A number of online entrepreneurs have discovered that they can reap huge benefits from merging the world’s 2 leading marketplaces, eBay and Amazon, in conjunction with the most widely adopted business model, “Dropshipping”, enabling them to build a successful business.
Take a look at the figures, and it’s easy to understand why.
Among Amazon’s offerings, the company boasts over 600 million products, whereas, eBay is home to more than 180 million avid and eager shoppers. Those are excellent ingredients to build a thriving dropshipping company.
The practice of dropshipping from Amazon to eBay is a well-known phenomenon that has been around since 2011 or even earlier.
When you dropship, you eliminate the hassle of holding large inventories, paying storage fees, and paying the cost of fulfillment. There is nothing to do but acknowledge the order and ensure that it is fulfilled by the supplier.
Interested in learning more about the dropshipping process between two of the most prominent online retailers, Amazon and eBay, you’ve come to the right place. In today’s article, we will continue our discussion of Amazon to eBay drop shipping while going more in-depth on a few other topics.
A step-by-step overview will also be provided of the process of selling your first product via Amazon to eBay dropshipping. Keep reading.
Amazon To eBay Dropshipping
To begin with, let’s discuss dropshipping a little bit.
The dropshipping business model is one in which a company offers products for sale without physically having the products on hand. As opposed to this, when a customer orders something from a business, the business orders the product from the supplier, which is then delivered to the customer directly by the supplier.
In other words, there will be a :
- Cost-free inventory – plus
- No risk of investing money in a lot of physical goods that are unlikely to sell.
It’s a win-win situation for everyone.
Process of dropshipping
The process of dropshipping from Amazon is pretty straightforward: Identify hot in-demand items on eBay then pair them with lower-priced alternatives available on Amazon.
What is Amazon and why do people choose it?
Amazon.com was launched in 1995 by Jeff Bezos, who began with a simple company selling books online. Now, Amazon leads the online retail world.
As well as fulfillment centers, Amazon operates its warehouses. Together with third-party sellers, businesses of every size list their products on Amazon relying on Amazon FBA (Fulfilled by Amazon) for order fulfillment.
The seller pays Amazon a small fee and Amazon handles logistics and returns for them, attracting online shoppers to their store.
Why Do People Choose Amazon in the First Place?
Amazon is chosen by many businesses to dropship products since it is a huge retailer that lets you sell any product you want on a 2-day shipping guarantee, solid reputation, protection for your customers, which is unmatched by any other dropshipping supplier.
As the best online seller on the planet, unsurprisingly, it draws a crowd of online sellers from around the world, whether to sell on Amazon or a more convenient way, dropping shipping from Amazon to eBay, Shopify, or another online marketplace.
Back in the day, when dropshippers from eBay turned to Amazon to fulfill their dropshipping orders, there was absolutely no risk involved at all.
In the intervening years, both platforms have changed their rules about dropshipping, so there are some new nuances you should know about.
What Is Amazon To eBay Dropshipping?
So now that you have a basic understanding of dropshipping, let’s take a look at Amazon to eBay dropshipping:
- Listing products available on Amazon for sale on your eBay store
- A buyer purchases a product provided by your eBay store
- From Amazon, you purchase the item to be delivered directly to the buyer
Dropshipping from Amazon to eBay is sometimes referred to as, online arbitrage or retail arbitrage.
Amazon to eBay dropshipping takes place when eBay merchants re-sell Amazon products through their eBay listings, making a profit based on the price difference resulting from the Amazon listing price compared to the selling price on eBay.
Following an eBay buyer’s order for a product, it is bought by the dropshipper on Amazon. Once the dropshipper buys the product, it is directly sent to the customer.
Thus, eBay dropshippers have no inventory to purchase before they start selling online. Furthermore, the difference in prices, allows the products to be sold on eBay at a lower price than the ones that are currently available on eBay from the existing sellers.
As a result, eBay displays dropshipped goods organically, based on search engine results.
Safe For Beginners As Well
This easy-to-use risk-free e-commerce solution doesn’t require an inventory, which makes it appealing, especially to beginner entrepreneurs seeking a risk-free solution to getting started in the e-commerce space.
As you may know, the word arbitrage has its roots in the stock market because of the fact that a company’s stock price can differ between the 2 markets it trades on; for e-comm, an adaptation was made since this type of arbitrage occurs between markets.
In other words, if a product costs $15 on Amazon but $20 on eBay, the arbitrage difference is $5 and can be profited from by simply learning how to do it.
These arbitrageur sellers are aware of the importance of price variations, as opposed to sellers who are establishing their brand through Amazon FBA or Shopify, since they do not specialize in one particular niche, allows them to offer the same product range in a variety of niches, including the following:
- health and wellness niche
- gaming products
- eco-friendly products
Your patience is wearing thin, so without further ado, let’s go over the amazon to eBay dropshipping step by step method.
Step-By-Step Guide On Amazon To eBay Dropshipping
There is no doubt that this whole guide is written primarily from a beginner’s perspective, so if you are new to this, these methods are a good place for you to start earning money online right away.
Later on in this article, we will discuss several reasons as to how using the software can help you ship products from Amazon to eBay, giving you the chance to automate everything and make the process more efficient and straightforward. Let’s get started.
1) Set Up Your Accounts
For Amazon to eBay dropshipping, you will need to create three separate accounts in order to get started.
- An Amazon account
- An eBay account
- Paypal account
Amazon Account Setup
Amazon accounts are easy to set up. Simply visit Amazon.com and register as a regular buyer to make use of this dropshipping service.
Dropshippers are often part of Amazon’s Prime program before starting a business.
A create account form will appear on your screen. Simply complete the form and hit the button “Continue”. Additionally, since you are going to use it for business, creating a free business account is all you have to do. That way, you can have your own Amazon business account.
eBay Account Set Up
A seller account on eBay is easy to create. It takes just a few moments to set up an eBay account. To begin with, you will need to go to the eBay store where you plan on dropshipping. You can also, for instance, sign up for eBay US, which can be found at ebay.com, and for eBay UK, sign up at ebay.co.uk.
You will be presented with a simple form that you can fill out. Under the top heading of ‘create an account, you will also find an option for your personal and business account. Choose the desired one.
Complete the form with the required details and hit create an account. It’s even possible to use your Google or Facebook accounts here, although I would strongly advise you not to combine those accounts with eBay.
After you create an eBay account, make sure you follow the steps outlined below.
Setting Up A PayPal Account
Creating a PayPal account is necessary since it is necessary for you to have one prior to starting Amazon to eBay dropshipping.
To receive payments, you must have this. It isn’t significantly different whether you choose a personal or business PayPal account, and in many countries, you can have both.
It may make more sense, in the long run, to keep your personal PayPal accounts separate from the business accounts, so the business account can be established in the future.
Furthermore, you will need software that allows you to dropship from Amazon to eBay. In the absence of it, it would be necessary to copy and paste each and every item from Amazon, as well as manually update stock and price changes as they occur on Amazon to eBay, this is simply not possible.
Some of the best dropshipping software for eBay are as follows:
Now that you have everything ready, you can finally get started. Let’s find a profitable item to start with.
Hunting Your 1st Profitable Product You Can Sell From Amazon
There are 3 ways to hunt your 1st profitable product item to sell. You can take advantage of the following
- Software for market research
- Item locator software for listing
- Conducting manual research
Let’s explore these 3 of them individually.
Tools For Market Research
The Internet is flooded with companies offering tools for conducting eBay market research. With their help, you will discover the most popular products as well as valuable opportunities for product sales.
The top 3 companies that offer eBay market research are as follows:
If you’re planning on starting a successful Amazon to eBay dropshipping campaign, it is extremely important that you invest in at least one market research tool that can help you identify products that are profitable.
How to perform research
Take a look at the trending items to get an idea of what might work, or delve deeper into categories to find items that are actively bid upon.
Prepare an Excel sheet that includes the price of the product, or you can use an eBay dropshipping calculator free of charge to determine what profit margins to set, so as to cover the expenditures involved in eBay dropshipping. Take a deep breath, because this is going to be a long list.
Next, head over to Amazon and look for the products by searching differently spelled words, keywords, and checking out the seller’s reviews.
A selection of products that meet your criteria will now be on your shortlist.
Make a comparison between the eBay and Amazon prices for your shortlisted products and determine whether or not they fit into your profit margin requirements.
In the event that your shortlist is filled with low-cost products, you may have trouble making a profit consistently, so stay within the $20-$50 pricing range.
Item Locator Software For Listing
As a beginner on eBay, it’s fairly easy to set up listings by yourself. But as you grow your listing inventory, the workload increases, up to the point where there simply isn’t enough time available to keep up with listing creation and maintenance.
In order to get ready for this, here are some of the best eBay listing software tools that are as follows:
- eBay seller hub
Performing A Manual Search
This article might be of interest to you, but aren’t sure if dropshipping from Amazon to eBay will work for you, explore your options by doing a manual search on Amazon.
It’s no secret that this process takes a long amount of time and can be difficult to scale, but if you’re looking for a cost-free option, this is a great way to go.
Your only objective is to find Amazon products that are not branded but are being sold more expensively on eBay.
You may begin by visiting Amazon, searching for “best seller‘ within your chosen category, then clicking on one of the branded products of your prime interest.
If you have found the right product, congratulations. Now that you have found what you are looking for, let’s move forward.
- For instance, you have found a product of $22 on Amazon.
- Take the item to eBay, and find out how much people are asking for it on eBay.
- Ideally, you want to find an instance, such as an eBay seller still selling the product profitably at a higher price than Amazon.
List Your 1st Item and Optimize Listing
If this is your first time listing an item, eBay may request some basic verification credentials from you including a phone number, address, etc.
Simply fill out the form just like normal, and proceed to the selling page by clicking the Sell button that’s present in the upper right corner of the homepage.
You must click on the advanced tool and verify that you wish to switch to it.
Simply copy and paste the Amazon item’s name and select the relevant category.
You may see the message, no matches found, click on “Continue listing”.
As you move to the next page, all of the listing options will be displayed. They should be easy to understand. However, you have to keep these things in mind.
- Your listing should include only royalty-free images.
- Include any item specifications and information about the item from Amazon.
- Set the price to fixed, and pick a price above Amazon’s price, and below the lowest eBay price.
- Choose PayPal as your payment method. Enter the email address associated with your PayPal account.
- You will need to enter weight and dimensions as displayed on the Amazon page.
Finally, simply click on list, which will publish your listing immediately.
That’s it! Well done, you’ve listed the first product for your brand new Amazon to eBay dropshipping business.
You may wonder, what will happen when I have a large number of listings in the future? Is there an easier way?
Perhaps you are looking for an easier way of listing your products, one that is less time-consuming and mainly, more convenient. If that is the case, then we’ve got you covered.
The process can be fully automated with tools.
Now let’s examine how we can make our listings more effective by optimizing them.
No matter what you do, avoid copying and pasting Amazon listings, if possible, make your own listings whenever you sell products from Amazon on eBay.
The images will likely need to be improved as well, by using images that are free from copyright restrictions in Google, making use of images from product reviews, assembling creative collages of multiple images, or shooting them yourself.
Optimizing your listings can also be done with tools as we said earlier. Here are a few tools you should consider:
- Helium 10
- Viral Launch
You can optimize the listing with any tool of your choice, including price, product details, product descriptions, use an attractive eBay theme, etc., in order to make your listing search engine friendly.
You will not only be able to provide a better understanding of your product to your potential buyers, but the algorithms on eBay will be influenced as well.
A well-optimized listing will encourage eBay to drive more customers your way. The result is more sales for you.
Delivering your 1st order
Once you have discovered the perfect product to sell, you’ll hear a buzzing sound on your eBay application, and an order will appear on your eBay account.
As soon as you confirm payment has been received by your customer, you can start processing the order.
- Visit Amazon and login
- Add the item to your basket
- Marking the item as a gift and inputting the customer’s address.
Congratulations, if you have followed this guide, you have now dropshipped your first item from Amazon to eBay.
Many wonder if this Amazon to eBay dropshipping is legal or not. So let’s answer that too.
Amazon to eBay dropshipping legal or not?
Amazon to eBay dropshipping is perfectly legal. The act of offering products for sale on eBay is legal, primarily because there are no clear laws or regulations prohibiting such strategies or business models.
Are eBay’s policies permissive of dropshipping from Amazon?
No, eBay policies prohibit sellers from reselling Amazon items or third-party goods on eBay yet despite their prohibitions, many sellers still do so and do great business, and in the event, you deliver top-notch customer service, constantly add new products to your selection, and eliminate underperforming products, your risk of losing customers decreases.
Amazon or eBay: which is better for selling?
When you are just getting started, eBay comes with an easier entry point, making it more accessible to new sellers.
In contrast to eBay, Amazon is a massive online retail site, which is why you should consider moving from eBay to Amazon if you seek to grow your business.
Drop shippers may not have an issue with these marketplaces, because their nature may also have an impact on their decisions. Likewise, businesses that sell second-hand products or pawnshops can make use of eBay auction formats, whereas manufacturers of entirely new products originating from China might opt for Amazon Fulfillment by Amazon (FBA) to handle logistics.
As far as dropshippers are concerned, Amazon is a more challenging platform than eBay. Read on to find out why.
90 days is the minimum amount of time you need to get ready to begin Amazon dropshipping or make an investment upfront, which can be expensive, especially when using FBA. Also, this model will involve learning about import/export.
However, eBay dropshipping is a better option for beginners since it requires very little upfront investment, requires no inventory ownership, and it is possible to launch a dropshipping business on eBay with no prior experience within a short period of time.
There is literally no end to the arbitrage opportunities on Amazon. However, there are some mistakes sellers make as they begin to use this business model, particularly if they attempt to rely on online courses or videos created prior to eBay’s dropshipping policy going into effect in 2019.
If you do it properly, it will become increasingly profitable for you since fewer and fewer dropshippers opt to utilize Amazon to dropship on eBay and the opportunities for arbitrage are less crowded.
I’m attracted to the idea of dropshipping from Amazon to eBay due to its apparent risk-free nature. It doesn’t require upfront investment since you do not have to own the product you will be selling. Starting off with this business model can be profitable, and if done correctly, it can be advantageous for you.