You’ve probably heard about dropshipping by now. It’s an incredibly popular way to conduct your business online and make amazing profits. So what is it exactly and how does it work?
Well, to put it simply, it’s when you don’t keep the items you’re selling in stock. You’re passing the sales order to a supplier who then ships it to the customer. Your profit comes from the difference in price at which you bought and sold the product. The most popular way to dropship is through eBay.
Pros and cons of dropshipping on eBay
The best thing about dropshipping is that you don’t need to invest large sums of startup capital. Starting a dropshipping business is incredibly easy, and the biggest advantage is that you’re able to work from home or any place that has an internet connection. This gives you a lot of flexibility which is a huge benefit. Other than that, you don’t have to worry about the costs that usually come with traditional commercial businesses like paying the warehouse rent for example.
However, running a dropshipping business has its own unique drawbacks. You’ll find yourself in an extremely competitive environment, and managing your digital store does require a lot of technical knowledge. Dropshipping can also be pretty unpredictable so profits are not guaranteed.
8 tips for dropshipping on eBay
1. Find reliable suppliers
This is of course the most important part of managing and improving your dropshipping business. Before you put items on eBay, do some research about the supplier. You have to know they’re reliable and will mail the order in a timely manner. Your customer won’t blame the manufacturer for low quality or slow service, they will blame you, and your business will suffer, even though you don’t have anything to do with production or shipment. This is why it’s of utmost importance to find only the most reliable and trustworthy suppliers available. This won’t always be easy as there are simply too many different suppliers on the market and it’s sometimes difficult to differentiate between good ones and the bad ones.
2. Check item availability
Always check if the item is in stock before putting it inside your store. This is the most common mistake all beginner drop shippers make. When you’re selling your products on eBay, make sure your supplier has them. Your reputation is crucial for your success. Only one dissatisfied customer can make you fall behind your competition.
Listing your items on eBay in peak traffic hours can be a game-changer. You’ll be much more likely to get views and sales if you time your eBay auctions correctly. However, your competition knows this too, so you can expect them to be much more active in these periods. This will of course require some research and experience, but it won’t take a long time for you to determine optimal selling hours.
Having a lot of different products in your listings will bring you much more profit in the long run. As long as you keep on researching and background checking your suppliers, you’ll be able to offer a lot of products with minimal worries.
Another good way is to connect to various dropshipping platforms like for example the GoTen Dropshipping platform. GoTen is a great way to find new products for your listings from hundreds of top quality suppliers. They offer fast delivery from their UK/US warehouses, so your customers who come from these parts of the world can get the best service possible. They also have tons of great advice on dropshipping at GoTen, so if you want to learn how to dropship on eBay, it’s the right place to do it.
5. The price
Like any other business, dropshipping will require price management. When forming a price, always research your competitors and their prices first. Since dropshipping is incredibly competitive, setting a lower price could be what sets you apart from your competition. Of course, you still have to make money, so look for suppliers who are ready to give you discounts. As your business grows, and your online presence gets stronger, you’ll be able to set higher prices, but at the beginning, setting the lowest price possible is the way to go.
6. The customer is key
Building trust and lasting relationships with your customers is the most important part of every business. Customer loyalty is something that you’ll have to earn, but when you finally do, it will mean you’re becoming successful.
Work with your suppliers so ensure the best customer experience possible, be transparent, and set reasonable prices. The products you choose to sell must be of the highest quality possible, and make sure the delivery is fast. You can ensure this by researching your supplier and their products. Don’t just randomly add products to your listings without checking the supplier first.
Of course, all of the previous tips we mentioned are a way to advertise yourself. It all comes down to your price and suppliers. Your price is a huge part of the marketing mix, so it’s good to do research and ask for advice from more experienced drop shippers. There are great dropshipping communities online where you can learn tons of useful information while sharing your experiences as well.
Since your business will mainly depend on customer satisfaction, your number one priority is that they get quality products. Keeping your customers happy is key, and you can ensure this by asking the manufacturer for a sample product. This way you can check the product quality yourself and minimize the risks of getting angry and dissatisfied customers.
Bad reviews are your number one enemy, so you must do everything to avoid those. Trying the product before selling it is the best way to make sure your buyers will be satisfied with their purchases, and it’s definitely worth the time.
Dropshipping is an amazing way to start earning online, but it does require a lot of effort and research. If you ensure that the products you’re selling are of high quality with short delivery times, all while keeping track of your competition, you can definitely achieve great success with dropshipping.