Before I answer to how does drop shipping work question in this article, what is eBay drop shipping and why should care? Because I really believe that eBay dropshipping is one of the simplest business models that you can start if you are interested in selling products online or e-commerce because it doesn’t involve a lot of the logistics a lot of the hurdles a lot of the upfront investments that a lot of other ecommerce businesses require, let me show what I mean, this how eBay dropshipping works,
the first thing you’re going to do is you find an item on one of your suppliers websites and these suppliers are regular websites like Walmart, Amazon, Home Depot and Zoro any website that you can purchase an item from, you can usually be used as a supplier for your eBay dropshipping business , the ongoing example throughout the rest of this article I will just use Walmart as an example so let’s say you find an item on Walmart that you want to sell, so the first thing you’re going to do, is you’re going to list that item for sale on eBay, you’re just literally going to copy it from Walmart into eBay, you don’t actually even purchase the item yet ,so now it’s live on eBay, you have an item for sale on eBay, here comes a customer, they buy the item $400 from you and then your setting in a cafe on your laptop, because you can do this from literally anywhere in the world, that you have an internet connection, then you buy the item, you take a portion of that hundred dollars, let’s say 80 bucks and you buy it from Walmart. Here’s the best part you enter you belling information but for the shipping address you use the customers shipping address, so know Walmart is shipping the item directly to the customer that’s what is meant to be a dropshippers , that is how this business model works and as you see here, there’s not a lot of logistics like there are with other e-commerce businesses, you don’t have to buy inventory upfront, you only buy it once someone buys it from you, you don’t have to worry about shipping labels, boxing up items, storing items because your supplier Walmart, is handling all of that for you.
When we list an item for sale on eBay we have to continually monitor this item on Walmart, what if the price went up on Walmart, what if the item went out of stock, if that happened we had to make changes on eBay so everything we had to monitor ourselves, took a lot of time and it meant that we could only scale our business up to a certain point, then people started to develop software to do that for you automatically. So it would take us about 5 to list an item, now we can list literally hundreds of items in a matter of minutes and that software would Reprice the items on eBay every single hour so if the price and Walmart went up, the price on eBay would go up automatically for you, so this was a huge game changer because it allows us to scale our eBay drop shipping businesses bigger and bigger and bigger, it worked it really did work but there were serious flaws with it, and the flaws were just in the size of the business with so many items we even with software weren’t keeping good track of all the items, all the price changes things would go up in price, things would go out of stock, we wouldn’t catch them in time so dropshippers were canceling orders, dropshippers weren’t providing as good of a customer service experience as we could if we had smaller more manageable stores. Overall I think you a dropshippers we’re doing a really good job, proving great customer service and just providing a good experience for buyers, but there were some that were getting lazy, that we’re letting the software do the work for them and not putting in a lot of work themselves and more importantly eBay themselves felt that eBay dropshippers we’re getting lazy and not providing their customers with good customer service or a good buying experience on eBay, so more and more eBay we’re starting to disfavor this model of scaling up really huge stores and just relying on software to make sure that everything was taken care for you, so increasingly what we’re finding is that eBay wants us to be more involved with our business to look at every single item that we’re listing to make sure that each customer is taken care of well, this is the future of eBay dropshippping , this basic model it’s not even that revolutionary right, it’s basic customer service, does that mean that we can’t use software at all no of course not, there is still software that we can use that eBay doesn’t have a problem with, and that allows us to automate a lot of our business while still being a lot more hands-on with it, to make sure that our customers are well-taken care. Let’s me show an example of that, so again this is the item that we want to sell, so what I’m going to do is copy the URL and come over to this tool, it’s called skew fetch, I’m going to paste in the URL zone and click process.
Now what this tool doing it’s pulling everything from Walmart and pulling it in here for you pretty fast but as you see it’s only doing one item at a time, all you have to do basically is come down to the bottom and click process. So you can see what does automatically for you, it is opening up eBay, it’s opening up a new listing on eBay and it’s pulling everything in automatically.
There’s the title there, I’m going to give it a second to load and it’s going to scroll down, so you can see it work and it’s pulled in the description there are all the photos being pulled in as well, item specifics are being pulled in, this took maybe a minute and a half the whole process for you, so this part is still very fast very automated but of course we’re not bulk listing 100 of items at once without even taking a good look at what those products are, then of course if you want to list the item up for sale you can just come down to the bottom and click list item.
And that item will now be live in your eBay store, just took a couple of minutes, and then once you do that this software will actually Reprice the item for you if the item goes up and down in price or if the stock changes on Walmart.com.
So that’s the basic business model, those are the current strategies and tactics that are working for my eBay drop shipping business.
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