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Using Amazon to Drop Ship Ebay Auction Sales
Ed Kohler
Ebay is a great place to find deals, but it's important to remember that what you've really won the right to pay more than anyone else for the auction. And this is not always a good deal. For example, back on December 19th , I picked up a Belkin Pre-N Router from Amazon.com for my in-laws to replace the one my brother in law took when he finally moved out of the house. Before I had a chance to install it, my in-laws cancelled their home internet connection (the motivation for this post). Since the no longer needed the yet-to-be-installed router, I decided to sell in on Ebay. And sell it did. In fact, it sold for more on Ebay than it currently sells for on Amazon with shipping!

After shipping that one to the "lucky" winner, I remembered that Ebay has a second chance offer feature that lets me send emails to losing bidders asking them if they're interested in buying the product at their losing bid price. Second chances are a great way to move multiples because you only need to create one auction. I haven't tested this, but I imagine the competition and pricing would go higher if you listed one of something rather than listing two simultaneous auctions for the same product. Anyone know for sure?

I only had one router, so how could I make a second chance offers to losing bidders? By drop shipping additional Pre-N routers from Amazon! In fact, that's exactly what happened.

It's not every day that I use a retail web site as a drop shipper for an online auction.

So, what will happen when they receive their new routers from Amazon? Will they be impressed by the 2-day shipping? Or will they have a sour taste in their mouth when they see what I paid for their router on the packing slip? They didn't pay a penny more than they were comfortable paying at the time. However, knowing they could have gotten a better deal had they simply not gotten into a bidding war may lead to buyer's remorse.



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Comments

1. Posted by: Ryan on January 20, 2006 5:09 AM:

This sounds like a pretty good idea and I would have to say that an in demand item listed once would definately sell for more than a multiple listing. Thanks for the good info. If your interested in finding some more ways to find deals to sell on eBay you should check this out. This is a system that shows you how to find misspelled listings on eBay and other big auction sites. There are thousands of items that are being listed misspelled all the time. The best part is you can get these for a great price because most people are only searching for the proper spellings of what they want. I have personally bought a few items that resold for 300% or more. Heres the link so you can see for yourself if interested.

http://www.ebayprofits.12webdesigns.com




2. Posted by: Ed Kohler on January 20, 2006 1:39 PM:

Thanks for sharing, Ryan. I imagine Ebay will eventually correct for typos, since not doing so is costing them $$$.

How is your paid service different from free services like this one:
http://www.auction-typos.com/

Could someone also create saved searches on Ebay for typo lists they created on auction-typos.com?




3. Posted by: Mirko Slavanch on February 2, 2006 10:37 PM:

The best product out there is

http://auctionbloopers.com.

I have used it a lot and it works. I heard about it on the Klipsch forums.




4. Posted by: reverse auction on December 2, 2006 8:17 PM:

This is a phenomenal idea. I love it and it could be very useful for my future sales. Thanks.




5. Posted by: Senthil on December 6, 2006 10:30 AM:

Yeah, Kind of interesting scenario. It makes business sense. Purchasing it, Drop shipping from amazon is nothing wromg. But customer will be disappointed for being a fool




6. Posted by: onesimpleman on April 12, 2007 8:20 AM:

THis is the best I have come across, they have related search as well as typo search ..
If you search for something , it will come up with all the related terms as wells as typos. No other service do this.
www.Classfeed.com




7. Posted by: online auctions on June 11, 2007 9:12 PM:

I love this idea, its the part I hate to do most when selling on auction sites. Thanks for the tip!




8. Posted by: reverse auction on August 5, 2007 8:15 PM:

This idea has truly become a cost saver for me. I have utilized this as a result of reading this article with much success.




9. Posted by: localdude on February 28, 2008 6:43 PM:

Wow, what a brilliant idea. There are many resource out there making this actually not hard to do.




10. Posted by: localdude on February 28, 2008 7:05 PM:

Sorry, www.equidation.com is the site that has both eBay and Amazon prices. It really makes things easy.




11. Posted by: Inman on March 3, 2008 7:39 AM:

Thats great. But will Amazon or eBay ban you when they come to know about this?




12. Posted by: Ed Kohler on March 3, 2008 9:11 AM:

Inman, this doesn't violate the terms of service of either organization. Amazon's sets their price. Ebay's buyers set their own. Everyone's happy.




13. Posted by: Chad on March 18, 2008 12:42 AM:

We've been using Amazon as a source for a little more than a year and we've done VERY well with a medium size store (4000 items listed).

Amazon has recently set up dropshipping as part of the business scheme. Just go to Amazon Dropshipping to find out more.




14. Posted by: Sam Z on October 20, 2008 3:26 PM:

This may not be a good idea especially if you understand what "second chance offer" really means. When a buyer places a bid, the bid is the HIGHEST price he is willing to offer. This is not the best price he wishes for. The best price he wishes for is probably much lower. If he has to pay this price, he would probably call it a fair deal. And when you offer him a second chance, you are trying to sell him at his bottom line (or should I say top line?). Now imagine he takes your offer then finds out he could have got it cheaper at Amazon, what do you think he would feel?

Sometimes I place a bid at higher than I want, if I am reasonably sure someone else will outbid me, just to let that guy pay more. And you bet I will not accept a second chance offer for this auction.




15. Posted by: Ed Kohler on October 20, 2008 4:58 PM:

Sam Z, people only end up paying what they've contractually said they're willing to pay. Of course people would like to pay less than they're max bid given a choice. However, if they lose an auction and are offered the item at their max bid (2nd chance) they often take the offer. To them they're still getting a good deal compared to the person who won the original auction.

Some may feel duped for realizing they could have paid less on Amazon, but they've chosen to pay what they're willing to pay, which is not the same as choosing to pay the cheapest available price on the Internet.

Personally, I can't understand why you'd be willing to chance winning something for more than you're willing to pay. Why hurt other buyers? It seems like a lose-lose-win-win where you could lose, the buyer loses, the seller wins, and Ebay wins.




16. Posted by: Jay on October 21, 2008 2:18 AM:

The Prime Terms and Conditions forbids use of Prime accounts for business purposes http://www.amazon.com/gp/prime/prime-terms.html/ref=prm_mg_tnc?ie=UTF8&planID=B0007IJXTE

"Amazon Prime is not available for corporate accounts or for customers who purchase products for business or institutional use or for the purpose of resale."




17. Posted by: JR on February 15, 2010 3:09 AM:

That's only one of the hard life lessons learned at ebay. Most people go there for rock bottom prices but many end up paying more for an item than they would have at most any other online shopping website.

Bricktown Bargains




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