eBay is one of the largest online marketplaces after Amazon, with millions of active users daily. So it's no surprise why many entrepreneurs consider it a prime platform for dropshipping.
But not every entrepreneur has the funds to start dropshipping on eBay. Which brings us to the question: how to dropship on eBay without money?
As someone who has dropshipped quite a few products on eBay, I know of a few strategies you can use to get started. Ahead, discover how to launch your eBay dropshipping business with minimal to no investment.
Understanding eBay Fees
Before proceeding, let me share the typical fees associated with listing and selling products on eBay.
- Free listings: eBay is a great place to start dropshipping since it offers 250 free listings initially. This helps keep your initial investment low. Focus on these free listings to manage costs effectively. After the first 250 listings, you can pay per listing or opt for a subscription plan to suit your needs.
- Store subscription fees: Subscription fees on eBay vary depending on the plan you choose. For example, the Starter Store plan costs $4.95 per month (annual subscription) and provides 250 listings. As your business grows, you can upgrade to higher plans like the Basic Store ($21.95/month annually) for 1,000 listings, or the Premium Store ($59.95/month annually) for 10,000 listings.
- Insertion fees: Each subscription plan includes a certain number of free insertion fee listings. The higher the subscription level, the lower the cost for each additional listing. Using tools like the eBay Insertion Fee Calculator can help you manage and anticipate these costs. For example, the Starter Store offers 250 fixed price listings for free, with additional listings costing $0.30 each.
- Final Value fees: eBay charges final value fees based on the total sale amount. These fees are a percentage of the item price plus shipping. For instance, Starter Store users pay 12.9% per item sold if the total sales are under $150. Keeping track of these fees ensures you price your items correctly to maintain profitability.
- Promotional fees: To keep costs low, you can skip promotional fees by marketing your listings organically. Use social media, SEO, and other free marketing strategies to attract buyers without extra charges.
You may also calculate your overall ebay selling cost with our free eBay Fees Calculator.
How to Dropship on eBay Without Money in 7 Steps
Step 1: Create an eBay Account
Your first step is to create an eBay account. Go to ebay.com and click 'Register' in the top left corner to create an account. Choose the personal account option.
For a personal account, provide:
- Full name
- Address
- Date of birth
- Social Security Number (if you live in the U.S.)
Once you fill in the necessary information, click 'Create Account.'
Next, go to the 'My eBay' page to see your account settings and preferences. Here, you will set up your selling account, including payment methods and business policies.
Note: As a new eBay seller, you can list only 10 items for sale. So, choose your products wisely to make the most impact. Your initial goal is to increase your seller limit to scale your store faster.
2. Prepare your eBay Store
eBay lets you create a unique brand for your store. For example, you can add:
- A logo
- A catchy business name
- Detailed product descriptions
- A fee calculator for your own use
These elements are free to use, so you can start branding without spending a lot. If you need help creating these assets, use free tools like Spocket's business name generator or Canva for logo design.
Note: Although you can hire professionals, I recommend using free tools to keep costs down. This way, you avoid the additional expenses of hiring designers or consultants.
3. Choose Products to Sell
Next, you need to decide what you want to dropship on eBay. Finding profitable items requires some research. Here are some ways to help you find the best products:
- Google Search: Use search phrases like "best products to sell on eBay 2024" to discover popular and trending items. This will give you an idea of what's in demand.
- Terapeak Product Research: Terapeak is an eBay product research tool that helps you see how products and categories are performing. It provides easy-to-understand reports and helps you analyze market trends, competition, and best-selling items.
- Spocket’s Winning Products Hub: Find trending dropshipping products with detailed analytics, including sales price and profit potential. This can help you identify products that are likely to sell well.
- Social Media Trends: Platforms like Instagram and TikTok can show you trending products. By keeping an eye on these platforms, you can spot potential best-sellers for your store.
- Explore Blogs and Playlists: Look for blogs and playlists dedicated to product recommendations. These resources often highlight high margin products that you can consider for your store.
Using these methods will help you identify high-demand products to list in your eBay store.
4. Find a Dropshipping Supplier
In dropshipping, you don’t pay your suppliers until your customers pay you. This means you need reliable suppliers to ensure a smooth operation.
Spocket is an excellent resource for suppliers in the US. These vendors deal in high-quality products and often provide faster shipping times than Asian suppliers.
Considering that most eBay users are located in the US, using Spocket can give you a competitive advantage over other sellers.
You can work with multiple dropshipping suppliers to offer a variety of products on your eBay store. Suppliers can also act as a backup for each other, ensuring you never run out of stock and can always meet customer demand.
5. Pricing Strategy
eBay dropshipping can be a profitable venture—but only if you set your prices right. You need a good margin between the product's purchase price and resale price. A tiny profit margin, like $1 per item, won’t cut it.
To price your dropshipping products effectively, consider product costs, competitor pricing, and other business expenses (like eBay fees and shipping).
First, gather data on your product costs and keep an eye on what competitors are charging. Factor in dropshipping costs to get a clear picture of your expenses.
Next, monitor similar products on eBay. Adjust your dropshipping pricing strategy until you hit a sweet spot where you’re competitive but still making a good profit. Balancing these elements helps ensure your dropshipping business stays profitable.
6. Create your eBay Listing
Now, let’s get your product listed on eBay. Start by going to your seller hub and clicking on "List an item."
In the "Tell us what you are selling" section, copy and paste the title of a similar product from your competitors. This helps eBay pull up details like item specifics.
Here's what to focus
- Title: Use keywords that people search for. Make it unique but similar to competitors' titles.
- Condition: Select "Brand New."
- Images: Use high-quality images from your supplier. Make the main image pop by adding a border or some text.
- Item specifics: Fill out every detail. This helps eBay and Google show your product in searches. Buyers also like seeing complete information.
- Description: Write a clear SEO friendly product description using keywords. Adding images can help buyers understand the product better.
- Shipping policy: Set your shipping time to match your supplier's delivery times.
- Return policy: Offer a return policy that matches or slightly exceeds your supplier's. This can help attract more buyers.
You can manually add products or integrate Spocket with eBay to automate the process. Simplify your store management using Spocket's product push feature – easily edit and list products. When you receive an order on eBay, Spocket handles fulfillment and shipping directly to your customer.
7. Market Your eBay Store Organically
Marketing is essential to stand out on eBay's crowded platform. Here are some free strategies to help your dropshipping business thrive.
Master eBay's Search Engine
First, focus on boosting your eBay search rankings. eBay's search engine prioritizes listings based on content, keywords, and seller performance. To rank higher, write detailed product descriptions, set competitive prices, and provide excellent customer service
Leverage Social Media
Use social media platforms like Instagram, TikTok, and Facebook to promote your eBay store for free. Post creative content that highlights your products and engages with potential customers. Building a following on these platforms can drive significant traffic to your listings.
Gather Positive Reviews
Customer reviews are crucial on eBay. They boost your visibility and build trust with buyers. Encourage customers to leave feedback by providing top-notch service and sending follow-up messages. More positive reviews can lead to higher search rankings and increased sales.
Make your Storefront Engaging
Use on-brand descriptions, logos, and regularly update your store's 'Billboard' to promote special events. Showcase popular products in the 'Featured Listings' section. An engaging storefront can turn casual browsers into loyal customers.
8. Fulfill your eBay Orders
When it comes to order fulfillment, you have two main options:
- Manual fulfillment: Purchase the product from your supplier and ship it to your customer yourself. This method can be slow and mistakes can happen.
- Spocket’s automated orders: Let Spocket handle it. They take care of everything from processing to tracking, saving you time and reducing errors.
Regardless of the method you use, make sure to add the tracking details from your supplier directly to eBay. This way, you’ll keep the customer updated and help them track their order on the platform.
9. Provide Excellent Customer Service
Providing excellent customer service is key for dropshipping on eBay without investment. Great service saves on costs and boosts your revenue.
Respond quickly to inquiries and keep customers informed about their orders. Good communication builds trust and leads to positive reviews.
When managing returns, handle the process from start to finish. Whether issuing a refund or sending a replacement, coordinate between your customer, eBay, and your supplier.
With efficient customer service, you'll maintain high ratings and ensure repeat business.
Tips for successfully dropshipping on eBay without money
- eBay has clear rules about listing fake, counterfeit, or low-quality items. You can't dropship products from other marketplaces like Amazon. Breaking these rules can lead to penalties or account suspension. It’s best to read through eBay’s policies on their site.
- Competition eBay might not be as big as Amazon, but competition is still fierce. Potential customers can easily compare your product with others. To draw buyers, your product listings need to be compelling and convincing. Make sure you highlight why buying from you is beneficial, ensure your price is competitive, and focus on the unique features of your product
- eBay expects dropshippers to source products from trade and wholesale suppliers, not other retailers. You are responsible for delivering items safely within the promised time frame and ensuring customer satisfaction. Make sure your eBay listing terms are clear, and the packing slip identifies you as the seller.
- Boosting Sales Using multi-buy offers can increase your average order value. For example, sell one item for $5 or three for $12. This tactic can make your dropshipping business more profitable by reducing shipping costs.
Final Verdict
eBay is a competitive platform, but there are ways to start dropshipping without spending money.
By utilizing eBay's free listings and focusing on organic marketing methods, you can set up your store with minimal investment.
Another tip: use tools like Spocket to test your products upfront. The platform allows you to order product samples from suppliers so you can ensure quality before listing them on eBay.