How to Start a Drop Shipping Business On eBay



Business Hacks- Grow In
Business Hacks- Grow In

eBay is one of the biggest online stores where you can sell products and services and make money. If you want to do business on eBay, you can do it in a number of ways, for example:

  1. Manufacture products and sell them
  2. Procure products and sell them
  3. Dropshipping

When you are doing business on eBay through first two methods, you will have to spend money on products. However, in order to sell items on eBay, you don’t need to own an item, you can do drop shipping.  In Drop shipping business, you work as a middle man. You sell the product and forward the shipping address to the actual seller (merchants), rest of the work is done by the dropship merchant, he packs the item and dispatches to the buyer’s address. The buyer pays you and you send the payment to the seller. You earn the commission.

If you want to do a business on eBay business, you can do it as a side income as well as a full-time living. You can make money from eBay even if you don’t have your own product to sell.  Whether you want to do business on eBay as a side income or full-time work, eBay allows you to do drop shipping business without the need to manufacture or procure a product.

When you manufacture products or procure products in order to sell on eBay, you need a lot of investment, however, you don’t require big investment for the dropshipping business. When you are doing drop shipping business, you don’t have to spend money on manufacturing or procurement. You sell merchants’ products and earn commission from the sales. Sometimes you are required to pay for the products in advance before you can sell to a customer, however, once your business progress, you don’t have to do that. When a customer buys from your eBay store, you will forward the payment to the merchant and cut your commission.

How to start eBay drop shipping business?

Here are some tips that will help you to own a drop shipping business on eBay.

Do some research and find products that are in great demand. Apply for affiliate account on the merchant’s store. When you are approved as an affiliate, you can list the products for sale.

Create eBay store and list the products for sale. You can set an auction or list the product with the fixed price.

Promote your eBay store and products. You can do email marketing or social media sharing for promotion and marketing.

When the product is sold, forward customer’s information to the merchant. The merchant or the drop shipper will pack the product and dispatch to the buyer’s address. In case you have provided your company’s address and the logo, the drop shipper will have it printed on the package.

How to make your drop shipping business a success?

In order to become a successful drop ship business owner, you need to establish relationships with many merchants or drop shipping companies.

Some companies require you to pay in advance. If you did not receive payment from the customer in advance, you will have to send your own money for the product to be shipped. As your business grows, your drop shipper merchant will allow you the flexibility to pay later.

When you have set eBay auctions, don’t accept the buying request until the price is higher than what you will be paying to the merchant.

When you set a fixed price, make sure to add your commission on the selling price. Usually, 10 percent commission is considered to be appropriate. If you set a high price, it will be difficult to sell the product.

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