eBay is an online marketplace where people can buy and sell a wide range of products. Shopify is a platform that allows sellers to create their own e-commerce store. Dropshipping business owners can make money using eBay or Shopify. However, there are key differences between these services.
eBay
As a platform, eBay has over 159 million active buyers.
The eBay brand helps sellers build credibility and attract sales faster.
Setting up an eBay seller account is quick and easy. It can be ideal for sellers with minimal technical knowledge.
eBay offers 250 free listings per month and only charges 13.25% plus 40¢ for each sale.
Shopify
Shopify allows users to have full control over their store's brand and design.
The platform integrates with over 8,000 apps and plugins, which makes it easy to customize stores.
Shopify offers support for inventory management, payment processing, shipping, and more.
Basic subscription costs $19 per month if paid annually. Additional costs may be necessary for premium apps and third-party integrations.
On Reddit, an eBay seller posts about having “multiple dropshipping accounts” with over 100,000 listings. While the platform is usually profitable, there are also some challenges. The eBay store owner talks about having issues with suppliers and service metrics. Moreover, the eBay return policy and weather-related delays can also cause serious problems. “Basically when things are running smooth it feels like it’s free money,” the post specifies. “And when everything goes wrong it feels like it’s going to ruin my life.”
Another Reddit user shares about doing agency work for 7 to 8-figure clients. According to the post, the clients sold shirts online all use Shopify. “You ARE building a business on eBay but you’re not building a BRAND on eBay,” the Redditor emphasizes. “There’s nothing memorable about the sellers on eBay. Your customers simply ‘bought a shirt off eBay.’ Not from ‘this cool store by frankOFWGKTA’... See the difference?”
Despite that, the post encourages others not to quit their eBay stores unless their Shopify shop reach “2-3x the revenue generated.”
Numerous examples of successful dropshippers using eBay and Shopify can be found online.
Michael Davis started dropshipping in 2016 after trying different online business models. Initially, he faced challenges because of limited industry knowledge. He invested in a $20 online course and started building his e-commerce business. To his surprise, Michael earned $1,500 in his first month. He later scaled up by expanding to multiple suppliers and exploring new niches. He opened several eBay stores and listed over 60,000 items online. Moreover, he hired virtual assistants to handle daily tasks. His business rapidly grew, with monthly sales reaching $300,000 to $360,000.
Meanwhile, Shopify dropshipper Mordechai Arba also has an inspiring story. A former developer, he eventually started venturing into dropshipping. Early setbacks cost him $5,000 in product testing. Despite that, he persevered and achieved a 5-figure profit. This encouraged him to explore other product categories. His first Shopify store was in the jewelry niche. He later expanded operations, building multiple Shopify shops earning 7 to 9-figure revenues. Today, he helps other dropshippers succeed through his own dropshipping research tool Ecomhunt.
As a former dropshipper myself, I managed to make $48,000 in 30 days selling shark onesies via Shopify. However, I decided to quit dropshipping and that move proved right in the long run.
We compare eBay and Shopify to help you pick the best platform for your business. Moreover, we'll show you the pros and cons of both services.
eBay Dropshipping vs Shopify Dropshipping
eBay
Shopify
eBay is easier to start. You'll only need an eBay seller account and a verified Payoneer account. No technical knowledge is required. Sellers also get 250 free eBay listings per month with zero insertion fees.
Shopify is harder to start. While custom themese and templates are available, you'll need 3 to 4 days to create a basic Shopify website. Furthermore, mastering how to run paid ad campaigns can take several weeks to months.
eBay's platform fees are lower. The site charges a final value fee of 13.25% plus 40 cents per sale. Monthly subscription costs $4.95 for a Starter Store or up to $59.95 for a Premium Store.
Shopify's platform fees are higher. They charge 2.9% + 30¢ per transaction, plus a 2% fee for payments not made through Shopify Payments. A Basic Shopify monthly subscription costs $25 or $19 per month when paid per year. Meanwhile, an Advanced subscription costs $399 per month or $299 per month when paid per year.
eBay attracts more traffic easily. The online marketplace has 159 million active buyers and attracts 109 million visits per month. Sellers can use the Promoted Listings feature to boost their visibility. This costs 2% to 20% per sale.
Shopify doesn't automatically attract traffic. Store owners must use SEO and paid ads. Dropshippers may have to spend 10% to 30% of their revenue to generate sales.
eBay accepts a wider range of payment methods. The service allows multi-currency transactions. It also accepts payments from different channels including PayPal, Google Pay, bank-to-bank transfers, credit and debit cards. Also, take note that Payoneer charges users up to 2% for external bank withdrawals.
Shopify offers limited payment methods. The service mainly uses Shopify Payments as its primary payment processor, along with third-party options. The platform does not charge transaction fees for orders paid via Shopify Payments. Shopify only processes debit card payments from co-branded providers.
eBay offers limited design options. The platform provides little opportunity for brand differentiation. Dropshippers can only do basic customizations using the site's standard templates.
Shopify offers greater flexibility with over 100 professional free and premium themes. Users may also upload custom themes to create a unique Shopify store for their brands.
eBay offers limited analytics tracking capabilities. The service only has basic reporting tools for listing performance, total sales, sales growth, and fees. Dropshippers need to use third-party apps to access in-depth analytics.
Shopify provides detailed analytics tracking. They provide inisights for sales, visitors, and store performance. Higher-tier plans also allow the creation of custom reports tailored to your specific needs.
Building brand loyalty can be difficult for eBay dropshippers. Buyers often associate their purchases with the eBay platform rather than the individual sellers.
Shopify enables dropshippers to build customer loyalty. Buyers remember your unique online store, which will likely encourage repeat purchases.
eBay has a limited number of approved third party software and services. Available eBay integration include e-commerce platforms (GoDaddy, Shopify, Wix), product listing optimization (Optiseller, SellerActive, StreetPricer) and order management (SkuVault), among others.
Shopify offers more available options for app integration. The Shopify App Store has over 8,000 apps and plugins. These apps range from marketing and conversion (Mailchimp, BuyButton, Loox), product sourcing (CJDropshipping, Printful), and store design (Instafeed, Judge.me Product Reviews, PageFly Landing Page Builder).
eBay's help and support is not as dropshipper-friendly. The service has the Seller Help resource and other communication channels. However, the platform's policies tend to favor customer satisfaction over seller welfare.
Shopify's help and support are more dropshipper-friendly. They provide 24/7 support via phone, email, and live chat for all plan levels. Plus, the Shopify Community offers a support group for dropshippers.
eBay's future growth prospects appear limited. According to reports, eBay has less than 5% of the US e-commerce market share. Plus, it continues to face growing competition.
Shopify's future growth prospects appear encouraging. The service ranks 4th among the world's top 5 e-commerce platforms. Currently, Shopify has a 10.32% market share and owns 29% of the US e-commerce market share at 10.32%.
eBay vs Shopify: Which is Better for Long-Term Success?
Shopify is better for long-term success in dropshipping. Compared to eBay, Shopify dropshipping offers greater SEO control. Sellers can optimize their online shops for search engines. Content customization and personalized branding can also be done much easier with Shopify.
On a Reddit thread, one store owner talks about using Shopify for dropshipping print on demand products.
“I make the designs and list the products on multiple sales channels,” the post reads. “I profited $43k from it last year and it’s my side gig. You just gotta have something unique and know what you’re doing.”
Dropshipper Jack Kitchener believes Shopify plays a role in achieving long-term success. In a YouTube video, he shares that having a decent Shopify store is the first step in building a sustainable dropshipping business. Ideally, beginners should start with a general store. On the other hand, experienced sellers should go for a niche store.
In any case, product testing through paid marketing is a must to attract ongoing sales. Plus you need to work with “a good supplier that can supply the right product” for your online store.
“Having your own customizable store allows you to create an authoritative brand,” according to Kristy Snyder. As a result, a Shopify store “can help you become a leading provider in your chosen niche,” explains the Forbes writer. “If your only goal is to sell products without building an empire, then eBay might work just fine.”
eBay vs Shopify: Which is Better for Beginners?
On YouTube, Paul J Lipsky says eBay continues to attract “millions of customers” today. This is despite the recent popularity of giants like TikTok and Facebook Marketplace.
Paul further points out that eBay can be “a low-risk way to train and build skills” in the ecommerce industry. “You can get your store up and running in a matter of hours and not weeks,” he adds.
Redditor That-Experience-9662 also started as an eBay seller. According to their post, they used Amazon as their dropshipping supplier. The Reddit user further encourages beginners to start small. Ideally, new sellers should list “low priced items no more than $10.” The post also warns that dropshipping requires “a slow grind” as it is not a get rich quick scheme.
Is eBay Dropshipping Still Profitable in 2024?
eBay dropshipping is still profitable in 2024. Successful eBay dropshippers can earn $100 to $1,000 per day, depending on their product and niche. On average, profit margins range from 10% to 30%, with advanced sellers reaching as high as 60%.
The key lies in finding reliable suppliers and winning products. To maximize profitability, eBay dropshippers should work with dependable suppliers. The chosen supplier should have a good track record in product quality, customer service, and fast shipping times.
Researching high-demand items in profitable categories is a must for successful eBay dropshippers. You can use tools like Zik Analytics or ShelfTrend to identify trending products and popular keywords. Finally, eBay dropshippers can increase potential profits by utilizing discount gift cards and cashback options.
Is Shopify Dropshipping Worth It in 2024?
Shopify dropshipping is worth it in 2024. However, success depends on selling quality products and fast shipping times. Leveraging social proof and running multi-platform marketing strategies can boost your dropshipping business. Of course, you'll also need to tap reliable suppliers to meet customer demands.
The key to profitability in Shopify dropshipping lies in adopting low-cost tactics. Dropshippers should also consider investing in courses to learn from industry experts. Meanwhile, emerging industry trends emphasize the use of technology to improve buyer experience on Shopify. This includes:
Dropshippers can continue to find success in the evolving Shopify landscape as they adapt to modern changes. On average, a Shopify dropshipper can make a revenue of $1,000 to $2,000 per month.
Why Local Lead Generation is Better Than eBay or Shopify Dropshipping
As someone who has done dropshipping, I'd say local lead generation is a far better business model. It's just more scalable and profitable than selling physical products online.
In the past, I managed to earn $48,000 in 3 days selling shark onesies via Shopify. This was during the popularity of the viral Baby Shark song. I capitalized on the craze and sold the onesies to shoppers online.
Despite that, I eventually bowed out of dropshipping for several reasons. For once, the business requires a lot of maintenance. I constantly had to check supplier pricing and monitor my ads to see if they're working or not. Moreover, the cost for Facebook Ads is growing each year. Plus dealing with customer complains and returns can be stressful.
It's an entirely different experience for me once I discovered lead generation. With this model, my clients are small business owners. I help them out by providing high quality leads for niche companies. In return, each client pays me $500 to $3,000 for my services. The best thing is it only takes a few months to build a website and rank it on Google. Once you do, the income you generate becomes mostly passive.
So before spending your hard earned cash and limited time on a business, it’s important to weigh your options. While eBay and Shopify dropshipping can be profitable, they're not as lucrative.
Local lead generation remains as my top recommendation as the top online business. With it, I manage to make up to $52,000 per month. I don't even have to worry about competing with thousands of dropshipping sellers. Instead, I only have to rank my sites using specific keywords and locations.
