Top 7 Lies About eBay Dropshipping Explained! [Which ones are true?]

in this video i'm going to go over the top seven myths i hear about ebay drop shipping and whether they're true or not including the number one myth slash question i get about ebay drop shipping is it even allowed what's up everyone paul here from dropshippingtitans. com where i teach regular people just like you how to start your first successful drop shipping store and we're going to get right into the content here so if you appreciate that i would appreciate you giving this video a thumbs up

the first myth i want to talk about are shipping times now a lot of people who don't do ebay drop shipping are afraid to get started with it because they hear that it takes a long time for customers to get their items and that is not true in most cases see most people think that because they heard that items shipped directly from china to the customers who buy items from us on ebay but that's not the way i primarily run my business i mostly use us-based suppliers whether that's other retailers or other marketplaces based here in the united states or because i use wholesalers who exist here in the united states and have warehouses here in the united states yes you can use warehouses and suppliers in china but you don't have to the reason this rumor exists is because so many people are familiar with shopify drop shipping much more than they are familiar with ebay drop shipping and with shopify drop shipping you almost 100 of the time are going to be using a website called aliexpress to drop ship from and they are based in china so they do have long shipping times but with ebay drop shipping you don't have to do that you can use much faster shipping because we are using warehouses and suppliers based here in the united states so myth number one debunked

myth number two is that drop shipping on ebay is a terrible idea because what happens if you list let's say these oreos up for sale and at the time that you listed them they're only three dollars and then after someone buys them from you go to buy them from your supplier's website in either one they're out of stock or two they're suddenly 10 and now you've just totally messed up your sales luckily there is software that solves this issue for us so anytime i list items on ebay using other retailers or marketplaces i always use a software that will allow me to quickly list those items onto epay for me once i do that the software has now linked up the item on ebay with the item on my supplier's website so if the stock changes on the suppliers website or the items price that change is automatically reflected on ebay for me so i never sell an item that's out of stock and at a loss that same software also exists for wholesale suppliers as well so this rumor this myth that you're going to lose money when you sell items or you're going to sell items that are out of stock it does come up but really not that often because of that really powerful automation software that we use to help us run our ebay drop shipping stores the next rumor slash myth about ebay drop shipping is that it's dead it's over saturated or it doesn't work but let me ask you a question do you shop online if the answer is yes then that's proof that e-commerce is not dead in 2019 alone over 600 billion dollars was spent online and that's not even the craziest part is that only makes up 16 of the total amount of money that consumers spend in retail stores in 2019 which means that most money people are spending is being done in a physical store but we do know that year after year the amount of money that's being spent online grows and grows so in 2019 over 600 billion dollars was spent online in 2020 it was much more and it will continue to grow and grow eventually we will see e-commerce overtake in-store traditional retail sales which means that e-commerce isn't dead it's not over saturated it's actually still in its infancy it still has a long way to grow and you can still get in early now further proof that e-commerce isn't dead that specifically ebay dropshipping rather isn't dead is just the proof i'll put up on the screen here screenshots showing my students actual results students who actually are doing ebay drop shipping actively and you can still see that yes this still works yes you can still make money doing ebay drop shipping and here's a proof right here so myth number three

debunked myth number four invoices and receipts won't your customer on ebay get angry if they buy an item from you on ebay and suddenly it arrives in a walmart box or a home depot box and inside is a receipt or invoice which shows that you paid less for the item than they paid on ebay well in reality here's what happens i've sold tens of thousands of items on ebay and have had very few customers complain about this and those that do complain about it very few of them take further action like leaving negative feedback it has happened but it's extremely rare and i've usually been pretty good about getting that negative feedback removed by ebay so why is that well first of all the customers are just happy to get their items they don't actually look at what boxes came in they don't look for any slips of paper in there they're just happy that they got their item if it does say something like walmart or home depot on the outside depending on where you drop ship it from who cares right because customers know that we as sellers on ebay we have to ship our items in boxes and we have to get our boxes from somewhere and where can you buy boxes well you can buy them at home depot walmart or you can reuse old amazon boxes so customers don't really put too much stock into what the box is that the item arrived in when it comes to invoices we have found that a lot of suppliers like walmart don't include any invoices in the box at all home depot doesn't include the price on the invoice it's just a slip of paper with the order number and wholesale suppliers that you work with a lot of them will just blind drop ship for you anyway or white label drop ship meaning that there'll be nothing on the outside of the box indicating where the item came from and there'll be no invoice in the box either so this shouldn't be something that you're too concerned about it is a very minor issue because customers quite frankly don't care so myth number four debunked

now myth number five is that starting an ebay drop shipping store is expensive so let's break down the numbers now to start drop shipping on ebay the first thing you're obviously going to need is an ebay account now luckily starting an ebay account is completely free they don't charge you to do that yes you can always upgrade to a paid store subscription but at the very basic level you don't need to do that so you're starting out with zero dollars for that now ebay is slowly getting rid of paypal but regardless even if you need a paypal account it's also zero dollars to sign up for a paypal account so doing pretty good so far if you're going to be drop shipping from retail websites like walmart or homedepot. com then you should definitely use a software to do that this is a software that i talked about before now this isn't free you have to pay for it every single month but i do have a one dollar trial that you can take advantage of that i'll have linked up in the description and even after that's only about 20 bucks a month which is really not that bad pretty much run your entire ebay drop shipping business so if you're doing drop shipping from retail websites it's only really going to cost you 20 bucks a month because everything else is built into the price of the item on ebay so you have an item on your supplier's website cost this much and then shipping you add in you have to add in enough for sales tax and then add in more for ebay fees and paypal fees and a little bit more to make a profit this is how much you list it for on ebay that way you know that once the item sells you'll be able to cover your ebay fees your paypal fees the shipping cost sales tax and the cost of the item and still have enough left over to make a profit so just figure about 20 bucks a month to run your business now it can get a little bit more expensive if you want to do something like wholesale drop shipping because with wholesale i always think it's a smart idea to actually form an llc form a real business entity and that does cost some money depending on the state can be anywhere from just about 125 up to being pretty expensive in states like new york that have some additional requirements and then you have to kind of build relationships with suppliers but all that sort of stuff is free if any supplier ever asks you to pay to use them as a business to drop ship from don't do it you should never pay to work with the business or to have them drop shipped for you really the only additional cost with doing wholesale is forming that llc but assuming you're not going to do that assuming you're just going to stick to retail and not going to form an llc then really looking at just about 20 bucks a month after your first month which is really not that bad so myth number five debunked

myth number six returns so the myth is that you're eventually going to get screwed if you're doing any type of drop shipping because returns are a huge headache and you're just going to end up losing money well let's look at what it actually is like when a return happens with ebay the customer on ebay opens up a return case you then accept the return go over to your supplier whether that's another retailer another marketplace or a wholesale supplier tell them you want to return the item they then send you a prepaid return label you give that label to your buyer on ebay the buyer on ebay packages the item back up puts a return label on the box ships the item directly to the supplier then refunds you refund the customer and that's it it's really that simple so returns do not have to become they're not complicated on ebay at all you still never have to handle the inventory which makes myth number six completely debunked myth number seven and this is the big one this is the one that most people ask about when it comes to ebay drop shipping which is it even allowed the myth is that you will get banned for drop shipping on ebay now ebay specifically states in their rules that drop shipping on ebay is allowed as long as you are using wholesale suppliers as i've talked in this video i use a lot of wholesale suppliers with my business so we know with a hundred percent certainty because it states in the rule that drop shipping from wholesale suppliers is allowed now what about drop shipping from retail suppliers or other marketplaces like i've been talking also about in this video well i continue to do this and my students do it and my friends do it because it works it is an extremely low risk way to get started selling online and doing something like drop shipping and we have found that as long as we follow the other rules keep our metrics up we keep our customers happy we ship out our items use tracking numbers ebay allows us to continue to do it we have found that if they catch on to what we're doing they will lower those listings in the search results but they don't ban us for doing it and everyone else will also get lowered in search results so it kind of creates an even playing field and as long as you just kind of keep adding more items you kind of overcome that kind of handicap that they put on those listings but this is a really important rule so i think you should really dive in and understand it fully before you get started with something like ebay drop shipping so i have a really great video for you to check out right here i think it's really important to anyone starting ebay drop shipping click on this video watch it because it does go into the ebay drop shipping rule much more in depth so check out that video i'll see you there in just a few seconds