eBay dropshipping rules in the UK: what's allowed

What is eBay's dropshipping policy?

eBay's dropshipping policy is short. Dropshipping, where you fulfil orders directly from a wholesale supplier, is allowed. Listing an item on eBay and then buying it from another retailer or marketplace that ships directly to your customer is not allowed.

The policy also says that if you dropship, you're still responsible for the safe delivery of the item within the time frame stated in your listing, and for the buyer's overall satisfaction. The buyer's contract is with you, not with your supplier.

If you break the policy, eBay says it may remove listings, issue a warning, restrict your account or suspend it.

Can you dropship from Amazon or other retailers to eBay?

No. Amazon, high-street websites and other online shops sell to consumers. Ordering from one of them after an eBay sale, so that it ships to your buyer, is exactly what eBay's policy rules out. It doesn't matter which retailer or marketplace it is.

It also leaves you without control of the things you're responsible for. You can't see the retailer's real stock, you can't set its dispatch times, and your buyer receives a parcel from a company they didn't buy from.

You can still look at retail sites for research: what's popular, what it costs and how it's described. Research is fine. Fulfilment from a retailer is not. OneDS, for example, treats Amazon as a research source only, and its terms require you to fulfil through suppliers you're entitled to buy from, in line with eBay's policy.

Tip If you're not sure whether a supplier counts as wholesale, ask them whether they offer trade accounts and dropship terms. If they don't, don't use them to fulfil eBay orders.

What counts as a wholesale supplier?

eBay's policy doesn't publish a list of approved suppliers, so the judgement is yours. A genuine wholesale or dropship supplier usually looks like this:

• It sells to businesses (trade), not to the public, and you apply for a trade account with your business details.
• It agrees, in writing, to dispatch orders to your customers on your behalf.
• It tells you its stock levels and how long it takes to dispatch.
• It has clear terms for damaged parcels, lost parcels and returns.
• It gives you invoices for what you buy, so you can show where your stock comes from.

What you're responsible for when you dropship

Using a supplier doesn't move any of eBay's seller rules onto them. These are the ones dropshippers most often get wrong.

• Stock: eBay's selling practices policy says items you offer must be in stock for the whole listing. If there's a problem, you must tell the buyer when it will be available or refund them straight away.
• Dispatch time: eBay defines handling time as the time it takes to hand the item to the carrier after the buyer has paid. If your supplier needs two working days, your dispatch time can't be one.
• Tracking: eBay asks you to upload accurate tracking within your stated handling time and mark the order as dispatched.
• Problems: item not received and not-as-described claims come to you under the eBay Money Back Guarantee, not to your supplier.

How compliant dropshipping works, step by step

1. Open a trade account with a wholesale supplier that offers dropshipping, and read its terms on dispatch, damage and returns.
2. Register on eBay as a business seller. Selling goods for profit is trading.
3. Set your eBay dispatch time to cover the supplier's processing time as well as your own.
4. Keep listing quantities in line with the supplier's stock, and end or reduce listings when it runs low.
5. When an order arrives, place it with the supplier promptly and upload their tracking within your dispatch time.
6. Answer the buyer's questions, returns and claims yourself.

Returns and refunds when you dropship

As a business seller you need a returns policy. eBay's business seller policy says you must tell buyers they have 14 days to withdraw from the purchase under the Consumer Contracts Regulations, and accept faulty items within 30 days for a full refund under the Consumer Rights Act 2015.

Even if a listing says no returns, the eBay Money Back Guarantee lets a buyer return an item that doesn't match the listing.

Agree with your supplier where returns go and who pays. But your duty to the buyer doesn't depend on that agreement.

Watch out If your supplier won't take a return back, you still have to refund the buyer when the law or eBay's rules require it. Build that cost into your prices.