Ebay Guide for New Marketers- Ultimate Guide: How to Buy on eBay and Sell on Amazon
Started as a global online auction platform, eBay is now one of the online marketplaces that help the online industry become strong in the past few years.
Given that today’s market dwells more on searching their needs online, eBay marketplace shows that they can evolve from an Auction Company to a selling website that can cater to individual sellers and small businesses.
eBay is one of the International sites that participated in website innovation which is a big factor in eCommerce growth today. Bidding and auction on the marketplace grew when eBay set online. Though there are arising platforms, eBay finds its way and adapts to the changes in the online market.
With the rising hunger for online market improvement, eCommerce giant companies step up to open their doors to buyers and sellers who see a business opportunity in online trading.
eBay and Amazon together as a marketplace
eBay and Amazon both started in the USA. They have the same goal for distribution, but they differ in their ways, logistics, and fees applied.
It is not wise to compare these online marketing platforms since they both display a friendly user web for buying and selling from the seller’s perspective.
eBay, operating for more than a decade, has studied the market and sustainability in which until now, they have been used by consumers even when new online marketplaces arose.
On the other hand, Amazon has its fulfilment methods that favour sellers’ and buyers’ satisfaction. Since online is the easiest and convenient way of trading, everything has been easier. Amazon has a competitive market for everyone and leans towards innovation.
Aside from Amazon’s website reaches worldwide, they also built warehouses that can cater inventory and shipping on behalf of the seller. This way, it gives the seller the convenience of shipping and inventory.
There are lots of ways to earn on these platforms. You can choose both and earn a lucrative amount from buying and selling process on these platforms. The process of buying and selling from one platform to another without needing the item is retail arbitrage. It is a new way to earn an income without hurting your pocket for capital.
For anyone who wants to make profits with a minimum cash out, you can learn the process of retail arbitrage. It is simply defined as buying an item at a lesser price and selling for a good price. You can start little by little until you can learn the process of it.
What is the process of retail arbitrage all about?
Retail arbitrage on eBay and Amazon is simply a dropshipping process. It is a wise way of making money with minimal investment. Business is a free enterprise. You can do whatever on your pricing as long as you can fulfil your customer’s order.
Retail Arbitrage is a new way of doing business in modern times. This is the process of looking out for products on one online market and selling them on another online platform, adding up your supplier’s retail price. If a customer places an order in your store, the supplier from another platform with the product on hand will directly ship the items to your buyer. There are many arbitrage sellers arising now and doing eBay to Amazon arbitrage when a seller copies details on eBay and posts them on Amazon at an inflated price.
Does eBay allow arbitrage selling to any platforms?
Generally, it is not illegal to do retail arbitrage but be sure to secure your taxes. There might be some risks you will be facing,
like warranty and returns because of shipping mishandle, and it does happen. In this process, a third party like eBay will serve Amazon customer’s orders on your behalf.
What you should know as a seller on Amazon who buys items on eBay
- As a seller on Amazon, you will be identified as a seller on every shipping receipt and invoice. Your buyer would not think that there is a third party involved with your transaction.
- Third-party fulfilment service will not give any details as to the origin of the purchase.
- The third-party entity will ensure a safe fulfilment of orders as what was agreed on the terms stated on your listing.
- Your third-party provider should not use your customer’s details as proof of their transaction even if they are involved in this process.
Risks you may encounter in doing arbitrage
“Under the table resellers” usually encounter a lot of problems when doing retail arbitrage. The arrangement is necessary before the manufacturer validates the warranty. The manufacturer should know that you are working as retail arbitrage, and they will be sending orders to their first-hand customer.
Better not to sell trademark products if you can sell well with generic items. If you want to sell branded items, you need to ask permission from your manufacturer if you want to upload their products on your listing. Through this, you will not put yourself at the risk of getting into a trademark infringement lawsuit.
To avoid this kind of issue, better to find a generic item that you can sell freely on Amazon. You can also find a supplier in China who produces special and personal branding items. Through selling your personalised product, you can promote your brand name and store as well.
The issue of sales tax with this business model might be a bit complicated. You need to pay for your tax as mandated.
Since you are obtaining goods from your seller, you need to pay a tax on the items sold. As a reseller of the item, you need to pay your tax since you gain income from selling an item.
As a reseller, you need to enrol as a legal reseller and get a license under your local tax department.
You also need to get a sales tax ID number to avoid penalties and interest. Get yourself a legal accountant who can help you settle these requirements.
Some sellers are not aware of taxes they should pay on states where they will extend their operation. Sellers should have to pay for their government obligation. If you are new to selling on Amazon and need help on taxes and trading, you can visit a legal office or have your accountant do the things for you.
How to do the retail arbitrage from eBay to Amazon?
There are few things that you should remember when doing retail arbitrage. You need to do intensive research about the products you think you can make a profit from. Some sellers would opt to use applications like Zik Analytics to understand the most sought items online.
Arbitrage is an efficient business model because it has been used widely, especially by home-based entrepreneurs. You can do your business in the comfort of your home with the use of your computer and the Internet.
Here are some basic steps on How to Buy on EBay and Sell on Amazon:
- Open the eBay website on one tab of your browser and open the Amazon website on the other tab. Pick a product that you want to buy and search it on eBay. Once you are done with this, tick the new item box. New products mean less hassle on returns.
- If you already found the product that you want to buy, copy the model of the item from eBay and paste it on Amazon. Try to check the prices and compare until you can find a seller who sells the product with a higher margin on pricing.
- Copy-paste details from eBay’s listing to your Amazon store, including the product specifications. You should decide on your mark-up price. Do the math from the sum of all expenses so you can come up with the selling price. You should inform your seller that you are a reseller or a drop shipper so he will have a heads up with your transaction.
- Complete your listing so your buyer will have an idea about the item you are selling.
- If there will be an order from your Amazon store, simply place an order on your supplier’s marketplace and give them the shipping information of your buyer. If payment goes through online banking and credit, you can inform your supplier to send the item to your buyer with your details as the sender.
Buy on eBay and sell on Amazon through FBA
FBA or Fulfilled by Amazon is a fulfilling model used only on Amazon. In FBA, you need to pay Amazon’s warehouse storage fee at a minimal cost, and Amazon will do the shipping and distribution process for you.
eBay to Amazon FBA is too simple to understand. Here are the steps on how it works.
- Research products on eBay and Amazon.
- Do your computation and deduct all the possible expenses on taxes and freight. The remaining amount is your profit.
- Place an order and send it to Amazon Warehouse.
- Copy and paste the details of the listing, including the photo from eBay in your Amazon store and add a mark-up price accordingly,
- If you have an order from your customers, Amazon Warehouse will take care of the shipping, including your inventory.
If you are still low on budget but wants to continue an Amazon business, you should read How to Start an Amazon FBA with Source by Alibaba and Low Budget?
Are Prime members permitted to do retail arbitrage?
Prime members are not permitted to buy any product if they plan to resale, lease or ship items to their customers using the Prime benefit.
How much will you make in buying on eBay and selling items on Amazon?
There is no exact figure as to how much you are going to earn using this fulfilment method. The amount that the seller will earn comes from the seller’s skills in doing research. If you did extensive research on eBay products, you have a bigger chance to earn big on retail arbitrage.
Is it illegal to transact arbitrage with Amazon and eBay?
It is legal to do arbitrage as long as you pay taxes and have your documents ready if your State requires you. Legal arbitrage is even encouraged in the USA.
Buying on eBay to sell on Amazon is a well-known business model called retail arbitrage. This method allows you easily launch your online store on Amazon and have the items to sell. Follow the recommendations provided in the blog to start your e-commerce business successfully.