Ebay cracking down on dropshippers

[tunicaslot]

https://www.youtube.com/watch?v=zVhkDKSgm64

Just viewed this video and it looks like Ebay has been getting a lot of complaints about drop shipping on the venue. We may see a lot of posts in the next few days as notices started going out the last day or two. There are some in my Facebook groups who already received the notices. I do feel bad for those that have legitimate contracts with wholesalers or who have FBA accounts with Amazon. Hopefully they can provide whatever documentation is required and will be unaffected.

[slippinjimmy]

just viewed this video and it looks like Ebay has been getting a lot of complaints about drop shipping retail arbitrage on the venue.

The term "drop shipping" is almost as misused and misunderstood around here as the term "scammer".

[the*dog*ate*my*tablecloth]

I don’t watch videos but we talked about this earlier. EBay seems fine with dropshippers with agreements who can fullfill orders. What they don’t want is people using software to do retail arbitrage where they have no control over their inventory. 

Some sellers would rather make a slim margin doing arbitrage than make buyers happy.

[jennzet-0]

Retail arbitrage is a fairly simple concept. A retail store (such as Walmart, Target, etc.) sells a product (either online or in-store) for a certain price. You purchase that product and sell it for a higher price yourself and pocket the profit

I had to look it up to make sure I understood the meaning.  But how it this any different than buying it from a wholesaler or a garage sale or a thrift store.  I mean no one comes here and tries to sell at a loss.

I do not like dropshippers because I want the seller to have it in hand so he can vouch for the merchandise. But if you go to Target and buy it on sale and then bring it home and sell it for a profit - isn't that Capitalism.  Then of course it is up to the buyer to check around to see if he can buy it elsewhere for less.

[femmefan1946]

The difference is buyer perception.

On the Buyer Board there are complaints at least a couple of times a week that an eBay purchase arrived in an AZ or WM box.

And in future that eBay shopper will go directly to AZ or WM, never to darken eBay's doors again.

With thrift shop purchases, the seller has the item in hand when she lists. Same with the sales table at Target.
Retail arbitrage is selling before purchase.

Even with dropshipping, sometimes the supplier runs out of a product without informing the seller. This hurts both eBay and the seller. Mostly the seller who must bear the brunt of having to cancel and take a Defect as well as negative feedback from an angry or disappointed buyer.

[the*dog*ate*my*tablecloth]

The point of arbitrage is to use other people’s money. It comes from stock trading where people buy and sell simultaneously in two different markets without putting in any of their own money. Arbitrage requires a simultaneous sale and purchase

It is not arbitrage if you lay out your own money then sit on it until you can sell it. It is regular selling. 

[jennzet-0]

That is why I am trying to distinguish arbitrage from dropshipping.

If I can find something on sale at a retail store, I bring it home, then ship it out with my own packaging.  I would never ship directly from Target or Walmart. 

It is why when you shop at a thrift, you remove the price sticker before sending it to the buyer.

[jennzet-0]

Then are you saying the definition I used above is not correct.

[the*dog*ate*my*tablecloth]

If it doesn’t ship direct from the store it can’t be arbitrage unless maybe you can get something on store credit and sell it all before you have to pay for it.

Simply buying something and reselling it is not true arbitrage.  

[forgottenape]

---

@femmefan1946 wrote:

The difference is buyer perception.

On the Buyer Board there are complaints at least a couple of times a week that an eBay purchase arrived in an AZ or WM box.

And in future that eBay shopper will go directly to AZ or WM, never to darken eBay's doors again.

With thrift shop purchases, the seller has the item in hand when she lists. Same with the sales table at Target.
Retail arbitrage is selling before purchase.

Even with dropshipping, sometimes the supplier runs out of a product without informing the seller. This hurts both eBay and the seller. Mostly the seller who must bear the brunt of having to cancel and take a Defect as well as negative feedback from an angry or disappointed buyer.

---

happens more in the reverse ebay to amz customers

[alcoforever]

I'll believe ebay is cracking down on drop shippers right after they crack down on Chinese sellers misrepresenting their item location as USA.  Never gonna happen.

[the*dog*ate*my*tablecloth]

I know there are places out there with what most people would consider incorrect definitions of retail arbitrage. Arbitrage means something specific in the business and finance world and some marketing type people have tried to massage the meaning because it sounds sexier than simply buying and selling. 

This is all changed a few years ago when someone created scraping software to automate retail arbitrage. It sounded great so people started using it for all buying and selling.

[the*dog*ate*my*tablecloth]

BTW you can try googling the term arbitrage and see the real meaning. 

[jennzet-0]

Thank you for the clarification.

[the*dog*ate*my*tablecloth]

You’re welcome! It’s nice when my business degree is useful outside my business lol.