Guides » Amazon

Amazon to eBay Arbitrage: Everything You Need to Know

By Andy Geldman

We answer every important question about dropshipping from Amazon to eBay, for eBay buyers, arbitrage sellers, and exploited Amazon sellers.

Amazon to eBay Arbitrage: Everything You Need to Know

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Arty

Margins can be as high as 20% above the Amazon price, although around 8% is more typical.

According to my accountant, margins of 8% when selling on ebay equals a loss, when you remember that eBay & PayPal are going to take a bit or a bite.
Also remember that breaking even means you are working for free.

R Par

Replying to Arty

When it comes to saving money on a item, I will take the time and look at eBay! Amazon U.S. & Amazon U.K.! It depends what I am looking for. If DVDs I will look At Amazon U.S, But mostly Amazon U.K. for cheaper deals. I very seldom buy DVDs from eBay, because they are to many people selling pirated DVDs on there. Why? because eBay will not put a stop to it! Always check feedback on these sellers! If they have a lot of bad feed backs, or few sales, stay away from them! When I say few sales,… Read more »

Jack

Replying to R Par

I think it’s almost the same like in China.

nsm

Replying to Arty

I think OP means NET 8%.

Jordan Malik

Andy – Thank you for writing this, I thought it was fascinating. I’ve had success in snapping up Amazon deals at rock bottom prices and then (manually) relisting them on eBay, and selling them at 50%+ ROI, but I have to wait months for the sale to occur. The practice delineated above smacks a little bit of day trading where time and speed is of essence, and (generally) total profits are slim. I do see the day when the entire process is automated with software/services but as those solutions become more accessible to more ‘traders’, the margins will get even… Read more »

Jack Phillips

I don’t think it is a good idea. Like any other kind of drop shipping, you are taking a big risk by turning over any part of your customer contact points to a 3rd party. I do a very small amount of drop shipping with a trusted supplier with a good system, it rarely is as smooth as being able to handle problems and fulfillment from my end. Additionally, I really want to build long term customers (my measures show it takes 3-5 repeat orders on a marketplace to get them to come to my website) and doing this type… Read more »

Robert Lailvaux

Replying to Jack Phillips

Well said Jack,

I am looking for a legitimate way of earning extra money with selling on eBay but there are so many scammers which makes it difficult for me.

I just keep searching maybe soon I will get lucky.

Best

Rob
UK

Joao Jorge

Replying to Robert Lailvaux

Hi Jack,
I have a great training that i provide step by step how to get over 100+ sales daily on ebay. This is my main job.
Let me know if you would like to know more about it.

joe

Replying to Joao Jorge

Ide Like to know more

Zev

Replying to Joao Jorge

Can you provide me?

Mike Bailey

Replying to Joao Jorge

This is definitely of interest to me. How can you help?

Brian

Replying to Joao Jorge

Would like some more information on how you are selling 100+ a day on eBay, thanks .

John Dumas

Replying to Joao Jorge

Send me info please!

Thanks,
John

Mike Bailey

Replying to Joao Jorge

This is definitely of interest. Can you email me with more information? Many thanks.

W.M.T.K.Weerasekara

Replying to Joao Jorge

Hi Joao , I would like some more information on how to improve my sales on eBay. Thanks a lot .

Fellios

Replying to Robert Lailvaux

Joao must be one of them.

auxy

Replying to Robert Lailvaux

yes you are right!! Due to large number of scammers it is sometimes very hard to deal with the real customers. one of my customer was buying a phones as he do not have feedback but I put on the process!! the very next day pay pal warned me not to sell to the buyer and next day another customer without review order phone from me I waited till 2 days waiting for pay pal or eBay message but was genuine customer!!

kaladunda

i have a few regular customers who always email “this order is for my friend, please do not enclose an invoice. if this is not possible, then please cancel my order”
i always knew that they were using me as a drop shipper.

i didn’t realise the scale of this practice until i read this article

after reading this review I have just cancelled 12 orders today and told them not to use me as drop-shipper any more.

it just causes me headache have so many messages from them and then to handle their order differently to the other orders.

Jeff

Replying to kaladunda

Why in the world would you turn away this huge opportunity? cancel 12 orders??? lol, I love my dropshippers that buy from me everyday for 3 years. about 10-20 orders a day come from my dropshippers that buy from my ebay stores and resell over on other markets.

Lynne

Replying to Jeff

THANK YOU!

W.M.T.K.Weerasekara

Replying to Jeff

Hi Jeff , I would like to buy from you as a dropshipping seller on ebay . Please send me your store details .Thanks [email protected]

Goldmist

Replying to kaladunda

Who cares if they use you as a drop shipper? You’re still getting paid aren’t you?

I don’t see what the big deal is…

Kitesurfer

Replying to Goldmist

Exactly!! for past 3 years I’ve got about 3-6 various eBay buyers that buy from us. We dropship to their buyers everyday!! They bring in about 10-20 orders a day for us. It’s laughable that people would not see the huge value of this.

Tissa

Replying to Kitesurfer

Hi Kitesurfer , I like to know what you are selling . Please let me know your selling details . I like to buy from you , thanks.

auxy

Replying to kaladunda

they are not drop shipper they are scammer!!

Zee

Replying to auxy

Strictly speaking, shops that buy from wholesalers and resell at a higher price are doing the same thing, just not online.
So what is the big deal?

Martinito

Replying to kaladunda

Take a look at what is called “channel sales”. It’s a legitimate branch of trade. Having been on both sides of the business I can tell you that finding good resellers that bring _repeatable_ business without screwing up orders is a time-consuming process. And in most markets the resellers will ask for a reseller discount. You apparently found resellers that buy at your retail price and bring in (probably still small amount) of repeatable business. You should cherish and expand that by adapting your sales process to their needs. Or otherwise try and find out which markets your are not… Read more »

Billy

You mentioned huge-river.com but I see no U.S.A choice there. Am I missing something?

ben

Replying to Billy

Hi I wrote http://www.huge-river.com there is currently no US version, just EU, its where I live. Do you think there would be an USA appetite? Even though no opportunity for cross boarder trade?

Garrett W.

Replying to ben

I think there would be a huge appetite here in the US where I live.

Ann

Is it not true that Amazon frowns on this, and too many ‘gift’ purchases can get your account suspended?

Ben

Replying to Ann

I used this method and orderedupto 50 items a day for a few years with no issues

John Dumas

Replying to Ben

Hey Ben…

How many listings do you have to get 50 orders a day?

Dan

Replying to Ann

Yes, Amazon is routinely closing accounts of people who drop ship. Typically it takes 3 weeks for Amazon to catch on then your account is toast.

Dave

Replying to Dan

They close buyer accounts for this? What’s your source of this information?

Kevin

Replying to Dan

Rubbish, i was doing this for some time, the only thing Amazon won’t allow you to do is dropship with a Prime Account, i never once had my account closed and i did this for 6 months.

R Par

Replying to Kevin

HI! Kevin, I can’t see why Amazon would complain about Prime Accounts? Amazon doesn’t really give You any discount when You have Prime, if You look, they hike up the price on the Item for sale, so You are really still paying the shipping cost! So even though one has a Amazon Prime Account, they are not saving anything!

Donna

Replying to R Par

If what you say is true then there would be two different prices showing one for Prime accounts at a higher price with free shipping and another lower price for non Prime with shipping costs. I have not seen two different prices listed as such.

John Dumas

Replying to Dan

BS… I know at least 10 people personally that has done this for years and never had one problem with Amazon!

Counter

“The seller may know that the item is cheaper on Amazon but still choose to buy on eBay.”

Should it not be “The buyer may know…”?

gayla henry

Are there any legit online business?

jake star

Replying to gayla henry

Are there any legit businesses?

emery titus jr

I just recently purchased a calculator on ebay for my niece. I recieved it in a surprising two days with amazon packaging. I didnt really care, but it did catch me off guard and make me aware of how easy this is to do. I am trying to start in this busness myself. So I am caught in between as both buyer and seller views. I want to be known as a legit seller and buyer, with good and ethical business activities. As i am just a beginner, I would like my business to grow with a good customer base.… Read more »

Nuzzo

But if Amazon closes my account, is it possible to buy or open another one? I believer there are sellers who offer them like Auction Essistance, but is it legal?

Jordan Malik

Replying to Nuzzo

If your Amazon account gets closed, contact Scott from Feedbackrepair.net as he provides a service (for a fee) to help you reinstate your account

John Caraballo

Replying to Nuzzo

I don’t think they let you do that.

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