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eBay arbitrage & dropshipping

Discussion in 'Ebay' started by themich, Jul 12, 2012.

  1. themich

    themich Newbie

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    I've seen people buying goods on the US Bay and reselling them on the UK website.

    I wonder if I could do something similar but with a dropship touch to it.
    I would sell a product on my national Bay and as soon as it's sold I'd buy it from an Asian feebayer who would ship it directly to my customers.

    I'm aware of the PP payment hold but cash flow is not a problem. The only issue is that this seller sells so many items a month it's mindblowing. He's got good feedback but it's hard to get in touch with him at all.

    The only way to get him to send directly to my customers is to buy from him and change my delivery address when paying in feebay. Would this be suspicous to the Bay? Have people done it before: changing your delivery address in feebay regularly? Only when checking out, i.e. not through 'my feebay'

    I would really like to "dropship" this way since it's nearly impossible to get his prices when buying from Alib.. or the other b2b platforms. He sells like 100 pcs of the same item daily so for a smaller fish like me it's impossible.

    Could also buy the item then ship it myself but I'd lose £5/sale on a £20 sale. :)

    Thanks to all
     
  2. MadCashMoo

    MadCashMoo Newbie

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    Ahh, so you want to do "dropshipping" without the dropshipper actually knowing that he's doing it!
    I can see a few issues here.
    1) You mentioned Asian feebayer. Honestly, I haven't come across any Asian feebayer who is not selling on all the major feebay markets - that includes definitely US and UK... and sometimes also AU and EU.
    He is most likely selling on your national site already.
    2) Changing delivery address in eBay. Isn't it required to be changed in Paypal? In any case, if you are changing your address for every sale... that means more than once a day, I estimate? That is way too frequent for both eBay and Paypal to stomach and your account would definitely be flagged for suspicious activity, I would say.
    And FYI, eBay and PP do not approve of dropshipping.
    3) When selling on your national site, where are you going to say the item is from? If you state that it is from your country, buyers will know it is from the Asian feebayer when they get their item due to the postage stamp and believe me, they do not like being deceived . If you state honestly that it is from Asian feebayer's country, then what advantage do you have over him? And if you do this AND do the changing of address for every buyer, and buy from the same feebayer ever so frequently, do you realise that it's quite obvious what you're doing and eBay will know about your "dropship" model.

    If you want to dropship the usual and good way for hot selling products, drop me a P.M.
    Cheers.
     
  3. alcor805

    alcor805 Newbie

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    You could try drop shipping the 'Factory Second' items. This is the stuff that's either been returned or damaged while being transported from the manufacturer. I've seen everything from cheap energy bracelets to luxury leather furniture on ebay as a factory second.
     
  4. d4l1t0s

    d4l1t0s Power Member

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    Well , when the seller receive the payment on paypal he receives a shipping label as well where your name and your address is mentioned . even if you can change the address I don't see how you can change the name .
    So let's say you are Mike , and Mike lives in NY . Mike bought the item and he wanted to dropship it to steve . Steve lives in London .
    Well , on the shipping label Mile lives on London now , great but Steve will receive the item , Mike's name will be on the label . And unless Mike contacts Steve to let him know and Mr.Mailman is in a good mood to not ask for ID or what so ever , everything should be fine .
    But hey Mike wants to make money , so at the end of the day , Mike will need to contact Steve , Bob , X , Y, Z.... to copy paste the same story , some of them of course will refuse , some other will find it suspicious .
    So bottom line is : Try harder to contact the seller , let him know what you want to do and maybe he will agree to set up something for you outside of ebay . Well , now here you may run into ''Should I trust him outside of ebay'' type of questions .
    Well , That's really up to you and you research on the seller . Most of Asian sellers have other websites they sell on .
    Hope it helps .
    Cheers
     
  5. mootonandy

    mootonandy Supreme Member

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    You can do it by buying items that have been listed in the wrong category. The only thing is I wouldnt know how to tell if something is in the wrong category.
     
  6. MadCashMoo

    MadCashMoo Newbie

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    Where can these "Factory second" items be found?
    How do you know the items you saw were "factory second"?

    I don't know if selling damaged goods is a good idea though...
     
  7. InfinityAI

    InfinityAI Jr. VIP Jr. VIP Premium Member

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    Arbitrage between eBay and Amazon and eBay and eBay rarely work for a very simple reason: it's not very efficient. And by this, I mean that both eBay and Amazon take a sizeable commission off your sales. Even if you are successfully arbitraging the two different markets, the hardest part would be to just automate the logistics, as you'd have many orders coming in and out. It can be done, but is it worth the work? You decide.

    Personally, I've found that arbitraging between eBay and personal niche sites (that I sell products on) work much better. On my personal sites, I can charge a premium since I'm not selling next-door to my competitors and thus make a sizeable profit.