The Cheat Sheet to Start Dropshipping on eBay

11 min read

Let’s start with a fact: since Covid-19 the world is becoming more and more digital. Traditional marketing is becoming digital marketing and you are reading this probably because you too are looking to start dropshipping on eBay.

And you’re not alone, this business model is growing in popularity. Something about the idea of being able to make profitable sales without the hassle of investing in inventory or the risk of paying for advertising is very appealing for people that want to start an online busienss.

how popular is dropshipping on ebay
The growth trend of eBay Dropshipping in the past 5 years (source: Google Trends)

The goal of this cheat sheet is to help you start your own online business using the dropshipping business model and make your first sale online. It is part of what we call The First-Sale Challenge, the challenge is designed to help you get started, and to add some fuel to the flames we’ve added weekly prizes for participation.

But before that, and even before talking about the $100 in cash plus $300 worth of prizes we giveaway every week to one of the winners that complete the challenge succesfully, I want to talk to you about the biggest benefit of participating in this challenge.

The $1000 prize

The decision you took to start a dropshipping business on eBay is going to be your first step into the worlds of eCommerce and digital marketing. The graph below shows how important it is for anyone today to gain knowledge in this digital world:

The growth of U.S. eCommerce as an example why you need to start dropshipping on eBay

This graph shows the growth of e-Commerce from 2009 until 2019. Take a close look at the insane increase that the Covid-19 outbreak had on it. We’re talking about 10 years growth in 8 weeks!

Is Covid-19 a crisis or an opportunity?

In 2003 JD was a small chain of 12 brick-and-mortar electronic stores in Beijing, China. That year the epidemic SARS broke out and put most of China’s biggest cities under a lock down. Sounds familiar? That is quite similar to what we see all around the world with Covid-19.

JD’s brick and mortar store (source:

Richard Liu, the founder of JD had to shut down all of the stores but one in order to cut down expenses during the lockdown. He got stuck with a lot of stock and decided to publish it for sale in online forums. eCommerce barely existed in China so taking orders and processing them was done manually by the workers that anyway were not able to work in the stores.

Richard Liu, 2004 (source:

The inventory sold out so quickly that Richard had to order another container to answer the demand. He then realized the size of the opportunity and decided to close his stores and focus his time on building an online eCommerce website called “”. Later it was renamed which is traded today for more than $100 Billion in Nasdaq.

May 22, 2014 JD lists on NASDAQ

Look at its growth between the of the IPO (Initial Public Offering) and November 2020

JD market cap in Nov 2020 $138.97B

We are facing a time of increased financial uncertainty: millions of people lost their income source and most of us are expecting a recession in the upcoming years. It’s in this time that by entering one of the only growing industries you have the opportunity to stay ahead of the curve.

“You never want to waste a good crisis”

(Winston Churchil)

Caution: fake promises ahead

When you start showing interest in dropshipping the “make money online” industry starts targeting you with advertisements of “blueprints”, “secrets” and all kinds of different methods that could get you tremendous results if you just pay to get them.

Since you are a potential customer to advertisers in this industry they have an incentive to make it look like it is easier and fancier than what it really is to build a business and make money online.

This challenge you are about to participate in was created for free for the online entrepreneurs community with the love and hard work of the DSM Tool team. It is going to take you step by step through the process of starting an eBay dropshipping business and through it I hope to introduce you to the basic aspects of digital marketing and eCommerce that you could later expand your business with.

Tai Lopez “here is my garage” advertisement, you won’t get any of this BS here (source:

But I want to be clear about something – Just because you are attempting to start your own dropshipping business does not guarantee that you will succeed in doing that. Starting a business takes time, it takes dedication and typically requires you to give up on things you might not enjoy giving up.

Personally, I barely have time to spend on watching the new awesome Netflix shows or binge Instagram stories, even when these are of good friends of mine, not to mention driving Lamborghinis or flying private jets.

OK, fine… sometimes we do get some fun time, DSM Tool’s management visit to our Ukraine office in 2019

I have to invest a lot of this “free” time on building and operating my businesses. As an entrepreneur myself I face the exact same challenge as you: creating value that will translate itself to money.

Think about it – the DSM team and I invested months in building this challenge. It has to create real value for you in order for you to become one day our customer and maybe even recommend this challenge to others, and vice-versa.

Will you be willing to adapt your habits in the upcoming days, weeks and months in order to grow your own business? If you ask me, that is your real challenge. Starting to sell on eBay? That’s the easiest part.

Let’s get started, shall we?

The Challenge: Start Dropshipping on eBay

This challenge is designed to help you start dropshipping on eBay. But there is more to it, every week on the DSM Tool YouTube Channel we giveaway the following prizes:

  • An annual subscription to DSM Tool ($239 worth)
  • $100 in cash to make purchases in Ali Express 
  • The complete eBay dropshipping course ($69 worth)
  • 1-on 1 consulting session to help you grow the store
Start Dropshipping on eBay challenge by DSM Tool

How to win these prizes

To have the chance to win the prize, all you have to do is to complete the 3 steps of the challenge: set up the business, make the first sale and take the first step to expand the business.

Since you’re going to use for the challenge the dropshipping software DSM Tool we have already set up the admin panel to recognize participants that complete the challenge successfully. We pick the winners during our weekly marketing team meeting, when you win we will contact you, most likely via email.

The 3 steps to start dropshipping on eBay

To make it easier for you to participate, this cheat sheet is structured according to the 3 steps. For each step, it explains exactly what to do and provides you with links to free resources and step-by-step guides for beginners.

Here is a breakdown of the steps with time estimation for their completion

Prepare to sellSetup eBay, PayPal. AliExpress and DSM Tool accountTypically 2-4 hours
Make the saleFind, optimize and add products to your storeTypically 1-7 days
Expand the businessExpand your dropshipping business into affiliate marketingTypically 1-2 hours

Step 1: Prepare to sell


In order for you to sell something online you first need a store. The eBay marketplace is going to be used for that, so you are going to need to to set up an eBay seller account and a PayPal account to accept payments with.

Because the dropshipping model allows you to sell online without holding an inventory you are also going to need a supplier to process the logistics of your orders if you make a sale. Setting up an Ali Express account properly will do.

Last, you’re going to need a dropshipping software like DSM Tool to help you automate some of the steps like adding products to your store in one click. Without it you will have to copy and paste tons of information from Ali Express to eBay. The software automates so many aspects of your business that running it doesn’t seem to make sense.

Free resources

Step 2: Make the sale


As soon as you finish setting everything up you are ready to start making sales! But something is still missing… What are you going to sell? You need to find products that are trending on eBay and source them from a reliable supplier on Ali Express. You can do that using the sniping method.

After you snipe yourself the products, you need to list them on eBay for sale. In order to increase the chance to make a sale, drop shippers optimize their listings for Search Engine Optimization (SEO). Using eBay SEO techniques will help you rank your listings higher in the search results.

Free Resources

Step 3: Expand your business


In order to complete this step, you are going to have to learn another new skill in digital marketing: affiliate marketing. Just like dropshipping on eBay, it is another form of making money online and it is a growing industry as well.

Google trends results for affiliate marketing
The growth trend of Affiliate Marketing (source: Google Trends)

Just like the previous steps of the challenge, this step was designed to help you learn the fundamentals of affiliate marketing in a practical way that will allow you to extend your online business and generate more income.

To complete the challenge, get 3 people to sign up to DSM Tool under your affiliate link. Then, you will automatically enter the pool from which we choose a winner every week!

Your name will appear in the pool for another 3 months from the day you complete the challenge and if you get chosen you will get a call from Enrique, our YouTube channel manager, to provide you with the prizes.

Free resources

Written by Kfir Shapira

Kfir is a Co-Founder and the CEO of DSM Tool. He is working with eBay since 2008 and 8 years later in 2016 joined the founding team of a revolutionary drop shipping management platform - DSM Tool. He has a B.A in Business and Entrepreneurship from IDC Herzeliya. Kfir also plays the drums and owns a dog named "Bamba".

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