The top Mistakes that can cost you your Dropshipping business

In this blog post, we shall discuss the most deadly mistakes one can make in their dropshipping business which one should avoid at all costs. If you want to run a successful business on eBay you should always keep in mind the following things we shall discuss.

But before we do that, make sure you have registered at It is one of the best platforms you can take advantage of if you are dropshipping on eBay. It is easy and fast to use and you can register in under a minute from here.

Now, let’s get to the beef, shall we:

1. Selling on a too low of a profit

When dropshipping, it is very easy to lower your margins, given the fact that there are numerous other competitors selling the same product as you, people are generally looking for the best prices and the fact that the product goes through more hands until it reaches the end customer.

Another reason is all the transactions and fees that you have to be aware of when dropshipping such as product availability, changes in its price, shipping fees, listing fees, tracking, rare situations where the product is lost or a general case of fraud. All of these things can have an impact and the more products you sell the more you pay for different fees and the bigger the chance of something going wrong is.

Of course, selling a lot of products with a low margin is still a reasonable way of making money, many people still do that. What we are suggesting here is a healthy mix of high margin products, typically over the 100$ mark since you will profit most from those and keep the most selling lower margin ones which you know are already working and are a safe bet. This way, you will make much more profit with which you will be able to cover your loss if something goes wrong.

Also, keep in mind that not every single buyer on eBay is necessarily looking for the cheapest product out there. Markets with premium products exist and there will be certainly people willing to pay more for something that is of higher quality. After all, there are more than 125 million buyers on eBay! And every single buyer is looking for something different in their seller may that be:

  • fast shipping
  • reputation and security (Positive feedbacks)
  • Support and customer care
  • Reliability

Every customer is different but if you appeal to the right ones you can really skyrocket your business.

2. Not paying attention to out of stock products

One of the worst things that can happen for you is for a customer to order a product which is out of stock. This can lead to so many negative things such as damaging your reputation, acquiring negative feedbacks, risking eBay punishing your account and so on.

Something good to keep in mind when listing products is to make sure that you have at least 2 suppliers offering the same product as this way, at least you can ship the product to your client as losing a little bit of money is a way better loss that getting negative feedbacks and bad reputation.

Even if ordering the product from another eBay seller is the only solution, it is still better to do that rather than to leave your customer unhappy.

3. Not Paying Attention to eBay’s rule and how they change.

Another very important thing is eBay’s policies and rules. You know that if you make too many negative feedbacks on your account, eBay might delete it right? But eBay has other rules and policies which are good to be always ahead of and make sure you understand how the return policies work, the feedback system and the taxes, when is legal to charge taxes when is not and what are the consequences. eBay often changes the way those things work and the best way to avoid trouble is to know what is allowed and what not.
Not being aware of those matters can have grave consequences for your business, especially if you break one of eBay’s important rules. Everything is written on eBay’s official webpage and all you have to do is give it a read and check it from times to time