The Do's and Dont's of Drop Shipping on eBay
Updated: Oct 20, 2020
Due to recent eBay policy updates, the term drop shipping has become a controversial topic among marketplace sellers.
Drop shipping is when you purchase inventory from a supplier and have it shipped directly to the buyer - you never touch or see the inventory. There are two ways that this can be done:
You work directly with the supplier and in many cases have some sort of drop shipping agreement.
You list products from sites like Walmart, Amazon, and Target on eBay, then when the item sells, you purchase the product and have it shipped directly to the buyer. This form of drop shipping is also commonly referred to as arbitrage.
Although issues can arise when using a drop shipping model, eBay is perfectly fine with drop shipping done appropriately. Per eBay policy, if you are fulfilling directly from a wholesale supplier, drop shipping is allowed.
Note: Though drop shipping is allowed, drop shippers are still responsible for delivering the product to the buyer within the time period stated in the listing. The seller is also responsible for the buyers overall satisfaction of the product and experience - so make sure you trust your supplier.
Listing a product on eBay, then purchasing the product after the item is ordered, and having it shipped directly to the buyer is against eBay policy.
Not following eBay policy can result in the following:
Ending or cancelling listings
Hiding or suppressing listings
Buying or selling restrictions
Loss of seller protections
Loss of buyer protections