In one of my previous articles, about how to make money online, I had briefly explained the dropshipping. In traditional dropshipping, people used to buy from Chinese suppliers and ship them directly to the USA (or other countries) after marking up the price. That resulted in delays in shipping, so some intelligent soul came up with the idea of dropshipping from Amazon to eBay. In today’s article, we will see how to dropship from Amazon to eBay.
It may sound a little absurd in the first place but stay with me. We will also analyze the pros and cons and I will give my verdict whether to do it or not. Here is a basic dropshipping flow for those who are very new to dropshipping
What Exactly Is Amazon To eBay Dropshipping?
A brief flow is like this. You find a product on Amazon, add eBay+PayPal fees, and your profit to the price and list the same product on eBay for selling.
Once someone orders the product on eBay, you place an order on Amazon and get it delivered directly to your eBay client. The difference in the price minus the fees is your profit.
If some client returns the product, you handle the return on Amazon and return the money to your eBay customer. You will lose PayPal fees from your pocket though.
How To Do The Product Research To Sell From Amazon To eBay?
This is a separate blog topic in itself and I am keeping it out of the scope of this article. Also, it will make this article very lengthy.
If you are interested in knowing how to perform profitable product research then I recommend watching the 15 minutes video below.
But Why Won’t Client Directly Buy From Amazon At Lower Price?
That’s a very good question. In fact, I too had the same question. The short answer is no. The client will not buy from Amazon in most of the cases.
There are two reasons behind it.
1. The Client Base For Amazon & eBay Is Separate:
Amazon has a client base of over 300 million whereas eBay has a client base of 167 million. There is not much overlap. Very few people buy from Amazon and eBay. That number may not even be 10 million. So in very few cases, people will do the price research on both eBay and Amazon.
Also, the comfort factor matters. If someone is used to buying from eBay then he still won’t buy from Amazon even if the product is cheaper.
2. Search Terms Are Different:
When you list the product from Amazon to eBay, you will not copy-paste all the information. You will change the headlines, descriptions images and then upload them to eBay. The person who saw your product on eBay must have entered a search term and found your product. If he is searching on Amazon too then he will use the same search terms and may not find the product that you are listing from Amazon.
But if he does, then he may buy it from Amazon if falls in that overlap category mentioned above.
Won’t He Get The Product In Amazon Packing Instead Of eBay?
Yes, he will.
But in reality, very few people pay attention to the packaging. They will simply tear the packet, remove the product, and throw away the packet.
If someone notices, then they may think that this guy must be shipping from Amazon warehouse too.
We will see how to handle this objection in the subsequent section.
What About The Invoice With Lower Amount From Amazon?
Again, people rarely pay attention to the invoice as they know that they can always check the invoice in their email or on eBay.
But some people do check the invoice. There is a trick to handle this.
When you order the item on Amazon for your eBay buyer, select the gift option. If it is a gift then the seller on Amazon won’t include the invoice along with the product.
However, in some rare instances, the seller from Amazon may include the invoice. Just pray that the client doesn’t notice it.
We will see how to handle this in the next section.
How To Handle The Objections From Clients?
When you are doing this then you may receive many objections (& possibly negative feedbacks) from your eBay clients. Let’s see what are some of the objections that you may have to handle if you are doing this.
1. I received the product in Amazon box & not eBay
Tell them that you are a seller who sells on multiple platforms. In order to deliver within the deadline, you had to ship the product from your Amazon warehouse as the product in eBay warehouse was out of stock.
2. The price on Amazon is less compared to eBay
Tell them that the prices fluctuate on a daily basis for the products. Also, the fees on eBay are a little higher and hence the products on eBay are slightly higher.
Offer them a free refund of the product and ask them to ship the product back. Most probably people won’t take that trouble for a few dollars.
Alternatively, offer them a partial refund for the difference in the cost and offer a 5% discount coupon on their future purchase. That way you will be saved from losing the PayPal fees and may get a repeat customer.
3. The buyer leaves negative feedback on eBay
Work with eBay to get the negative feedback removed. If the client threatened you in an email about leaving negative feedback then it becomes fairly easy. eBay will remove that negative feedback.
If it is not possible then reply to the feedback saying something like below
“Apologies for the inconvenience. Please get back to us and we will try our best to make things right for you”.
Pros of Doing Dropshipping From Amazon To eBay
- The delivery happens pretty fast.
- If you do your product research well then you will pretty much sell the products that are getting sold. No guesswork is involved here.
- Dropshipping from Amazon to eBay is legal at least till today (Though eBay is trying to put a limit on this).
- With new search terms, you can target people who may have missed by the Amazon seller.
And Here Are The Cons
- Though there is nothing mentioned on the eBay website, eBay doesn’t like the dropshipping from Amazon. They are putting measures to limit this. eBay may shut down your seller account. It has already happened in Israel.
- As you are marking up the cost of a retail product, the profit margin is very low.
- In case of returns, you lose the PayPal fees.
- If the inventory on Amazon goes out of stock then you may have to source the price from somewhere else at a higher price.
The short answer is yes you can do it. There are people doing it successfully and earning money out of it.
However, I will personally not recommend doing it. The main reason is the lower profit margins.
Another reason is that it is not ethical. You are increasing the price. If you are increasing the price at the wholesale or manufacturing level it is a different thing. But here you are increasing the price at the retail level.
Dropshipping on eBay is profitable however you need to find a reputed seller who can ship the product locally (& not from China). That way the delivery will happen fast and you will earn more profit too.
Have you ever tried dropshipping this way (or another way like dropshipping to eBay from Walmart or the home depot)? I would like to hear your views in the comments.