Drop Shipping on eBay

29 Apr by Steve E. Trisler

Drop Shipping on eBay

Just for the document, right here are a few of the adjustments that will adversely impact ebay.com sellers. Particularly those with low earnings margins (like those that make use of decrease delivery) …

# 1 – From $1 Book to $2 Reserve

Yes, the cost to provide a get public auction has simply DOUBLED. As well as, as a vendor using decrease shipping you are mosting likely to wish to detail your products with a reserve rate. Why?

Due to the fact that if you don’t you have a strong opportunity of the products costing LESS than the rate you can get them from your decline shipper. Conversely you can increase you minimum bid however this could reduce the rate of interest in your auction as beginning bidding process reduced is a great way to construct energy for your listings.

# 2 – Last Value Fees Rise

The amount of “commissions” eBay will certainly extract from your sales has risen significantly. If you are selling high earnings margin goods you will probably enjoy about the boosts as some of the bottom residents on ebay.com will certainly quickly be put out-of-business. Nonetheless, if you were a person taking into consideration utilizing decrease shipping as an approach for selling items on ebay.com this means it will certainly now be even more difficult to earnings.

I recognize, “even more impossible” … Yet allow’s look at the brand-new charges.

OLD FEE FOR PRODUCTS AS MUCH AS $25: 5.25% of the closing value.

NEW FEE FOR PRODUCTS APPROXIMATELY $25: 8.75% of the closing worth.

That is a massive 3.50% more in charges. Allow’s make an example with decline shipping.

Say you were lucky enough to discover an item from your decline carrier that was costing $8 earnings on ebay.com. The drop ship with WorldWideBrands.com has it for $17 and you can offer it on ebay.com for $25. I understand, you will never discover an item with that said great of a markup (virtually 50%) from a decline carrier yet let’s claim.

So, you pay $15 for the item and market it for $25. Now, let’s deduct your ebay.com listing charges which, assuming a standard listing, will be around $2.45 – with $2 of it being the get cost. So you’re at $5.55 profit.

Now, let’s subtract that 8.75% which would certainly be an additional $2.19 bringing your complete take on the item to $3.40. Now if we deduct your PayPal charges which are around 2% + $0.30 we would come to $2.60 revenue.

Naturally, your decline carrier will have a decrease shipping service fee which generally ranges from $1.50 – $3.00. Let’s assume the best case scenario which is $1.50 and we’re to a monstrous revenue of $1.10! Once again, all of this thinking that the decline carrier has a product with a $8 earnings margin.

# 3 – PayPal 21 Day Hold on Funds

Perhaps the most awful component is the truth that the only good thing concerning decrease delivery has actually been completely nullified by eBay’s brand-new plan to hold PayPal payments for 21 days. Sure, not all payments will certainly be held, yet if you are utilizing a decrease delivery solution and also are brand-new to eBay you can depend on it occurring to you.

So, once PayPal holds your funds you can not utilize your purchaser’s cash to pay the decrease shipper. You are going to have to utilize your very own funds. And, because you’re depending on a third party to satisfy your order you can just hope that something won’t hold the order up triggering you to get a lower feedback score (in eBay’s brand-new scoring system) which will cause you future repayments to obtain held too.

On the silver lining … You will certainly see a reduction in some basic listing costs. However these lower fees only offset the higher ones if you are not successfully selling or if you like to list lots of pictures with your products. Of course with decrease delivery you’re usually utilizing a stock photo anyways therefore you will certainly not save charges below.

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