Last Updated on April 07, 2021
How to Start Dropshipping from Amazon to eBay
We thought that everyone was doing the same when we began dropshipping about ten years ago. Still, the truth is that dropshipping was at the time a completely unknown business concept (we did drop shipping mostly on eBay at the beginning).
What does Amazon to eBay arbitrage mean?
The word arbitrage is derived from the financial market universe; you purchase an item on Amazon for $10 and sell it on eBay for $15. You make a $5 profit from arbitrage (before payments for eBay and PayPal).
Arbitrageurs know how to take advantage of price volatility and are typically familiar with a niche market as vintage tapestries. A daily seller experienced in this might attempt to market his goods to antique collectors who are a small market. But an arbitrage savant from Amazon to eBay could purchase the antique tapestry being sold on Amazon and offer it on eBay as a vintage piece of decoration for your home (and people looking to redecorate are a much greater demand than antique collectors. Often, it is very likely that the same seller will lift the price by 10, 20, or even 30 percent and, in many situations, get his eBay asking price.
The recipe for a profitable Amazon to eBay arbitrage is to have a decent amount of niche business awareness + to spot an undervalued commodity in an ‘international’ marketplace + a sharp eye for promotion and rebranding.
Both eBay and Amazon are practically full of arbitration options. When advertising products, sellers make a few common errors, and you can certainly take advantage of this to make a fast buck:
Misspelling– Often, vendors misspell or abbreviate terms due to lack of room in the title, and so no one can locate their listing, which also makes them desperate to sell and helps you pick up goods at cheap rock rates. For instance: ‘concept bag’ rather than ‘designer bag.’
Bad images– Consumers are much less likely to take a chance to purchase a brand if a high-value brand is marketed with low-quality pictures.
Missing keywords – sometimes people fail to use an important keyword in their description; for instance, someone selling a shirt may name it ‘beautiful size 30 top’ rather than ‘beautiful size 30 blouse (or shirt)’ which people is more likely to look for.
So how are you going to do eBay Arbitrage with Amazon?
A detailed step-by-step guide is here:
- Go to eBay and find products that are currently in demand. You can do this by going to the ‘trending’ page of eBay or searching various categories, and seeing-goods get a lot of bids (check out our previous posts on the best things to sell on eBay and eBay’s highest-selling items).
- If you have picked a commodity, calculate the worth of the products based on the average price you find on eBay (try to avoid the extremes of each segment, i.e., the incredibly costly and incredibly inexpensive emphasis on the middle ground) and then knock off 10 percent to build for yourself a ‘safety net.’
- I am using all the misspelling of the object and category and multiple word combinations to check for eBay or Amazon or try using the right spelling but look for products with photos of lower quality.
- Determine if the price listed would encourage you to make a profit if you find a successful potential candidate. For instance, if you find an iphone cover for $5 on Amazon and you saw that individuals sold the same item for $10 on eBay, your profit margin is $5 minus PayPal fees, eBay fees, and shipping, maybe you’re pocketing $3. Although you buy them in bulk, I’d refrain from doing this for low cost products, though.
Suppose you want to do this on a different marketplace like Alibaba to eBay instead of Amazon to ebay arbitrage. In that case, the procedure is the same, and this technique is quickly duplicated from one marketplace to the next.
Again, I’m not sure about the arbitrage model Amazon to eBay, but I can’t disagree that many vendors are effectively adopting this concept. You will be making money in no time with good analysis and tactics. Only be mindful of the threats such as knock-offs, and disgruntled customers and sellers seeking to take revenge on you to ‘dup’ them.
Dropshipping from Amazon to eBay or vice versa -a step by step example
It’s much simpler to dropshipping from Amazon to eBay than one would think. An example is here:
- Find an item on Amazon that is underpriced (compared to eBay) and make sure they give free shipping!
- Build the item’s latest eBay listing (you can use CrazyLister to make it look professional and improve sale chances). You should use them if the pictures are decent, and if not, you can find better ones on Google-either way. I would consider making the listing more physically enticing to add to the product’s perceived appeal. You can copy and paste the text, but I’d take a few minutes editing and modifying it again, making it more compelling, hitting home why anyone should purchase your stuff.
- Purchase the item on Amazon and sell the item on ebay. Make sure to check the box claiming that the object is a ‘gift’ so that the customer doesn’t figure out how much you charged.
- It is that! You made a profit on a couple of bucks. Now replicate this process for the same item or many items, and you might augment your income or produce enough cash to be your main source of income for this.
Dropshipping Pitfalls from Amazon to eBay
With dropshipping from Amazon to eBay, there are several potential pitfalls to avoid:
# 1: Consumer delivery
The seller you buy from on Amazon is responsible for packaging, shipping, and product quality. If she fails to ship on time, packaging carefully, or delivering a high-quality product, you will be the one carrying the customer’s brunt and not your dropshipper. You’ll be punished with negative ratings and feedback.
# 2: Inventory
You don’t know who your dropshipper is or where he’s from, where he gets his inventory, and his story. For all you know, he has a one-time supply of 200 products and disappears after that. This puts you in a very precarious position as far as the supply chain goes. If you sell too many products that your eBay account cannot supply, it may very well be suspended.
# 3: The distribution costs
Yes, you can usually find and sell Amazon products that offer free shipping. But what if you order a product from a customer on eBay and your dropshipper is suddenly out of stock? Now, many people instinctively say ‘cancel the order’ – it’s not that simple because eBay will penalize you and eventually close your account if you can’t fill out your order one too many times. So, where are the shipping costs here? Okay, if you’re currently on the naughty list of eBay (meaning your scores are down and you might be excluded from being a top seller), you’re likely to search for another vendor to fill your order immediately. That vendor might be overpriced and not delivered for free.
# 4: Poor margins for sales
The profit margins are often not large enough to be worth your time, as I described in my previous example. Let’s say you bought that knife for $7.99 and assume you’re bold and sold it at a 20 percent markup of what he’s selling it on eBay, i.e., $12 (20 percent of $10), you’d still only make $4 minus fees (PayPal, eBay, etc.) and you could only make $2-3 profit. For certain goods, profit margins, on the one hand, appear to be poor; on the other hand, you aren’t working extremely hard to make that profit so that it may be worth your time, especially in large amounts.
# 5: Lacking comparative edge
I constantly write about the importance of competitive advantage (one of my repeated eBay selling advice throughout the blog). It’s no coincidence as that’s exactly how we grew our eBay business to over $100 K a month, and it’s important to be aware of this for every business out there (selling on eBay or otherwise). In comparison, in reality, many dropshipping firms market their goods on eBay separately and deal with their buyers!
# 6: Operations
Dropshipping seems simple as you don’t have to deal with delivery or order the product, but that’s not true. If something goes wrong with the order, you are responsible for answering all customer questions and apologizing and compensating them.
I am not crazy about the arbitration model because it lacks originality and is too unpredictable to my liking in terms of price and commodity volatility.
But it can be a perfect way to boost your monthly cash flow and make a good profit whether you plan to sell using this model or if you are still doing so. Bear in mind that you should aim to simplify as much as possible to remain competitive and ahead of the competition.
You will need to be a very dynamic guy, actively searching for new spin-and-sell prospects, customers, and goods. It’s a time-consuming operation, so we’re all swapping our time for money in one way or another – select your goods carefully and good luck for everybody. Please post your dropshipping thoughts or questions below, constructive or bad; I’d love to hear from everyone and everybody to continue to learn and develop as a group together.