Entrepreneurs are looking for different ways to make money online. They want to offer customized products with print on demand, dropship from aliExpress to Shopify, and what not. Some are getting even more crafty with their business ideas and mix in ecommerce arbitrage. Dropshipping arbitrage, to be specific. They want to dropship from Amazon to eBay which means they want to order stuff from Amazon and sell it on eBay for a higher margin. This way they don’t need inventory, all they have to do is place an order on Amazon when they receive an order on eBay and the Amazon seller takes care of the shipping for them.
Sounds really lucrative, right? Well, let’s dive deep into the entire dropshipping from Amazon to eBay business model to see how it works, if it’s legal, and it it’s actually worth your time.
Is dropshipping from Amazon to eBay legal?
In short, Yes, it’s perfectly legal to dropship from Amazon to eBay. There are no laws or rules that prohibit you from dropshipping from Amazon to eBay or vice versa. However, some buyers or sellers might feel that it’s ethically wrong, but that also varies from person to person.
Some buyers who receive their products in Amazon packaging really don’t like it when they find out that the product costs $10 on Amazon while they had to pay $15 for it on eBay. Once these customers realize that you are just buying from Amazon and selling it on eBay, they leave negative feedback/reviews on your listings and most of the time this tanks your overall seller ratings.
Amazon sellers who figure out that someone is dropshipping from their stores on eBay also don’t appreciate the fact that you are profiting from their products. Some jack up the prices to cut your profits while some (who are more aggressive) go on to eBay themselves and sell the products directly on their undercutting you by a large margin.
However, apart from these moral dilemmas, dropshipping from Amazon to eBay is perfectly legal.
Does eBay Allow Drop-shipping from Amazon?
It’s legal, but that doesn’t mean the eCommerce platforms are going to let you get away with it. They understand the Amazon to eBay arbitrage very well, and eBay is actively taking steps to limit it on their platform.
eBay doesn’t like dropshipping from Amazon that much and they have restricted accounts that have been found guilty of doing this. The reason they provide for banning these accounts is that it’s a risky business model. eBay customers buy a product from the platform, only to find out that it came from Amazon which leads to them feeling cheated.
eBay states that their brand’s reputation is at stake when dropshipping from Amazon to eBay since customers buy a product on eBay and get an Amazon package delivered to their home.
First of all, some customers feel they were cheated out of extra money since they could’ve bought the item cheaper on Amazon directly.
Secondly, it’s pretty much free promotion and advertising for Amazon which is eBay’s direct competition.
Pros and Cons of Dropshipping from Amazon to eBay
Here are the advantages and disadvantages that you may have to face when buying from Amazon to sell on eBay.
- It is a decent side hustle for some quick cash.
- You can often find a good deal and get high-profit margins on products.
- Lower risk of shipping problems since Amazon has the best delivery service.
- You won’t be building a brand name for yourself.
- Sometimes the profit margins might suck (depends on products)
- Sometimes you might end up paying other varying costs.
- Sometimes the shipping charges might eat into your profits, so better to avoid large items.
- Sourcing from China is much cheaper than sourcing from Amazon, but you’ll have higher delivery times.
- If a seller from Amazon decides to sell on eBay directly then they will be creating a brand name for their business while you will be out of business at least for that product.
Steps to Dropship from Amazon to eBay
Dropshipping from Amazon to eBay is very simple and straightforward. It doesn’t involve any fancy steps at all. Here’s how you can easily dropship from Amazon to eBay in a few steps.
- Search for an item on Amazon that’s relatively cheaper than it’s eBay listing. (Below, we’ll provide you with a free tool to find products on eBay with their pricing info from Amazon)
- Sign up on eBay as a seller and create a listing for the item. Use images, descriptions, set the prices, and everything that’s required for a normal listing on eBay.
- Once you receive an order on eBay, you should go to Amazon and buy the product. Add the customer’s details that you received on eBay so the item is directly shipped to them. (Now, here’s a neat little trick to keep your customer from finding out it’s an Amazon package. Mark the order as “Gift” on Amazon so that the product is packaged in an unmarked box and doesn’t include a receipt either. This keeps your customer from finding out about the real price of the item, and it’s origins.)
Voila! You’ve made some quick profit for doing nothing literally, but a few clicks. Now, keep repeating this process to earn some decent profits, and you also get the bragging rights to call yourself a “Dropshipper.”
Amazon to eBay dropshipping automation
Now, that you know how to easily dropship from Amazon to eBay, it’s time you automated the process to cut out any extra time that you spend finding and listing products. You can easily automate (or semi-automate) the entire process by using different tools. We are going to list one tool that gets it all done and offers a free plan, so you can give it a try (for up to 50 listings).
The DSMTool is a simple yet highly innovative dropshipping management tool that allows you to list products on eBay from multiple sources without much hassle. It provides you with all the tools that you need to make the entire dropshipping process as painless as possible. You don’t have to manually copy/paste titles, descriptions, images, etc because the DSMTool does it all for you with a few clicks.
This tool keeps an eye out on the pricing and quantity of the products from multiple sources and automatically optimizes your eBay store listings to ensure the perfect experience for your buyers. The best feature is the auto-ordering feature that frees you from ordering everything manually every day. It auto-orders all the products that are sold on eBay so you don’t have to waste your time trying to order everything individually.
The item finder feature allows you to find items that are in high demand on eBay and find their alternate sources as well. It allows you to compare the prices of these products from multiple sources so you get the best deals.
So, if you want to automate your dropshipping from Amazon to eBay then DSMTool is one of the best dropshipping management
How to Find the Best Items to Dropship from Amazon to eBay?
There are different ways to find the best products you can dropship from Amazon to eBay. You can either head over to eBay and take a look at all their “Trending products” these will give you a general idea of what products are in high-demand on the platform. You can then find these products on Amazon to see how much are they selling for.
However, the best way to find the items on eBay and their pricing on Amazon is by using an automatic tool like Intellyfish Price Comparison for Dropshipping. This is a Chrome extension that automatically shows you the Amazon pricing for all eBay products. You don’t have to search products on Amazon manually because the tool shows you prices right on the eBay page so you can decide whether it’s the best item for you to dropship or not. It’s a completely free tool that you can download right now and add to your Chrome browser.
Does Amazon to eBay dropshipping work?
Well, simply put, it does work if you know how to do it right. You can’t just go around slapping every product you find on Amazon in an eBay listing. You need to do proper research to find the most trending products, then make sure that these products are available on Amazon at a relatively cheaper price so you can dropship them to eBay for a decent price.
If you are careless about dropshipping from Amazon to eBay then you will quickly get the boot from eBay, or you will get a plethora of negative reviews from the customers. So, if you really want it to work out in your favor then you need to be careful about how you dropship from Amazon to eBay.
All in all, it’s very easy and simple to dropship from Amazon to eBay. You need to be careful about how you approach this method. Choosing the gift option should be a priority for you so the customers don’t find out you are dropshipping from Amazon. Also, you need to make sure that your profit margins are good enough to be worth the process. A profit margin of $1-2 is definitely not worth the time.
Have you dropshipped from Amazon to eBay? What’s your experience regarding this process? Is it better than dropshipping on Shopify? Let us know in the comments below.