Five reasons why Ebay may not be good for dropshipping

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With all the upbeat talk on the forum about Ebay in the context of eCommerce, I thought I'd take a closer look. The following is a link to an article that lists what to me seem like good reasons why Ebay does not work well for dropshipping. What are your own views? Do you agree?

5 Reasons Not to Use Drop Shipping on eBay | eBay
#dropshipping #ebay #good #reasons
  • Profile picture of the author iove234lifee
    drop shipping on eBay isn't what it used to be, there are to many oversea sellers to make it a valuable source of income.
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  • Profile picture of the author eClicker
    Hi,

    Thanks for the link to this article.

    When I was a Power Seller on ebay I was buying lower on Amazon and reselling higher on ebay for a profit.

    I was taught this arbitrage method by a pro.

    Since Amazon is so reliable they acted as my "drop shipper"
    and it worked out perfectly.

    Hope this help,
    E
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    • Profile picture of the author kaizenify
      Originally Posted by eClicker View Post

      Hi,

      Thanks for the link to this article.

      When I was a Power Seller on ebay I was buying lower on Amazon and reselling higher on ebay for a profit.

      I was taught this arbitrage method by a pro.

      Since Amazon is so reliable they acted as my "drop shipper"
      and it worked out perfectly.

      Hope this help,
      E
      I am struggling to believe you get better prices on amazon then you would on say alibaba
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      • Profile picture of the author SuccessMarketer
        Originally Posted by kaizenify View Post

        I am struggling to believe you get better prices on amazon then you would on say alibaba

        I can vouch that it works BUT to an extent...
        let me explain cause I talk from experience here... (I have made some decent money doing that)

        When you use Amazon (and yes, you can buy cheaper than Ebay sometimes) you can pretty much send the product directly to the customer AND you can - in many occasions- offer a very good service as by taking on the "Amazon prime" membership, it means that your customers can receive their items the next day AND for you -as a seller- it means that you'll save money on the shipping costs thanks to the "prime" membership.

        I have not used Alibaba as after taking into consideration costs to send the items to the UK, it just was not worth it (I wanted to drop ship) and AMAZON thanks to the above was always the clear winner and they are FAR MORE RELIABLE.

        However... the problem is that after you've made a few sales, Amazon will ban your "Prime" membership as within their terms and conditions, you cannot use it for "commercial purposes".

        So... if you sell $5,000 worth of stuff and you send it to 200 different addresses... it's hard to prove it's for personal use.

        If you have no Prime membership, your profit is wiped out or you cannot compete with the other Ebay sellers, most of the time.

        Needless to say it becomes really hard to find products that will see on Ebay.

        The other problem is that Amazon sellers change their prices constantly so when you get an order from ebay and you know you can get - let's say - $5 profit, you'll find that when you go to Amazon, the price may have gone up $10 which wipes the profit and unable to send the product unless you make a loss.

        So if you want to make some bank, use the strategy at your own risk just before Christmas and you can make an extra $1,000 IF you put the work, research, etc.

        If anybody tells me there's a better way, please be my guest... :p
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  • Yeah,

    The Roger Langille method was labasted pretty much in the forum earlier - Amazon isn't a good method for dropshipping on eBay at all.

    In fact, I'm not a huge proponent on drophipping on eBay either.

    I'm a high margin guy.

    Why? Well, it's in the 'math'.

    If you are selling items for a 5 dollar profit, and it takes you 5 minutes to process an order, and then 5 minutes for the fulfillment (10 minutes per 5 dollar profit)

    That is 30 dollars an hour.

    I'm not saying that's the Amazon experience, but that is my experience for when I did dropshipping. (And yes, I do teach how to dropship on eBay - because there is a huge demand for it - I just don't understand why)

    Now, the method I'd RATHER teach, and which I MOSTLY teach is how to find HIGHER profit items.

    Because if I can find 3 items for a 1000 dollar profit, and if I have to ship them out myself (and no, you don't need to 'warehouse' these items in a debilitating fashion) then I can make 100-500 dollars an hour after a well-developed brand funnel is developed.

    It's all in the math, and it's all in the hard-work.

    Really folks, dropshipping is high-volume, low margin, high-work load. (For the sake of now having to take 2 minutes to 'package something!?)

    Really there should be a forum topic on 'opportunity cost' here.
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    • Profile picture of the author minuibibubhib
      Banned
      [DELETED]
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  • Profile picture of the author TemperThompson
    I've been thinking about buying on Amazon and drop shipping on eBay, but after reading this thread I'm not so sure. I think buying wholesale and selling on eBay would be a lot better.
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