eBay to Amazon Dropshipping – The Complete Guide

Is dropshipping from eBay to Amazon a genius idea, or is it a risky move?

eBay dropshipping is a hot topic, especially among online sellers wanting to make money with the drop shipping business model. I am not surprised why Amazon and eBay sellers want to jump into the bandwagon given that it requires very low capital and no inventory.

We’ve already covered the Amazon to eBay dropshipping route with this handy guide. Now, I will walk you through the less popular route: eBay to Amazon dropshipping.

As someone who has several years of experience with eBay dropshipping, I created this guide to answer the questions you have about this process, especially if you’re a beginner in the eBay dropshipping business. I have created several other helpful guides on the dropshipping business model, so I recommend you read through them before exploring this topic.

It’s crucial that you possess the foundational knowledge about the dropshipping business to succeed.

Use this guide as part of your Amazon and eBay dropshipping journey. Keep reading to find out how Amazon sellers successfully makes money online with dropshipping products from eBay to Amazon.

Key Takeaways

• Read and understand Amazon’s policies on dropshipping before you sell products, and stick to those policies.
• Use dropshipping software and product research tools to save time finding profitable products to dropship on Amazon.
• Follow the best practices to avoid account suspension and violating Amazon’s policies.

WATCH: How I flip products from eBay to Amazon

Is Dropshipping on Amazon Allowed?

While not explicitly illegal (Not legal advice, do your own research to check the laws in your specific regions), there are strict rules and guidelines online sellers must follow and adhere to avoid account suspension on the ecommerce platform. Navigating these specific challenges of managing the operational dynamics and differences on both platforms is crucial.

In the following sections, I will discuss how to do eBay to Amazon dropshipping the right way to avoid being suspended or violating any policies on both platforms.

eBay and Amazon have unique policies on dropshipping, especially Amazon. To comply with its business policies, you must meet the specific branding, product quality, packaging, invoicing, and shipping guidelines.

To avoid violating the policies, always read up on the latest policies. Use them as a guide for your ecommerce business.

With Amazon, you must ensure that you – the business account owner – are the name registered on all documents. That way, the Amazon customer isn’t aware that the item is sold using the dropshipping model.

Increase Profit Margins for eBay to Amazon Dropshipping with Product Research

Do you want to unlock significant profit margins with Amazon dropshipping? Using product research tools that identify the top products to sell online in your Amazon online store is crucial.

It saves you time and effort in finding products with a good sales rank, increasing your chances of getting more online sales and maximize profit potential.

Step 1: Product Research

The secret to Amazon dropshipping success and selling eBay products to Amazon is product research. And this is where a software tool can give a significant competitive advantage.

An extensive market research tool like ZIK Analytics can provide Amazon sellers with reliable data and sales insights.

Thus, you don’t list eBay products in your Amazon online store and hope it will sell! There is data to support your choice of which product to sell online.

Upon logging into ZIK Analytics, you will find the top trending and hot niches on the dashboard. Right away, you can use this data to narrow your options on which products to sell, knowing what niches are highest in demand.

From this list, focus on niches with high sales volume. You can explore these niches further using the ZIK Analytics tool to identify the top products in that niche.

In addition, check out the feedback scores of eBay sellers to help you pick out the best potential dropshipping suppliers for your Amazon store. Why is the feedback score important?

A high feedback score reflects the seller’s reliability and reputation on the eBay platform. Ideally, you must choose a local seller and refrain from international sellers like those from China.

The next step is to research the winning product you’ve shortlisted on Amazon. Once you find the exact same products on Amazon, the next thing you’ll want to do here is to come up with a pricing strategy.

Price is a good factor to consider when choosing eBay products to dropship on Amazon, and make sure there is a significant price difference between the eBay and Amazon listings. The price difference will serve as your profit margin.

Emphasis should be made on having a competitive price. You want to attract more Amazon buyers to your store by selling a product at a reasonable price, which can be lower than the competitors or offering more value to potential buyers.

The goal is to identify eBay products that are undervalued (those with cheaper prices) but are doing well on Amazon. But don’t fret – most top selling products on eBay will most likely do well on Amazon. It’s because these are the top two ecommerce platforms, and many buyers turn to these platforms when they want to buy a product online. If you properly optimize your product listings on Amazon, you can make it easier for customers to find these products.

Step 2: Creating Amazon Listing

Speaking of listings, there are a few different ways and crucial strategies to remember when you create product listings on Amazon as a dropshipper. Here is an overview of how to set up your Amazon listings.

a. List the item in the correct category.

This step is self-explanatory. You must find the appropriate category for the item since this is how your buyers will look for an item they want to buy. If your product is in the wrong category, the chances are low that they will find your product.

b. Provide accurate and detailed descriptions.

Buyers won’t be able to examine the product when you sell online. Therefore, your description provides insight into the quality and condition of the item. Make sure to accompany your product description with clear, high-quality images.

c. List competitive prices.

Again, you want to ensure you can hit your profit margin goals while staying competitive.

Step 3: Shipping

Shipping is one of the most crucial steps to become successful with Amazon dropshipping. You must follow Amazon’s guidelines on proper packaging and shipping of items once a buyer has confirmed its sale.

Use appropriate Amazon packaging materials for the product and within the timeframe specified by Amazon. When dropshipping, make sure that the invoice and the packaging labels indicate you as the seller and not your dropshipping or wholesale suppliers.

Once you have shipped the item, provide your buyer with the tracking information.

Another important reminder when you want to engage in eBay to Amazon dropshipping is to have a professional seller account. You cannot use your Amazon buyer account to list products and dropship.

Once you have a professional seller account, you must pay a monthly subscription fee (much like eBay’s store subscription levels). Thus, you can list your products in your Amazon ecommerce business or online store.

Also, you cannot use your Amazon Prime account for expedited shipping privileges. It is against Amazon’s business policies since the Prime account is intended for personal use, not for business purposes.

And since dropshipping involves selling products online through a third-party supplier, it is against the terms of services in Amazon Prime. If you use Amazon Prime to engage in dropshipping, it violates the policies and could lead to an account suspension. As such, you can also not use the Prime shipping services for dropshipping.

Step 4: Continuously Monitor Product Performance

Trends evolve, and seasons change. Therefore, you must continuously monitor the sales performance of eBay products you drop ship on Amazon. It helps you predict demand and understand seasonal impacts when deciding what products to add to your online store.

It’s crucial to use dropshipping software and tools to help you analyze market insights and sales data. With data-backed decisions, you can develop informed strategies when you sell products that sustain the success of your dropshipping ecommerce business.

How to Avoid Being Suspended on Amazon for Dropshipping

Many Amazon sellers are contemplating dropshipping as a potentially lucrative business move. If you’re scared to jump at this opportunity, don’t be. Many online sellers have successfully done so and have earned money without being suspended. In addition to reading its policies closely, you can follow these tips to avoid account suspension when dropshipping.

1. Understand Why Amazon is Strict About Dropshipping

As a dropshipper and Amazon seller, the best way to avoid account suspension is to see things from Amazon’s perspective. While they don’t prohibit this selling practice, you must know why they are very strict about how you go about with the dropshipping business.

Amazon is a big brand that wants to maintain that reputation of putting customers first. The main appeal of the Amazon ecommerce brand is its ability to deliver high-quality products quickly to customers at an affordable price.

Dropshipping addresses the affordability issue but can fail to comply with fast shipping and quality. Many sellers have struggled with suppliers with low-quality products.

Unlike Amazon, which has warehouses where it keeps the inventory and enables it to ship products to customers within two days, dropshipping works differently. The Amazon supplier isn’t notified of an order until the customer finalizes the purchase.

The dropshipping seller won’t even be able to inspect the product for quality, making it challenging to maintain a standard (unless you find trustworthy and reliable suppliers).

Amazon views dropshipping as a risky business approach. And it bears on the seller to manage that risk and maintain accountability.

2. Understand ODR and OTD

Several components of dropshipping fail to align with Amazon’s standards and business policies. Therefore, Amazon quickly suspends accounts that engage in dropshipping and commit two major violations: order defect rate (ODR) and on time delivery (OTD).

Amazon requires sellers on its platform to maintain a less than 1% order defect rate. Meanwhile, the on time delivery rate should be 97% or higher.

Now, this is the part when dropshipping from eBay to Amazon gets tricky. A third-party supplier packs the product and ships it to your customers.

Upon purchasing the items, you will pay the supplier (or when a customer orders from your dropshipping store), not after each successful delivery. Hence, there is a lack of motivation from the supplier to maintain the same level of standard and quality assurance as Amazon does because they are getting paid by you regardless.

In addition, many variables are involved when shipping the goods to your customers. It would be challenging for an Amazon seller to hit the 97% target or ensure the products are in good condition once they arrive at your customer’s address.

3. Choose your dropshipping suppliers carefully

Since your dropshipping business relies heavily on your reliable and trustworthy supplier, I suggest you spend a great deal of time finding the best ones.

Dropshipping is a profitable business model if done right. One variable that you must master is finding a supplier that can sustain your business. Your supplier must meet the following guidelines:

• The supplier must have good-quality products that meet Amazon standards.
• The supplier ships products to the customer in good condition.
• The supplier must ship products on time or properly communicate if there are any shipping issues or delays.
• The supplier must be responsive if you have concerns or feedback.

Another thing to consider is that Amazon’s policy clearly states that you must be the seller of record in all documents involved in the sale. Make this known to your supplier so they can package, label, and ship the products accordingly.

The life of your dropshipping store depends mainly on a reliable supplier. If they slip up, your business is at risk, and Amazon could suspend you. Customers who are unhappy with their order due to your supplier could easily report it to Amazon. And guess whose business is at risk? It’s yours, not the supplier, because they could easily find other sellers!

4. Monitor Amazon account metrics

Two performance metrics that can alert Amazon to review your account or potentially suspend it are order defect rate (ODR) and on-time delivery (OTD). However, there are other account metrics to monitor if you want to continue with eBay to Amazon dropshipping, such as the valid tracking rate and cancellation rate.

Amazon requires all Amazon sellers to maintain good health in their accounts if they want to keep them active. Monitor your account metrics at least weekly to identify potential trouble areas. It will be time-consuming at first, but once you know what metrics to monitor closely, it should be easier to manage.

The point here is that Amazon wants to monitor potential red flags closely. Even if you outsource the fulfillment of orders through a dropshipping supplier, you are still responsible for the customer orders and any feedback on them. Make sure you pay close attention to aspects that are beyond your immediate control.

5. Don’t use commerce or retail sites

The retail arbitrage model is another potential selling model that sellers can engage in. It is different from dropshipping, which is why Amazon has strict policies against using commerce or retail sites to source products when dropshipping. The main reason why Amazon does not allow this practice is that the seller won’t be the one on record as the seller.

Retailers must use their brand when packaging, invoicing, and shipping products. Hence, the retailer’s information, not the Amazon store owner’s, is used in the order. It creates confusion for the customer because they purchased the product from your Amazon store, and seeing a different name on the shipment can result in negative feedback or mistrust of the Amazon brand. It explains why Amazon is against this practice and why you must avoid it at all costs.

6. Maintain accountability and a positive rating

Speaking of customer experience, Amazon puts customers first. When engaged in eBay to Amazon dropshipping, the priority should be to deliver a seamless customer experience. Remember: you are outsourcing the fulfillment of orders to the supplier, but you still hold responsibility for the overall customer experience.

The customers see your brand when they place an order and receive the product; they don’t see the dropshipping supplier.

Therefore, any positive (or poor) experience on the transaction will be attributed to you. The more positive reviews you get, the better it is for your Amazon store’s performance. On the other hand, poor customer ratings can hurt your feedback score and sales potential.

Aside from choosing your supplier carefully, commit to delivering responsive and professional customer support. Make it clear to your customers who they should contact if they have any issues or concerns about their order. And when they contact you, address their concerns with urgency. That way, you can rectify any potential issues without alerting Amazon.

Final Thoughts on Dropshipping from eBay to Amazon

Dropshipping from eBay to Amazon requires a nuanced approach wherein the seller must have a broad understanding of the different policies across platforms. Although it is tricky, especially for beginners, it can be successful when done right.

I recommend that you proactively manage dropshipping products and suppliers to maintain Amazon’s commitment to quality and customer service. Also, you should closely monitor the critical metrics for your store to avoid raising red flags or prompting your customers to report your account to Amazon.

Amazon could penalise you or have your account suspended for violating its policies.

Aside from a deep understanding of Amazon and eBay dropshipping business policies, you must have a reliable tool and effective strategies to ensure success with this low risk business model. However, always consider the dynamics of online selling and be adaptable to new methods.

Balancing these elements ensures sustained success with the dropshipping business.

FAQs on Amazon eBay Dropshipping

Are eBay sellers allowed to dropship on Amazon and vice versa?

Yes. Both eBay and Amazon allow and recognize dropshipping as a legal business model, however the application of how you go about it is where it matters. You must read the eBay rules and Amazon policies on dropshipping eBay products to your customers. You should be familiar with these policies before launching your online business.

Can I dropship on eBay using Amazon?

Again, whilst dropshipping on Amazon or eBay isn’t strictly prohibited, you will run into some teething issues when you start off. This is because both platforms palce the highest importance on the user experience. Some of the issues you might run into is when buyers reach out to you because theyfind out that your product was shipped from eBay for instance. The reason this model is profitable is because sellers who are able to overcome these issues are able to scale their stores to great heights.

ZIK offcourse helps make this process more seamless as we provide you with a list of products that you can focus on scaling, ensuring that Amazon prices are lower than eBay prices for the same product. Research the same products’ listings to help determine the average sales price and list your items with competitive pricing.