Dropshipping on eBay: Advantages and Disadvantages

Dropshipping on eBay is possible, but is it worth it?

Dropshipping is a business method that does not require the resellers to acquire an actual store or inventory; however, the resellers are required to make a list of products to sell, promote or advertise, and look for a supplier. The suppliers are called the “third party” in this business model. They are responsible for packaging and shipping the product directly to the customer.

Since dropshipping is getting a lot of recognition in the e-business world, competition becomes tough. For this reason, starting a dropshipping business using a well-rounded e-marketplace will expand your opportunities. One of the known e-marketplaces that allow dropshipping is eBay.

What is dropshipping on eBay?

Dropshipping on eBay involves listing items to be sold on eBay and working with a supplier to ship the product directly to customers.

Is dropshipping on eBay worth it?

If you are considering dropshipping on eBay, but hesitant to do so, here is a list of advantages and disadvantages of eBay dropshipping.

Advantages

#1: No upfront large investment

The good thing about dropshipping is it does not require a large investment. It does not require you to purchase bulks of products or have an actual store to sell. And if you dropship on eBay, all you need to do is to pay for the listings on eBay, which is inexpensive, and find the right supplier.

#2: It is easy to get started

It is easy to start dropshipping, but it is easier to dropship on eBay. All you need to do is create an account and find the right supplier. To make this successful, you need to understand how to dropship on eBay.

#3: There is a large audience on eBay

Since eBay has a large audience and loyal customers, you have bigger opportunities in dropshipping. Plus, there are varieties of options on eBay that you can take advantage of.

Disadvantages

#1: eBay restriction 

While it is allowed to dropship on eBay, you need to understand that there are restrictions too. Failure to comply will result in suspension, hiding, or cancellation of account. So, before accepting eBay’s Terms and Conditions on dropshipping, you need to understand and follow their policies first.

#2: High competition

There is high competition on dropshipping, may it be from other marketplace or in eBay. So, you need to make your business more appealing than the others, which means you need to exert effort in advertising and promoting your business.

Final Thoughts

Is dropshipping on eBay worth it?

It depends on how you view dropshipping and how you take advantage of the benefits given on eBay. Dropshipping on eBay has little risk to no risk at all, as long as you know how dropshipping works.

Try to explore products that are easy to sell and look for a supplier that establishes a good reseller-supplier relationship. Always follow the policies on eBay. Promote your business.

Dropshipping on eBay is worth it, however, you also need to exert effort to make it successful.