As per Statista, eBay’s second-quarter report confirms that there are nearly 182 million active buyers on its platform. Oberlo shared a 2019 report confirming there are 1.3 billion live listings available on eBay. These statistics authenticates that it is a renowned online marketplace.
When it comes to product fulfilment on eBay, sellers use the dropshipping option more. The reason has always been its minimal overhead cost. But after the latest update of the dropshipping policy on eBay, it is becoming a no-go area for the sellers.
The policy involves, “threat of removal of listings from the search, shifting the listing to the lowest position, and restriction of the listing on the platform.” With such flawed new policies, the sellers are in a position of questioning whether dropshipping is still worth the shot or not!
So, here we will discuss if eBay dropshipping is a hit or a sheer disappointment?
What is dropshipping?
Before we jump any further, let us discuss dropshipping first.
Many people are not aware of this concept and are confused. So basically, dropshipping is an efficient form of the retail business. Here a business owner can resell any supplier’s product. In layman language, the seller accepts an order placed by a customer but does not have goods in their stock. They get it from the supplier and sell them. It is a complete reselling model.
The benefits of dropshipping are simple! It involves less risk as the seller does not have inventory to maintain, saves time and cost, and allows a seller to sell any product belonging to various niches.
eBay and dropshipping
Dropshipping is legal and permissible. But when it comes to eBay, they have certain restrictions and reservations against it. Technically it is not banned at all, but on eBay, the sellers must complete the order by taking it directly from the wholesale supplier.
As per their updated policy, purchasing any item from another vendor or a marketplace who ships the product directly to the customer is not permitted on the eBay platform. In other words, you are allowed to list a product on eBay only if you have it in bulk quantity and have purchased it from a wholesale supplier.
You cannot sell or market a product from another competitor’s retail website, such as Amazon or AliExpress. For example, you have received an order from an eBay customer. You purchase it from another marketplace and then dispatch it to the buyer. This is not permissible on eBay. Hence dropshipping a product from AliExpress or Amazon to eBay is also not permissible, making the reselling window narrower.
The bottom line – Advisable or not?
The best short answer is “No”!
With such limitations and restraints, eBay dropshipping is a bad idea. It is not worth the hassle. If working as per their policy, you need to purchase the product in bulk quantity and give the listing fee. And after all this nuisance, you are not even able to own the customer base.
Moreover, what if the product is not in demand anymore? All of your investments will be gone due to bulk purchasing. It’s a good option when you have a supplier who does not restrict you from purchasing individual products. And this would be like finding a four-leaf clover!