy from you.
- Paypal Holds Your Customer’s Payment for 21 Days - eBay and Paypal have a policy where they HOLD the payment your customer makes for 21 days or until your customer leaves you positive feedback to make sure that your customer isn’t dissatisfied with the product/ your customer service. This takes away one of the most appealing things about drop shipping - using your customer’s payment to cover shipping costs to your supplier.
- Your Suppliers Are Your Competition - Suppliers from China (they could be some of your own suppliers) are a big part of your competition on eBay. Essentially, if you have suppliers in China you’re paying them to ship their products to your eBay customers, but they (your China suppliers) are selling to your eBay customers, too. Also, they are selling the same item for cheaper because they get them at wholesale prices. This is one of the many reasons that DSL suggests not using suppliers from China.
- Your Profit Margins are Below $0 on eBay - This is because as a drop shipper you usually can’t get items for wholesale prices because you are not buying in bulk. Usually you have to pay your supplier more for the same item that’s on already eBay at a lower price because that existing item is from a supplier who is paying wholesale prices. Consumers go to eBay to get a deal and even if you can’t sell an item at the lowest price there are thousands of other sellers on eBay who can do that.
- eBay and drop shipping don’t work together - Consumers go to eBay to find the best possible deal. Drop Shippers try to get the best price from their suppliers and this is usually the highest possible wholesale price. So since there are countless suppliers already selling directly to customers on eBay, these customers will always buy the lowest priced items from suppliers.
*** Drop shipping CAN work on eBay if you have built a good relationship with your suppliers and have shown them that you can move their products in bulk. By doing this some suppliers might give you true wholesale prices, but this usually takes a long time.
*** FURTHER RESOURCES ***
Our FULL courses include step by step instructions on how to start, maintain and be profitable with your drop ship business. Our advanced packages include access to our online videos, community forums with drop ship professionals and newcomers, our Shopify Design Course, Private Coaching Calls, access to our Supplier Directory and much more! You can see what is included in all of our packages at this link - https://www.dropshiplifestyle.com/ls/sign-up/
If you haven't already I suggest you check out our free resources and our different packages -
10 Module Mini-Course: https://www.dropshiplifestyle.com/lp/mini-course/
Also, go through some sessions we did with some of our most successful members here: https://www.youtube.com/playlist?list=PLA_KE_rP-Xgk3s7onrFgEWyAR9MwNWO-S to see if Drop Ship Lifestyle is right for you.
Also, check out this link to our FAQs page where you can see the start up costs associated with starting a drop shipping business if you are from the US - https://dropshiplifestyle.zendesk.com/hc/en-us/articles/212054928-What-are-the-start-up-costs-associated-with-starting-a-drop-shipping-business-
If you are from outside the US, but want to create a US based store check out this link for the associated costs - https://dropshiplifestyle.zendesk.com/hc/en-us/articles/212121838-How-much-does-it-cost-to-start-a-dropshipping-business-if-I-live-outside-of-the-US-but-want-to-create-a-US-based-store-
Check out our Blog - https://blog.dropshiplifestyle.com/
Here’s our YouTube Channel - https://www.youtube.com/user/dropshiplifestyle
Check out our FAQ page - https://dropshiplifestyle.zendesk.com/hc/en-us
We offer a few different programs. If you’re interested in getting our premium coaching program (or our done for you service) you can get pricing here: https://www.dropshiplifestyle.com/order/
If you are just looking to get a better understanding of what drop shipping is and the basics you can sign up for our 10 Day Advanced Plan here - https://secure.dropshiplifestyle.com/10-day-advanced-plan-order-form (One time payment with Lifetime Access for $47!)
***The 10 Day Advanced Plan comes with a 100% Money Back Guarantee. You have a full 30 days to preview this course. If you decide during that time that it's not right for you, just let us know and you’ll be issued a full and prompt refund, no questions asked. You either get a great return on your investment, or you get your money back. It's that simple.
I hope this is helpful in starting your journey to creating your own eCommerce business! If you have any questions or would like some further options please don’t hesitate to reach out again.
Have a great day!