How to Dropship on eBay: 2025 Edition

eBay, a global leader in online marketplaces, offers dropshippers a unique opportunity to reach millions of active buyers worldwide. Known for its trustworthiness and ease of use, eBay provides tools, organic traffic, and low startup costs, making it an attractive platform for entrepreneurs. Whether you're new to ecommerce or looking to scale your online business further, eBay's established reputation and vast audience offer the perfect environment for dropshipping success.

We’ll show you how to dropship on eBay, from finding suppliers to creating your first listing. By the end of this blog, you’ll have everything you’ll need to start your own eBay dropshipping store. 

Dropshipping on eBay

eBay is one of the most popular and successful online marketplaces in the world. With over 20 years of experience, the platform has undergone impressive changes including multiple big-ticket acquisitions and massive marketplace expansion. eBay is a pioneer and driving force behind both ecommerce and mobile shopping, with over 9.4 million app downloads in 2023 in the US alone. Every day, eBay serves millions of users looking to buy and sell second-hand, refurbished and new goods, and it continues to grow in strength. 

With such an active audience, eBay is a prime platform for dropshippers needing organic traffic. Here are some of the benefits and challenges of starting your eBay dropshipping business. 

Benefits

Established platform

Using an established platform like eBay has many benefits. Firstly, the platform comes with a vast user base of active buyers. You can use this organic traffic from the get-go to cut your initial marketing costs in half. Secondly, eBay’s reputation coupled with their extensive Buyer Protections make them a trustworthy marketplace in the eyes of consumers, a reputation you can leverage for your brand. Customers are far more likely to buy from a trustworthy platform than a random Shopify store. Finally, eBay has global reach, helping you sell to audiences worldwide. 

Advanced tools

eBay offers exclusive tools that help sellers conduct product research, analyse competitors, and optimise listings for maximum profits. These tools are free for all sellers and can be easily accessed from the Research tab in the Seller Hub. Speaking of the Seller Hub, you’ll also find tons of marketing and promotion tools, detailed sales information for each of your listings, and streamlined tools to create more listings, faster. 

Low cost

Dropshipping is already a low-cost, low-risk option for entrepreneurs looking to break into ecommerce. Although eBay charges listing fees, business expenses are nominal compared to the costs associated with hosting your own online store. All sellers are entitled to 250,000 free listings per month (depending on the product categories). You’ll pay a final value fee for items you sell, and you may be charged additional fees for listing your product in two categories, using ads, chargeback disputes, and other fees. eBay Store subscribers will also have to pay fees, though these may be slightly smaller. For more information on eBay’s fees, you can check their fees and invoices information.

Challenges

Limited customisation

Even with eBay’s customisation tools, businesses won’t get the same level of customisation that they could get from Shopify, WooCommerce, or other ecommerce platforms. Standard eBay accounts have a profile page where you can add a custom profile picture and a text description. eBay Store subscribers can make additional changes such as adding a billboard image, a store video, store policies, featured items, active promotions, and bespoke store categories. While these additional features will help you stand out amongst competitors, your store will still be limited to eBay’s templates. 

Fewer marketing opportunities

In addition to little custom branding, you’ll have limited marketing opportunities compared to running your own store. While eBay offers promotional tools like Promoted Listings or discounts, these are limited compared to advanced ad campaigns or SEO techniques available on independent platforms. You also can’t use retargeting tools to catch customers that bounce off your listings. 

Selling limits

To help sellers manage their listings effectively, eBay imposes selling limits on sellers depending on their account type, categories, experience and performance. Each month eBay will review your account and adjust your limit based on sales volume and customer feedback. You can also request limit increases directly, though they may or may not be approved. Until your store is well established, these restrictions will limit your overall growth and profitability. 

Understanding eBay's dropshipping policies

eBay has a clear set of guidelines for dropshipping on their platform. These are in addition to their standard policies and procedures. Here’s a brief overview of their key dropshipping policies. 

What is allowed?

Dropshipping is permitted on eBay. However, you must follow the guidelines in their dropshipping and third-party fulfilment policies. In short, you must:

• Pre-purchase or otherwise own your store inventory. For dropshippers, this means buying inventory in advance, rather than buying from your supplier after the customer has ordered.

• Be clearly identified as the seller on all packing slips and invoices. 

• Ensure the safe fulfilment of your items within the terms stated in your listing. For example, if your listing states that you will ship within 3 business days, the product must be shipped within that timeline.

• Ensure your third-party provider cannot use or share any eBay order information beyond fulfilling your order. This means the customer’s data cannot be used for retargeting, newsletter sign-ups, or other activities beyond fulfilling the specific eBay order you have engaged them to fulfil.

  

What is prohibited?

Dropshipping on eBay is prohibited under the following conditions:

• You cannot fulfil orders from a third-party service provider, such as Fulfilment By Amazon, if the provider does not satisfy the above conditions. You cannot mislead or confuse the buyer as to the location of your stock. This directly violates their item location policy. For example, you cannot advertise a product as shipping from Australia, but ship it from a supplier in Hong Kong.

• You cannot list an item on eBay and buy it from another retailer or marketplace. This includes presale listings.

For more information, you can view eBay’s dropshipping policies here. 

Setting up your eBay store for dropshipping

Registering as a seller

Your first step is to sign up to eBay as a seller. There are two different eBay seller account types for you to choose from:

• Personal: A personal account is ideal for beginner or casual sellers. This account has lower selling fees and an easy registration process. However, you’ll have a lower starting limit for product listings and less control over your branding. You’ll also have less protection in case something goes wrong. 

• Business: A business account is ideal for established businesses selling large amounts of inventory. This account gives you additional features such as analytics tools, higher starting limits, bulk listings, personalised storefronts and more, but it attracts higher selling fees and requires additional documentation.

We recommend using a business account for your dropshipping journey. If you have started with a personal account, you can switch to a business account at any time from your account settings.  

eBay Stores

eBay Stores is a subscription service that can help sellers stand out on eBay. It gives sellers access to certain features like a customisable eBay storefront, exclusive growth and marketing tools, and lower final value fees. There are three plans available:

• Basic: $24.95 per month

• Featured: $74.95 per month

• Anchor: $549.95 per month

eBay Stores is an excellent option for sellers looking to scale their business, stand out from the competition, and establish a consistent presence on the platform.

Note: This subscription will not affect your selling limits when you start using the platform. For best results, beginners may want to delay subscribing to Stores until their selling limits have increased. 

Creating product listings for dropshipping

Your product listings are your most important asset as an eBay seller. They are a chance to showcase your products and persuade customers to buy them. Ensure you’re putting your best foot forward by following our step-by-step guide.

1. To create a listing, go to the eBay Seller Hub. Under the Listings section, click the Create Listing button. 

2. Find a product match to automatically pre-fill item details. In the search field, type the name of your product or its unique product identifier (such as its EAN, ISBN or UPC). You can then use the left menu to refine the product category and add details. If none of the suggested products suit your listing, select Continue Without Match. If you have any listing templates, you’ll also find them on this page. 

3. Add your product’s condition. You can choose from New, New Other, Used, or For parts or not working.

4. Add photos or videos to your listing. Make sure your photos clearly show the product from a variety of angles. Take high-resolution photos and videos to ensure your item looks good, whether buyers are looking on a small screen or a big screen.

   1. Photo guidelines: 

      1. Use JPEG, PNG, GIF, TIFF, HEIC or BMP formats.

      2. Photos should be at least 500px on the longest side.

      3. You can upload 24 pictures maximum per listing. The more photos, the better!

      4. Don’t add text or artwork, including seller logos, to your pictures. All product details should be in the title, subtitle or description box.

      5. You cannot use stock photos for pre-owned items, such as vintage clothing. Catalogue images are acceptable, but cannot be used as the primary photo for most categories. 

   2. Video guidelines:

      1. Use MP4 or MOV formats.

      2. Videos have a 150MB size limit - roughly one minute long.

5. Provide a title for your product listing. Your title can be up to 80 characters. You can also enable bold titles, subtitles, and custom labels (such as your own SKU). 

6. Provide your product category. If you have an eBay Store subscription, you can specify unique store categories. 

7. Add item specifications and variations. This may include the brand, colour, style, packaging, product line or dimensions. The more details you provide, the higher the chances your items will be picked up by both customers and search engines. If your item is not new, then you’ll need to provide a condition description that includes any unique features and flaws in the item.

8. Provide an item description. Try to keep your descriptions buyer-focused. Incorporate terms buyers are likely to search for, but avoid keyword stuffing. Make it easy to skim by listing key features like dimensions, material, condition, and compatibility. Emphasise benefits, not just features. Ensure the description is free of typos and grammatical errors, as this impacts credibility.

9. Set your price. By default your listing will have a fixed price format, but you can change it by selecting auction pricing from the dropdown menu. Once you’ve chosen your pricing option, you can set your Price, whether you allow Offers, your product Quantity and your Scheduled Start Time. Auction listings can also add a Reserve Price and Buy It Now option.

10. Set up your shipping details. Here, you’ll specify your shipping terms and where you can ship your item. You can go with eBay’s recommended delivery options, or select your own.

    1. Enter the package weight and dimensions.

    2. Select a postage service. You can go with eBay’s pre-filled recommendation, or click on Change Postage Service to select your own. 

    3. Choose whether you want to offer free postage, calculated postage, or flat-rate postage. 

11. Choose whether you want to use Promoted Listings. If you turn on promoted listings, you’ll be asked to select an ad rate, or you can choose a custom rate.

12. Specify your selling preferences. This includes choosing your preferred payment method, item location, handling times, and returns policy. Remember: your product must ship from the same location as advertised.

13. Choose whether you would like to set a charity option. This automatically donates a percentage of your product’s final sale to the charity of your choice. The charity and their mission statement will be included in your listing description, and you will receive a donation receipt and a discount on your fees matching your donation percentage. 

14. Preview your listing. If you’re not ready to post, select Save for later, which will save your listing as a draft. 

15. Select List it. Your listing is now live. 

For more information about the listing process, check out eBay’s step-by-step guide for how to create a listing.

Creating listings with integrations

If you have an existing online store on other platforms, such as Shopify or BigCommerce, eBay has multiple plugins available to sync and integrate your product listings and inventory. For more information, see eBay’s Third Party Integration Tools guide.

Choosing reliable suppliers for eBay dropshipping

Finding reliable suppliers is crucial for dropshipping success on eBay. Not only do you need to source quality products, but you’ll need to find suppliers that will work with you to meet eBay’s strict shipping policies and labelling requirements. Here are some key qualities to look for when choosing a dropshipping supplier.

Key supplier qualities

Established reputation online

Know your dropshipping suppliers before you agree to work with them. You can find reviews for these companies online, or enquire about other’s experiences on dropshipping forums. Look for reviews about their product quality, pricing, and shipping times. Be wary of companies who have no online presence, or companies with only 5-star reviews. You should also cross-check your supplier’s details with the relevant governing bodies and domain lookup services - these will help you determine whether they are who they say they are. Don’t work with suppliers who use unconventional or untraceable payment methods such as Bitcoin, peer-to-peer transfers or cash only. 

Excellent customer service and communication

Clear and effective communication with dropshipping suppliers is essential for smooth operations and customer satisfaction. It ensures up-to-date product information, accurate order processing, and quick resolutions of customer complaints, delays or damages. Good communication will prevent misunderstandings surrounding pricing, supplier policies, shipping times and other logistics. It also helps to keep your business adaptable and flexible to unexpected changes, whether along the supply chain or with market trends. Building strong communication fosters trust, enabling long-term relationships with suppliers who may offer better deals and prioritise your business. Ultimately, it streamlines operations, enhances your brand image, and keeps customers satisfied.

Clear policies

A reliable supplier should have a clear set of policies regarding shipping times, pricing, and returns and refunds. These policies will help you manage customer expectations, improving customer satisfaction and minimising complaints. Transparent pricing structures, including bulk discounts or additional fees, ensure financial predictability and better profit margin planning. Finally, clear policies enforce consistency in the supplier's performance, making it easier to build a reliable partnership.

Fast shipping and processing

One of the biggest challenges for eBay dropshippers, particularly when it comes to international suppliers, is shipping times. 52 per cent of shoppers expect deliveries within 2-3 days, and 45 per cent expect merchants to let them know when deliveries arrive via tracking. eBay has strict policies surrounding shipping and handling, and will punish sellers who fail to ship items on time with account restrictions or even account suspension. The best eBay dropshipping suppliers will have flexible and fast shipping methods and accurate tracking tools to ensure customer satisfaction.

Managing orders and inventory on eBay

Effectively managing orders and inventory is critical for running a successful dropshipping business on eBay. There are many ways you can manage your inventory on eBay, the easiest being with their native tool, Selling Manager.

Selling Manager is a tool designed to help sellers manage their listings and sales. It is a free resource that gives sellers basic reporting features, sales tallies, and order history. You can use Selling Manager to view and manage your listings, as well as create listings in bulk. You can easily access orders awaiting payment or shipping, view tracking information, and prepare shipping labels. Sellers can also upgrade to Selling Manager Pro, which allows you to track your stock quantity and receive restock alerts, create listing templates, and set custom rules to automate your seller feedback. 

Of course, the Selling Manager is just one tool that sellers can use. There are many other third-party tools available for a wide variety of tasks, from inventory management to marketing automation.

Syncing with your supplier

There are many apps, products and services available that can help you synchronise your inventory between eBay and your supplier. 

Tools like Sellbrite are specifically designed to sync supplier data with eBay stores. These platforms automatically update inventory levels, product details, and pricing based on supplier changes. They can also automatically forward orders from eBay to your suppliers, simplifying order fulfilment.

For tech-savvy retailers, using eBay’s APIs to build custom integrations with suppliers can offer more flexibility. APIs allow real-time syncing of inventory, orders, and tracking details between your store and suppliers.

Finally, platforms, such as Dropshipzone and Aliexpress, offer integration capabilities that allow you to connect your eBay store to their inventory systems. 

Automated tools to simplify management

Inventory management tools can sync your supplier’s inventory with your eBay store, ensuring stock levels are always up-to-date. These tools help prevent overselling, which leads to cancelled orders and negative feedback.

Not sure what tools are right for you? eBay has a recommended list of third-party providers, or you can visit our blog Best Dropshipping Tools in 2024 For Business Growth.

Pricing strategies for eBay dropshipping

Fixed price listings

Fixed price listings are a straightforward pricing strategy where sellers set a specific, non-negotiable price for their items. This approach appeals to buyers who prefer clear expectations and instant purchases over the uncertainty of auctions. Setting a fixed price saves you time, streamlines your operations, and prevents the need for negotiation. Fixed pricing is particularly effective for standard products with consistent market demand, such as consumer electronics or clothing. Additionally, it works well for scaling inventory and attracting impulse buyers who appreciate quick purchasing decisions.

Auction listings

While auction pricing is not prohibited for dropshipped items, it’s not strongly recommended. These profit margins are unpredictable, and order fulfilment is delayed until bidding ends, leaving retailers out of profit for longer. However, if the items you’re selling are unique, rare or collectable, such as with vintage toys, this may be an unexpected winning strategy. Auctions can also be useful for gauging market interest and determining the appropriate value of a new product line. 

Sellers can set a reserve price for auctions; this is the minimum amount you are willing to sell your product for. A low starting point can help to generate more interest in your product, but your reserve price will protect you from selling less than profitable.

Competitive pricing tips

Because there is such high competition in dropshipping, it is crucial that your pricing strategy reflects current market demands. Here are our top tips for competitive prices, ensuring more clicks and more sales.

Spy on your competitors

Use spy tools to monitor your competitor's product listings, including their pricing strategy. These tools can track prices across platforms, not just other eBay sellers. Some spy tools allow you to track competitor activity, so you’ll be notified every time they change their prices. These tools are incredibly useful for tracking rapid market changes, allowing you to respond to competitor’s strategies quickly and efficiently.

Use a dynamic pricing tool

Use dynamic pricing software to automatically adjust your prices. These tools continuously monitor competitors’ prices, demand trends, and inventory levels, automatically adjusting your product prices to remain attractive without sacrificing profitability. By reacting in real-time to market changes, dynamic pricing ensures that your listings stay visible and appealing to potential buyers, even in highly competitive categories. Additionally, it saves time by automating price adjustments, allowing you to focus on other aspects of your business, such as customer service and sourcing new products.

Build free shipping into the item cost

Offering free shipping is a proven way to boost visibility and sales on eBay, as the platform’s search algorithm often favours listings with this feature. By adjusting your prices to incorporate shipping costs, you can present "free shipping" while maintaining profitability. Additionally, it allows you to compete more effectively with sellers offering similar products, as many buyers prioritise listings with free shipping when comparing options. This adjustment helps dropshipping retailers build trust, attract more customers, and increase conversion rates.

Factoring in eBay Fees

It’s crucial to factor eBay’s fees into your product prices. Here are the standard selling fees for Australian eBay sellers:

• Fixed final value fee (on all categories): $0.30 per order.

• Variable final sale fee (most categories): 13.4% of the sale amount up to $4,000, 2.5% of the sale amount over $4,000.

• International sales fee: 1.1% of the total sale amount.

• Seller currency conversion charge: 3.3% applied to the base exchange rate and retained by eBay. 

• List in a second category: $1.00

• Add a subtitle: $2.20

• Add Buy It Now to an auction: Free in most categories, $0.11 in some categories.

• Scheduled listing: Free in most categories, $0.44 in some categories.

If these costs aren’t accounted for, dropshipping businesses risk underpricing their products, which can eat into profits or even result in losses.

To incorporate fees effectively, sellers should first familiarise themselves with eBay's fee structure, which varies by product category, selling format, and whether they have a store subscription. Sellers can use an eBay fee calculator or other online tools to estimate total costs for each sale. Adding these fees to the desired profit margin ensures that the final price covers costs while remaining competitive. Regularly reviewing fee changes or promotions on eBay and adjusting prices accordingly can also help sellers keep eBay dropshipping profitable.

Summary

eBay is a trusted global marketplace ideal for dropshippers, offering organic traffic, low upfront costs, and tools like the Seller Hub for managing listings and sales. Its established reputation and global reach make it easy for sellers to attract buyers while leveraging eBay's resources for growth. However, dropshippers face challenges like limited customisation, restricted marketing options, and selling limits. Success depends on following eBay’s strict policies, selecting reliable suppliers, and using tools for efficient inventory and pricing management. With the right approach, eBay provides a solid foundation for building a profitable dropshipping business.