Many business models are currently available; dropshipping is the most recommended for beginners. In the standard order scheme Manufacturer (or Supplier) – The customer, a drop shipper, inserts his service by providing an online store for purchase and management for order fulfillment.
Almost in all product niches, the quantity of manufacturers is less than drop shippers. The average drop shipper should search for a trustworthy supplier and profitable marketplace to sell the supplier’s goods. In the last option, creating a store on a separate domain is possible. That is why a drop shipper commonly has two pulls of marketplaces – source and target marketplaces.
The well-known source marketplaces are AliExpress, SaleHoo, Sprocket, Doba, and Alibaba. The target marketplaces are Amazon, eBay, Etsy, Groupon, Wayfair, Walmart, and Asos. But for sure, the choice of marketplaces depends mainly on the country of residence and product niche. For example, only in Germany are there 39 online marketplaces. This article is focused on dropshipping on Amazon as a source to eBay as a target marketplace.
Advantages of dropshipping on Amazon to eBay
Amazon has millions of sellers and is used widely for drop shippers worldwide. Therefore, dropshipping from Amazon to eBay is a profitable business model.
The main advantages of such a business are:
- Amazon has more than 100 fulfillment centers (many more planned) in the USA in different locations. You can ensure short delivery terms on eBay if you have Amazon Prime status.
- You can easily find a profitable niche for dropshipping, as various goods are available. You can try unlimited times as you do not bear storage costs; only an update of listings is required on eBay.
- Amazon Prime clients have a 30 days free return period. Such an option you can propose to your customers on eBay.
- Much available software for automatic order fulfillment from Amazon to eBay for market research and delivery tracking.
For sure, there are some disadvantages, but you should still try this business opportunity.
5 most common mistakes of dropshipping on Amazon to eBay
There are a bunch of mistakes common for newcomers to eBay or Amazon that it is possible to skip for a more painful and successful business start.
1. Too fast at the beginning
After registration on eBay, wait a couple of days for the platform to check all your contact and legal information and verify your banking details. Do not start with product listings. Start with 30 items per day during the first month. If you have bought software for listing from Amazon, you can easily limit its activity to the required value.
If you start to act quickly after registration, you will be determined as a hacker or unreliable drop shipper. The eBay sanctions are to suspend your account and all associated with this account. In addition, all fees that eBay might already have to pay you will be canceled.
2. Poor maintenance of the eBay account
eBay ranking system is also based on your activity in the account. The active accounts are ranked higher and can perform higher sales on the platform. It is strongly recommended to list everyday products as recommended in the previous point. Also, eBay accounts have several seller levels – Top Rated, Above Standard, and Below Standard.
You need to be above standard or higher account for a successful business. You can receive below standard level; you have a low transaction rate (2% and low) and high value of resolution cases with customers (above 0.3%). If your level and ranking are low, your products will be shown at the end of the eBay search list; you will have limitations on listings, high eBay fees, and not have access to promotion listings.
3. Unauthorized sales of VeRO items
All companies protect their intellectual property and trademarks, no matter where you buy and sell products on eBay or Amazon. The owners and authorized representatives of intellectual rights and owners may report on an online store. Please check the eBay Verified Rights Owner Program to prevent suspension. If you purchase from an authorized seller good on Amazon, it does not mean you can easily resell them without the trademark owner’s permission.
You should always check with your suppliers on Amazon about limitations on dropshipping their items on other marketplaces. You should avoid copying images and descriptions from Amazon to eBay, as this also violates ownership rights. The authorized seller on Amazon can have no authorization on eBay. Also, automatic tools for listings have a filter – not to list VeRO items, but the list is constantly changing. We can recommend avoiding dropshipping on eBay for products such as drugs, firearms, and tobacco.
4. Disregard selling and purchasing limits
For all sellers on eBay set automatic monthly limits based on the customer’s reviews and your sales volume. You can request an increase of your limits if you have Top Rated Seller Level and high selling performance.
Active and sold listings are counted together and may exceed your monthly limit; in such cases, you can renew your listings. Also, Amazon tracks the accounts with large purchasing numbers made with gift cards, so you need to keep an eye on how your order fulfillment software makes payments – you need to have several purchase real accounts.
5. Retail dropshipping is not allowed on eBay from Amazon
EBay does not allow retail dropshipping when your Supplier also delivers the goods; they allow only fulfilling orders from wholesale suppliers with your responsibility for delivery within strict time frames. So, if you dropship from Amazon to eBay and mention this in your online store or to eBay representatives, your account will be suspended.
You may even receive an email from eBay about not following dropshipping policy, but an email without suspension does not create any limitations and restrictions. You need to continue providing excellent customer service, and eBay will remove the dropshipping flag from your account.
Conclusion
Even though dropshipping from Amazon to eBay can look like it is the most accessible business model. But you must follow all rules and recommendations to make this business profitable. You need to maintain your account on a high level, provide only high-quality service for your Customers, and receive positive reviews.
Before starting a new dropshipping store, you need to check the list of prohibited items on Amazon and eBay for dropshipping; you need to do market research on the most profitable products on eBay, and it is also better to avoid selling the most obvious Amazon products with higher prices. Finally, we recommend you use active dropshipping software to escape routine work and focus more on marketing and business expansion. With our recommendations, you definitely will earn success!
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