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Ebay Arbitrage Questions

Discussion in 'Ebay' started by garthor, Apr 28, 2013.

  1. garthor

    garthor Newbie

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    Hello Guys!

    After doing a lot of research I found a product that I can buy from eBay US and sell over eBay AU for around $15 more.
    The product on eBay US is worth $20 and on Ebay AU $35. There seems to good a decent margin to make atleast $5 per sale.
    Considering this product is on high demand, I could easily sell over 100 a month, and make around $500 USD profit, which sounds awesome.

    My question is, should I go ahead and list the product now on eBay AU and when an order is done, I would go to eBay US and
    buy it from that seller and give him the AU address? This is a bit weird for me....

    How about if the product never makes it to the buyer?
    How about if it takes too long?

    Should I order myself and get a partner over AU and sell this product along with them to make sure this works properly?

    How do you do arbitrage in different countries? Specially when you don't live in any of them.
    I'm from the caribbean.

    Best Regards,
     
  2. cjmixers

    cjmixers Junior Member

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    you are drop shipping.
    It would be possible but you might run into a few issues. mainly delivery times.
    Best to buy a few, test the waters with selling/delivery times/etc and see how it turns out.
    Also, are you considering fees and shipping to AU? ebay/pp will eat them right up.
     
  3. sashablack

    sashablack Elite Member

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    ALSO, do you know the exchange rate from US to AUS ? Because that same product could be the same amount here and there, u know what I mean? If product A is $20us and that same product with the currency change can be $35aus but yet its the same dollar amount once you get paid, so are you really making money here? check into that!

    Best was is, buy 1 from US and sell that same one to AUS and see what happens :)
     
  4. ginasims

    ginasims Jr. VIP Jr. VIP Premium Member

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    Right now the going rate is 20.00 US to 19.45 AU so that looks pretty good. What about shipping cost? Even if the seller has free shipping will the ship out of the US with free shipping?
     
  5. babypowder

    babypowder Regular Member

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    the problem will lie in shipping. no body is US Ebay will shipped to a non confirmed paypal address. Which means the only address they'll ship to is your confirmed address. So you can't "dropship" from your buying to the people you sell to.

    This is better done with amazon or third party websites, however, people hate it when they get an invoice in there that says $27 when they just paid $40. -- with amazon prime, it's possible to do it now and have like 4 day shipping times.
     
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  6. garthor

    garthor Newbie

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    All the prices I showed above were already converted to USD, so it's $15 USD difference margin.
    How can I calculate the PayPal and ebay fees on a $35 USD item ?

    My concern is only about the shipping and calculaitng the fees.
    Any ideas or suggestions?

    I will never know if this is a smart call until I don't calculate all the remianing expenses.
     
  7. cjmixers

    cjmixers Junior Member

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    http://www.feesnap.com/ebay.html

    This will give you a breakdown of the profit.
    ALso, it would help if you have QUANTITY in mind as well.
    For an account with 10 items or 1000 bucks while its good to build feedback, would need many accounts for profit with low selling limits..

    Use this: http://postcalc.usps.com/
    to figure out the cost of shipping from the US to AU.
     
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  8. garthor

    garthor Newbie

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    I just used to tool to calculate the shipping cost, that's simple outrageous... it's worth $25 USD which is practically the item value itself.

    The only way I think I can make money from this is ordering from Amazon, which is actually cheaper, $17 USD.
    I would make them ship it to AU (If prime is available in AU) to a partner, which would them ship it to the buyer.

    The profit would be around $10 USD after PayPal, Ebay and Shipping fees.

    Splitting 50/50 with a partner sounds like a measly $5 USD, but considering the high demand of this item,
    I could easily sell a 100 a month!
     
  9. imperial444

    imperial444 Elite Member

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    Yes, Indeed. Because shipping costs are way too high from Any country to AUstralia. Too much isolated.
     
  10. babypowder

    babypowder Regular Member

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    why don't you just source the item and purchase it in bulk instead of ebay? ship them all at once for maybe $500 instead of $25 each (100pcs) -- and then sell them 1 by 1 from AU, and pocket all of the profits? If you need help finding the item in the US, let me know -- willing to help.
     
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  11. foghorn

    foghorn Registered Member

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    The guy you shipping them to better be trustworthy if you shipping him that much at once... Just another reason why there is more profit and risk with bulk.