Using Amazon as a Dropshipping Company for eBay?

by 123 comments
After selling a lot of my own stuff on eBay I done some research on the guys who were selling more than me in the DVD area for example and noticed this on some of their listings:

"Some of our products will be shipped from Amazon as we hold stock at their fulfillment centre"


That's fine I thought as this is perfectly acceptable but I then thought -

What if they didn't have their own stock there and were actually just using Amazon as the biggest dropship/supply company in the Country?

So I looked into it and a few of the sellers were selling around 2000-3000 products per month all shipped from Amazon amongst other places. I ordered one Cheap DVD and it did come Direct from Amazon with the message that 'seller' was sending it as a gift to me.

The prices of almost all the DVDs sold are around less than $1.50 cheaper on Amazon and so by using the free Delivery service also and charging for delivery on eBay, after fees they are probably making $1-$2 per item sold.

Not much you say and it would take a good few hours a day to admin all that but as a full time job you would be making around $2000 per month.

Now if you are using the same Credit Card on Amazon to purchase the stock and have delivered to different customers than surely the benefits of spending over $20,000 per year on one card would be huge wouldn't they?

I know eBay allow dropshippers but Amazon are a bit sketchy in their T&Cs. The Bottom Line is this - Is This Legal?
#ecommerce #amazon #company #dropshipping #ebay
  • Profile picture of the author Sparhawke
    I have seen this question pop up a couple of times on various forums and the general consensus tends to be yes, it is acceptable since you were happy with the price you paid anyway, with no hidden extras.

    Dropshipping is all about sourcing products cheaply and if someone found agood source then why can't they use it?

    You yourself thought it perfectly acceptable didn't you that products would be shipped from elsewhere, is the problem that you didn't find it on Amazon yourself for cheaper? :p
  • Profile picture of the author Cyberdog1
    No not at all, there's no problem I just wish I'd thought of it before haha

    Must be a lot of hard work though putting in people's details...I wonder if they use affiliate links as well!?

    • Profile picture of the author Mollysue
      I'm on the list of a marketer in the UK who regularly promotes this way of selling on ebay. Personally, I always think it's a bit risky. I don't know if I would be brave enough to try it myself as I would hate to get my Amazon account banned!
  • Profile picture of the author tpw
    Fulfillment By Amazon (FBA) requires the product to be acquired by the seller, then shipped to Amazon, before the item can be sold.

    They are not buying these products from Amazon, but rather acquiring through other channels, then sending them to Amazon to let Amazon handle storage and shipment of the products.
    • Profile picture of the author jjturner
      Incorrect. If proper research is done this can be an incredible opportunity. For example I sell 1 product on Ebay that ships from Amazon Prime. I earn $4.25 per sale and sell approx. 15 a day. I spend about 3 minutes a day. Not bad.
      About product sourcing (drop shipping)
  • Profile picture of the author rooze
    There are two different scenarios here -

    "Some of our products will be shipped from Amazon as we hold stock at their fulfillment centre"

    If they use Amazon's fulfillment center then it is for products they have purchased and supplied to Amazon for fulfillment.
    This is very different than drop-shipping. Drop-shipping in this context is where they would receive an ebay order, then purchase products from other vendors who are using Amazon's fulfillment center, then specify their eBay customers' shipping address for the order.

    Both are options, both supply the end customer with the same product, but they are very different business models.
    • Profile picture of the author blackjack
      TPW

      If the seller is using FBA then it is as you stated.

      But OP stated receiving packing with "Gift from eBay Seller" which means the seller bought it on Amazon and then use Gift Option under delivery address.

      This is all possible but there are few risks.

      1. You sold on eBay but the product is no longer available on Amazon.
      2. If you are using Prime option to get free delivery then you are getting close to getting your Amazon account.
      3. The product is damaged etc how do you deal with returns.

      Thanks
  • Profile picture of the author Cyberdog1
    That's right, he was clearly stating the fact items would be sent from amazon to cover himself if a buyer queried the reason why it came from amazon.

    It's clever but you're right, it does come with risks. But risks that can easily be overcome.
  • Profile picture of the author arwa99
    I think it's a lot of risks
  • Profile picture of the author tgpros
    Way, way back I actually did this on some DVDs - it's totally possible. I had to make sure I bought through a marketplace seller who dispatched in plain packaging (not with Amazon plastered all over it!). I also asked them not to include any invoices in my packages.

    I dropshipped several hundred copies of this one DVD, I also tried some others too but this specific title went really well (it was about $10 cheaper on Amazon than eBay). I even made Top Rated Seller just through selling this one product, it was amazing.

    I've seen people on eBay who run an entire business dropshipping DVDs/movies through Amazon. Like I say though be careful because people aren't happy when they buy a DVD through eBay, only to have it turn up in Amazon packaging. It is a good way to make money though - and very easy.
    • Profile picture of the author swtp43
      Originally Posted by tgpros View Post

      Way, way back I actually did this on some DVDs - it's totally possible. I had to make sure I bought through a marketplace seller who dispatched in plain packaging (not with Amazon plastered all over it!). I also asked them not to include any invoices in my packages.

      I dropshipped several hundred copies of this one DVD, I also tried some others too but this specific title went really well (it was about $10 cheaper on Amazon than eBay). I even made Top Rated Seller just through selling this one product, it was amazing.

      I've seen people on eBay who run an entire business dropshipping DVDs/movies through Amazon. Like I say though be careful because people aren't happy when they buy a DVD through eBay, only to have it turn up in Amazon packaging. It is a good way to make money though - and very easy.
      Are you aware of any product detailing how to do this without hanging oneself? I'd like to give it a try but being new I want to avoid any screw ups.

      Thanks, swtp43 (alex)
    • Profile picture of the author swtp43
      Originally Posted by tgpros View Post

      Way, way back I actually did this on some DVDs - it's totally possible. I had to make sure I bought through a marketplace seller who dispatched in plain packaging (not with Amazon plastered all over it!). I also asked them not to include any invoices in my packages.

      I dropshipped several hundred copies of this one DVD, I also tried some others too but this specific title went really well (it was about $10 cheaper on Amazon than eBay). I even made Top Rated Seller just through selling this one product, it was amazing.

      I've seen people on eBay who run an entire business dropshipping DVDs/movies through Amazon. Like I say though be careful because people aren't happy when they buy a DVD through eBay, only to have it turn up in Amazon packaging. It is a good way to make money though - and very easy.
      Are you aware of any product detailing how to do this without hanging oneself? I'd like to give it a try but being new I want to avoid any screw ups. If so, would you please PM me.

      Thanks, swtp43 (alex)
    • Profile picture of the author KatrinaPuckett
      I am thinking about doing this for the first time. Not sure how risky this will be, but it sounds like you've had great success with this. Could you lend some tips and definite no-nos. I'm fairly new to Ebay/Amazon selling. Could you PM me and let me know. Also, how were you able to get the plain packaging? Please PM me. Thanks!
  • Profile picture of the author fresh68
    yea. i sell on both amazon and ebay,,i listed a bunch of items like this until i started reading feedback more closely of those that were doing this.. and they paid 10 or 20 bucks more say goodbye to your feedback.if ebay buyers find out you are doing this you will recieve negative feedback, and ebay is tightening up on sellers in many areas, i personally pulled all my listings,, i cant afford to lose either account
  • Profile picture of the author Chris-
    You might want to research DVD fullfillment businesses, as Amazon usually has a big mark-up on anything that goes through them, so why not get the DVD's done cheaper? Having said that, the reputation of Amazon is great, so you'd have to test whether their reputation more than makes up for their higher cost, or not!

    Chris
    • Profile picture of the author bkat52
      hmm, this sounds very interesting..but one that has just a tad too much risk for my taste. I can see there being some headaches and upset ebay buyers. And for those reasons, I'm staying away.
  • Profile picture of the author handikabay
    do you use automatic system on ebay ? i think if have thousand product it need more time to order on amazon. and your profit really low.
    i appreciate your technic..
  • Profile picture of the author ebaypowerguru
    This is very risky - dropshipping as a business model will not work in the long term. This is because, if whatever reason the supplier, ie Amazon in this case, runs out of stock or send goods late you can have very unhappy customers!
  • Profile picture of the author Silas Hart
    It is legal in the sense that laws allow it.

    However, eBay themselves are Not fond of it. If you were to make about $2,000 in profit a month, you are probably processing at least 1,500 DVD's a month (which isn't hard to manage yourself) which is about, lets say $5200 in sales a month - eBay is going to want you to call them about your plans with eBay and in a round-about way, ask if you are dropshipping or figure out of you are selling pirated DVD's.

    You said you were already selling DVD's so you might pass eBays minimal inspection. You also have to be careful too because people simply won't like the fact that their DVD's come arrived with an Invoice showing how much You paid, and with the Amazon logo all over the box. This could result in lower DSR's and can kill your business pretty quickly.
  • Profile picture of the author homer343
    Hi All,

    I'm a bit late on the scene on this discussion sorry, but I watched a webinar recently on a guy called Roger Langille who is doing this exact strategy and making a killing with it. Naturally I am a little sceptical as I'm sure it is breaking all sorts of t's & c's somewhere along the line, but I am still intrigued. Has anyone implemented any of the idea's with any degree of success?

    Cheers
  • Profile picture of the author Auctiondebteliminator
    Read this thread... I picked off Roger Langille pretty easily in no time:

    http://www.warriorforum.com/building...-langille.html
  • Profile picture of the author gcintermed
    Someone else suggested that any item ordered as a gift will be shipped discreetly. Makes sense, but I don't know if that is true. Might just have to buy myself a gift
    • Profile picture of the author traeth
      Just a comment - if you are a prime member - it clearly states in the T of S that

      From Amazon - Note: Prime is not available for customers who purchase products for the purpose of resale or use Prime to ship products to their customers or potential customers.

      So you are risking losing your prime account, and if you are selling through FBA you are risking losing that account as well.

      I bought the program he sells but I've held off doing anything and I am glad I did as I would hate to lose either Amazon or Ebay accounts because I was negligent on checking the Terms of Service. Langille doesn't mention the note above in the videos.

      I agree about the secret link its just an affiliate link for him to make money off the products we sell.

      Just my 2 cents...
  • Profile picture of the author biz33ham
    I been drop shipping on ebay using Amazon FBA for the last 4 years and it has worked for me and I don't use prime and we at Drop Ship Consultants have shipped product all over the Globe using the drop shipping method and we wrote a book on drop shipping and have sold many copies. I AM NOT WRITING THIS TO SELL ANYTHING JUST THING OUT SIDE OF THE BOX REMEMBER THE WORLD IS NOT FLAT. WHEN A PERSON SAY THINGS CAN'T DONE GUESS WHAT? THEY ARE STUCK AND TO THEM IT WON'T GET DONE. Drop Ship Consultants
  • Profile picture of the author malia
    Fulfillment by Amazon offers a plain box for an additional fee per shipment (0.30 cents I believe). So if it's coming in a plain box then its likely coming from an amazon store that pays for that option.

    That could mean the seller is using FBA or the seller knows which Amazon sellers are using the plain box.
    • Profile picture of the author blackjack
      Originally Posted by malia View Post

      Fulfillment by Amazon offers a plain box for an additional fee per shipment (0.30 cents I believe)..
      This is totally BS. Amazon doesn't offer anything that give seller any choice to send product to customer in PLAIN box.

      There are few videos on Youtube claiming that using their link, you can get product shipped in plain or brown boxes. Those links are affiliate links to get you to Amazon site.

      AMAZON DOES NOT OFFER CHOICE TO SHIP IN PLAIN BOXES for FBA .
  • Profile picture of the author malia
    Do you know the difference between FBA and Multi-Channel Fulfillment?

    Yes you can choose box plain or Amazon logo for Multi Channel Fulfillments but not for FBA.
    I think you're splitting hairs over this.

    Amazon.com Help: Fulfillment by Amazon

    FBA is used to describe selling on amazon and selling outside of Amazon, interchangeably (by Amazon themselves).

    The gist is if you're shipping orders placed on amazon.com (amazon marketplace) it goes in an Amazon box. If you're selling to customers outside of Amazon.com (including using Amazon webstore), you CAN choose to have it shipped in a brown box.
    • Profile picture of the author eric w
      Whoever can send the product to your customer and you make a profit is who you should use. Dropshipping is not about china, it's about getting the most price-worthy company to ship the item, even if its bestbuy, amazon, walmart, etc.

      Dropshipping is 1 method I've used for years to make good money on ebay....and I haven't sourced from china in about 3 years.
  • Profile picture of the author StorminRH
    I used to work for Amazon.com as a CSA (customer service associate) and I can tell you this method of drop shipping is against the TSA, especially for Prime.

    The problem is when one of your customers wants to return their product they may contact amazon to do this. The CSA will need to get some information from the customer to process the return, even as a gifted purchase some contact information for the purchaser is required, also order numbers may be required. The CSA will probably take a look at the account to see if there is any way to help the customer and for sure notice there are hundreds of orders purchased as gifts to random people using prime shipping and gets flagged for Prime abuse. It's easy to spot after viewing thousands of accounts, this will stand out to any CSA. Another thing that is common on accounts like this is the person purchasing the "gifts" will use an Amazon.com rewards card for everything to rack up points and turn extra profit.

    I've personally flagged multiple accounts for this when I was working at an Amazon.com call center. One thing to note is I don't know what happens to the accounts, all I know is that as a CSA if we notice things like this we're to report it and let some other department look into it.
    • Profile picture of the author seosoldier
      Originally Posted by StorminRH View Post

      I used to work for Amazon.com as a CSA (customer service associate) and I can tell you this method of drop shipping is against the TSA, especially for Prime.

      The problem is when one of your customers wants to return their product they may contact amazon to do this. The CSA will need to get some information from the customer to process the return, even as a gifted purchase some contact information for the purchaser is required, also order numbers may be required. The CSA will probably take a look at the account to see if there is any way to help the customer and for sure notice there are hundreds of orders purchased as gifts to random people using prime shipping and gets flagged for Prime abuse. It's easy to spot after viewing thousands of accounts, this will stand out to any CSA. Another thing that is common on accounts like this is the person purchasing the "gifts" will use an Amazon.com rewards card for everything to rack up points and turn extra profit.

      I've personally flagged multiple accounts for this when I was working at an Amazon.com call center. One thing to note is I don't know what happens to the accounts, all I know is that as a CSA if we notice things like this we're to report it and let some other department look into it.
      Thanks for this info. This is something I questioned Roger Langille about and am hoping to get an answer from him about it. It makes sense to me that this would be against Amazon Prime TOS.

      However, what if one does NOT use Amazon prime to drop ship ? Is that against Amazon TOS? I don't see why it would be. What would they care if they sell more products because you're buying and drop-shipping via ebay?

      Just curious.

      Also, as to the shipping in brown box, without amazon on it, that seems to have been answered satisfactorily here. As far as I can tell this thread was not started about FBA, it was started about setting up Amazon to drop-ship to customers of yours on ebay, and so if one can find sellers on amazon that are willing to ship in plain boxes, then I see no reason why this would not work.

      So the bottom line to me is this:
      Can you find items at amazon, from sellers who'll ship in plain boxes, ship them as gifts - or by any other method - so there is no price info in the box, and buy low and sell high?

      If you can do this as above, then you can make money. Period.

      And if Roger Langille's course has useful info about doing this more expertly or using nuances of listing, finding products, etc. then it's probably worth the money for at least the basic training.

      MY question is, Has anyone bought the training and implemented it for any length of time, and found it to work? or not work?

      The key seems to be to :
      a) find products at amazon (or other online stores) that you can sell for a higher price on ebay
      b) ship without pricing info in the box, preferably without amazon printing on the box

      As to using Prime my guess is it IS against the TOS but if so, then fine, just charge for shipping. Prime would be great but if it's risky then why not just open up a new account and use that so as not to risk your old account. Certainly I would not use an Affiliate account to try this...

      Would love to hear from people who have tried Roger's methods.
    • Profile picture of the author vencedor08
      I got into a program that use this methods but quitted the same week. I believe this is unethical and wonder how people feel comfortable doing it?
  • Profile picture of the author Streamline
    This is a very interesting thread. My thanks to everyone for sharing their personal stories. I've been reading it because I shelled out $47 on Roger Langille's training, and I'm about halfway through the videos. It does seem risky.. not sure how I want to proceed. Too bad he doesn't have a refund policy for the $47 I spent, but now I can see why!

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