5 Reasons to Think 2X About Amazon-eBay Arbitrage

5 Reasons to Think 2X About Amazon-eBay Arbitrage

 

I came across a product on Warrior Plus called Easy Arbitrage Profits. One of the up-sells was a piece of software called Profit Scraper. What it did was find sellers on eBay that were targeting products on Amazon and reselling them on eBay.

I thought, I have an eBay store, I have Amazon prime. I have Dreamweaver to create a template for my eBay store. Sounded like a no-brainer.

I purchased a subscription to Profit Scraper.

Zaaxa

It renewed at $57 a month. I thought, if I make a lot of sales and eBay it’ll easily offset the cost of Profit Scraper.

I ran into a few problems when the reality of doing this day-to-day set in.

  1. 1.     Handling the inevitable taxes that Amazon would charge for my purchases to be resold on eBay.

    1. Where were my items that I bought on Amazon going to be shipped from?
    2. How does Amazon determine which warehouse that item is going to be shipped from?
    3. What are the addresses of the Amazon warehouses?

I found a very helpful website http://blog.taxjar.com/amazon-warehouse-locations/ that helped me with most of these questions.

Tax Jar

Once I found these fulfillment centers, I had to add them into my addresses on eBay.

 

eBay Change Address

 

There are about 20 warehouses located across the United States that Amazon ships from. If your eBay customer is located in one of those states, Amazon will charge you sales tax.

 

You have to add these one by one into eBay.

 

You need to enter all STATE, COUNTY AND LOCAL taxes for these states  into your eBay tax table also:

Tax Table

2.     How do you change the ship from address on eBay?

Item Location

It took me two calls to eBay and a lot of coaxing to get the following information out of them.

In order to take advantage of multiple shipping locations within the United States (the Amazon warehouse location) you need to leave the zip code blank and in the city state section add multiple locations, USA.

Multiple Locations

When you do that, your sales tax table will charge your customer the applicable sales tax if they are in an Amazon warehouse state.

3.     Limits on listings

 

I was cruising along with Profit Scraper and eBay’s Turbo Lister making listing after listing until I ran into a problem. When I tried to upload my latest batch of listings from Turbo Lister, I got a notification from eBay saying that I had reached my listing limit, and to increase this I had to call them which I did.

I was forwarded to a listing manager (it turns out that these are high-level managers based in the United States). She asked me point blank what I was doing. I told her I was drop shipping. She asked me who my drop shipper was. I thought for a second and then I just said Amazon. She said oh, that’s okay, I’ll raise your listing limits to 850 listings and $30,000. I thought, I’ve got all my ducks in a row. Wrong.

4.     Creating an attractive listing page.

 

I owned Adobe Dreamweaver and with a little Googling, I found an article on how to create a flexible eBay template. It took me a while, but I got this result:

The Live Oak Template

5.     Now, the big one. Finding Arbitrage items with enough margin in them.

 

Using Profit Scraper, I found about 30 sellers on eBay that were using the arbitrage technique with Amazon. I knew they were doing this, because they had copied images and text word for word from Amazon and pasted them on eBay.

So, I looked for arbitrage items that were selling for at least five dollars less on Amazon (taking into account PayPal and eBay fees) so I could make a profit.

So far so good. I put about 100 listings up. Waited one day. Two days. Five days. Nothing.

Then all of a sudden, I had a flurry of sales for replacement heads for a Norelco shaver. I checked the price on Amazon and much to my dismay it had risen overnight and my eBay price now had no profit (the reason I had so many orders is because my price was the lowest ) in it but I still had to make the sale. Into negative territory already.

I knew now to keep an eye on the Amazon prices each day to make sure that they didn’t increase so that would take the profit out of my sales. I also checked the listings on eBay to see if they were the lowest (I wanted to be the lowest for that item as much as possible). Again, to my dismay, there were many, many sellers jumping on board with this technique.

After about 25 days of making a little, losing a little, I threw in the towel. No more eBay Amazon arbitrage for this boy.

Conclusion:

OLD RULE: If you think something is too good to be true it is.

Putting a lot of hard work into something that has no future and no money, is not going to help you.

If EVERYBODY is doing a certain technique (eBay Amazon arbitrage, etc.) GET A REFUND AS SOON AS POSSIBLE AND GET OUT!

If you have any doubts about getting into a new moneymaking technique online, refer to OLD RULE!