Make Money on eBay – The Ultimate Ecommerce Arbitrage

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If you are born poor, it is not your fault. But if you die poor, in this world full of opportunities, it’s definitely your fault.

UPDATE: We have a more comprehensive article about How to start selling on eBay. Check it out.

Re-selling on eBay is one of the best, low-risk business opportunities for a new ecommerce start-up. Here we are going to discuss a business arbitrage, where you can buy products for a lesser cost, and re-sell on eBay by keeping a profit margin.

Learn to hustle; everyone has to start somewhere.

Spending 8 or 9 hours a day, to fulfil someone else’s dream is not for you.

How to Re-sell on eBay

Learn how to re-sell on eBay, and start building your business dream right away.

In this article, you will learn,

  1. The Business Model for Re-selling items on eBay
  2. What You Can Sell on eBay
  3. How to Start Selling on eBay
    1. How to create a seller account
    2. How to create a product listing
    3. How to pick the selling price
    4. How to set the delivery options

Is it legal to re-sell on eBay? Yes, it is. This is a unique business model, where you buy and sell online. eBay says it is ok to use dropshipping.

Is this a get rich quick scheme? No, it isn’t. Ecommerce is never a get rich quick scheme. It is not a sprint. It is a marathon.

No more chitchat, let us get into the business.

The Business Model for Re-selling on eBay

You can sell a lot of things on eBay. eBay started out as an online marketplace to get rid of the things, which you do not want to have around your house.

Initially, many people were selling the things they had around their houses and the things from garage sales. But now, it is more of a professional and a competitive marketplace.

custom logo for new business

In this article, we are not going to talk about small sales on eBay. Here we are going to talk about how to start a business in this amazing marketplace.

This particular business model is called Dropshipping.

Dropshipping is a widely used retail fulfilment method.

When you use dropshipping, you do not need to maintain an actual stock of your products.

Here you have to maintain, only an online storefront (eBay). And, you can use a third-party supplier (Dropshipper) to supply and deliver the products directly to your customers.

The basic process flow of a Dropshipping store

In this business model, you don’t need to touch or even see the products you sell. And, best of all, you don’t need to purchase the products until you get paid for an order from your customers. So, nothing goes out of your pocket.

Dropshipping business model has some unique advantages.

For example, as we have already discussed, you do not have to pay for a product until you already get paid for an order.

The initial investment to start an ecommerce business with dropshipping is peanuts.

With dropshipping, you don’t have to pay a lease for a physical warehouse to store your products. So, no headaches of purchasing and maintaining a huge stock of products and waiting with fingers crossed, until you get an order.

Now, before we go further, you have to understand the disadvantages of this business model too. Everything comes with a “But”, isn’t it?

When you use dropshipping, the shipping and delivering are entirely out of your control. You have to depend 100% on your supplier for the shipping process and time. But, as per the eBay policies, the retailer (you) should be responsible for the safe delivery of the product, and to meet the stated delivery time.

So, if your supplier messed things up, you will lose your reputation, and sometimes you can even get banned from eBay.

Luckily, you can avoid this unpleasant scenario by choosing proper and legitimate suppliers for dropshipping.

The other main disadvantage is that your profit margins can become very thin with dropshipping.

When you dropship, you are not selling unique products. There can be hundreds of thousands of other sellers, who are selling the exact same product. So, to get a competitive advantage, your selling prices should be based on market prices. This can limit your profit margin.

Also, online market platforms, like eBay, come with a cost. You have to pay listing fees, transaction fees etc. This can eat up a considerable portion of your potential profits. You can avoid a whole lot of such payments if you run your own site.

However, developing and running your own ecommerce site can be an exhausting work; especially if you are thinking to take up re-selling on eBay as a side hustle.

That is enough brief about our business model. If you like to learn more about dropshipping, you can check these comprehensive beginner’s guides for dropshipping.

What You Can Sell on eBay

As I always say, selecting the right product to sell is the million-dollar question in ecommerce.

There are shortcuts and hacks to select winning products to sell on eBay.

However, since you are just planning to start up selling in eBay, my best advice is to spend at least a couple of days to read a little about ecommerce marketing.

If you have a basic understanding of the ecommerce marketing strategies, you can pick a better niche to sell on eBay. It can even help you to stay above an average seller, and make better decisions.

Tip: Time to time, we do some research and publish market insights about hot and trendy products for ecommerce sellers. You can bookmark and check our online business ideas section to check such sales opportunities.

There are a few factors, which you need to consider before selecting a niche for dropshipping.

  1. Room for value addition
  2. Target customer groups
  3. Price and Brands
  4. Opportunity for up-selling and cross-selling
  5. Consistency (Trend and Turnover)
  6. Size of the products
  7. Availability of suppliers

Room for value addition – If you need to get a competitive advantage over other sellers, who are selling the exact same product; you need to think about the methods to add value to your products. In this way, you can have better pricing to increase your profits. For example, if you sell some hard-to-use item, you can create an instructional manual and email that with every purchase.

Target customer groups –Niches that can target a group of hobbyists or a particular fan base can help you to create an effective marketing campaign. You can have a better sales conversion rate.

Price – Do not pick very low or very high priced niches. Try to target a price range of $50 – $200. If you go for small value niches, your profits will not be sufficient to cover up the cost of your own time. As a beginner, it is better to avoid higher value niches as well; at least, until you get used to the system.

Brands – Do not pick products with brands! You cannot guarantee that you will get the genuine brands from Dropshippers. If you sell counterfeits, be prepared to get a lawsuit. On top of that, you will need a license to re-sell some branded products. So, it is better to stick to the generic products.

Opportunities for up-selling and Cross-selling – Up-selling and Cross-selling is a sales strategy to create secondary sales. This can help you to multiply your profits from a single customer.


Consistency and Turnover – It is essential to understand the trend and popularity of a niche. Some products can be popular for a just a single night. If you jump into a niche on a downward trend, you sales window will be narrowed down.

Size of the Product – When you sell on eBay, try to stick to the small products. Envelop size packaging works best with eBay selling. This can help you to lower your shipping costs.

Availability of suppliers – It is not hard to find suppliers for dropshipping. However, you have to learn how to avoid fake suppliers, and how to pick the right suppliers to match your requirements.

With this knowledge, now we are ready to sell on eBay.

How to Start Selling on eBay

eBay has done a great job easing and automating many processes related to the product listing.

Also, they provide great documentation to learn everything right

Therefore there is no point of going into the details of this article. However, I will guide you through the process of,

  • How to create a seller account
  • How to create a product listing
  • How to pick the selling price
  • How to set the delivery options

This knowledge will provide you with a foundation to start now, and learn you can learn little details on the go.

STEP 1 – Creating a Seller Account

Before everything, you have to register a seller account with eBay.

eBay has two account types for sellers. If you want to sell many products, then you can register a business account. Or, if you just want to sell a few items, you can register a personal account.

For starters, we will keep things simple, and start with a personal account. So, you can just have a taste of this business and test the waters. Later, once you start living and breathing ecommerce, you can register your own business under local authorities, and start a business account with eBay.

Go to the eBay seller registration page to create an account.

Select the personal account type and enter the required details to register with eBay.

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Create a seller account on eBay

STEP 2 – Create a Listing

Creating a product listing on eBay is similar to creating an online advertisement for your item.

To create a product listing, you can simply go to the quick listing tool and enter the product title.

For this example, I am going to sell “Sticky iPhone cases”.

Once you have entered the title for your product, you will land on a page, which provides a simple step-by-step walk-through process to fill in the details for your product.

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The quick listing tool for eBay
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The quick listing tool provides a step-by-step assistance

Here you can add product photos and add a product description for your item. When you add the product description, never try to copy and paste the product description from your supplier. This is one of the five big mistakes in product description writing.

STEP 3 – How to Pick the Selling Price

Selecting the optimum selling price for your products is critical to maximising your profits. If you under-price, you are going to lose a whole lot of potential profits. If you over-price, then you are going to lose a whole lot of your potential customers.

As a beginner, it is essential to understand pricing strategies for dropshipping products. Knowledge about the pricing strategies for dropshipping products can help you to understand how to identify and cover all your expenses.

Also, you can use the eBay advanced search tool to spy on other listings, which are same as yours. So, you check the other listings, their prices, and how well they are selling.

eBay offers two product listing styles.

  1. The auction style
  2. The fixed price

The auction styles work well for the products, which are unique or hard to find. If you select auction style, you can start at a low price to create interest, and the buyers can compete for the item. The fixed price, you can choose the price you want for a listing.

STEP 4 – How to set the delivery options

eBay offers a variety of shipping options, calculators and other useful features to create shipping quotes.

However, when you use dropshipping, it is better to offer free shipping for your products. In the beginning, to avoid any complexities, you can limit your sales to a large market like the USA. This will help you to get a straightforward shipping quote from your dropshipping suppliers.

Then, you can include this shipping cost to your selling price, and offer free shipping. Most of the buyers tend to buy products that offer free shipping. It is a just a psychological persuasion.

You can check out this comprehensive guide from eBay to start selling. They provide more in-depth details about the whole process.

In this article, I tried to create a basic background to start a dropshipping business with eBay.

Is there anything else you would like to know more about and wish was included in this article? Let us know in the comments below!  Also, share your own experiences and thoughts. We’d love to hear from you.

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