Using Amazon as a Dropshipping Company for eBay?

Profile picture of the author Cyberdog1 by Cyberdog1 Posted: 04/22/2012
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?
#amazon #company #dropshipping #ebay

  • Profile picture of the author Sparhawke
    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
    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 tpw
    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 Mollysue
    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 rooze
    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
    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
    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
    arwa99
    I think it's a lot of risks
  • Profile picture of the author tgpros
    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 fresh68
    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 swtp43
    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
    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 Chris-
    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
    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
    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
    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 KatrinaPuckett
    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 KatrinaPuckett
    KatrinaPuckett
    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.
    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 Silas Hart
    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
    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

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