Is Drop Shipping From Amazon To eBay Still Viable?

8 replies
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I have been looking into doing some drop shipping with Amazon, but have read somewhere that people are getting their accounts banned. What's your insight?
#amazon #drop #ebay #shipping #viable
  • Profile picture of the author EmpFai
    You want to sell via your ebay sellers account and drop ship from Amazon to your ebay customers?

    Where does Amazon offer a drop shipping program for their products?

    I don't see anything wrong with this personally. Amazon will get the sale or at least some commission and ebay will get their cut too.

    Which account (Ebay or Amazon) are you worried about getting banned?
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    • Profile picture of the author James Stark
      My eBay account, I heard they were cracking down on them.
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      • Profile picture of the author Silas Hart
        I purchase things on eBay and sell them on Amazon through FBA. Since I do that and not vice versa, I would obviously recommend that.

        A lot of people do get banned/suspended on eBay when they dropship. It's not directly Because they dropship, its because of the issues they come across while they dropship.

        I know people that got the boot when they reached $70k a year in gross sales - which sounds like it's a lot but seeing as how dropshipping is generally a low profit margin avenue, most people have to sell at least 6 figures a year to find this method financial viable. When eBay calls them up and says "Where are these items coming from?" or "what is your purchasing method?" - they are indirectly asking if you are dropshipping. Some service reps don't seem to care, some evaluate this as too risky and the seller gets boot.

        Some people what happens is they price items on eBay for one price based on the profit potential of the base price of the item on Amazon, and then Amazon jumps up in price and then the buyer sells the item on eBay without noticing the now lack of profit and they have to choose to either eat the loss, or cancel the order. Many who cancel orders either become a victim of suspension by negative feedback and/or low DSR's.

        Other ways eBay sellers using this method receive negative feedback comes from small things, such as items not being described correctly on Amazon -where it is common for the seller to not post pictures. Sometimes "New" means one thing to a seller, and means something else to another seller.

        One of the main ways people lose money is they get numberitis - they see large deposits coming in and forget they have thin margins and forget their profit is much smaller than they realize, even though they sat and down and figured out their profit before they even listed the item for sale on eBay. Then what happens is they sell an item for $300 with a 12% profit margin. They sell 4. They have made $144 in profit. When they sell the 5th one, the customer files a chargeback and now they are negative $156. However, they have so many other things selling at that point, they might not even directly see the loss - many of the sellers are turning $10,000 through their PayPal account every month, but are actually losing money and operating in the red - but all they see is that $10,000. Then what happens one day is they sell something, and get an increased number of refunds and then the loss is more obvious. At this point, eBay says "your average sales price is $228.00, your defect rate is 6%, we have to limit your selling on eBay"
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        • Profile picture of the author DWaters
          Originally Posted by Silas Hart View Post

          I purchase things on eBay and sell them on Amazon through FBA. Since I do that and not vice versa, I would obviously recommend that.
          I also buy items on ebay and resell on Amazon fva FBA and it helps my business a lot. I have never understood the opposite business model for two reasons. One is that I find that the prices on ebay are usually lower that on Amazon at least for the types of products I deal with. Also the prices on Amazon are not static so that when an ebay order comes in the corresponding Amazon price may have gone up and your margin is gone.
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  • Profile picture of the author cashcowonline
    While the concept still appears to be appealing I feel it is no more as viable as it was in the past. The companies have become more vigilant and are cracking down on drop shippers. Additionally, it has become more difficult to locate the arbitrage opportunities than it was in the past year.
    Just my 2 cent.
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  • Profile picture of the author Ben L
    Silas has an great input for you there.
    From what I have heard is that people who uses "Amazon Prime" and do the drop shipping get banned.
    Drop shipping certainly allowed in eBay, as long you're having the great information of who's the dealer you're dealing with.

    Plus I don't suggest you staying on eBay for long instead, you should get your own domain and set your own price etc.
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  • Profile picture of the author alimov
    why don't you guys look for aliexpress goods, and do dropshipping there? i think it's good place to do dropshipping
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  • Profile picture of the author larissa1
    If you think about it dropshipping is nothing different than arbitrage (make money for finding the deals),long term you will certainly find it more efficient to buy in and then sell on-------margins are too tight otherwise!
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