Starting an eBay dropshipping business is one of the “lowest hanging fruits” in e-commerce.
It can literally take you 1-2 hours to have your eBay dropshipping store up and running, ready to sell retail items to the world.
But with low barrier to entry comes potential problems you will face along the way since nothing in life can ever be too easy.
In this article I will be discussing the 5 biggest sticking points you may encounter starting an eBay dropshipping business to make money on eBay.
And let me say that despite there being many problems ahead of you, I guarantee that all “problems” you face will be solvable.
Problems are only the side effects of the fact that you are getting hands-on experience making money online…
…this is a good thing and you will become stronger as you advance in your eBay business
I know several people making full time incomes selling on eBay so don’t think it’s not possible
It’s these 5 Secrets that I’ve used to make $1,000 my first month on eBay as a beginner.
Learn these 5 tips and you may just end up like my mentor on the right…
1.) Handling Customer Support Like A Professional (Returns, Chargebacks, Missing Parts, etc.)
If you are doing any kind of online selling or e-commerce you will have to handle the horrid thing that is customer support.
It really is just something that you have to accept as part of the process and deal with it accordingly.
My number one tip when it comes to this is to dissociate all emotion you have about any support request and just solve the problem
If you have to put up a fake front of niceness then do it…
…the biggest thing is that you always lower the customer’s anger level…never higher it, even unintentionally.
You really want to give off a frame of “This is all our fault and from this point on we will take care of your problem 100%. You have no need to worry at all.”
Even if the problem wasn’t always my fault this has always worked for me and sedated even the angriest of customers.
The thing is the with eBay dropshipping there is a lot that you can’t tell the customer…
(…like…that their item is from Walmart)
But you have to try your best to predict the best course of action for any problem that arises and execute on that confidently.
Over time you’ll get better at dealing with people and customer support will come naturally to you.
2.) List 50-100 items a day to keep sales increasing
When it comes to making money on eBay with a dropshipping business the name of the game is listing items.
Listing = Income
The more items you list, the more sales you’ll get, and the more money you will make.
And with eBay raising your selling limits monthly by request, every month brings potential to double or even triple your income.
This is why I recommend people use eBay listing software like Pricematik which I do an in-depth review of here.
Pricematik allows you to list tons of quality items per day making it an essential tool for running an eBay dropshipping business and scaling your income…
I personally recommend that people list 30 items per day with Pricematik for optimal results but you can list less…
…the only thing is that you will not grow as fast which is not a bad thing.
But a failure to keep up the regular habit of listing daily will stunt the growth of your income on eBay.
Until you hit your target monthly income on eBay never stop listing aggressively.
3.) Understand fees…
eBay is one of those services that has a lot of fees that can blind side you and it is key that you know exactly how much you make each sale.
The biggest fees that you must keep in mind are:
- Paypal Fee: 2.9% + $.30 per transaction
- eBay “final value fee” (aka fee per sale): 10% of item price
- eBay listing fees: $.20 per listing newly listed or relisted
Each of these will affect your bottom line and have the potential to wipe out your profit margins.
I remember that my first week on eBay I listed hundreds of items but I forgot one thing…
…eBay takes 10% of every sale.
So I ended up losing over $100 because my prices didn’t account for fees and my margins were negative.
EBay listing and repricing softwares like Pricematik help prevent this by recalculating margin for all fees.
I personally have a spreadsheet that automatically imports my sales from PayPal using Zapier so I see exactly what is going into and out of my eBay business.
As long as you stay on top of fees you will be fine…
…just make sure that you have a systematic process in place to handle, process, and support orders.
4.) Learn to deal with eBay and PayPal
After over a hundred calls to eBay and PayPal I have literally memorized their phone system by heart.
EBay and PayPal, in general, have a very mixed public view: some love them and some hate them.
They way I see it is this: “You must systematically do the right things to get you the desired results you want, knowing the weaknesses of the system.”
eBay and PayPal are largely automated services which leads to a lot of mistakes.
Held money, wrongfully banned accounts, iced transfers: I’ve seen and been a victim of it all.
At the writing of this article PayPal is holding $1,500 of my own money due to my age (17) at the starting of my eBay account. (I’m getting it back soon though)
You must strive to understand the system that both eBay and PayPal operate by so you can get what you want no matter what.
Whether it pertains to returns, cases, or held money: there is always a way to have the upper hand and get your way.
You’ll slowly know what I’m talking about once you start an eBay dropshipping business, but as of now this idea is likely kind of obscure to you.
On to the last point, but most interesting point I have for you…
5.) Be self-aware of who you are and if this is what you want to do
Money is a great thing.
It lets you buy stuff, have more freedom, and eat copious amounts of Chipotle.
But if you don’t like the way you are making money you must be self-aware enough to stop doing that since you personally don’t like it.
It depends on who you ask, but I honestly believe that money is not “just money”.
After making $1,000 my first month selling on eBay as a dropshipper I decided that e-commerce in general just wasn’t for me.
I could’ve scaled my business to $2k the next month, $4k the next, and eventually to around $10k in 6 months.
But I chose to quit eBay because I personally didn’t like it and I noticed I stopped putting the same amount of work into my business as when I started.
What I urge people is to try starting a dropshipping business on eBay because you just may love it.
I know many people who have quit their jobs and pursue what I did as a living.
It just personally wasn’t for me and I’ve always wanted to build websites so I went that route instead.
I almost guarantee that you will make money your first months selling on eBay if you work hard at it…
But just be aware of what you want and why you wanted to make money in the first place so you don’t plateau like I did.
Know yourself and go after what you want with a passion
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