Searching for a profitable, low-cost business idea you can run on just a few hours a week? Look no further than eBay dropshipping.

eBay is the preferred marketplace for online sellers—and for good reason. With 159 million active buyers making 1.7 billion monthly visits to the site each month, dropshipping on eBay allows business owners to tap into that ready-made customer base and sell products—even if they don’t have physical inventory to sell.

Want in? This guide shares everything you need to know about eBay dropshipping, from sourcing the right products to maintaining high profit margins.

The complete guide to eBay dropshipping 🛍

What is eBay dropshipping?

eBay Dropshipping is a fulfillment business method where sellers list products on eBay without holding inventory. When a sale is made, the seller purchases the product from a third-party supplier who ships it directly to the customer. In essence, dropshipping is the fulfillment model used in this process.

It’s a popular way to start a business with no money, since dropshipping has a low barrier to entry. There’s no need for you to physically touch the items you’re selling, or to store inventory in your own warehouse. Order details pass straight through to your dropshipping supplier, and it’s their job to pick, pack, and ship the order to your eBay customer.

John Frigo, ecommerce manager at Best Price Nutrition uses dropshipping to offer customers more of what they want, “Dropshipping allows us to carry a lot of brands and products we otherwise wouldn’t be able to carry, as either we don’t have the space in our warehouse or we don’t have the funds to buy all of the stock.”

That said, eBay dropshipping does have its downsides—namely low profit margins and high competition. The items you choose and the way you source them plays a large role in how to sell on eBay.

What to dropship on eBay

EBay’s online marketplace…

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