EBay vs Shopify: Which Platform Is Best To Dropship On?

In this article, we will compare dropshipping on eBay and Shopify, two leading platforms in the e-commerce industry, to help you decide which one is the best fit.

Key Takeaways

• eBay provides dropshippers access to a vast customer base and a wide range of products, while Shopify offers more control over your store and better customization options.
• When comparing dropshipping on eBay and Shopify, Shopify stands out as the preferred choice. It integrates easily with many dropshipping apps, streamlining tasks like product listing and order handling, making operations smoother and more efficient.

eBay vs Shopify Dropshipping: Key Difference

The key difference between eBay and Shopify for dropshipping lies in the platform’s nature and control. 

eBay is an online marketplace where people and businesses can buy and sell various goods and services. While one can establish an eBay ‘store,’ it remains embedded within the broader eBay framework, and sellers don’t entirely own this space. This established marketplace offers immediate access to a vast, global customer base, implying intense competition with numerous sellers. However, one drawback is that the opportunities for branding on eBay are somewhat restricted. Listings largely sit under eBay’s overarching brand, with limited personalization capabilities.

Once you decide to dropship on eBay, you begin listing products without the physical inventory. When a buyer purchases your product, you order it from a third-party supplier at a lower price. This supplier then ships the product directly to the customer. 

On the other side, Shopify is a comprehensive e-commerce platform allowing entrepreneurs to set up online stores. It provides a blank canvas, meaning entrepreneurs need to invest effort from the ground up to develop and engage their audience. Entrepreneurs can design their stores, define their layout, and embed functionalities that present a unique brand image.

To dropship on Shopify, you start by setting up your online store on the platform. You add products from suppliers to your store using apps or direct integrations. Once set up, you decide your pricing based on desired profit margins. Traffic to your store will depend on your marketing efforts, such as SEO, PPC, and social media campaigns. When a customer orders a product, you either manually or automatically forward that order to the supplier. The supplier then handles shipping, and you provide tracking details to the customer.

eBay vs. Shopify Dropshipping: Pros & Cons

Below, we’ve presented a detailed comparison of the pros and cons of dropshipping on eBay and Shopify.

Dropshipping on eBay vs Shopify: Detailed Comparison

Let’s examine how eBay and Shopify compare across some pivotal facets of dropshipping.

Ease of Use

eBay

Setting up a store on eBay can be described as user-friendly. For those familiar with online buying and selling, eBay’s interface will seem quite intuitive. After creating an account, sellers can quickly begin the process of listing products by adding descriptions, images and setting their prices. The platform provides guided prompts and clear instructions, making the listing process straightforward.

eBay wasn’t designed as a dropshipping platform. Therefore, sellers are responsible for coordinating with their third-party supplier once an item sells to ensure the product gets shipped to the customer. This process can be manual and time-consuming, especially for high orders.

Shopify

Setting up a Shopify dropshipping store is also straightforward. The process starts with choosing a theme, setting up payment methods, and integrating necessary apps. The platform offers many tutorials, both written and in video format, to guide users.

For dropshipping, Shopify shines brightly. The platform integrates seamlessly with numerous dropshipping apps to automate the process. Products can be imported from suppliers into the store with a few clicks, and when orders come in, the system can automatically forward them to the supplier for fulfillment. 

Fee Structures

eBay

eBay’s fee structure for dropshippers is primarily based on two types of fees: listing fees and final value fees. However, there are some other fees that you should be aware of:

• Insertion Fees (or Listing Fees): The first 250 listings are free per month, then $0.35 per listing.

• Final Value Fees: Final value fee % + $0.30 per order. The percentage varies based on the product category but typically ranges between 10% to 12% for most items.
• Seller currency conversion charge: 3% If your registered address is in the US. 
• Store Subscription Fees: eBay offers 4 subscription plans to open an online store Basic, Premium, Anchor, or Enterprise, with pricing starting from $7.95/month to custom pricing

Shopify

Shopify’s fee structure is different from eBay’s and is based on a monthly subscription model with some additional transaction-related fees:

• Monthly Subscription Fees: Shopify offers 5 subscription plans, 4 of which allow you to build an online store for dropshipping. The fees start at $39 to $2000+ a month.
• Transaction Fees: Transaction fees are free if you use Shopify’s in-house payment gateway – Shopify Payments. If not, you’ll be charged from 0.5% to 2% on every sale based on your chosen subscription plan. 
• Credit Card Processing Fees: Based on your subscription plan. Starts at 2.4% + 30¢ per transaction.

Traffic and Audience

eBay

When you list a product on eBay, you’re essentially tapping into a massive audience that frequently visits the site for various purchases. This built-in audience means you don’t have to put in extra effort initially to attract traffic; it’s already there. 

However, this advantage also comes with a challenge. Given the sheer volume of sellers and listings, standing out in the crowd and catching the attention of potential buyers can be competitive. Moreover, most traffic is transactional, with users looking for specific items or deals, so establishing a loyal customer base can be more challenging.

Shopify

On the other hand, Shopify operates differently. Unlike eBay, Shopify does not provide a built-in audience. When you set up a Shopify store, you create your own standalone e-commerce website. This means you start with virtually zero traffic. 

Consequently, attracting customers to your store becomes your responsibility. You’ll need to delve into digital marketing strategies like search engine optimization (SEO), pay-per-click advertising, social media marketing, and more. 

While this might seem daunting at first, it also offers a silver lining. By driving your own traffic, you have more control over your target audience, branding, and overall customer experience. Over time, this can help build a more loyal and niche-specific customer base tailored to your offerings.

Platform Control and Customization

eBay

As a vast online marketplace, eBay has a standardized layout for product listings. While sellers can input product details, descriptions, and images, the overall design and user experience remain consistent across the platform. This uniformity ensures that the platform remains user-friendly for buyers. 

However, for sellers, especially dropshippers, this means limited control over how their stores or listings appear. Beyond basic store headers and categorizations, there’s little room for unique branding or design. In essence, your store will look and feel like every other store on eBay, making differentiation a challenge.

Shopify

Contrastingly, Shopify shines when it comes to control and customization. Users are given many tools and options to design their storefronts. From choosing themes (both free and premium) to customizing layouts, colors, fonts, and more.

 If you have coding knowledge or hire someone who does, you can further tailor your site down to the minutest detail using Shopify’s Liquid templating language. 

Furthermore, with Shopify App Store, you can integrate additional functionalities and features to enhance your store’s user experience. 

In short, Shopify offers extensive control over your store, allowing for a more personalized and branded shopping experience for your customers. This can be instrumental in building brand loyalty and standing out in the crowded dropshipping market.

Integration and Scalability

eBay

Over the years, eBay has woven integration into its platform, though with certain constraints.

• Payments: With a foundation in PayPal, eBay has expanded its integrated payment horizon through eBay Managed Payments. This addition broadens payment methods, from conventional credit cards to newer forms like Apple Pay, Google Pay, etc.

• Apps: The eBay ecosystem is complemented by a series of applications by third-party providers. These apps, ranging from tools aiding inventory management to marketing enhancements, offer additional functionalities. However, eBay’s app spectrum might seem slightly narrow.

Shopify

Shopify shines in integration and scalability:

• Integrated Payments: Shopify has its own payment gateway – Shopify Payments, which is recommended for all merchants in 23 supported countries. However, if you’re based outside those nations, Shopify integrates with over 100 global third-party payment gateways, catering to customer payment preferences.

• Apps: The platform is designed to work seamlessly with over 8,000 apps and plugins available in the Shopify App Store. From optimizing store SEO to understanding consumer behavior, they offer solutions for virtually every e-commerce challenge. For dropshipping specifically, tools like Dsers, and Spocket make product sourcing, listing, and order management exceptionally streamlined. 

Customer Support

eBay

eBay, as one of the largest online marketplaces globally, has invested in creating a robust customer support system. For sellers, this includes:

• Help Center: eBay offers a comprehensive Help Center with articles, guides, and frequently asked questions tailored for sellers. It covers topics ranging from listing products to handling disputes.
• Community Forums: The eBay Community is an invaluable resource. Here, sellers can engage with one another, share experiences, ask questions, and get insights from veteran sellers.
• Direct Support: For more specific or urgent issues, sellers can reach out to eBay’s customer service through phone, email, or live chat. While the response is generally prompt, some users have expressed concerns about getting generic or scripted answers at times.
• Resolution Center: For disputes or issues with transactions, eBay has a Resolution Center that provides a structured process to handle and resolve such matters.

Shopify

Shopify, being a dedicated e-commerce platform, also boasts robust customer support tailored to its users’ needs:

• 24/7 Support: One of Shopify’s standout features is its 24/7 customer support. Whether it’s through phone, live chat, or email, assistance is available around the clock.
• Help Center: Shopify’s Help Center is rich with tutorials, guides, and FAQs that cover all aspects of setting up and managing a store.
• Shopify Community: Much like eBay’s forums, Shopify has its own community where merchants can discuss, ask questions, and share experiences. It’s a vibrant community filled with both new and experienced store owners.
• Advanced Support with Shopify Plus: For businesses that opt for Shopify’s premium service, Shopify Plus, there’s a dedicated support team with quicker response times and more personalized assistance.
• Theme and App Support: Given the variety of themes and apps available on Shopify, individual developers often offer their own support channels. This means that if you face issues with a specific theme or app, you can reach out directly to its creator.

Comparing Dropshipping Suppliers: eBay vs. Shopify

Let’s delve deeper into how these two giants fare when it comes to dropshipping

Supplier Diversity

eBay

eBay operates primarily as a marketplace for individual sellers, meaning you have the opportunity to tap into a myriad of unique products. This setup allows dropshippers to find items that may not be readily available on mainstream supplier platforms or directories. These could be niche products, vintage items, handcrafted goods, or rare finds. 

However, this also means that consistency in stock and reliability might be less predictable since you’re dealing with individual sellers who might not have the same infrastructure or standards as established suppliers.

Shopify

With Shopify, the horizon broadens considerably. By using the platform, dropshippers aren’t just limited to specific suppliers. With dropshipping apps and plugins like Dsers or Spocket, Shopify store owners get direct access to a vast range of suppliers offering a diverse set of product categories. 

These suppliers often cater specifically to dropshippers, ensuring stock consistency, product quality, and reliable shipping. Additionally, given the global reach of these supplier platforms, dropshippers can source products from various regions, catering to a broader and more diverse customer base.

Pricing Competition

The competitiveness of your pricing can make or break your dropshipping venture.

eBay

When dropshipping from eBay, you’re primarily sourcing products from other sellers. These sellers, in turn, add their profit margins on top of the cost they incur from their own suppliers. 

As a result, the cascading effect of multiple added margins can mean you end up with a higher cost price. This structure can make it challenging to offer competitive prices to your customers without compromising your own profit margins. 

Moreover, given the transparent nature of eBay where potential customers can directly compare prices, you might find it tough to compete with sellers who have direct supplier relationships or more optimized supply chains.

Shopify

When using dropshipping apps on Shopify, you’re often connecting directly with manufacturers or wholesale suppliers. This direct link minimizes the middlemen, resulting in more competitive product prices. 

With better purchasing prices, you have the flexibility to set retail prices that are both attractive to customers and profitable for your business. The direct supplier connection allows you to keep a pulse on the market rates and adjust your prices accordingly, giving you a competitive edge.

Reliability & Reputation

The reliability of your suppliers and the reputation of your store are integral to the long-term success of your dropshipping business. It affects everything from customer satisfaction and return rates to your store’s overall credibility in the market.

eBay

On eBay, reliability and reputation can vary significantly from one seller to another. Given the platform’s nature as an open marketplace, it houses a mix of both seasoned sellers with a stellar reputation and newer sellers still establishing their credibility. 

As a dropshipper sourcing from eBay, it becomes crucial to meticulously check seller ratings, reviews, and historical track records. Customer feedback on product quality, shipping times, and overall satisfaction can give insights into a seller’s reliability. 

However, even with a well-rated seller, there’s a degree of unpredictability, especially when you’re dealing with individual sellers or smaller shops that might lack the infrastructure or consistency of more established suppliers.

Shopify

With Shopify, especially when sourcing through dropshipping apps, there’s an inherent level of trust as these apps often vet the suppliers they list. This vetting process can provide dropshipping merchants with an initial level of confidence in their chosen suppliers. 

However, as a best practice, dropshippers should still perform their due diligence by checking detailed supplier reviews, communicating directly with suppliers, and even ordering samples to assess product quality firsthand. This proactive approach helps ensure that the products you’re offering align with the reputation you aim to build for your store.

Dropshipping on eBay vs Shopify: The Verdict

When comparing dropshipping on eBay and Shopify, Shopify stands out as the preferred choice. It integrates easily with many dropshipping apps, streamlining tasks like product listing and order handling, making operations smoother and more efficient.

Moreover, Shopify connects directly to a wide variety of suppliers. This direct link often leads to better pricing, giving dropshippers an edge in both profits and competitive sales pricing.

Reliability is another strong point for Shopify. Many of its suppliers are vetted, and the platform allows dropshippers to investigate further through reviews and sampling. This system offers added assurance.

Lastly, with its intuitive design, customization options, and scalability features, Shopify is an excellent platform for those wanting a distinct and scalable online store.

FAQs