Dropshipping on eBay can work when a seller owns the customer relationship and sources products from a legitimate wholesale supplier. The model becomes risky when the seller lists items from another retailer and asks that retailer to ship them to the eBay buyer.
eBay already had a large buyer base when this article appeared. Statista reported about 182 million active buyers, while Oberlo cited 1.3 billion live listings in 2019. Those dated figures show the marketplace’s scale at the time, not its current size.
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.
Buying stock in bulk creates inventory risk when demand falls. A wholesale supplier that ships individual orders can reduce that exposure, but the seller still owns delivery promises, customer service and returns. The numbers only work after those costs and eBay’s current rules are included.
Check eBay’s current policy before listing
Marketplace rules, seller standards and fees change over time. Confirm that your fulfilment model meets eBay’s current dropshipping policy, then calculate the full cost of the item, delivery, returns, payment disputes and marketplace fees. A margin that looks attractive before those costs may disappear after the first few returns.
