Being a dropshipper means you have no worries about having an inventory, which incurs storage and shipping costs for your business.
Your only job is to accept an order while your supplier fulfills it, and if you’ve been thinking about venturing into dropshipping, you might want to try out Amazon to eBay dropshipping.
A lot of individuals seeking to make money online businesses have discovered that the combination of large marketplaces like Amazon and eBay, adjoined with the dropshipping business model can yield tons of profit.
Statistics show that Amazon records over 600 million annual sales, whereas eBay has over 180 million active users, and the majority of them are willing to buy.
There is a great business formula that can be derived from this, and that is Amazon to eBay dropshipping. This article aims at showing the rudiments of dropshipping from amazon to eBay and making a good profit.
These two companies have different dropshipping methods and policies, but they can be merged. This puts you at an advantage because you get to enjoy the perks of both platforms.
While it has its disadvantages, the advantages outweigh them. The subsequent sections will be educating you in going into Amazon to eBay arbitrage; read on.
Suggested reading:Sell Amazon vs Ebay – Which is Better : Ultimate Guide 2020
This is slightly different from the usual dropshipping. In this model, you sell Amazon products to eBay buyers. 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 to 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.
The legality of Amazon to eBay dropshipping is not in doubt, but both and sellers think it is a bit unethical. This is because buyers who receive Amazon-packaged items may feel cheated since they spent a higher amount buying it on eBay when they could have gotten a better deal on Amazon.
In some cases, the buyer may drop negative feedback or ratings in a bid to get revenge or persuade the seller for a refund and return on the item. Also, Amazon sellers feel cheated when they discover that someone is making money off the back.
Rather than using the term “dropshipping,” some people prefer to use retail arbitrage. It is simply a form of dropshipping where the supplier is also a retailer.
Sometimes people interchangeably use the terms “dropshipping from Amazon to eBay” and “wholesale dropshipping.” Although they have certain similarities, they are different practices. The table below highlights the differences between the two terms.
|Amazon To eBay Dropshipping||Wholesale Dropshipping|
|No business relationship exists between the eBay seller and the Amazon seller.||A business contract is agreed on upfront between the seller and a supplier.|
|The Amazon seller does not know their products are being resold.||The supplier knows that his product is being resold.|
|The products are available at retail prices.||The products are available to businesses only, at a wholesale price.|
|When a sale is made, the eBay seller orders the product from the Amazon seller, saying it is a gift and giving the eBay buyer’s address.||When a sale is made, the seller asks their supplier to ship directly to the buyer, and the seller is charged the agreed price to their account.|
|The arbitrageur pays the Amazon seller straight away.||The seller pays the supplier as agreed in the payment terms.|
|To the Amazon seller, the transaction is exactly the same as any Amazon customer ordering a product as a gift.||It is a business relationship, and completely transparent to both businesses.|
Since we have found out the differences between Amazon to eBay dropshipping (Volume: 1,300/mo), it is time to find out how to dropship from Amazon to eBay (Volume: 50/mo). The methods involved in dropshipping from Amazon to eBay include:
This method entails spending more time uploading products, publishing products, taking product pictures, order processing, and so forth.
If you adopt this method, you have to manually list your products one after the other. In an event whereby you have a lot of listings to make, you end up wasting valuable time, which gives you less time to operate your store.
Here, you automate every process and save time. This means that you can run your business seamlessly without having to process orders manually or track your parcel. The best part is that you can upload bulk products simultaneously in a matter of minutes.
Nowadays, the automated process is popular, and it is used by most successful dropshippers. Therefore, if you want to get a shot at success, you must adopt this modern method.
In truth, Amazon to eBay dropshipping is more straightforward than you can imagine. For example, find an Amazon product which is cheap compared to the price on eBay and ensure that the shipment is free. Create a professional listing for the product on eBay to help you get enough sales.
Make sure you use high-quality product images always; you can get them on Google search engine. It enhances the visual appeal of your product, thereby increasing the value.
You can copy and paste texts from other websites. However, we recommend that you craft something compelling to draw in your prospective customers and persuade them to make a purchase.
Sell your products on eBay while you buy from Amazon, but ensure that the item is marked as a gift. That way, the buyer doesn’t get to know the actual price of the product.
Basically, this is how you make your profit. Rinse and repeat this process multiple times, and you will be setting yourself up for some good income. Below, we will explain the dropshipping process:
You can apply any of the three methods below to find profitable products to sell.
Only a few companies focus on creating eBay market research tools. Utilizing these tools will help you find high-demand products as well as money-spinning opportunities to sell them. If you are planning to run a long-standing Amazon to eBay dropshipping business, it would be a wise choice to invest in some market research tools. The top three market research companies to try out are:
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.
Another option to explore is the 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 invest money into buying 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; however, it is a great way to cut costs as a beginner.
Here, you should focus on finding non-branded Amazon products that are highly priced on eBay. This can be achieved by going to Amazon and inputting “best seller” in any category; then, select any non-branded product.
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; just 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:
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 to fulfill the order.
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.
As a dropshipper, you enjoy various advantages, but that doesn’t mean that you won’t encounter any problems. You can also identify them on time and nip them at the buds. Some common problems you can face with eBay to Amazon arbitrage include:
Having a few returning buyers 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 sellers; they only focus on the items. There is a little bit of restriction placed on customer communication, branding, store design, and so forth.
Knowing how to sell and what to sell is a big step in your dropshipping journey, but finding a reliable supplier is paramount.
The importance of getting a good supplier cannot be overemphasized, and when you find one, maintain a good relationship with him. You can find verified suppliers on the ecommerce platform, so all you need to do is to make your pick.
In a scenario whereby you select a supplier who charges some monthly fees before you can conduct any business with them, it is likely that you are dealing with a retailer who poses as a wholesaler.
Continuing this business may generate more running costs for your business than dealing with an actual wholesaler. If possible, have a personal meeting with your supplier before finalizing your deal with them.
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 surely reduce your seller rating on eBay.
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.
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 talk more about making a substantial profit.
There is a high chance that you will get less than a 20% discount while buying from manufacturers and wholesalers. You should also consider the additional expenses involved the running your business as they have a tendency to deplete your final profit. In addition, you may have to reduce your profits in a bid to make your prices competitive.
Furthermore, you must understand that your profit is largely dependent on your traffic, meaning that as a newbie, you might struggle for a while as you build your client base. Dropshipping may seem easy, but there is a lot of work involved.
As a dropshipper, you have to deal with your suppliers, processing of orders, returns, and customer support. So, we recommend that you have a regular traffic source before venturing into dropshipping.
You won’t be the only eBay seller that works with a dropshipping company, and this eliminates almost all your opportunities to rake in some profits.
Usually, these companies charge sellers a monthly membership fee. Unless you adopt the automated product-listing and updating process, you may end making very little profits.
Having to outsource the entire logistics process can be quite appealing to sellers 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 seller.
Of course, being a dropshipper remains lucrative to date because there is an increase in ecommerce activities all over the world. In the past decade, the profits recorded in the ecommerce and dropshipping industry is over $4 billion.
Also, the business model is flexible enough for small business owners to make some profit through their smartphones.
If you wish to be a successful dropshipper, this step must not be overlooked. You can pick a niche that interests you; it could be related to something your passionate about.
You can find a niche market by restructuring a particular product to suit a different target market. The easy way to do this is it list an item in a varying category and alter the keywords to draw in new buyers.
Suggested reading:Best Selling Products On Amazon and Top Selling Categories
It isn’t difficult to find a clever seller who makes money by branding their products with the right spelling while adding some common incorrect spellings on their listing.
This makes their products to be displayed on misspelled searches. Avoid these types of products, always ensure that you spell correctly while conducting your search.
As you gain more experience, you can list your products immediately after buying them. You can gain permission from the seller to use their pictures directly on your product listing.
Send an email to the seller and let them know that the item will be delivered to a third party; therefore, you will notify them when you get the address of the buyer.
With this method, you can easily cut the shipping expenses, and this makes your seller your dropshipper. The downside is that run the risk of allowing the seller to package and ship the product, thereby leaving loopholes.
You can only hope that the item is packaged nicely, which increases your chances of getting positive reviews from your buyers.
Suggested reading:Best Amazon Freight Forwarder For Shipping To Amazon FBA
Buying cheap products in a bid to cut costs is nice, but some sellers often abuse this. Although you maybe be tempted to get a good deal by purchasing a high-end product at a very cheap rate, you must be wary of frauds.
If you are skeptical, conduct some research, and check the seller’s reviews; ensure you pay more attention to the negative ones.
Look out for the products they have sold lately and check the authentication certificate. If a seller creates a lot of different listings for the same item, you might want to refrain from doing business with him.
You may meet a supplier that has a lot of items today, but he runs out of stock tomorrow. This means that you never know what his real stock is. As an Amazon to eBay dropshipper, check a seller’s history ratings to discover how long it has been in existence. If it happens to be new, you may want to be careful.
Various products may come with low-profit margins, meaning you shouldn’t waste your time on them. Also, the competitiveness within your niche market may push you to lower your price, thereby reducing your profits.
Most times, this happens because you purchase an item from an arbitrage seller, precisely someone who engages in Amazon to eBay dropshipping . These types of merchants sell Amazon products at a higher price on eBay.
When you purchase an item on eBay, the merchant places an order on Amazon at a reduced rate and makes arrangements for the item to be ship directly to you.
Their profit is the price difference. There can be other reasons why a product you purchased on eBay comes with an Amazon packaging; they include:
Dropshipping is a great business model for both short-term and long-term earning. Putting the size of eBay users into consideration, it is an excellent platform to start out as a beginner. The processes involved in Amazon to eBay dropshipping include:
Nope, these two practices are extremely different. Amazon FBA is a fulfillment service created by the company. Merchants who make use of 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. Amazon charges you for this service depending on the weight, storage time, size, etc.
This service can be used by sellers on any platform. For instance, a seller that uses both Amazon and eBay can decide to fulfill their eBay orders with Amazon FBA.
This process is known as Multichannel Fulfillment, and it costs more than FBA. When orders are fulfilled through MCF, they are shipped in an Amazon box. This means that they appear similar to order shipped through arbitrage; however, they are different.
Merchants who engage in Amazon to eBay dropshipping put their prices at between 5% to 15% higher than the Amazon price. This helps them to cater to their eBay and PayPal charges as well as make some profit.
Most successful arbitrage sellers do it as a full-time business and are mostly among the top-rated sellers on eBay. They list tons of items in a bid to make more sales.
However, the selling limit on eBay could be a barrier because it restricts the number of active items you can sell in a month. The good side is that this limit can be increased once in a month.
Sellers who utilize this strategy often compile the list of sought-after items and create a bulk listing on eBay. This means that you can make a lot of sales, but this will require more customer service, and the profit margins can be low.
In some cases, they get upset, but it rarely occurs. If a buyer raises a complaint about being overcharged, the merchant may decide to refund the price difference to avoid getting negative feedback.
Also, buyers who want to avoid Amazon, by all means, may feel swindled and go ahead to give you negative feedback. This doesn’t affect the high-volume sellers because the percentage of negative reviews will be much lower than that of the positive reviews.
Most customers perform impressively when it comes to price comparison, but they fail to look sometimes. People have different purchasing habits, and you must understand that comparing prices on Amazon and eBay isn’t a common habit. Most people purchase directly from eBay with the belief that they will get the best deal.
Also, eBay allows international buyers who face location restrictions on Amazon to purchase from their platform.
So, the buyer may have an idea that the product is cheaper on Amazon, but he has no option but to purchase from eBay. The seller ships the item from Amazon to eBay’s local warehouse. Then eBay caters to shipping the product to the buyer’s location.
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 which you need 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:
Most sellers believe that they are free to use images and texts found online since they are in the public domain. But you can use photos and descriptions taken from the manufacturer because he will most likely allow you to use the description and images to sell your products.
However, ensure that the images and texts used are not copyrighted by Amazon. Lifting images and texts on Amazon and using them on eBay can be risky, but many arbitrage sellers engage in this practice. Also, some automated software is crafted to do that.
Amazon merchants can get furious when their listings on Amazon are lifted and published on eBay, and this is understandable. The bad side is that this trend is difficult to stop. Neither eBay nor Amazon abhors arbitrage dropshipping. This makes them a lot of money, so they are not so eager to stop it from happening.
Some sellers on Amazon revenge on the eBay sellers by hiking their prices and going immediately to eBay to place an order with the arbitrage seller.
They do this because the arbitrage seller will be forced to carry out the order even at a loss or cancel it, which will eventually damage their overall ratings. This approach is considered extreme and could backfire if the price of the product genuinely goes up in the market.
We all know that starting out as a dropshipper has its ups and downs. You could encounter a lot of problems ranging from having a bad supplier to poor shipping and logistics.
If you plan to sell eBay buyers with your Amazon products, it is an easy process. However, making money off people’s inventory isn’t a good thing, but having a legal contract will have you covered.
Some people do not go into this arbitrage method because it lacks originality and is too volatile with respect to variation and product.
But if you are determined to make money with this Amazon to eBay dropshipping or you are already into it, this can be an excellent way of ramping up your monthly income for making a top-notch profit. You should also try to automate your business because it enhances efficiency and helps you stay above your competitors.