Dropshipping – Your Own Site vs Ebay

January 12, 2013 by

If there is one thing that is vital to dropshipping it is getting customers.  You can have the best customer service, the best products, the lowest prices – none of it matters if you don’t have customers.

On the web this invariably means that you need eyeballs on your products.  The more targeted, interested people you have viewing your items for sale, the more sales you are going to make (and so, more money).

When it comes to selling physical items, whether dropshipping or traditional selling, that will mean making a decision.  Do you create your own site, sell via eBay, or both?  Both have their pros and cons, so let’s take a quick look at those.

Droppshipping on eBay

Pros

  • A huge amount of visitors who visit with buying in mind – more than you are ever likely to get on your own website.
  • A trust system that means people will trust you as a seller, and eBay as a place to do business
  • Integrated shopping carts and the like, so no need for encryptions
  • No need for complex, expensive web coding

Cons

  • You lack control over the sales flow – eBay decides what and where to upsell/cross sell until you have an order placed with you
  • Little branding opportunity – eBay does all the branding, meaning you have very little opportunity pre-sell to get your name across
  • eBay makes the rules, and we have to follow what they say – including money back, internal audits, etc.
  • You lose traffic to other sellers – if you drive traffic to your page then there is a very good chance they will leach to other sellers.
  • You can’t command the same margins as you can on your own site, on eBay it can be a race to the bottom price wise.

Your Own Site

 Pros

  •  Complete control of the sales process, upselling an cross selling is yours to choose
  • All the traffic on the site is yours to funnel where you will
  • Your brand name is everywhere
  • The margins are far higher – if you can convince buyers you will command much better margins than on eBay where other sellers are so easily found.

Cons

  • Nowhere near the amount of traffic as eBay
  • SEO can take a lot of work, and buying traffic can be expensive
  • Coding takes time, or is expensive
  • Getting trust across to potential buyers can be a difficult task

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