Investing in an Amazon to eBay arbitrage business model is a lucrative online venture. In this business model, a smart digital marketer lists products for sale on eBay that he or she doesn’t actually possess.
Once the marketer gets a sale on eBay, he’ll visit Amazon to purchase the product at a lower price and ship it directly to his customer. Here is a guide to how you can increase your profits with Amazon to eBay arbitrage.
How The Amazon To eBay Arbitrage Works
Arbitrage sellers simply copy Amazon product listings and paste them on eBay at higher prices. So, once a buyer orders the eBay product, the arbitrage seller will visit Amazon to order the product at a lower price and arrange for it to be shipped directly to the buyer.
In some cases, some online shoppers don’t realize what is actually going on. This is because a seller can re-use Amazon packaging or be using Amazon FBA to store his or her stock.
Overcoming Amazon To eBay Arbitrage Challenges
Fulfilling your eBay orders through a third party is allowed. As long as the product is shipped according to the terms stated in your product listing. According to Amazon, the Amazon to eBay arbitrage sellers are Amazon customers. So, selling policies don’t apply to these arbitrage sellers because they’re not Amazon sellers.
Therefore, you need an Amazon customer account without Prime membership to start your Amazon to eBay arbitrage business. Prime members on Amazon cannot buy products for resale.
But, since Prime shipping is essential in this business model, some arbitrage sellers tactically utilize Prime to fulfill their eBay orders. If Amazon realizes that you’re using your Prime membership for your Amazon to eBay arbitrage business, they’ll cancel your Prime account.
However, Amazon is not that strict on this initiative as they have other serious issues taking priority.
Remember since the GDPR regulations are very tough on the protection of consumer data, being an Amazon to eBay arbitrage seller in Europe can be challenging. These regulations require you to inform your buyers that you will pass their data on to Amazon and what will happen with their information.
Sometimes, some of the Amazon sellers you order from may feel exploited and resentful. But, since both sellers make money, working with smart Amazon sellers is a good business idea. Furthermore, every Amazon seller wants more sales in order to get higher search rankings on Amazon.
You must be very smart to succeed as a seller because some Amazon sellers have complained of getting more returns. This usually happens because some arbitrage sellers rush their eBay listings. Or, some buyers don’t like the idea of paying more unnecessarily. However, you can build long-term business relationships with several Amazon sellers if you do your arbitrage right.
Final Thoughts On Amazon To eBay Arbitrage
As a digital marketer promoting Amazon products on eBay, your profits will be the difference between the Amazon and eBay selling prices, less fees.
Be aware though, that some buyers might get annoyed when they receive products in an Amazon box. Especially since they purchased their products on eBay and could have saved some money in the process.
But, as an arbitrage seller, this is a perfect work-from-home online venture. It doesn’t require you to handle inventory or deal with suppliers.