How To Start Dropshipping On eBay In 2025 For Beginners

Want to start an online business with little money? eBay dropshipping is a great way to begin. You don’t need to buy stock upfront or handle shipping. Just list products, sell them, and let suppliers do the rest.

In this guide, you’ll learn how to start eBay dropshipping in 2025. We’ll cover the basics, best practices, and tips to avoid common mistakes. Let’s get started.

What is eBay Dropshipping?

eBay dropshipping is a business model where you sell dropshipping products on eBay without keeping inventory. When a customer buys from your eBay store, you purchase the item from a supplier who ships it directly to them. You don’t handle storage, packing, or shipping.

This makes it a low-cost way to start an online business. You can list items, make sales, and earn a profit by setting a higher price than what you pay the supplier. However, eBay has rules for dropshipping, so it’s important to follow their policies to avoid issues.

How To Start Dropshipping on eBay in 2025

Now that you know what eBay dropshipping is, it’s time to get started. In this section, you’ll learn the key steps to set up your store, find reliable suppliers, and start making sales.

1. Sign up for eBay

Go to eBay’s website and click on “Register.” You’ll see two options:

• Personal Account: Good for casual selling.
• Business Account: Best for dropshipping.

If you’re serious about dropshipping, choose a business account. It gives you more tools, higher selling limits, and a professional image.

Fill in your name, email, and password. If you choose a business account, you’ll also need your business name and contact details.

Once your account is ready, go to “My eBay” > “Selling” and set up your seller profile. Here’s what you need to do:

• Add a profile picture or logo. This builds trust with buyers.
• Write a short business description. Mention what you sell and your commitment to customer service.
• Set up a return policy. A 30-day return policy is recommended. It helps attract more buyers.

eBay will ask you to verify your identity before you can sell. This may include:

• Confirming your email.
• Providing a phone number.
• Verifying your address.
• Adding a bank account for payouts.

Make sure your details are accurate and match your legal documents. If eBay finds any mismatch, they might put restrictions on your account.

To receive payments, you need to link a bank account to eBay. eBay uses eBay Managed Payments, meaning buyers can pay via credit card, PayPal, Apple Pay, Google Pay, and more.

Go to “Payments” in your seller dashboard and add your bank details. eBay will send a small deposit to verify your account. Once verified, you’re ready to get paid.

New sellers have selling limits. Usually, you can list 10 items or $500 worth of products per month. These limits will increase over time based on your performance. To raise your limits faster:

• Make quick, successful sales.
• Ship on time and provide tracking numbers.
• Get positive reviews.

If you’re doing well, eBay will automatically raise your limits. You can also request a limit increase after 30 days.

2. Find Winning Products

You need items that are in demand, have low competition, and offer good profit margins. If you pick the wrong products, you’ll struggle to make sales.

But what makes a product winning?

A winning product has these qualities:

• High Demand: People are actively searching for it.
• Low Competition: Not too many sellers offering the same item.
• Good Profit Margins: The difference between your buying and selling price should be worth the effort.
• No Brand Restrictions: Avoid trademarked or copyrighted products.
• Lightweight & Small: Lower shipping costs and fewer damages.
• Solves a Problem: People buy solutions, not just products.

Use eBay’s Trending Tools

eBay provides built-in tools to help you find trending products:

• eBay Terapeak Research Tool (Free for sellers) – Shows sales trends and competition.
• eBay Best Sellers Page – Highlights popular items in different categories.
• Completed Listings Search – Helps you see past sales data.

To access Terapeak, go to “Seller Hub” > “Research” and enter keywords related to products you’re considering. It will show you the average price, sales volume, and competition level.

Spy on Competitors

Look at successful dropshippers on eBay and see what they are selling.

• Search for keywords like “fast shipping,” “hot item,” or “best seller.”
• Look at sold listings to see how often an item sells.
• Check reviews to see what buyers like or dislike about certain products.

By analyzing their listings, you can spot trends and price your items competitively.

Use Sell The Trend for Product Research

If you want a faster and more data-driven way to find winning products, Sell The Trend is a great tool.

What is Sell The Trend?

Sell The Trend is a research platform that helps dropshippers find trending products. It scans marketplaces like AliExpress, Amazon, and eBay to show you what’s currently hot.

How to Use Sell The Trend for eBay Dropshipping:

1. Go to Sell The Trend and sign up.
2. Use the “Trend Explorer” to see what’s currently popular.
3. Check the Nexus Product Research Tool – It shows how often a product sells and where it’s trending.
4. Look at the Dropshipping Stores Database – This lets you see what successful sellers are listing.
5. Use the Profit Calculator to check your potential margins.

Sell The Trend saves time and effort by providing ready-to-sell product ideas. Instead of guessing, you can use data to make smart product choices.

Don’t list hundreds of products at once. Instead, start small and test:

• List 10-20 products in different categories.
• Use clear, keyword-rich titles to get noticed.
• Adjust prices based on competitors’ pricing.
• Track which items get views and sales.

3. Select an eBay Dropshipping Supplier

Your supplier affects product quality, shipping time, and customer satisfaction. If you pick the wrong one, you’ll deal with delays, refunds, and bad reviews.

Here’s how to find a reliable supplier for eBay dropshipping.

What to Look for in a Supplier

A good supplier should have:

• Fast Shipping – Aim for 7-15 days max (faster is better). Avoid long shipping times that frustrate customers.
• Quality Products – Low-quality items lead to negative reviews and returns.
• Competitive Pricing – Your cost should allow at least a 20-30% profit margin.
• Good Stock Levels – Avoid suppliers who run out of stock frequently.
• Reliable Customer Support – They should respond quickly to order issues.
• Tracking Numbers Provided – This is a must for eBay’s seller policies.

Best eBay Dropshipping Suppliers

There are three main types of suppliers:

1. Retail & Marketplace Suppliers

1.1 Aliexpress

AliExpress is one of the largest marketplaces for dropshipping, offering millions of products at low wholesale prices. It’s ideal for new dropshippers due to its wide product range and no minimum order requirements. However, shipping times can be slow (20-40 days) if products ship from China.

To improve delivery speed, look for suppliers with warehouses in the USA or Europe, which can reduce shipping time to 7-15 days. Always check seller ratings, reviews, and processing times before choosing a supplier.

1.2 Amazon

Amazon is known for fast shipping and a huge inventory, making it an attractive source for products. However, dropshipping from Amazon is against eBay’s policies. If eBay detects that you are fulfilling orders through Amazon, they may restrict or suspend your account.

Additionally, buyers may receive Amazon-branded packaging, which can lead to complaints. Some sellers still use Amazon as a backup supplier, but it’s a high-risk strategy that should be avoided for long-term success.

1.3 Walmart

Walmart offers competitive pricing, fast shipping, and a large product catalog, making it another tempting option for dropshippers. Like Amazon, dropshipping from Walmart is not allowed on eBay, as eBay discourages fulfillment from other retailers.

Walmart also frequently cancels bulk orders, which can disrupt your business. While some dropshippers still source from Walmart, the risk of policy violations and unreliable fulfillment makes it a risky choice. It’s better to work with wholesale suppliers or dropshipping platforms that align with eBay’s rules.

2. Wholesale Dropshipping Suppliers

These suppliers work directly with sellers and follow eBay’s dropshipping policies.

• CJ Dropshipping – Global warehouses, fast shipping, and direct eBay integration.
• SaleHoo – A directory of verified wholesale suppliers.
• Spocket – Great for finding suppliers in the USA and Europe for faster shipping.
• Modalyst – Focuses on high-quality, branded products.

Pros: More reliable, lower risk of eBay bans, better margins.
Cons: Some require a membership fee or approval process.

3. Private or Local Suppliers

You can find a local supplier or manufacturer willing to dropship for you. This can be done through:

• Google searches (e.g., “wholesale suppliers for [your niche]”)
• Trade shows and supplier directories
• Contacting brands directly

Pros: Less competition, better shipping, stable inventory.
Cons: Requires effort to find and negotiate deals.

How to Test a Supplier Before Selling

Before committing, test the supplier by:

1. Ordering a sample product – Check quality, packaging, and shipping time.
2. Checking reviews – Read what other dropshippers say about them.
3. Contacting customer support – Test their response time and professionalism.
4. Asking for a tracking number – Ensure they provide tracking for every order.

Avoid These Supplier Mistakes

• Relying on one supplier – Always have backup options.
• Choosing slow shippers – Long shipping times = bad reviews.
• Ignoring quality control – A few bad reviews can ruin your eBay reputation.
• Not checking return policies – Make sure your supplier accepts returns.

4. Price Your Product

Setting the right price is key to making a profit in eBay dropshipping. The price is too high, and no one buys. The price is too low, and you won’t make money. The goal is to stay competitive while keeping a good profit margin.

Here’s how to price your products the right way.

Understand eBay’s Fees

Before setting a price, you need to know how much eBay takes from each sale.

eBay charges:

• Final Value Fee – Around 12-15% of the total sale price (including shipping).
• Insertion Fee – Free for the first 250 listings per month. After that, $0.35 per listing.
• PayPal or eBay Managed Payments Fee – Usually around 2.9% + $0.30 per transaction.

So, if you sell an item for $50, eBay might take $6-8 in fees. Always include these costs in your pricing.

Calculate Your Profit Margin

To stay profitable, use this formula:

Selling Price = Product Cost + eBay Fees + Shipping + Desired Profit

Example:

• Product Cost: $20
• eBay Fees (12%): $6
• Shipping Cost: $5
• Desired Profit: $10

Final Price = $41

This way, you cover all costs and still make money.

Research Competitor Pricing

Look at what other sellers are charging for the same or similar products.

• Search your product on eBay.
• Filter by “Sold Listings” to see actual sale prices.
• Find a pricing sweet spot – not the highest, but not the lowest.

If your price is too high, offer better images, a stronger description, or free shipping to justify it.

Psychological Pricing Tricks

These small changes can boost sales:

• Use .99 pricing – $19.99 looks cheaper than $20.
• Offer free shipping – People love “free.” Just add shipping costs into the product price.
• Bundle products – Sell two items together at a discount. More sales, fewer fees.
• Discount pricing – Show a higher original price with a discount (e.g., “Was $49.99, Now $39.99”).

Test & Adjust

Pricing isn’t set in stone. If your product isn’t selling:

• Lower the price slightly to match competitors.
• Try offering a small discount for a limited time.
• Use Promoted Listings to boost visibility.

5. Create Your Listings

Your eBay listing is the first thing buyers see. A well-optimized listing increases visibility, builds trust, and improves sales. If your listing is weak, even a great product won’t sell.

Here’s how to create a high-converting eBay listing.

Write an SEO-Optimized Title

Your title should be clear, keyword-rich, and attention-grabbing.

DO:

• Use relevant keywords (what buyers search for).
• Be specific (mention color, size, or features).
• Keep it under 80 characters (the eBay limit).

DON’T:

• Use unnecessary words (e.g., “Best Product Ever!”).
• Overuse caps or symbols (WOW).
• Add misleading info.

Example:
“Amazing Wireless Earbuds for Sale – Must Buy!”
“Bluetooth Wireless Earbuds Noise Cancelling – 40H Battery Life”

Write a Clear, Persuasive Description

Your description should explain the product and answer common buyer questions.

Structure:

1. Short introduction – What is it and why is it useful?
2. Key features in bullet points – Make it scannable.
3. Shipping & return details – Set clear expectations.

Example:

• Wireless Bluetooth Earbuds – Noise Cancelling & Long Battery Life
• 40 Hours Playtime – Enjoy music all day.
• Noise Cancelling – Block out background noise.
• Water-Resistant – Perfect for workouts.
• Fast Charging – 10 mins charge = 1-hour playtime.
• Shipping: Ships within 24 hours. Arrives in 5-10 days.
• Returns: 30-day hassle-free returns.

Use High-Quality Images

Good product photos = more sales. eBay recommends at least 5 images per listing.

DO:

• Use high-resolution images.
• Show the product from different angles.
• Include lifestyle photos (product in use).
• Use a white background for the main image.

DON’T:

• Use blurry or dark photos.
• Steal images from other sellers.
• Show misleading product sizes.

If you’re dropshipping, ask your supplier for high-quality images.

Set the Right Item Specifications

eBay has fields for:

• Brand, color, material, size, features, and more.
• The more details you fill in, the higher your listing ranks.

Example:
Brand: XYZ Audio
Color: Black
Connectivity: Bluetooth 5.0
Battery Life: 40 Hours

These details help buyers find exactly what they want.

Offer Competitive Shipping & Returns

Fast, reliable shipping builds trust.

• Offer free shipping if possible.
• Choose ePacket or local warehouses for faster delivery.
• Clearly state your handling time (1-2 days is best).

Return Policy:

• A 30-day return window increases sales.
• Be clear about who pays for return shipping.

Buyers feel safer when they know they can return an item easily.

Use eBay Promotions to Boost Visibility

Want more views? Use these strategies:

• Promoted Listings: Pay a small fee to rank higher in search results.
• Markdown Manager: Offer discounts and time-limited deals.
• Best Offer Option: Let buyers negotiate (can help drive sales).

These tactics help you stand out in a crowded market.

6. Build a Good Reputation

Your reputation on eBay directly impacts your sales. Buyers trust sellers with high ratings, positive reviews, and excellent customer service. If you don’t manage your reputation, you risk low visibility, fewer sales, and even account suspension.

Here’s how to build and maintain a strong eBay reputation.

Deliver Excellent Customer Service

Great customer service leads to positive feedback and repeat buyers.

DO:

• Respond quickly to buyer messages (within 24 hours).
• Be polite and professional in all communication.
• Offer helpful answers and resolve issues fairly.

DON’T:

• Ignore messages.
• Get defensive with complaints.
• Make false promises about shipping or returns.

Tip:
Use the eBay app to get notifications and respond faster to buyers.

Ship Orders on Time

Late shipments lead to bad reviews and account restrictions.

DO:

• Choose reliable suppliers with fast shipping.
• Ship within 24-48 hours if possible.
• Always provide a tracking number to buyers.

If a delay happens, inform the buyer immediately and offer a solution.

eBay Dropshipping: FAQs

If you’re new to drop shipping, you probably have a lot of questions. Here are answers to the most common ones.

1. Is eBay Dropshipping Allowed?

Yes, but with rules. eBay allows dropshipping only if you source products from a wholesale supplier. You cannot list items from another retail site like Amazon or Walmart.

If you violate this rule, eBay may lower your listings in search results or even suspend your account. To stay compliant, work with verified suppliers who support the dropshipping model.

2. Is Dropshipping on eBay Worth it?

Yes, but it depends on how you do it. The dropshipping business is competitive, but many sellers make profits by finding winning products and offering safe delivery.

Pros:

• No need to buy inventory upfront.
• You can run it from anywhere.
• Low startup costs compared to an online store.

Cons:

• High competition.
• Lower profit margins compared to private stores.
• eBay’s strict policies can limit your growth.

Success comes down to choosing the right suppliers and using eBay dropshipping tools to automate tasks.

3. How To Dropship on eBay For Free?

You can start without upfront costs, but you still need to pay eBay fees when you make sales. To begin for free:

1. Sign up for an eBay seller account (no cost).
2. Use free product research tools to find trending items.
3. List items with a markup to cover fees and profits.
4. When you get a sale, order from your supplier and have them ship directly to the customer.

While you don’t need to invest in stock, using a dropshipping platform can help you scale faster.

4. How Much Investment Is Required For eBay?

You can start with as little as $50 to $100 for listing fees and small ads. But as you grow, you may need:

• $15 to $50/month for premium eBay dropshipping tools.
• Extra budget for promotions to boost visibility.
• Money for refunds in case of issues.

The more you invest in research and automation, the faster your business can grow. Smart eBay dropshippers reinvest profits to scale.

Conclusion

eBay dropshipping is one of the easiest ways to start an online business with low upfront costs and no need for inventory. However, success depends on choosing the right suppliers, pricing your products smartly, and providing excellent customer service.

Start small, test products, and scale as you gain experience. With the right approach, eBay dropshipping can become a profitable and sustainable online business.