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eBay Prohibits Drop Shipping from Other Marketplaces

eBay changed its drop shipping policy to no longer allow drop shipping from another marketplace.

Drop shipping from wholesale suppliers is still allowed, but eBay has this to say about drop shipping from other marketplaces:

However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay.

Who does this change affect?

Sellers who drop ship from marketplaces with long shipping times will have to adjust to the new policy.

Less clear is how drop shippers who use domestic marketplaces will be affected, especially if they deliver within the stated timeframe and provide good customer service.

Some drop shippers use software to identify arbitrage opportunities between eBay and Amazon (or any other retailer or marketplace).

While Amazon is a common marketplace used by drop shippers to fulfill orders on eBay, it’s by no means the only one.

Walmart, Best Buy, Etsy, and other marketplaces where the software identified a profitable margin could just as easily be used.

Customer satisfaction should be the seller’s priority, and eBay’s Top Takeaway from the policy page reinforces this:

If you use drop shipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing, and the buyer’s overall satisfaction with their purchase.

What are the consequences for sellers who ignore the policy?

eBay hasn’t published how they will enforce this new policy. But the consequences are stated. If you’re a seller who ignores this policy, then eBay may:

  • remove listings from search
  • display listings lower on search results
  • remove the listing from the site
  • penalize the account by removing features, top-rated status, or discounts

How does this policy affect customers?

Ultimately, this policy change will benefit customers in that drop shippers who misrepresented delivery dates and ship from locations will be phased out from search results or from eBay altogether.

One drawback is that costs may go up for certain products. But customers can still purchase directly from Aliexpress or any number of similar marketplaces.

Conclusion

Today, customers are trained by Amazon to expect fast shipping and excellent customer service.

Drop shippers don’t have any control over fulfillment, so item condition, packing, and shipping issues are often beyond their control.

Drop shipping can still be profitable if you do it correctly. Indeed, many drop shippers are successful. But they didn’t become successful by ignoring policies, offering poor customer service, and risking account suspension.

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