How Much Does It Cost To Start eBay Dropshipping in 2020?

what's up guys Paul here from dropshipping Titans comm and I got a great question from Steve today Steve asked me how much money does it cost Paul to start my very own eBay dropshipping store and this is a great question because it's one I get quite a bit so I'm gonna break it down for you show you all the numbers so you get a realistic idea of how much money you need to start your very own eBay dropshipping store but first if you guys find this video helpful make sure to give it a thumbs up and subscribe to the channel 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 gonna get with a free account is they're going to let you list up to 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 on 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 downward so that will save you money but let's not get into that let's just start with where you are right now just getting started just know that to list items onto eBay and to set up your store is free up to the first 50 listings that you have now 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 comm 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 now with PayPal they're going to take 30 cents plus another 2. 9 cent of the cost of the item so again it's $100 item they're going to take 30 cents plus two dollars and 90 cents now this isn't a 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 a hundred and twenty-five dollars eBay is going to take 10 percent of that or $12. 50 PayPal is then going to take 30 cents plus an additional $3. 62 that's going to leave you with a hundred and eight dollars and fifty eight cents so depending on the cost of the item that you have to then pay the supplier to have it shipped to your buyer you keep the difference so let's say the item costs you $100 that means that you get to keep eight dollars and fifty eight cents in this example and again you're gonna play with the margins here we're not gonna 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 gonna come out of the sale that you actually make on eBay and PayPal now let's look at a third possible expense and that is a listing software now a listing software is a way for you to quickly list items onto eBay now eBay does let you do this manually meaning you create a listing on ebay. com go in copy and paste all the information from your sources website onto eBay com 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 gonna copy and paste everything for you automatically and the one that I recommend now is called DSM tool I do have a link to that in the description of this video I'll make it the first link and here's the great thing it's free to list using that software completely free so again this is an expense that isn't in expense 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 on to 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. com for instance so DSM tool the one I just described to you actually has this built in for you so once you list an item with the SM tool if the price changes on amazon. com DSM tool will update the price on eBay for you now here's the great thing if you use the link in the description below that is an affiliate link so I do get a small commission for it but you're gonna get 50 free listings if you use that link so in other words the first 50 items that

you list in your store using DSM tool is not going to cost you anything so let me show you how great this is just a random item I found on amazon. com a light I'm just going to copy the URL here at the top come over to DSM tool and paste it the link right here and click import now look what it did to copy the title over here is the price and I'm gonna adjust the margins here I'm just going to put in 25% so now the price went up that's gonna cover my eBay fees my paypal fees and include enough for some profit but obviously you can play with this as much as you want to it's going to bring over some item specifics right here and it's going to bring in all the photos here are the photos it's going to automatically copy the photo into the description here's the whole description right here all I have to do then is click published and that's it that's how easy this software is how quickly you can list and items use successful the total ebay fee is $0 because again I get the first 50 listings for free so I'm just gonna click continue to publish that's it it's really that simple and again that cheap so maybe you guys have noticed a pattern here right we have an eBay store we have a PayPal listing software and a repricing software and at first none of them cost us anything to get started is zero 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 for about three months and during that probation period any time you make a sale on eBay PayPal is going to hold on to 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 three-month 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. com and have it shipped to your customer before PayPal releases the money to you so this is the way the timeline works you get a sale from eBay PayPal holds on to the money you use your credit card to buy the item from let's say Walmart comm 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 why I recommend that you have about two hundred dollars 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 dropshipping but besides that there really are no cost to get started with eBay so I hope you guys found this video helpful I know that a lot of people don't get started with eBay dropshipping 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 dropshipping 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 dropshipping you can start to make money really quickly without an upfront investment which is one of the reasons I love it and really recommend it for people who are brand new to e-commerce so if you guys like this video make sure to give it a thumbs up and if you want more tips and tricks on how to start your very own eBay dropshipping store make sure to subscribe to the channel thanks so much for watching and I'll see you in the next video