How much does it cost to start an eBay dropshipping business?
That's what we'll talk about in this video and I will show you all of the required things
that you need to have to start an eBay dropshipping business and I will show you how much
each and every of these parts of the business will cost you when you start
an eBay dropshipping business. Short intro and we are starting.
Hello everybody!
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So, in this video, I will show you exactly what are the parts of the business that you need to take
in conclusion when you want to start an eBay dropshipping business.
I will also show you exactly how much each and any of these parts of the business will cost you
when you just starting and opening your first dropshipping business. So let's start!
The first thing for eBay dropshipping will be of course an eBay store.
So let's see how much will it cost us. So, I will go to Gogole and write here "eBay insertion fee"
First of all, what is the eBay insertion fee? In eBay we have two different type of fees
The first one is eBay insertion fee and this fee is the fee that we pay to eBay for any listing
that we are adding to their marketplace. The second type of fees is
eBay final value fee and this fee will be paid to eBay only after the product was sold successfully.
It means that basically we don't have any risk for final value fee because
we will just add this percent to our price. So let's first focus on the eBay insertion fee and
how much this fee will cost us when we start a dropshipping business.
So I will scroll down here, I will go to eBay fees and I will scroll here a bit down
and I will see here the insertion fees section. As we can see here every month you can get up to 50
zero insertion fee listings, here they talk about eBay.com but for eBay UK
eBay FR, for example, the limits are different and you need to check it for each
and every different marketplace but in general 50 is the minimum and for any type of eBay
marketplace, you can at least 50 products for free every month without any insertion fee
and without any risks for the other part as I said you don't have any problem because
the final value fee will be just added to your price on eBay when you calculate the price
of your products. About eBay store subscription, store subscription is also something that we can do to get
more listings without any insertion fee and this will cost us a bit money.
But it's not a problem at all because when you just start a dropshippping business 50 products
is completely enough for you and you can just start for free without any insertion fees
and without any fees to eBay until you get your first sale.
Let's jump into the second thing that can cost us money and see how much this part of the business
will cost us and I'm talking here about PayPal, PayPal is an online bank which link to eBay
and when you get a payment from eBay's buyer it will go to your PayPal account
and then from there you can withdraw this money directly to your bank account
or credit card. Now let's see what are the PayPal fees, so if I go to PayPal and I go to merchant fees
I can see here the standard transaction fees. To open a PayPal account it's completely free
so here the situation is pretty the same as we have on eBay. To open the account is free
for both eBay and PayPal and you pay to PayPal only after you get a money
so it means that only when you really make a profit and only when your products
really sold only then you will pay to PayPal. So in this case also our budget that we need
to start an eBay dropshipping business is still zero, you don't have any fees and
you don't have anything that you need to pay in advance before you start
basically and really get profits. The next part of our eBay business will be a dropshipping software
to list our products so basically I can go to any of the suppliers that I want to use for my
dropshipping business, for example, AliExpress, Amazon, Wayfair, Walmart or any other supplier
and I can copy all of the product details one by one manually.
So basically I can go to Amazon, take any of the products here let's say that I want to take
for example this product doesn't really matter and I can go and copy everything from here to eBay
one by one you can copy the title, the price, the description, and everything here.
But we don't really want to do all of this stuff manually we don't want to copy the title,
the description, the images, the item specifics and everything there one by one manually
because it will take us a lot of time, remember you can list on eBay up to 50 products for free
and you don't want to list these 50 products one by one manually.
So for this, we use something which called a dropshipping lister or products lister.
The products lister what it does it just copies all of the details from our suppliers page,
products page, directly to our eBay store. Let's see how it works!
So, I will copy the link from here and I will go to my dropshipping tool. In this case it will be AutoDS
which is our own dropshipping tool. So let's see, I go to AutoDS, I go to the uploader
then I will just choose a supplier here and put the link, then I just click grab details
and within a few seconds it will grab all of the details of my product let's see that.
I got a VERO message, VERO is something that shows us that I cannot list this product
because of copyright violation, this is another reason why we really need the dropshipping lister
because it will provide us a safer way to upload products to our stores
without any copyright violation. So in this case I will just click let me continue just for the example
and I can see here that it grabbed all of the details, it already created the right price for me
according to my break even which is the price that in this price I will not lose money
for PayPal fees or eBay fees. In this case the break even is wrong but you need just to calculate there
the eBay fees plus PayPal fees so in this case it will be 2.9 plus 10% for eBay final fees
so I will just put here 14 to stay on the safe zone.
So this is how with a click of the button we can just copy any of the products to our store.
How much this tool cost us? so basically this tool will cost us at least 8 dollars a month
which is a super small budget for any real business in the world but for the first week you can try the tool
for just one dollar, so basically our budget that we need is still really, really, really low.
I would still call it zero budget business because one dollar to start a business and to try it
is not really money. Now, the next thing that we need run our dropshipping business
is a repricer or monitor, every dropshipper call it in one of the two different ways.
Now for monitoring what does it do? The monitoring tool it will follow the pricing and the stocks of your supplier
and adapt it according to the changes in your supplier site in your store.
What does it mean? Let's say that this product will go to out of stock it will put automatically
the product as out of stock in our store so we will not sell a product that we cannot provide
to our customers same about the price, if the price will be increased we will increase the price automatically
or the tool will increase the price automatically in our store for us and in this way, we still always stay
in the safe zone and we cannot really lose money in this business.
Now, how much dropshipping monitor cost? Same price it's one dollar because the AutoDS
is an all in one dropshipping tool so when you pay the one dollar for one week trial
you can still keep and use the monitoring tool also. As I said, after one week it will cost you
8 dollars a month. The next thing that we need to have in our dropshipping business is a tool that will help us
to find dropshipping products. This is the last thing that you will need for your business and then we will make
some conclusions and see how much really you need to spend in your dropshipping business
for your first days. So for products finding we also cover you in AutoDS and you have a tool that called
the AutoDS finder, the AutoDS finder is a tool that scans a lot of dropshippers on eBay
and gives you their best products so with a click of the button you can just choose a supplier
and list any of these top products to your store with a click of a button here.
How much this tool cost? You can list here up to 400 products for free.
When you register to AutoDS you just get this tool for free so you can really start growing
your business in the best way. However, we already talked about this that the budget here is almost zero
or just one dollar but there is one thing that you need to take in conclusion
when you want to start your business and this is something that called the PayPal jail.
This is how people calls it, now the PayPal jail means that when you get the money
for the first time, for the first three months from when you open your PayPal account
you will need to wait until this money will be released to your balance. Usually it takes
around two weeks, now how to speed up this process and how does this process works?
Let's say that you sold a product for 50 dollars, after you sold the product you will get the money
to your PayPal balance and this balance will go to a balance that call on hold on PayPal.
After your supplier will ship the product to your customers so it means that you need to place
the order in your suppliers site and then they will ship the product so you will get
a tracking number. When you put a tracking number on PayPal after few days
when your buyer will receive the product you will get the money back to your PayPal account
and it will be released from the on hold status. So here we need to take in conclusion
and we need to think about this that we need to spend some money for our first products
that we ship to our customers, how much money is it? I would say between 100 and 200 dollars which is the
maximum amount of sales that I think that you will make in the beginning before the money will be released
and then it will just start running, we will just start selling and from the previous products
money will be released to your PayPal account so you will not have any problems.
So it means that basically when you just start your business you need between 100 and 200 dollars
to spend for your first purchases, now you need to remember that this money is not real
is not a real investment because you will get it immediately, you already got this money
but it just on hold on your PayPal account so it means that within few days it will be released.
So the risk here is zero, so how much it really cost? As we discussed using all of the tools
eBay store, PayPal, AutoDS, AutoDS finder which is the tool which will help you to find dropshipping products
and the fees of eBay and PayPal, everything together will cost you just one dollar for the dropshipping tool
for the first week and after that it will cost you any package that you choose starting from
8 dollars a month. I hope that you like this video
I really, really recommend you to check the links below this video in the description
to our blog and other knowledge bases that will help you to increase your dropshipping knowledge
and start your way and journey at the best way. Don't forget to subscribe our YouTube channel
like this video and ask us in the comments, everything that you would like to know
about dropshipping and about how to use the dropshipping tool AutoDS.
See you in the next videos. Bye bye!