1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Amazon to Ebay Profits

Discussion in 'Ebay' started by Runmarty, Aug 30, 2014.

  1. Runmarty

    Runmarty Newbie

    Joined:
    Aug 30, 2014
    Messages:
    7
    Likes Received:
    0
    Hello, I have a quick question and I would appreciate anyone willing to help out a newb.

    I have noticed several sellers on Ebay dropshipping from other retailers, like Amazon. However, on some of the larger volume sellers, I noticed that there profit margins were basically zero on all products.

    I have read several post suggesting that these sellers are making there profits by purchasing with a rewards credit card. However, some of these sellers are doing six figure volume in sales a month. I can't imagine that they are using a CC for this much volume.

    Can an anyone hint to me how these sellers may be creating the extra margin?

    Thanks to to anyone willing to help.
     
  2. himanuzo

    himanuzo Supreme Member

    Joined:
    Feb 10, 2010
    Messages:
    1,342
    Likes Received:
    277
    Location:
    Asia
    Home Page:
    The sender (Amazon) can see address of the beneficiary, this is not good for long term business.

    And what about label of address of the sender for the dropshipping? You or the Amazon?

    If you are a seller on Amazon, once you get a sales and you won't get the money instantly... because you need to wait few weeks to get money. This differ from eBay.

    As far as I know, limit of a CC in high level account is up to $100,000 for each cycle. This depends on policy of each bank.
     
  3. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    1,824
    Likes Received:
    609
    You don't know that. If you can get massive order flows and cash to back it up, you can drive down cost of your product to ridiculous levels in some items. For example, I know a massive seller who purchases factory overruns with cash and sells it online. His cost of each product is let's say $1.50 and the cost of factory producing it is $4. How does he do it? Because he can buy 50K units cash within 24 hrs and if the factory recycled that item, they'd get maybe 5 cents back. So if he's buying it at $1.50 and selling at $5, everyone else who's buying from the factory at $5 and selling at $8 is thinking that he's working on suicidal margins, but he's actually making more per item selling at $5 than you are at $8.
     
    • Thanks Thanks x 1
  4. BDDazza

    BDDazza Newbie

    Joined:
    Aug 28, 2014
    Messages:
    41
    Likes Received:
    7
    Home Page:
    You will never figure out every sellers business model.

    And I doubt you can make enough profit from just a Credit Card reward scheme. to make it worthwhile.
     
  5. Runmarty

    Runmarty Newbie

    Joined:
    Aug 30, 2014
    Messages:
    7
    Likes Received:
    0
    In this case, we know where the seller is getting the item from and what the the stated price is because this is an arbitrage.
     
  6. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    1,824
    Likes Received:
    609
    Every time you're buying something and reselling it for a higher price is arbitrage
     
  7. IMpossible

    IMpossible Supreme Member

    Joined:
    Apr 15, 2012
    Messages:
    1,338
    Likes Received:
    302
    Occupation:
    Internet Marketing Guru
    Location:
    Somewhere on earth
    Forget dropshipping. Once your sales volume grows, you will face issues you never seen before:

    - Return of products, where will you store them and how will you keep tack of what product belongs to which customer when all products are lying around in your room.
    - Replacement after years of usage because of warranty, can you still prove to Amazon that you bought the product?
    - Customers claiming they didn't receive the product even when you placed the order and there's no way for you to check that out.
    - You receive many orders of the same product and suddenly it's sold out on amazon, what are you going to do?
    - A lot of tax work on each and every sale which will be a huge headache and will lead to high tax-consultant fees.
     
  8. jak19

    jak19 Elite Member

    Joined:
    Jan 5, 2013
    Messages:
    2,548
    Likes Received:
    507
    there are much easier ways than this to make money on ebay
     
  9. Magic5

    Magic5 BANNED BANNED

    Joined:
    Aug 30, 2014
    Messages:
    376
    Likes Received:
    83
    Yeah you should try something a lil different why mix the 2 sites.
     
  10. Runmarty

    Runmarty Newbie

    Joined:
    Aug 30, 2014
    Messages:
    7
    Likes Received:
    0
    I get it that there are probably better ways to make money online. However, does anyone know how they are able to get extra margin here?
     
  11. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    1,824
    Likes Received:
    609
    I think you're missing the point that in many cases the big players aren't doing the little things to get extra margins, but that they have BIG advantages over someone just starting out.
     
  12. Runmarty

    Runmarty Newbie

    Joined:
    Aug 30, 2014
    Messages:
    7
    Likes Received:
    0
    Can you maybe be more specific in a PM. So far, no one has offered an actual answer or suggestion yet.
     
  13. toml3030

    toml3030 Elite Member

    Joined:
    Aug 16, 2014
    Messages:
    1,824
    Likes Received:
    609
    I just told you that big players may by buying their merchandise for way below what you can. How much more specific do you want me to get? And also if you're generating $15K a month in fees for eBay, and get to the point where you have your own dedicated account manager, I'm pretty sure you get more perks.
     
  14. boozie

    boozie Power Member

    Joined:
    Jan 6, 2009
    Messages:
    580
    Likes Received:
    217
    Gender:
    Male
    Occupation:
    Looking for a way to quit my 'real' job.
    Location:
    New York, New York
    Ebay sellers of that volume also get a pretty good discount on selling fees.
     
  15. juniorsand

    juniorsand Junior Member

    Joined:
    Jan 9, 2012
    Messages:
    128
    Likes Received:
    24
    Sometimes ebay sellers get good discount on items from other websites.
     
  16. lewy2k

    lewy2k Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 2, 2013
    Messages:
    499
    Likes Received:
    654
    Been dropshipping for almost 2 years now Amazon to eBay

    1. Why would you ever have the products in your possession? Anytime a return is needed, you send return label from Amazon to your customer. When Amazon refunds, you refund buyer.
    2. It is against eBay policy to advertise manufacturer warranties as your own. So this is invalid.
    3. In two years and $150k in sales I have only had 3 or 4 customers say they never received their item. I explained this to Amazon and was refunded every time. Refunded buyer. No reason to "check that out".
    4. You refund the buyer and apologize. I've never received one negative feedback for being out of stock. If so-called dropshippers complain about this, they obviously should learn Customer Service.
    5. Not a lot of tax work at all. Import all payments received in Paypal labeled "eBay" with a free service. Subtract all payments made to Amazon by importing to said service. Pay tax on the difference. No fees here.

    Every time I answer these questions, it is clear the person posing the questions or asking have never tried the method before. They make blind assumptions based on their own opinion or reading other false informed posts/information.

    Drop-shipping is lucrative and an easy way to make a living with hardly any effort or work required.
     
    • Thanks Thanks x 6
  17. BDDazza

    BDDazza Newbie

    Joined:
    Aug 28, 2014
    Messages:
    41
    Likes Received:
    7
    Home Page:
    AGAIN. You will never figure out every sellers business model.

    Its your responsibility to figure out your OWN business model. Stop worry about the margins of other sellers. For all you know he could be trading at a loss and owe a Million in taxes.
     
  18. reggie777

    reggie777 Registered Member

    Joined:
    Apr 8, 2016
    Messages:
    79
    Likes Received:
    9
    Location:
    United States

    Wow very helpful man! I'm surprised to find someone that's been doing it for that long. Are you still dropshipping amazon to eBay? I'm just starting out, if you have any suggestions please let me know? =)