Hello guys in this new post, I got a great question from Alex today in my email box, Alex asked me: How much does it cost to start my very own eBay drop shipping store?
This is a great question because it’s one I get quite a bit so I’m going break it down for you, show all the numbers so you get a realistic idea of how much money you need to start your very own eBay dropshippping store but guys if you find this article helpful make sure to share it with other dropshippers and subscribe to my email newsletter if you want more tips and tricks on how to sell on eBay now obviously, the first thing we should consider is how much money it cost to start an eBay store and luckily it costs us nothing, that’s right to start selling on eBay you can start doing it for free and what you’re going get with a free account is they’re going to let you list up 50 items in your store at no cost to you, that means you don’t have to pay what’s called an insertion fee, later, after you list more items you will have to pay about 35 cents per item in order to list items into your store, now we’re not going to get into store subscriptions but you can pay a monthly fee to eBay and that will lower the amount of the listings from 35 cents, so that will save money but let’s not get into that, let’s just start with where you are right now just getting started to list items into eBay and to set up your store is free up to the first 50 listings that you have.
Let’s also talk about PayPal because obviously, your buyers need a way to pay you and eBay is integrated with PayPal, meaning that any time someone buys something from you on eBay, they’re actually going through PayPal, so that’s where you’ll be getting your money from paypal.com and again setting up a PayPal account is completely free it doesn’t cost you anything now with eBay and PayPal the way they do make their money is they take a percentage of every sale that you make, so at first with eBay they’re going to take 10% of the cost of the item, so if you sell $100 item they’re going to take $10 of that.
With PayPal, they’re going to take 30 cents plus another 2.9% of the cost of the item, so again its $100 item they’re going to take 30 cents plus $2 and 90 cents.
This doesn’t cost that you should be worried about when getting started because these are going to be built into the price of your item on eBay, so let’s say for example you have an item listed on eBay for $125 eBay is going to take 10% of that or $12.5, PayPal is then going to take 30 cents plus an additional $3.62 that’s going to leave you with a $108.58 so depending on the cost of the item that you have to then pay the supplier to have shipped to your buyer you keep the difference. Let’s say the item cost you $100 that means that you get to keep $8.58 cents in this example and again you’re going play with the margins here we’re not going get into exactly how to price the items but that just shows you a breakdown and shows you that you don’t need to have this money up front, it’s going come out of the sale that you actually make on eBay and PayPal. Let’s look at a third possible expense and that is listing software, listing software is a way for you to quickly list items into eBay , eBay does let you do this manually, meaning you create a listing on ebay.com go in, copy and paste all information from your sources website into eBay, doing that manually with a copy and paste function, this takes a long time, however I don’t suggest you do it, I suggest you use a software that’s going copy and paste everything for you automatically and the on that I recommend now is called DSM TOOL.
Here’s the great thing it’s free to list using that software completely free, this is an expense that isn’t inexpensive at all, so listing 0 but let’s go over number 4 which is the repricing software, because you don’t only want to list the item into eBay, you also want the items price to update on eBay if the price changes on your sources website like Walmart or Amazon or Homedepot for instance.
DSM TOOL one I just described to you actually has this built in for you, so once you list an item with the DSM tool if the prices changes on amzon.com DSM tool will update the price on eBay for you. In other words, the first 50 items that you list in your store using DSM tool is not going to cost you anything.
Maybe you guys have noticed a pattern here, we have an eBay store, we have a PayPal, a listing software and a repricing software and at first none of them cost us anything to get started is $0, however I do recommend that you have some money saved up, in order to get started on eBay and let me explain to you why! When you first get started selling on eBay, PayPal is going to put you into what a lot of people like to call “PayPal Jail”, really it’s just a probation period about three months and during that probation period any time you make a sale on eBay, PayPal is going to hold on the funds, until you ship out the item to the customer and it is marked as delivered and then they’re going to release the funds to you, that’s a 3 months probation period but if you’re consistent get a lot of sales and show them that you’re delivering the items and uploading tracking numbers on time, they may cut that probation period short, so what that means for you is that you need enough money in your bank account or enough credit on your credit card to buy the item from like Walmart and have it shipped to your customer before PayPal releases the money to you.
This is the way the timeline works, you get a sale from eBay, PayPal holds on the money, you use your credit card to buy the item from let’s say Walmart and have it shipped out to your customer you upload the tracking number and then it shows as delivered and then PayPal pays you the money or releases the money to you and then you can use that money to pay off your credit card, and you keep the difference in profit, so that’s way I recommend that you have about $200 saved up or at least a good credit card and you know how to responsibly use a credit card when you get started with eBay dropshippping, but besides that there really is no cost to get stared with eBay, so I hope you guys found this article helpful, I know that a lot of people don’t start with eBay dropshippping because they’re so afraid of spending money to get started but here is proof that you don’t need much money at all in order to get started, this is one of the great things about eBay dropshippping , is that there are such low upfront costs in order to get things going, most businesses are going to be losing money in the first one or two years but that’s not the case with eBay dropshippping you can start to make money very quickly without an upfront investment, which is one of the reasons I love it and one of the reasons I really recommended it for people how are brand new to e-commerce.
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