Amazon Prime Dropshippers

[holsteinatlanta]

I needed a part for an item I need to list.  An ebay seller had it for $49.99 free shipping and Amazon had it for $50 free shipping but $8 tax so I bought it from the ebay guy.  It arrived the next day in an Amazon Prime box.  How do these drop-shippers make money?  Say he bought it from Amazon and sent it to me, he still had to pay FVF, PP fes and tax.  The only thing I can think of is these guys get stolen stuff and credits from Amazon and sell merchandise with the credits.  Otherwise it makes no sense

[southern*sweet*tea]

He was probably an FBA seller. In that case, the  merchandise is his, he sends it to Amazon to warehouse and they ship it for him when he gets an order on Ebay, Amazon and whatever other venues he sells on.

That, or he's really clueless and losing a metric boatload of money.

[holsteinatlanta]

This is my buyer account so I cannot name the seller, but you can see what I bought and the  seller through my feedback.  The seller is not FBA

[chapeau-noir]

They may have run out of the item and ended up having to order it on Amazon and drop ship it to you.  That happened when I messed up on an MQ listing and ended up having to drop ship the item from the originating website (not Amazon) - I warned the buyer it would be coming in a "Her Room" package.

I'm curious about why the tax on Amazon and not here?  State tax is levied by destination.

[dare-2046]

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@holsteinatlanta wrote:

An ebay seller had it for $49.99 free shipping

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Doesn't eBay charge sales tax?

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@holsteinatlanta wrote:

Amazon had it for $50 free shipping but $8 tax

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So you have a 16% sales tax?

[membersinceaug2001]

Drop-shippers generally have names like that one, ones that sound like drop-ship to me.

[fab_finds4u]

Was there a GIFT receipt in the package?  Then they purchased it from Amazon and had it shipped to their customer and that is against policy. If the invoice did not say gift then the seller uses Amazon fulfillment.

[mam98031]

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@holsteinatlanta wrote:

This is my buyer account so I cannot name the seller, but you can see what I bought and the  seller through my feedback.  The seller is not FBA

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You can't know that for sure.  What makes you say they are not an FBA seller?  Site IDs between sites can be different.

[chapeau-noir]

I'd say the majority of the commodities I've purchased here have ended up being drop shipped from Amazon, gift receipts and all.  Here I wanted to support my own site rather than Bozos's world.  It's frustrating.

[penguins_dont_fly]

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@fab_finds4u wrote:

Was there a GIFT receipt in the package?  Then they purchased it from Amazon and had it shipped to their customer and that is against policy. If the invoice did not say gift then the seller uses Amazon fulfillment.

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This.

Any time I get something in an Amazon box with a gift receipt, I call Amazon and report it.

The gift receipt is the tell-tale.

[holsteinatlanta]

How do these guys make money is the real question?

[chl_at]

Happened to me too! I bought a Rubik’s Cube on eBay for 7 dollar, the original price was 8 dollar on Amazon, but there can be may cases how the seller earns money, once happen to me that the seller got a free Amazon gift card so he bought the item and sold it. ( I was also confused how he earned money so I ask him, and that’s when he told me about the gift card story ) but there is many other way that they can earn money like that.

[chl_at]

or may be he was the one who own the item, so he was the one who was selling on eBay and Amazon

[dk0]

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@chapeau-noir wrote:

I'm curious about why the tax on Amazon and not here?  State tax is levied by destination.

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eBay is collecting sales tax for 30 something states, but I believe that several years ago (before the court case was decided), Amazon agreed to collect sales tax for sales to all states (at least those that have a sales tax).

[mam98031]

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@dk0 wrote:

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@chapeau-noir wrote:

I'm curious about why the tax on Amazon and not here?  State tax is levied by destination.

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eBay is collecting sales tax for 30 something states, but I believe that several years ago (before the court case was decided), Amazon agreed to collect sales tax for sales to all states (at least those that have a sales tax).

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@dk0 

No, that isn't how that happened.  Amazon had to collect sales tax in any state they had a business nexus.  So a warehouse or offices, didn't matter.  If they had a business presence in the state they needed to collect sales tax for that state.