eBay Dropshipping Survival Tips
If you'll be selling on eBay, Dropshipping
is one of the easiest ways to get started, it's also one of the most dangerous.
Ebay Dropshipping is easy because you don't need to carry inventory and you can get started quickly without
having to find warehouse space or sort out fulfillment.
It's dangerous because there are so many pitfalls.
The pitfalls can be fatal, so how can you avoid these pitfalls and build a thriving eBay business? Here are my
==> Don't Buy a Dropshipper List
Real dropshippers don't advertise themselves on "dropshipper lists." People selling these lists are out to make
money with the list and rarely can you find high quality wholesalers with these types of lists.
Tip: Instead of using a dropshipper list, I'd recommend going directly to an
eBay drop shipping service provider
that will give you complete access to products at wholesale prices. This will give you the
convenience of conducting your product search, product ordering and order tracking - all from one
If you want to find individual dropshippers, the best place to look for them is in trade
magazines and trade shows. That's where "real world" clients go to look for suppliers. It's also where top-tier
suppliers advertise their services.
Subscribe to as many trade journals as you can. They're usually advertising sponsored and are free to
recipients. Look for advertisements for products that catch your eye. Many will directly advertise that they
==> Don't Compete in Thin Margin Markets
The dropshipping fees you'll be charged makes it hard to compete in thin margin markets.
That means no $0.99 cent products and no electronics. If your competitor is buying RAM chips for $30 and selling
them on eBay for $32.99; there's no way you can compete if you're also paying a $3.50 dropshipping fee.
Instead, pick markets that either have few competitors, or have enough of a margin that you can still be
profitable after paying the dropshipping fee.
==> Keep a Close Eye on Your Wholesalers
Always keep in mind that even though you are dropshipping or outsourcing the fulfillment process,
you're still responsible for the product being fulfilled.
Tracking IDs are your best friend. If possible, have your fulfillment company send tracking IDs to your
customers when the item ships and send a copy to you. That way you can make sure the item has been
shipped in a timely manner.
The same goes for refunds. Ask your customer to send you the tracking ID for refunds, so you can be sure
you're refunded the price for the item when it gets to the wholesaler.
If the wholesaler is late on shipping an item or ships a defective item, make sure you set the expectation with
the wholesaler early on stating that is unacceptable.
Be clear with your suppliers early on that you expect top level service.
eBay Dropshipping will allow you to test out a variety of markets without sinking large amounts of money
into any one market first but there are pitfalls so simply stay on top of the eBay Dropshipping Survival Tips
mentioned above and you're likely to do fine.
Having said that, the eBay dropshipping business model is a potentially lucrative method for getting
started with an eBay business that doesn't risk too much up-front cash.