How to Dropship on eBay As A Complete Beginner in 2021 (Step-by-Step)!

 

drop shipping is such an amazing

opportunity for new entrepreneurs

because it allows you to create a pretty

passive stream of income

without a huge upfront investment from

anywhere in the world but what worked

two years ago or even at the start of

2020

just doesn't work anymore so in this

article i'm going to tell you

what actually works in 2021 and beyond

when it comes to ebay drop shipping and

how you can get started

with just a laptop and an internet

connection

up everyone paul here from

dropshippingtitans.com where i teach

regular people just like you

how to start your first successful drop

shipping store so before we can get into

the strategies that work

for ebay drop shipping i first want to

quickly explain what ebay drop shipping

is and the model that we use to see

success

so what is ebay drop shipping it's a

pretty simple business model first we

have a customer here and she is on ebay

shopping for items and she'll spend a

hundred dollars on an item

that you list it up for sale that's you

right there now once she purchases the

item from you

then you turn around and spend a portion

of that money

buying the item from your supplier and

then supplier ships the item directly

to the customer so this means that you

hold no

inventory all the inventory is held by

the supplier

and you don't buy any items until your

customer

buys the item from you first so you do

this once and then you do this again and

again and again and again and again and

again

and that's the basic model of ebay drop

shipping so the first thing that you're

going to need to start selling on ebay

is an ebay account

duh so just come over to ebay.com and

click on the top

left where it says register and the cool

thing about this is that ebay is free

free for free so you don't have to pay

for anything here now why do we use

ebay there are plenty of other places to

sell online places like amazon

walmart bonanza etsy why ebay well

ebay is pretty much the easiest place

for beginners to get started they have a

very low

barrier to entry meaning they don't

require a lot

in order for you to set up an ebay

account and other sites like amazon

require a lot more

in addition to that they have less

strict

metrics than you'll find on websites

like amazon now that doesn't mean that

you can just go in there and make a

complete mess of things

but it does mean that you can mess up a

little bit and they're not going to ban

you right away they give you

some wiggle room to play with so that

you know you run into some issues

it's okay it's not going to totally tank

your account so whenever people ask me

what they should start with as a new

seller i always

recommend ebay it's a lot more forgiving

and a lot more beginner friendly

now the second thing that you might need

is a

paypal account now paypal is also free

for free so you don't have to worry

about that

but you will find that most people

eventually are not going to need paypal

accounts because ebay is getting rid of

paypal if during the ebay setup process

ebay asks you to link up with your bank

account then that means

you're on ebay's managed payments that's

their payment processor and you don't

need a paypal account but if you didn't

link up with your bank account during

the setup with ebay then yeah you got to

sign up for a paypal account like i said

it is free

so not a big deal there all right now

that you have your account set up you

have to start looking for items but

before you can do that

you have to figure out what suppliers

you want to use

for your business now there are

primarily two types of suppliers we use

for ebay drop shipping we use

retail suppliers and we use wholesale

suppliers

what's the difference well retail

suppliers are other retail

websites websites like walmart.com

homedepot.com

costco costway sam's club pretty much

any website where you can buy things

from as a consumer

you can potentially drop ship from that

website onto ebay

now wholesale suppliers on the other

hand usually

don't have a retail website where you

can buy items from as a consumer so if

you think about the chain of production

we have a manufacturer they then sell

their items to a distributor

or wholesale supplier and then the

wholesale supplier sells it to a retail

store

and then the retail store sells it to

the general public

we as drop shippers if you're doing

retail drop shipping you

fall between the retail store

and the consumer you fall right in there

but if you're doing

wholesale drop shipping you are buying

directly from the wholesale supplier so

above the retail stores so what are the

pros and cons of each

well retail drop shipping has a huge

benefit because

it's been going on for so long that we

have a lot of software that we use

to automate it's very easy to automate

it using the software so

everything from listing the items to

repricing them to restocking them can be

done

without any manual work on our part but

there are some benefits to wholesale

primarily

that it's a little bit harder so there's

less competition less people doing it

and the

margins are better because we're going

up higher in the chain of production

see every step through that chain of

production the item becomes

more and more expensive so if you can

buy it directly from a wholesale

supplier

then you're going to get better prices

now the drawback of wholesale

is that it is a little bit harder to set

up with retail it's very simple but with

wholesale you got to get agreements with

wholesale suppliers you have to reach

out to them and that's a

higher barrier to entry but that does

mean less people are doing it and less

competition

the other benefit of wholesale is that

it's completely 100

allowed by ebay whereas with retail drop

shipping technically the rule states

that you're not allowed to do it now

what happens if you do

retail drop shipping well we found that

ebay doesn't ban you for doing it they

don't kick you out all they do is take

those retail drop shipping listings

and lower them in the search results but

they're doing that for everyone who's

selling the same items

and because retail drop shipping is so

easy to automate and scale up

it kind of almost doesn't make a

difference plus there are ways to avoid

ebay from even

knowing that you're doing it in the

first place so you might be asking

yourself now paul

well which one do i do do i do retail

drop shipping or do i do

wholesale drop shipping no i do both

because

both work so i'm not going to tell you

one is better than the other

but if you want to be super safe if you

want to avoid any sort of issues if

that's what you're paranoid about then

go with wholesale because we know for

100 certainty that it is

allowed and if you want to create a

second account and do retail in that

account yeah you could do that

and you're going to see results with

that as well but for the rest of this

video i'm going to show

wholesale because i want to show kind of

what the future kind of looks like

with ebay drop shipping so now that i've

decided to drop ship using wholesale

suppliers

the question is what supplier should i

use and where do i find them well the

first place to look

is just come over to google so you can

type in the

niche that you want to sell in like pets

here and then just the words

wholesale suppliers and go through all

these results you're looking for a

supplier that allows you to drop ship

that allows you to sell on a marketplace

like ebay and there's a few other

criteria that we look for but those are

the

very very basics that we need so you can

just go through all these websites and

click around look at their faq

look at their policies and see if they

allow you to do that and you'll have to

go through pages of this and this does

take time

but it does work you do find suppliers

using this method

now another great resource to go to

is inventorysource.com now inventory

source is a software

that will automate the process of drop

shipping from wholesale suppliers

onto ebay but paul i thought you said

before

that there was no software that does

that you're right that is what i said

and the reason i said that is because

i don't use this software because it is

pretty expensive to use so when it comes

to wholesale drop shipping i actually do

everything manually which i'll show you

in a few minutes but the great thing is

that you can sign up for inventory

source for free

for free and just look at the list of

suppliers that they have and it's no

cost to do that and a lot of these

suppliers will be bad but a lot of them

will be

really good and we know they're going to

be good because they are integrated with

inventory source

for a reason someone requested for them

to be integrated and someone requested

that

because it is a supplier that they

successfully use

so you can just go through all these and

find a supplier that meets a criteria

this is one that i've used before and

have seen that they

are really great for drop shipping on

ebay so once you pick a supplier the

next thing you have to do is some

product research

i'm not going to get into that in this

video because i spend a lot of time on

that in

a lot of other videos i've made on

youtube which i'll link up at the end of

the video but

once you find an item let's say it's

this die flag right here

let's actually show you how to list that

item onto ebay so all i'm going to do is

come over to ebay and start a new

listing

and the first thing i like to do is copy

down the title

and paste it in here and sometimes they

will

give you a result that might be helpful

but i don't see anything here

so i'm just going to start from scratch

here so the title they give me

from the supplier is usually pretty bad

i want to make a better title than that

so what do they have here this is a

matte series flagpole 36 inch with

die flag now that's a terrible type i

want to start out by saying this is a

dive

flag right and then i could throw in the

words like matt

36 inches and i could maybe throw in the

word scuba

and what else can i put in about this

let me find out more about this

diving red safety so i want to put in

words there that people

actually be searching for so people

would search for the word die flex

scuba diving safety flag different

things like that to

put on there because everything the

original title is not something that

people would search for and i might

spend a lot a few more minutes on that

too to make that look a little bit nicer

now for the category this one they

usually recommend a good one so we have

sporting goods water sports scuba and

snorkeling

flags and markers so i'll select that

one that also gives me a little bit of a

clue there

that word marker i'll put in there as

well safety matte markers

and markers isn't referring to drawing

that refers to like a safety

buoy marker kind of thing so now we need

like a upc code

and the condition a condition would just

be new we only sell new items

the upc a lot of times you can get

directly from

here or if there's not one there's a sku

number but i don't see a upc

so i'll put in does not apply so now we

need some

photos for this so sometimes these

suppliers will only give you one

sometimes they'll give you multiple

suppliers so in this case you only give

me one photo so i'll save this one image

as die flag and i'll go ahead and add

that one photo

and while that uploads we'll keep going

here so now it asks for the brand name

and the manufacturing part number

manufacturing part number is same thing

as a model number

come over here let's open this back up

let's see if they have an npn here it is

right here

copy that and does it have a brand

manufacturer's

m-a-t-e series okay so that's the brand

so i'll plug that in for the npn type in

m-a-t-e

series the model number i'll put in the

same number there's no custom bundle

there's no modified

country where was it made does it tell

me that i don't see that information

here

so leave that one blank the more

information you can fill in the better

uh there's no prop 65 warning here

either so now i'll

copy down all this information that they

give you and i'll plug that in

to here that's the description if this

item starts to sell well then i'll

actually come in here and

make this description even better but

for now that's all i'm going to include

now for pricing i always choose fixed

price i don't do

auctions and you can do start my listing

when i submit them

let's skip the price for now and let's

come down to here to best offer i don't

use best offers if you use best offer

that will allow people to

send you an offer that's less than the

price that you listed it for i don't

like doing that

i set it at price that's what i'm going

to sell it for so i don't do that

and the quantity i always set it one to

start

now i i always check off where it says

charge sales tax according to the sales

tax table

now let's actually figure out the price

of this item so if i come on here

it will tell me what the whole sale

price is of the items between 37.26 and

43.84

once you actually sign up and create an

account you'll be able to see

how much exactly it's going to cost you

i mean set up an account with the

supplier that is and the msrp

price that's how much it usually will

sell for so most people are going to be

selling this for 67.99

but the minimum you're allowed to sell

it for is the map that's a minimum

advertised price so i can't sell it for

anything less than

60.99 so let's pull out an

ebay fee calculator and figure out

if we can sell it for the minimum price

so we can be as competitive as possible

so let's assume it's going to cost us 43

dollars and 84 cents so i'm going to

pull in this calculator

and i'm going to put in here 43 dollars

and

84 cents now it also wants how much is

going to cost

me to ship the item so when you work

with your supplier you'll know how much

it's going to cost

you'll be able to talk with them and

know how much on average it's going to

cost to ship the item so i'll plug that

in

shipping charge i always do free

shipping to all my items so this is the

amount

charged to the buyer that's zero and

then the sold price is 60.99 that's how

much we're selling it for in ebay and

in this case it's the map when 60.99

now coming down here i have an ebay

store which is a subscription you can

pay for to lower your fees

so i check that one off not top rated

but i do have managed payments i'll

check that one off and i'm not

using promoted listings here so this

tells me my profit with this is three

dollars and 68 cents all right it's

something it's not great so what i would

do is actually i would list it for this

price and if it starts to sell

then i would raise the price because

once you see

items start to sell on ebay other

customers become more comfortable

buying that item and will continue to

purchase it even if the price

raises so we will keep it at a lower

prices start and then raise it as time

goes on so we'll start out with this

price because we know there's profit

there

then we'll raise it later so we will

enter in 60.99

right let's come down to the shipping

details section so i've already set up

my business policies so i will select

the default ones which apply

but a lot of times what you'll have to

do with new suppliers is create new

policies

for them depending on primarily the

shipping and the return policy

because some of them might have longer

shipping times some of them might have

shorter shipping times some of them have

different rules with returns as well

so if your rules differ for your new

supplier you want to create a new

business policy for them and

make sure that it matches up according

to what your supplier

offers coming down a little bit further

do you want to use promoted listings i'm

not going to do that at this time that's

an option though and then once you're

ready just click

list item down at the bottom and boom

you have an item

live on your ebay store