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eBay dropshipping: How to dropship on eBay From Australia

Planning to set up an eBay dropshipping business from Australia? Learn how you can keep your expenses low and margins high.

<Key takeaways>

In eBay dropshipping, products are sent to customers by a supplier or a dropshipping agent instead of the seller
eBay sellers need to fulfil orders from a wholesale supplier and not retailers
Dropshipping margins are usually lower. But you also need lower upfront costs to get started
With a World Account, you can collect eBay payments in 15+ multiple currencies at competitive exchange rates

Dropshipping through eBay means you don’t need to shell out big bucks to set up your custom online storefront or market your products to new customers. You can directly partner with a dropshipping agent and set up an online eBay storefront to attract 135 million customers already looking to purchase products.

If you are serious about launching a successful dropshipping business on eBay, look at this in-depth guide.

What is eBay dropshipping?

eBay dropshipping is an online selling business model where the seller doesn’t own or manage the physical inventory. Instead, the products are directly dropshipped to customers by a supplier or a dropshipping agent.

When you partner with a dropshipping agent, they will be responsible for sourcing products from suppliers, checking for quality issues, storing products, and fulfilling customer orders. You pay a separate fee for dropshipping apart from the product and shipment costs.

As a result, dropshipping margins are usually lower. But you also need lower upfront costs to get started.

Since your dropshipping agent does all the heavy lifting, you save more time, which you can use to manage and market your eBay products.

Take a look at how to sell internationally on eBay.

Is dropshipping on eBay allowed?

Yes, eBay does allow dropshipping, but there are specific dropshipping policies that you need to follow, including:

Products can’t be shipped directly from a marketplace or retailer

You cannot buy a product from a retail marketplace like Amazon and ship it directly to your customers. eBay sellers need to fulfil orders from a wholesale supplier.

Sellers need to meet delivery and shipping guidelines

Even if you’re not shipping products yourself, you’re accountable for ensuring delivery and shipping standards for all orders.

Delivered products should match the listing description

You can face severe consequences if customers receive counterfeit or damaged products or if they receive a product that is different from what was listed on eBay.

Dropshipping can be risky because you never see the products before they are shipped to customers. You need reliable suppliers and dropshipping partners who follow eBay policies and ensure compliance.

eBay can lower or remove your listing entirely from its search results if there are any violations. Your seller ratings or status could also be impacted.

Steps to dropship on eBay

1. Steps to dropship on eBay

Create an eBay seller account and set up your online storefront on the marketplace. You will be required to add details about your business and the type of products you plan to sell.

2. Choose products to dropship

Look for the best-performing products on eBay to find the right products to dropship. Some of the most popular categories on eBay include clothing, shoes, consumer electronics, toys, and pet supplies.

3. Find suppliers

After you have found the products you want to sell on eBay, look for reliable suppliers offering wholesale prices. You can find suppliers on B2B marketplaces like 1688.com and Alibaba.

You can partner with a supplier who can dropship products directly or find a dropshipping agent close to the supplier’s warehouse to save on shipping costs.

→ Learn how to dropship from 1688

4. List your products on eBay

Create a new listing with details about the product. You can ask your supplier to share detailed product information and images that you can use for the listing.

Research the important keywords customers use to find similar products and add them to your product name, description, and subtitle. Discuss the return policy with your dropshipping agent and include it in your listing.

5. Decide your profit margins

eBay dropshipping can only be successful when you have a good profit margin. If you don’t price your products correctly, you may lose money instead of making anything.

Before deciding on a price, you should factor in all the business expenses, including:

Wholesale product costs
Shipping costs
Dropshipping commissions
Marketing costs
eBay fees in Australia
Currency conversion costs
International transaction fees

You also need to monitor similar products listed on eBay to see how they are priced. Online e-commerce is very competitive, and cost is a major deciding factor for customers.

Protect the margins of your eBay dropshipping businesses with WorldFirst

By linking your eBay account to WorldFirst, you can collect and send payments in multiple currencies from the same account. You get access to local bank account details with sort codes to receive payments from eBay customers worldwide.

Hold the funds in your World Account to make further payments or repatriate the funds at any time.

With a World Account, businesses can:

Open local currency accounts in 15+ currencies
Send and receive payments in 40+ currencies
Collect international payments from 100+ marketplaces and payment gateways,
Pay into China, USA, New Zealand, Europe, and 130+ countries and regions
Transfer instantly and for free to another World Account
Lock in the exchange rate for two years to profit margins

Open a World Account for free

Open 10+ local currency accounts with local account details
Direct CNH payments to 1688.com
Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
Lock in currency conversion rates for up to 24 months

Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.

Written by Jim Vrondas, Country Manager ANZ at WorldFirst

Based in Sydney, Jim is responsible for the WorldFirst business across Australia and New Zealand. He brings with him over 25 years of experience helping Business Owners, CFO’s and Treasury Managers overcome the challenges with cross border payments and navigating volatile foreign exchange markets.