People often have questions like this:
- How do I decide what to sell on eBay when dropshipping?
- What is the best way to find profitable products to sell on eBay?
- How do I pick quality items to list to my and avoid returns?
- How do I start an e-commerce store on ?
Well this article will address all of those questions and then some…
Let me introduce myself.
My name is Ben and I made this site to share my story on how I made $1,000 my first month on eBay as a complete beginner.
I am by no means an expert at e-commerce, but I did make $1k dropshipping on eBay starting from scratch.
I had had 3 failed businesses before starting on eBay: an app company, a social media consulting company, and a t-shirt business.
Anyway, you can read more about me here, but let me get into exactly how to you can pick quality, profitable, and secure products to dropship to your eBay store:
1.) Item’s Price Is Greater Than $50 But Less Than $150-$200
The type of dropshipping I did to make my $1k was supplying from a retailer (specifically Walmart)
I’d find bestselling products on Walmart through simple search, I’d list them on eBay with a 23% mark-up…
…so after 9% eBay fee and 2.9% + $.30 PayPal fee I’d make about a 11%-13% margin per sale profit.
So imagine I sell a $100 product…doing the math this is what I make:
$100 (item) * .13 (profit margin = $13 (profit)
This leads me into my first point…
You want to find items on Wal-Mart (or whatever retailer you use) ranging from $50 to $175.
This is for 2 reasons:
Reason 1.) The higher the price, the more the profit
This is just simple math.
13% of 100 is a profit of $13 and 13% of 10 is a profit of $1.30.
Every sale takes the same time to process so this is a matter of being efficient
That’s a crucial point, every sale will take the same time to process so we want to make the most off of every item we list while avoiding overpricing.
The software I use called DSGenie actually does that for you.
It automatically re-prices the item to a margin you set yourself and it shows you the trending price of the item on eBay…
…this is crucial to beating your competitors and maximizing profits safely.
Which leads me to the next point…
Reason 2.) Every sale is a huge risk so avoid items roughly $200+
You want to maximize profit per sale because every sale means that you will have to deal with a customer for 2 time spans:
- The return time-span (usually 14 days or 30 days…whatever you choose)
- The chargeback timespan (180 days after the purchase)
If you don’t know what a chargeback is then you should definitely learn because they f**king suck.
It is the equivalent of losing your money for 3-4 months (until the case is settled on PayPal’s side and eBay’s side) and fighting for your life.
But anyway, it honestly isn’t that big of a deal since your profits will be WAY more than any rare chargeback if you build your eBay store correctly.
Customers will also request stupid returns because they couldn’t take 1 minute of their day to read your listing completely to see that no, that couch didn’t come with a lamp…
…anyway, every order is a call to extensive customer service and it’s the reason you want to make as much money as possible versus the amount of order that come in.
Here is a support request frequency for dropshippers:
Out of Stock (OOS) happens every 5-10 orders…
Return happens every 20-30 orders…
Chargeback happens every 75-150 orders…
This is from pure experience and not theory, solid numbers.
Just remember to handle support professionally and you’ll be ok.
2.) Item’s Average Rating 4+ Stars
A product with a high rating means this:
People who actually bought that product got what they expected and they were satisfied with their purchase…
…this means that they likely kept it.
Listing items with only high reviews prevents you from encountering returns.
That is crucial because returns of items take a long time and will stress you out.
You’ll have to:
- Get a return label
- Schedule pick-up for the item (if the item is freight)
- Communicate with the customer
- Monitor when you are refunded for the item
- Refund the buyer accordingly
This is a 2-4 week process and largely can’t be avoided.
But by listing only items with high rating you are bullet-proofing your store to a certain extent.
This avoids returns that didn’t need to happen.
And most of all you want to make sure your…
3.) Item Is Simple, Doesn’t Have Many Parts, and Isn’t Fragile
GLASS AND FURNITURE.
This one is optional for you to follow, but the items I support the most are furniture because furniture has more moving parts due to it’s size than most items you will sell.
Also, products with any element of glass or porcelain break frequently and require extensive customer service.
Don’t get me wrong, some items are great and I do list furniture and fragile items…
…but just weigh the risk of doing that because you will 100% have the item sell then break on the way to the customer.
Walmart is usually awesome about supporting such happenings with refunds so you will be fine.
It is just a time thing that you must look out for, as your business scales you must be efficient and avoid all time-wasters like returns that could’ve been avoided…
…and in a business like retail dropshipping where you don’t have much control over product quality or delivery you want all the control you can get.
So…How Can I Get Started In Business and Make My First Dollars On eBay?
If you are thinking about dropshipping on eBay then I heavily recommend you check out the DSGenie training here.
It teaches you how to go from $0-$5,000/mo+ dropshipping on eBay (and exactly how my friend Marc, the founder, did it himself with DSGenie).
I am not promoting them because they are perfect, but only because they are the best solution for listing and repricing on eBay.
The software you use on eBay is crucial to your success and coming from someone who has tried 3 other softwares…
…nothing comes close to DSGenie in design, implementation, or execution.
Better repricing means less out-of-stocks since your store will be updated with Walmart’s stock.
Better listing insights means you pick better keywords, the correct item price, and avoid copyright infringement (which can get your store banned)
You can read about how to dropship on eBay & start an eBay business here to see how you can make your first eBay sale today…
…even as a beginner who has never started a business before.
I know several people who have quit their jobs to do eBay fulltime and I know many other who started on eBay and moved on to other things with cash in their pockets.
I’m the 2nd group of people and I’m telling you, there are few faster ways to make money online than dropshipping on eBay.
Anyway, I have to go grab a ham sandwich from my fridge.
Good luck fellow online entrepreneur, you’ll do great…
…mmmmmmm, yum, I love ham.
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