Is eBay Profits From Drop Shipping Dead?


Are eBay Profits From Drop Shipping Dead?

I was recently asked if I could make £50,000 to £100,000+ in profits a year dropshipping on eBay? And if you have, how long did it take you to get to that point?

I did make $170,000 in profits a year dropshipping on eBay? It took me about 3 years to get to that level.

You’re Crazy if you Don’t Use eBay

If you want to see if you have a business there is no better way than eBay. Just by using their service, you will find out some very important information you need to run a successful business.

eBay will tell you if there is a market for your product. A friend of mine made custom Wooden Pens from Antique and Exotic woods such as Teak Wood.


When he came up with a new design he would first offer it on eBay to find 2 very important points.

  1. If there were buyers for his new design
  2. How much he could charge

With these 2 pieces of information, you could then decide if there was enough profit in this market to make any money.


I Was Selling $5000 a Week

Some weeks it was more and others it was less. The Product I sold, when I first started on eBay, was sold for $3800 per unit. The fees were over $100 but there was so much profit that the $100 Fees were just a cost of doing business.

The Dangers of Selling on eBay

Most of you are reading this are saying, “If you sold over $5000 a week why did your stop?”. Believe it or not, when I was making less than $300 Profit per sale I stopped selling that product on eBay.

Remember just as many people that are looking for a “Great Deal” on eBay there are just as many people looking for the “Next Big Thing”. I was the only person selling my product on eBay. When I finally decided to stop selling on eBay when a new Post for one of my products could be found on page 4 or 5. That means there are perhaps 100 other people selling the same product.

I Happened Upon The Perfect Storm

I just happen to find several products that were in demand. I bundled them together in one singular solution and sales took off. Individually they could sell the product at over $4500 on eBay but my price of $3800 was hundreds less. As my volume in sales increased I could order in quantities of 10 Units, then 20 Units, and finally in 50 Unit Bundles. I was able to order direct from the manufacture. My profits went thru the roof.

Make more Profits …. Go Number 2

Every industry has fat, lazy, slow-moving Number 1 manufacturers/distributors. With very little effort they seem to stay in the Number 1 Position. I always went after the Number 2. 3 & 4 Guys to do business. You often find better quality products at the Number 2, 3 & 4 Position. They will also give you better pricing if you promise to work with them to take over the Number 1 Position then follow thru on that promise.

I took the number 5 Manufacturer and was able to move them up to the number 2 position in less than a year. At the end of the year, I had already ordered almost 300 units from them. I paid $50 per unit for their product. My competitors paid $95 for the same exact product from my manufacturer. Since the manufacturer did not want to sell 1 & 2 Unit Orders.. I happily filled those orders with my inventory and made a nice profit.

Remember the Number 1 guys got fat and lazy and as the number 2, 3, and 4 guys got busier they also got fat and lazy as well. That’s why when this company management decided to stop selling directly to the end-users they turned to me to fulfill their orders. That was easy to fulfill and good for about an additional $10,000 profit a year.

It all slowly starts to wind down

Like a clock that slows down when its spring starts winding down my eBay Business did the same thing. My competitors who were much larger than myself started to see how busy I was selling on the internet. At one time the 4 largest companies in my business segment took aim at me. Each of my competitors was the main manufacturer and resellers of each of the components that I bundled together to make a singular complete product. This prompted me to go to the number 2 manufacturer and work with them. They also started to follow my lead and worked with each other to close me out of the market.

In the end, I just stopped selling those products. By that time the Lazy 1,2,3 and 4 leading companies had all cut pricing so low that they ended up shutting down or changes their business totally. Greed and Arrogance breed Laziness.

The Biggest Lesson Ebay Taught me

I would still be in that industry today if I have treated eBay just as another “Profit Center” for my internet business. As sales grew and profits grew I almost abandon my website for eBay. That contributed to my downfall. Instead of embracing and including eBay into my web presence I let my website fade away and when it was time to leave eBay I had nothing and had to start over building from the ground up. While eBay was running my business on Auto_Pilot I could have been making my Website Better and built my reputation as an industry leader.

Hope this helped:

Christopher Sciullo Make a Website in 6 Seconds Flat. Follow Your Dreams and Try Blogging Check Out WordPress Blog 50% Discount for Teachers