Do you start the dropshipping business? Dropshipping from Amazon to eBay generates higher profit margins and enables order fulfillment more efficiently. You can open your online store on eBay and purchase from Amazon sellers.
Our experts have ten years of experience and know-how to deal with such cases to grab quality products from the best suppliers. The best dropshipping supplier on Amazon has a profitable business model for making money online. You can buy from Amazon sellers and use dropshipping tools to sell on your online store.
Today, we will elaborate on dropshipping business from Amazon to eBay.
- 1) What Is Amazon To eBay Dropshipping?
- 2) Is Dropshipping From Amazon To eBay Legal?
- 3) How To Start Dropshipping From Amazon To eBay?
- 4) What factors do you need to pay more attention to?
- 5) Common problems when dropshipping from Amazon to eBay
- 6) FAQs about dropshipping from amazon to eBay
- 7) What’s Next
What Is Amazon To eBay Dropshipping?
This is slightly different from the usual dropshipping. In this model, you sell Amazon products to eBay customers. You only list your items without handling any physical items. The buyer places an order, and you redirect it to the supplier who ships it directly to the buyer.
Amazon to eBay dropshipping saves you inventory and shipping costs, and you worry less about having a physical product that never sells.
For your business, this is a win-win situation. So, all you need to do is list your products on eBay, and when the buyer makes a purchase, you order the item from Amazon, and the supplier ships it directly to the buyer.
Is Dropshipping From Amazon To eBay Legal?
The legality of Amazon to eBay dropshipping is not in doubt, but both sellers think it is a bit unethical. This is because customers who receive Amazon-packaged items may feel cheated since they spent a higher amount buying them on eBay when they could have gotten a better deal on Amazon.
In some cases, the customers may drop negative feedback or ratings to get revenge or persuade the third-party seller to a refund and return the item. Also, Amazon sellers feel cheated when they discover that someone is making money off the back.
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How To Start Dropshipping From Amazon To eBay?
In truth, Amazon to eBay dropshipping is more straightforward than you can imagine. Create a professional listing for the product on eBay to help you get more sales.
On eCommerce giant Amazon, you can find multiple suppliers and use paid tools to get an Amazon box. From Amazon accounts, you can manage Amazon listings, set up all the tools, and fulfill your orders through Amazon’s warehouse.
However, we recommend that you craft something compelling to draw in your prospective customers and persuade them to make a purchase.
1. Find Lower Priced Item On Amazon With Free Shipping (In Comparison With eBay)
You can apply any of the three methods below to find profitable products to sell.
- Market Research Dropshipping Software
Only a few companies focus on creating eBay market product research tools to research product details. Utilizing these product research tools will help you find high-demand products and money-spinning opportunities to sell them.
If you are planning to run a long-standing Amazon to eBay dropshipping business, investing in some product research tools would be wise. The top three market research companies to try out are:
- ZIK Analytics
- Chili Hunter
- Manually Searching
Another option to explore is manual searching, and this is recommended for individuals who are still at the preliminary stage of their dropshipping venture. You surely do not want to buy drop shipping software only to discover that you have little interest in the business model.
Of course, this method will be time-consuming, and it is not scalable.
- Listing Software That Includes An Item Locator
You can also purchase a listing software that provides a perk, such as an item locator. A software like Salefreaks offers this as part of their subscription.
Why use Amazon to eBay lister?
Automation tools can make a difference for the eBay arbitrage sellers or dropshippers on eBay stores. You don’t have to buy your own fulfillment centers or invest money upfront with your eBay account settings.
eBay automation tools can help you in:
- Inventory Management
- Order fulfillment from Amazon’s warehouses with automatic repricing
- The Supply chain mechanism becomes automated
- Copying listings from the online Amazon store to your online store on eBay.
- Optimize the eBay listings through eBay dropshipping software.
Remember, most dropshippers around the globe use automation software to make Amazon dropshipping profitable.
2. Create A New eBay Listing For The Item
If you are in the signup process, eBay may demand verification details such as address and phone number.
After providing the details, move to the “sell” page by clicking the sell button located on the top right corner of the homepage. Click on “advanced tool” to confirm that you are switching to the advanced tool.
Further, copy the name of the Amazon product and select a suitable category. At this point, it may say that there isn’t any result; click on “continue listing.” When you arrive at the next page, you will find all the listing options. The steps you take from here are self-explanatory.
While listing your products, always ensure to:
- Add royalty-free photos to your listing and a good listing title
- Add any product listings description from information on Amazon
- Enter weight and dimensions using information from the Amazon page
- Select a fixed price, and choose a price higher than the Amazon price. Also, it should be lower than the lowest competitor on eBay
- Enter your PayPal email address to accept payments through PayPal
3. Purchase from Amazon vendors and sell on eBay
After finding a hot product to sell on eBay, you have set yourself up to get your first order on eBay. When you confirm the payment receipt from the buyer, the next step is the order processing.
Go to your Amazon account and add the item to the cart. On the checkout page, ensure you mark the item as a gift and key in the buyer’s address. The Amazon seller will handle every cost incurred in shipping and logistics.
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What factors do you need to pay more attention to?
As a dropshipper, you enjoy various advantages, but that doesn’t mean you won’t encounter any problems. You can also identify them on time and nip them at the buds. Some common issues you can face with eBay to Amazon arbitrage include:
Having a few returning customers is possible; however, most of them may never buy from you again. You will lose every goodwill which you may have accumulated through exceptional service.
The marketplace is structured to cater to itself; therefore, eBay doesn’t focus on other eBay sellers; they only focus on the items. There is a little bit of restriction placed on Amazon customer communication, branding, store design, etc. Avoid selling low-quality products.
Knowing how to sell and what to sell is a big step in your dropshipping business journey, but finding a reliable supplier is paramount.
The importance of getting a good supplier cannot be overemphasized, and when you find vendors, maintain a good relationship with them.
In a scenario whereby you select a supplier who charges some monthly fees before you can conduct an online business with them, you are likely dealing with a retailer who poses as a wholesaler.
When you have an Amazon customer account, you can follow the business policies for product shipping, tracking, etc.
Here are the business policies for the Amazon account.
- You have 3 to 7 days to ship inventory through Amazon expedited shipping. You can get tracking information to track your order.
- Thirty days of return policy ensures quality product sourcing with a money-back guarantee.
If you purchase cheap products, keep the focus on quality.
Having an inventory count as a dropshipper is nearly impossible. Therefore, when a product is out of stock, you will most likely find out late.
This means you will have to keep the customer waiting and risk getting negative feedback. The better option will be order cancellation, but when it happens often, it will indeed reduce your seller account rating on eBay.
To win, a buy box on your Amazon business, you need to manage your inventory.
At some point, you may have to bear the shipping costs, but this rarely happens.
Also, if the Amazon seller discovers that you are riding on his back, he may ask you to bear the shipping costs for your business, or he will refrain from transacting with you.
You certainly do not have to worry about overhead costs of inventory and store management, but the returns are also low for Amazon stores.
As a rule of thumb, the lesser you invest in your business, the lower the profit it turns out. That being said, you have to put in a lot of effort to keep your business standing and talk more about making a substantial profit.
There is a high chance of getting less than a 20% discount.
Lack Of Competitive Advantage
You won’t be the only eBay seller account that works with a dropshipping company, eliminating almost all your opportunities to rake in some profits.
Usually, these companies charge sellers a monthly membership fee. You may make very little profit if you adopt the automated product listing and updating process.
Outsourcing the entire logistics process can appeal to an Amazon seller because they have fewer things to worry about.
On the flip side, you lose every control over your supply chain. Therefore, when an error occurs, you may have to bear the burden even when the fault is from the Amazon seller.
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Common problems when dropshipping from Amazon to eBay
Dropshipping business model from Amazon to eBay has many hurdles in the way. It is not that straightforward to launch your Amazon account and buy from Amazon suppliers. Later on, you can sell products on eBay to gain some profits.
In this pathway, you need to face multiple problems like:
1. Unable to track Order
Sometimes, orders are unable to get tracked on Amazon. No doubt the eBay dropshipping software makes it manageable, but Amazon ships the products to your address, not customers. It makes dropshipping more challenging to start at eBay.
2. VERO violations
VERO refers to Verified Rights Ownership. Some products being sold on Amazon might be copyright violations on eBay. According to eBay business policies, you might get suspended if you sell products that are IP violations. Therefore, it is a severe problem for the dropshipping model on Amazon.
3. Amazon Account Locks
Amazon account locks occur especially in cases when you do the following things:
- Enter fake account details
- Login from multiple accounts
- Use many gifts cards
Amazon account locks are another significant problem among many dropshippers.
4. Out of stock items and price fluctuations
Let’s take an example of a Sneaker. If you purchase it from Amazon for $10 and sell it to the customers on eBay for $14, you get a $4 profit per product.
What if the product is out of stock on Amazon or stock levels available are low? The seller will change the price to $15. At this time, you might face severe losses. To cope with the situation, you can use automation software that will automatically reprice the inventory and help in inventory management.
5. Being flagged as a dropshipper
There are certain restrictions for the dropshippers. You won’t get the drop shipping account but face some limitations. It is also a crucial problem to discuss.
Suggested reading: Is Alibaba safe and legit?
FAQs about dropshipping from amazon to eBay
Is Dropshipping On eBay Worth It?
Of course, being a dropshipper remains lucrative because there is an increase in e-commerce activities worldwide. In the past decade, the profits recorded in the ecommerce and dropshipping industry are over $4 billion.
Also, the business model is flexible enough for small business owners to make some profit through their smartphones.
Is Amazon To eBay Arbitrage The Same As Using Amazon FBA?
Nope, these two practices are significantly different. Amazon FBA is a fulfillment service created by the company. Merchants who use the service purchase items and send them to an Amazon warehouse, where they are stored until sale.
When a customer purchases an item, it is packaged and shipped to the buyer directly from the warehouse.
How Much Can You Make Dropshipping From Amazon To eBay?
Merchants who engage in Amazon to eBay dropshipping put their prices at 5% to 15% higher than the Amazon price. This helps them cater to their eBay and PayPal charges and make some profit.
Most successful arbitrage sellers do it as a full-time business and are primarily among the top-rated sellers on eBay.
What Are The Risks If I Dropship From Amazon To eBay?
This formula is a low-risk way of starting a dropshipping business. We are not saying that you may not lose money; Amazon to eBay dropshipping is not failproof.
You also need to have basic skills to improve along the line if you wish to record a higher success rate. The risks you face as a retail arbitrage eBay dropshipper are:
1. Amazon price increase
2. Amazon goes out of stock
3. The buyer seeking to return the item
With increasing hurdles to overcome when dropshipping from Amazon to eBay, the business model is fast becoming obsolete. Even if this model is full of uncertainty and grey areas, focusing on product quality and customer feedback day by day won’t let you down in the end.
If you’re still confused with the details of Amazon dropshipping, just contact us now and acquire a free professional solution.
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