5 Tips on eBay Dropshipping
Today we are going to talk about how to make eBay Dropshipping a success. Also, this will only require your contribution to a very successful project.
1. Minimize Your Workload
The key to gaining a competitive advantage and making money with eBay Drop Shipping is high volume as the profit margins are very small and often only a few dollars per sale. Online marketers try to sell as quickly as they can. High volume means more work, because you have to make each list individually.
To streamline the process and reduce your role, find products that can be published as multi-item listings. This way, you only have to do it once, and you are free to focus on accomplishing it and manipulate the benefits when needed. Be sure to set a long time for these eBay listings to avoid the need for re-listing.
2. Keep Control of Pricing
The reason millions of online buyers come to eBay every day is that they promise the best prices for the products they buy. This can be a challenge for Drop Shipper because the final selling price can fluctuate but the supplier charges a fixed cost no matter what.
In addition, eBay listing requires a listing fee and 10 percent of the final sale price (up to 10 percent), which can cut your meager profit margins.
Thanks, there are several ways to maintain your profit. When dropping for eBay, you have the option to set a Buy It Now list that gives your product a fixed price, which means you can be guaranteed the desired profit.
Another advantage of using the Buy It Now option is that entry fees are often lower, no matter if you create a single or multi-item eBay list.
If you still want your eBay buyers to take the potential for higher profits and bid on your products, you can try to set a reserve price. This is the lowest price a seller would like to accept for an auction item.
With reserve pricing, inclusion and final value charges vary, so be sure to adjust your reserve price accordingly. This feature guarantees better profitability, but online buyers may be disappointed as the reserve price is not visible to the customer.
The best way to control your profit margin is to set up a high starting bid that guarantees to cover your fixed costs. Make sure that factors such as your supplier (including shipping, taxes, etc.) as well as eBay listing and final value charges are affected.
Potential fees for listing your eBay can be calculated by checking its fee calculator.
3. Ensure Availability
Thousands of eBay dropouts make money by eliminating the need to keep inventory, but this can lead to some setbacks. The biggest mistake Drop Shippers can make is not ensuring that the items they list on eBay still exist.
This mistake can be frustrating for online buyers, drive away repeat customers and cause you financial difficulties.
To avoid the dangers of selling suspended or out-of-stock items, check your supplier’s inventory regularly to see what is in stock and what is leaving their stores quickly due to limited quantities.
Collecting daily reports from your suppliers helps maintain a reputation for performing quickly and reliably with your customers.
Remember, your business needs its reputation to stand out from the competition, and disgruntled customers may soon risk closing your store permanently on eBay.
4. Ensure Fulfillment
You have confirmed that your listed items are available; Now is the time to keep your customers happy by executing all orders quickly and efficiently. Reputation is everything on eBay, with millions of online marketers competing for sales every day, so be sure to keep up with the fulfillment.
The biggest challenge with accomplishment is that in the end it is out of your hands. You can send your customer orders to your supplier but they have to follow it.
If you can’t trust your supplier, it’s time to move on and find another product source.
A trusted supplier will not only stay on top of shipping items, they will also keep you updated on the status of your orders and notify you of possible delays or issues so you can send information to your customers.
Problems will inevitably arise now and then, but keeping in touch with your suppliers and your customers will minimize any negative feedback.
5. Watch Out for Unreliable Suppliers
There are a number of suppliers that can be found online, but many drop shippers fail to properly test or evaluate their chosen ones before attempting to sell on eBay. This error can quickly backfire in the form of late deliveries and poor quality shipping.
Remember, the customer will not go to your supplier for what you want and they will look at you to deliver the goods they paid for you in a timely manner and of the quality they expect.
Even if the supplier makes a mistake in ordering, the customer will only see you and will report negative reviews or eBay accordingly. Services such as online directories can save you time by presenting a list of pre-screened providers for quality and reliability.
For a detailed how-to, read on for our dropshipping guide so you can start selling online!