eBay dropshipping is a business model where you sell products on eBay without physically owning or stocking inventory. Instead, when a customer buys from your eBay store, you purchase the item from a third-party supplier (like Amazon, Walmart, AliExpress, or a wholesaler), and the supplier ships it directly to your customer.

Here’s a clear step-by-step breakdown of how eBay dropshipping works 👇

🧩 1. Set Up Your eBay Seller Account

  • Create an eBay seller account (choose “Business” if you plan to sell regularly).

  • Set up payment (PayPal or eBay Managed Payments).

  • Create your store name and branding.

📦 2. Find Reliable Suppliers

  • Choose a supplier who can deliver quickly and has consistent stock.

  • Common sources:

    • AliExpress

    • CJ Dropshipping

    • Walmart

    • Amazon (note: risky — not fully allowed under eBay’s policy)

    • Wholesale or private suppliers (best long-term option)

🛍️ 3. List Products on eBay

  • Copy the product details (title, images, and description) from the supplier’s site.

  • Optimize your listing with:

    • Keywords for eBay SEO

    • Attractive images

    • Competitive pricing

  • Set your price higher than the supplier’s to make a profit.

🧮 Example:
Supplier price: $30 → You list for $45
Customer buys → You earn $15 (minus eBay fees)

💰 4. Customer Buys the Item

  • When someone purchases your listing on eBay, you receive the payment.

🚚 5. Order from Supplier

  • You then order the product from your supplier’s website.

  • Enter your customer’s shipping address instead of your own.

  • The supplier ships it directly to the buyer.

📬 6. Provide Tracking & Handle Service

  • Upload the tracking number to eBay so your customer can track the shipment.

  • Handle any customer questions, returns, or issues.

🧾 7. Profit

  • Your profit = Selling Price – Supplier Cost – eBay/PayPal Fees

  • eBay fees are usually around 12–15%.

⚠️ Important: eBay Dropshipping Policy

eBay allows dropshipping only if:

You source the product directly from a wholesale supplier.

It does not allow listing products from other retailers (e.g., Amazon, Walmart) and having them ship to customers — this can cause account suspension.
✅ Allowed: Wholesale suppliers, private label, or fulfillment centers
❌ Not allowed: Amazon-to-eBay or Walmart-to-eBay arbitrage

✅ Pros

  • No need for inventory or storage.

  • Low startup cost.

  • Wide product range flexibility.

❌ Cons

  • Thin profit margins.

  • Inventory or price changes at supplier can cause problems.

  • Risk of delayed shipping or policy violations.

  • You’re responsible for customer service.

Would you like me to show you a real-world example setup —