How to Start an eBay Dropship Business

Online auction site eBay provides sellers with access to 39 global markets, according to data collected by the company, which places each listed item in front of potentially millions of buyers. But many sellers struggle with locating goods to sell, and a reputable drop-shipping distributor provides an economical solution. 

eBay Dropship Business

eBay sellers can establish relationships with drop-shipping distributors that house items in warehouses. Drop-shipping distributors work with sellers by providing a selection of items to purchase and handling the shipping process. The seller then advertises the selected items, collects orders and money from buyers and initiates the shipping process with the drop-shipping distributor. You can start an eBay drop-ship business with solid research, diligence and creativity.


1 - Contact your state's comptroller's office to inquire about applying for a sales and use tax license. Each state requires that sellers pay a sales tax, which is collected from the customer. On a quarterly basis, you must deposit the total amount of sales tax collected from buyers within your state into the account. You only need to collect sales tax from buyers that reside in the same state as you, and eBay can calculate this for you. You may also need to register your business, for example as a corporation, with your secretary of state.


2 - Locate a drop-ship company. Many organizations or drop-shipper directories can connect you with drop-shippers. The service you select may require a fee for access or provide a free listing of drop-ship companies. Select a drop-shipping company that stocks items in a warehouse controlled by the company, which will limit the line of distribution and increase your profits.


3 - Choose an appropriate item or group of items to sell. If the selected items have some relation to each other and to your theme, this increases the opportunity for selling your items using up-selling and cross-selling techniques. For example, if you decide to sell shoes, you can up-sell customers by advertising a more expensive brand on your eBay seller's page. Cross-sell customers by offering accessories, such as shoe laces or shining products. Select items you have some knowledge of or are willing to invest time learning about.


4 - Obtain one sample of each item in your "inventory" from the drop-ship company you've chosen to work with. In order to increase your exposure, avoid using stock photographs and item descriptions provided by the drop-shipper. Personally take high-quality photographs of each item and create a custom description.


5 - Open an eBay account, if you do not already have one, and familiarize yourself with the website's listing processes and fees. Research similar items on the site for ideas on pricing and for listing inspiration. When selecting a price for your items, remember that PayPal may also charge fees for your eBay seller transactions.


6 - Create a PayPal account, or link an existing PayPal account to your eBay seller profile, for collecting payments.


7 - List your items using eBay's complex or simple form. The complex form allows you to include additional photographs and provides flexible selling formats, such as auction or fixed-price listings. The simple form offers one free photograph and other basic features. Select the payment methods you are willing to accept.


8 - Review your eBay account for sales. You will receive an email when a buyer completes a purchase. Collect the buyer's details and information about the item ordered. You can now contact the drop-shipper to complete the ordering process.


9 - Visit the drop-shipper's website, or otherwise complete the required ordering process, to request that they ship the items to your buyer. Follow up with customers who do not receive their items or who express other concerns. This will increase your chances of receiving positive feedback, which establishes trust with potential buyers.

Tips & Warnings

- Select a reputable drop-shipping company to minimize the distribution line. Look for companies with reliable payment methods, quality samples, a fair back ordering process and a quality reputation.

- Things You'll Need : Internet - Credit Card

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