Yes, but it is a little more complicated than that.
In eBay’s earlier days, before January 2019, when eBay released their new dropshipping policy, sellers used to list products on eBay and then purchase the products from another retailer or marketplace such as Amazon, Walmart, or Ali Express that ships directly to customers.
This is no longer permitted on eBay. To legally dropship on eBay, you must “fulfill orders directly from a wholesale supplier.” So, what exactly does that mean? It means that you buy bulk quantities from a wholesale supplier and then sell those items on eBay. You must procure your products from a supplier who does not offer direct shipping to customers.
The new eBay dropshipping policy released in January 2019 defined the term dropshipping as when you buy goods from a supplier and then work with them to ship the goods directly to your customers. As a dropshipper on eBay, you have to work more ethically, provide excellent support to your buyers and add value to the eBay platform in order to generate sales.
eBay also specifies that it is your responsibility, not the supplier’s, to ensure that the product is delivered on time and in good condition.
To legally dropship on eBay, dropshippers and dropshipping suppliers must follow the rules outlined below.
- Items can’t be shipped or delivered directly from a retailer or marketplace.
- Shipping and delivery standards must be met.
Remember that even if you use drop shipping, you are still responsible for the item’s safe delivery within the time frame indicated in your listing, as well as the buyer’s overall satisfaction with their purchase. Ensure you deliver item(s) to the buyer within 30 days after the eBay listing ends. If shipping is delayed for more than 30 days, your account may be penalized.
If the product is a counterfeit or does not work, or if the customer receives something other than what was advertised, the seller will face the consequences from eBay.
Using fake identities to run eBay stealth accounts or owning multiple eBay stores.
Activities that don’t follow eBay policy could result in a range of actions including but not limited to: administratively ending or canceling listings, hiding or demoting all listings from search results or even from the site completely, lowering seller rating, buying or selling restrictions, loss of buyer or seller protection, and the most serious of which is account suspension.
eBay’s policy demonstrates that they have the authority to take action against drop shippers and eBay arbitrage businesses if they so desire.
With the understanding of eBay’s policy, eBay is only interested in penalizing and suspending arbitrage sellers abusing the eBay ecosystem and causing a negative buyer experience.
Dropshipping on eBay is completely legal if you comply with the eBay dropshipping policy.