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 best tips.

==> 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 place.

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 dropship.

==> 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.

In Summary...

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.