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Amazon to eBay Arbitrage Full Guide

What Is Amazon to eBay Arbitrage?

Have you ever received eBay orders in the Amazon box? This is Amazon to eBay dropshipping that we want to talk about. First, let’s see what dropshipping means.

Dropshipping is a common business model in the online arbitrage world. It means you list the items without holding the physical stock you are selling. When an order is placed from a customer, you order it from a supplier, and the supplier ships it directly to the customer. You earn the profit without the risk of inventory, storage, and fulfillment costs.

Now let’s see how Amazon to eBay arbitrage works:

  1. List products from Amazon on your eBay store
  2. Wait for a customer to place an order on your eBay store
  3. Buy the product from the Amazon seller and the item is shipped directly from Amazon to the eBay customer

That’s why sometimes you buy a product from eBay but it’s delivered in an Amazon box.

Read More: How to do online arbitrage?

Is Dropshipping from Amazon to eBay Legal?

Amazon Dropshipping model

Before you get started any business, it’s important to understand its legalities. In terms of legality, the answer is YES. We don’t have certain rules against dropshipping from one platform to another. But before listing the items you should consider:

  1. The items that are drop shipped are legal. Make sure that shipping the items are allowed.
  2. The items don’t have trademark or copyright protection.

Amazon has its policy against dropshipping. Shipping the items to the customer, if the shipment doesn’t identify you as the seller of record or if anyone other than you appears on packaging or invoices, is prohibited.

eBay has changed the rules recently. Sending the orders directly from Amazon warehouses to the customer is not allowed. Because the package belongs to the Amazon seller and your customer can not identify you.

Amazon to eBay Arbitrage Software

Choosing the best software and tool for your Amazon to eBay arbitrage is vital because without good tools you never can make significant money and scale up your business.

Here is a useful and shortlist of the extensions or software you need for dropshipping business:

1. BuyBotPro

It’s a Chrome extension that can source the products for Amazon to eBay arbitrage. it can give you information like profit margin, ROI, selling rank and so much more. In addition, extra data like a sale estimator can help you to make a better decision about the product.

2. Zik Analytics

It’s famous eBay market research. Finding the profitable items to start an eBay business, manual scanning to source products from Amazon, and analyzing price are the important features of this tool.

3. Sale Freaks

This tool can track your competitors’ listing and find the items they successfully sold in the last 24 hours and list them for your store. It can reprice the items automatically to maximize the profit.

What Are the Risks of Dropshipping from Amazon to eBay?

Dropshipping from Amazon to eBay made many headaches for eBay. The products were delivered in Amazon-branded boxes and free Prime delivery was mentioned on the box. But the customer was charged for eBay shipping. Also if any problem happened, there was no information of the eBay seller on the box which could add to the confusion and anger of the customer. As a result, it can lead to negative reviews on your store.

The product listing on Amazon is always changing. There’s no guarantee that an item sold on eBay will be in stock on Amazon with the considered price. It can have a bad impact on your customers to cancel the placed orders.

Mismatched or broken items are what can reduce the customers’ satisfaction and because the products are shipped directly to the customer you can’t check them. 

eBay has decided to ban dropshipping from any retailer or marketplace include Amazon. eBay announced that in such cases they will remove the listing from the website or suspend your account. But still many people are doing this business and it seems eBay is not tough about the new rules.

Read More: Brutal Mistakes That Arbitragers Need to Avoid

What Should I Not Sell on eBay?

Some products are mentioned as prohibited on eBay and selling them is against eBay’s rule. But another group is better not to be sold due to convenience.

1. Food

Perishable foods are big headaches.

2. Jewelry

Actual quality pieces are expensive and there is a risk of getting lost in the mail.

3. Large items

It’s hard and expensive to ship and also hard to sell!

4. Counterfeit items

It’s against the rule and has bad consequences!

5. Cigarette and alcohol

6. Seeds

Many states have very strict regulations on seeds and you can not ship them across the country.

Read More: Tips for Getting Started Online Arbitrage

Can eBay Make You Rich?

wealthy man working doing online arbitrage on eBay

Getting rich is not like a treasure map and needs a plan and sustainable sale.

You can make money on eBay but because of the structure of this business, you cannot guarantee a constant income. You don’t own your listing, and the prices of the products on Amazon are changing rapidly. So the money you can make from the selling is unclear. Also when the customer gets her/his order in Amazon boxes, will find out can buy the items at a lower price from Amazon. So he/she can’t be a loyal customer and you can’t make a repeated sale. 

How Much Can You Make From Amazon to eBay Arbitrage?

When we talk about the income or profit, we can make in a business, usually, we talk about the initial capital we bring to a business. In Amazon to eBay arbitrage, we don’t have any specific investment. Everything depends on the current price of the Amazon product (that is not reliable and can be changed every hour). Many sellers think this arbitrage can give you money for a living.

Is selling on Amazon Better than on eBay?

Amazon and eBay are two completely different platforms for selling online. Amazon offers more user-friendly designs to the customers that can increase the chance of selling. The customer doesn’t get frustrated to find the best price and condition when he looks for a certain product. The buying process, return and refund are clear in Amazon. But in eBay, it’s a mess.

Besides an easy purchase, Amazon customers can receive their orders with fast and free shipping using Prime. Also, the powerful customer service of Amazon can follow up on the customers’ problems.

All of the above can increase the chance of selling on Amazon and consider selling on Amazon as a “reliable job”. Amazon FBA offers the sellers an organized business and high-quality service.

Read More: How to Start Amazon FBA Business?

Final Thought

Amazon to eBay arbitrage seems attractive because it looks risk-free. You don’t have inventory and you don’t need to invest money upfront. But it has its risks, from suspension risks to negative reviews and angry customers. It cannot make a constant income stream because the Amazon supplier is changing the prices every hour. Amazon arbitrage is a better business model to start. It’s more scalable and reliable.

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Is Amazon FBA Still Profitable in 2021?

What Is Amazon FBA?

If Amazon stores your inventory in its enormous warehouses, pick, pack and ship the items when an order is placed, then you are using Fulfillment by Amazon or FBA. By using FBA, you don’t need to deal with shipping and packing and usually, the items are sent directly from, provider to prep centers and they prepare the item according to Amazon’s standards. Then the items are shipped to Amazon’s warehouses and kept there until an order is placed.

Read More: How to Start Amazon FBA Business

Is Amazon FBA Worth it?

When Amazon FBA was released it wasn’t as popular as it is today. Due to many competitors, people ask themselves about Amazon FBA worth before starting. To determine if Amazon FBA still is profitable, you need to consider a few factors:

1. Amazon FBA Costs

Amazon doesn’t offer its service for free! You need to pay for storing your items in Amazon’s warehouses. Storage fees are different and depend on the type and size of your products. Oversize items are more expensive to be stored. Also, dangerous goods or clothes have a bit higher storage fee. Selling heavy, low-cost items that aren’t sold quickly isn’t worth it. In addition, these items have higher shipping rates.

Notice that Amazon has extra charges like long-term storage fees, (for the items that have been stored for more than a year), FBA removal order fees, FBA disposal order fees, and for the FBA Label Service.

2. Hassle-Free Business

Using Amazon FBA make your online reselling easier. You don’t need to occupy your rooms and attic to store the products or spending many hours packing them. The items are shipped without any headache, you don’t need to deal with different delivery services for lower shipping rates and higher quality. And you can use the power of Amazon’s customer service to check your customers’ problems. This one of the biggest benefits of using Amazon FBA.

3. Chance of Winning More Customers

Because you are using FBA, your items are qualified for Prime shipping which can be delivered in 2 days for free. In addition, it’s more likely to win the Buy Box. It can help you to attract more customers to your items.

Is it too Late to Start Selling Amazon 2021?

The window of opportunity is still open. Business success didn’t change a lot, you still need strategy and plan to be a successful seller.

Years ago you could everything on Amazon quickly and successfully but now you need to find less competitive products and using marketing strategies like good product photography push it to page 1 of search results.

Read More: Is Online Arbitrage Dead for New Sellers

How Much Do Amazon FBA Sellers Make?

Many people join Amazon because they need extra income. Based on the information, most of the sellers earn at least $1000/month and very successful businesses can make upwards of $250,000 each month.

Nearly half of the sellers can make from $12,000 to $300,000 annually, and about a fifth of sellers can make up to $3,000,000 every year. Only 26% of the sellers earn less than $1,000/month. But this is the money they can make not the profit. Before starting the business you need to set a profit for your business.

Read More: How Much Money Can You Make From Online Arbitrage

What Sells on Amazon the Most?

woman thinking about the most selling products on Amazon

When we are talking about best-selling items on Amazon, it doesn’t mean that you must sell them. You should consider competing in this category, demand in the market your business and … To decide if you want to sell them. Every time you want to pick up a product you need to search the market to ensure if this product is still attractive. But no strategy can nor guarantee that you’ll pick always a best seller item.

Pandemic has changed lives and so due to new economic conditions, shoppers can not pay money for gifts. On the other hand, personal care and Indore games can be more attractive for the customers.

You can find current Amazon best sellers items from here. The list is updated hourly. Notice that best-sellers items are very competitive and every seller has this information like you. Also sometimes best sellers are not profitable enough and nothing can guarantee that the top sellers’ items keep selling very well for a long time. You might sell these items when they are not trending anymore.

Read More: How to Do Online Arbitrage?

How Do I Find Most Sold Items on Amazon?

Alongside Amazon Best Sellers, you can use tools and Chrome extensions to find the best items. Many tools can show you the best seller rank. Using this metric, you can determine if this product is attractive enough to be worth it. Generally, these categories are profitable for the sellers:

  1. Toys and Games
  2. Baby products
  3. Books
  4.  Electronics

Final Thought

No one can say it’s late to start an FBA business and Amazon FBA worth is insignificant. Amazon FBA still is profitable but you need a strategy to be successful. You need to improve your knowledge and follow up on your mistakes.