Is eBay Dropshipping Dead In 2020?

Is eBay Dropshipping Dead In 2020?

If you are an online entrepreneur with an online store, you must have heard the rumors about the death of dropshipping on eBay and I suppose you are now worried about the future of your online eBay business.
Well, I tell you this: you don’t need to!

The change in eBay policies

As you know, bad news often spreads faster than good news, even when they are not true. The same happened this time too.

So what really happened? Simply put, eBay changed its policy regarding dropshipping.

As they affirm in their official communication: “Direct shipping is allowed, where you place orders directly from a wholesale supplier.”

What is forbidden now is “list an item on eBay and then buy the item from another retailer or market that is sent directly to your customer,” they said in their words.

In a nutshell, this means that you cannot have an eBay store and buy in other external and retail markets. The only allowed way to do dropshipping on eBay now is to close an agreement with one or more wholesale suppliers, that is, a dropshipping agreement, through which wholesale suppliers allow you to sell your products in your store and send them directly to your customer.

Good news: Doing dropshipping through eBay is still possible, but with some new rules. However, finding reliable new suppliers, able to easily communicate with you, can be a very difficult challenge.

So If we don’t stay on top of these changes that’s when we can fall behind. We see people fall behind and that’s where this kind of misconception that dropshipping dead comes in. You see for many people not everyone, but for many people when they start to see success with something like eBay dropshipping a lot of people get comfortable in that. You have to adapt to changes. You have to find a way and make things work again. 

What worked two years ago just will not work today on eBay!

The first change I want to talk about is the eBay managed payment system. So as of right now when you purchase something on eBay you buy it on eBay but then you get sent over to PayPal to actually purchase it. To actually make the payment and eBay wants to make their system all-in-one. So you buy it and pay for it on the same website just like every other website out there. This should streamline the process for both buyers and sellers so we will be seeing a little bit more ease going into the future because everything is in one place. eBay has also promised us lower fees with this new system. eBay also said that this new feature will open up more payment options for buyers which will hopefully result in more sales. Overall this is not going to have a huge impact on us as sellers. 

It is a big change, it is a big move, but when it finally finished I think it’s not going to be a big of a deal. The managed payments have to be finished in 2021 – eBay said. So let’s wait and see.
The new “old” thing in 2020 is the sales tax. In 2018 we saw the supreme court kind of shakeup sales tax here in the United States and put a huge burden on us as small sellers to start collecting sales tax for certain states in certain circumstances when we previously weren’t responsible for that. It got us scared but in the year and a half since that rule came out, we see that it is not that bad because increasingly what we’re seeing is that eBay is collecting that sales tax for us and sending it to all the states for us. Right now eBay is successfully collecting states tax for over 30 states and in 2020 there going to do it for more states. I think that maybe in 2021 eBay is going to collect the sales tax for all the states so we don’t have to worry about this.

So let’s summarize…

  • If you are not adapting I’m sorry but your business is going to die. 
  • eBay business is not dead in 2020, you just have to change the way you do it. 
  • They will always be people out there who say that eBay dropshipping is dead.

How well you adapt to changes?

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