The Future Of Ebay - Amazon Arbitrage?

8 replies
Hey All,

Happy Groundhog day!

Three times in the last six months I've had issues with items I've ordered off Ebay. When it all shakes out, it's clear the seller never had possession of the item. They were employing the "arbitrage" business "method."

I just received an order Monday. I ordered four of the same item but the package only contained three. Attempts to resolve the problem with the seller were laughable. They don't have a clue what was in the package I received because someone else packed and shipped it.

So it's an Ebay dispute.

My question: Do you think there will come a time when Ebay and Amazon have had enough?

Do you think there is a way to stop this practice?

Do you think "arbitrage" is a great thing?

I appreciate your thoughts and opinions.

Brent
#amazon #arbitrage #ebay #future
  • Profile picture of the author DABK
    I think arbitrage (usually) sucks. If arbitrage involved anything but buying it for a low amount at x location and reselling it for more at Y location, I would not have anything against it.

    I once heard someone bragging about a friend who was buying on amazon when amazon had a sale, reselling them at full amazon price... I saw that as thieving.

    What you can do is complain to the platforms and encourage others who've experienced what you did to do the same... Or, if you have deeper pockets then me, sue Ebay for $45 million (44,999,995 as the monetary equivalent of your emotional distress at seeing 3 items in the package, not 4 and an additional $5 in punitive fees).
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  • Profile picture of the author Frank Donovan
    Arbitrage is just a version of buying an item or service at one price, and selling it at another (higher) price. The advantage is that you don't have to create a product - and with the eBay/Amazon model, you don't have to fulfil the order yourself.

    The main disadvantages, IMO, are:

    1) Branding is more difficult. You'll probably need to keep the products related if you want to build any customer loyalty.
    2) The business is difficult to scale. To have a chance, your product source(s) must be reliable and consistent in terms of price, stock availability and distribution.
    3) It's a business based on price (unless you've managed to separate your brand from the competition in another way). As such, it's always going to be vulnerable to a larger or more funded competitor.

    The above points can be overcome. I have a friend whose business involves listing a wide range of items across various online selling platforms, and only ordering the item from the suppliers (usually wholesalers) when he gets a sale. His cash flow is healthy - he saves on storage and any speculative, upfront purchasing costs - although there's a significant investment in distribution and customer service. After several years, he's now one of the biggest players in his market, and can command better buying prices from his suppliers than many of his competitors.
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  • Profile picture of the author tyices222
    What about the shipping? That's the glitch I can't understand, who pays the shipping?
    I first thought you use Amazon prime, which is the free shipping, but I think there is a rule you can only ship it to your house with prime. Do you pay for the shipping then? I guess you have to, but wouldn't you be loosing money with that?
    I assume you'd ask Amazon for a gift receipt too without the price.
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  • Profile picture of the author Kay King
    I think Amazon will add restrictions if it becomes a problem....I doubt ebay will do anything.

    Ordered twice from ebay this month - both orders were confirmed quickly - slow ship on both - 2 wk delivery on one and almost 3 weeks on another. First time I've bought from ebay in months - and probably the last time.

    Meanwhile, 3 orders from Amazon all received within a week of placing the orders.
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  • Profile picture of the author writeaway
    People have been banking off this for several years now

    Sadly, it's nearly impossible to stop. Here's an Entrpreneur magazine expose on this practice https://www.entrepreneur.com/article/278622
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  • Profile picture of the author deepockets
    Amazon to eBay arbitrage is hard as amazon prices are volatile on items that are good sellers.
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  • Profile picture of the author stephenm44
    You just need to be careful from whom you purchase. No guarantee of course but in my experience, buying from Amazon is the safest way to buy online.
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  • Profile picture of the author NewEnglandah
    You have to shop around more on eBay than you do on Amazon. Check customer reviews of each seller and compare. I've had good luck doing this.
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