The dropshipping practice has been around for a while, but there is little doubt that its popularity has exploded over the past couple of years. Let’s start with the basics, and then move onto exactly how you can get set up as a dropshipper.
What is dropshipping?
In essence, dropshipping is a fulfillment method where the retailer doesn’t store the items but instead transfers them directly from a supplier to the final customer when ordered. All customer’s details are transferred to the relevant supplier, who then ships the products out directly to the buyer.
Online, the most popular and prevalent forms are as following:
- Dropshipping from Amazon to eBay
- Dropshipping from eBay to your own site
- Dropshipping from Aliexpress to eBay
- Dropshipping from eBay to eBay
Is dropshipping from Amazon to eBay allowed?
Yes, dropshipping is legal, but it does raise some ethical questions from time to time. Firstly, when a customer orders something from eBay, they may be disappointed to discover that the product actually comes from Amazon; thanks to the Amazon packaging, of course. A little research will then allow them to see the difference in prices, and this will attract negative feedback. Secondly, Amazon sellers may be annoyed to discover that a third-party (you) is making money by drop shipping their goods in this way.
In fact, in recent times, eBay has even actively closed prominent dropshipping accounts under the premise that this business model is risky. However, there are still many respectable and recognized dropshipping solutions still running, so you shouldn’t see this business practice as a shutdown threat.
How do you make money by dropshipping from Amazon to eBay?
Dropshipping takes advantage of a simple concept that has been used on the stock market since time immemorial. That concept is arbitrage. And it’s a simple concept to get your head around.
“Arbitrage is the value of buying and selling at different rates, making money from the difference. It has worked since the beginning of the stock market and the property market is another industry where the same principle can be applied. You take an order for $25 and then buy it directly from an alternative provider for $20. The buyer receives the item they were looking for, and you get $5 profit for your activity. You can see how this can create significant profits when performed in bulk,” says Peter Ramage, a dropshipping expert.
Sellers who make money from dropshipping do so by identifying niche markets, such as handbags. A good way to succeed in the dropshipping business is to keep track of trends and prices on eBay and Amazon to see what items are popular. So you know that the products you offer will be in demand and then stay on top of prices. You will need to do proper research and monitor the items for some time as there can be fluctuations over longer periods. A product research tool can make the monitoring process easier by providing historical data such as rank and price fluctuation.
So how do I go about dropshipping from Amazon to eBay?
Now you know how dropshipping works, as well as its benefits and risks. You can start using this selling method if it’s a business that fits your needs. Here are simple steps to follow:
First of all, find a product that seems to be underpriced on Amazon in comparison to the price it is being sold for on eBay.
“Just remember that, in regards to the listed price, there are other factors to consider such as shipping and transaction costs, so your arbitrage will not be quite as simple as the $20 and $25 example often given,” warns Bennie Rodriguez, a tech blogger at Essayroo and Essay Writers.
When you have identified a potential product that offers decent arbitrage, create an eBay listing for that item. You may want to get some help to make your listing look professional. Use great pictures and highlight what sets your brand apart from the competition, especially in comparison to products of a similar nature advertised at the same time.
When buyers bid or buy on eBay, you purchase the same item on Amazon accordingly. Just remember to purchase it as a ‘gift’ so that the price tag is not included in the box when it arrives (and the buyer won’t find out that you bought it for less). Most buyers will not pay attention to where the product originally came from, and you will make your profit in the meantime (minus expenses, of course).
Aimee Laurence is a dropshipping expert to be found at Academic Writing Service and Do My Coursework. She has been involved in many projects down the years, which she has taken valuable learning from. Aimee also manages at BoomEssays.com.