mam98031 • Volunteer Community Member • Buyer/Seller since 1999
albertabrightalberta
@redmodelt wrote:Amazon drop shipping is allowed. What is not allowed is selling an item from Amazon that the seller does not own, then buying it from same and using Prime to ship for free as a gift.
People do use Amazon warehouses to store their merchandise that the seller owns, then Amazon ships it for them.
Correct. I would just add while it isn't a violation to use Prime to ship an Ebay order to a buyer, it is an Amazon violation. But then that is for Amazon to sort out.
For clarity, what is against the rules is to sell something on Ebay that you then have to purchase from some other seller, here, Amazon or elsewhere and then have that seller ship to your buyer. That is retail arbitration that is not allowed.
@robbie31415 wrote:Did you notice I said "dropshipping". I think it's pretty telling what the implication was. But if it went over your head I don't know what to tell you.
Often times on the threads posters refer to shipping items purchased on Ebay from Amazon as dropshipping. That is not necessarily true. You just needed to explain your statement a little more. It was just too brief, so @redmodelt just clarified it a bit.
There are lots of sellers on Ebay that sell on other sites too. Some of those sellers sell on Amazon. And some of those sellers use Amazon FBA program to store and ship their inventory for them. The seller owns the inventory and just pays Amazon to store and ship it. This is not dropshipping from Amazon.
With that said, I doubt that is what the OP was doing and likely what got them into trouble.
@a_c_green wrote:
@mam98031 wrote:
For clarity, what is against the rules is to sell something on Ebay that you then have to purchase from some other seller, here, Amazon or elsewhere and then have that seller ship to your buyer. That is retail arbitration that is not allowed.That would be retail arbitrage...
Yes I agree, see above. Sorry for the typo. LOL
@robbie31415 wrote:I'm sorry, if it wasn't clear I don't know what to tell you.
Go on youtube and put in amazon dropshipping ebay.
You are going to get videos of retail arbitrage.
Most people know that 'amazon dropshipping' is retail arbitrage and not actual dropshipping.
You are correct, sometimes it is retail arbitrage if the seller is NOT shipping their stock that they own. But if they are paying Amazon to ship stock they own and have housed at Amazon it is NOT retail arbitrage because the seller is NOT purchasing the stock from another seller, which is required to be retail arbitrage.
JMHO, but I think the fine line between dropshipping/retail arbitrage and FBA is so close that I wouldn't even consider selling I don't have in my possession!
If experienced buyers and sellers sometimes struggle to tell the difference and we know that ebay bots aren't as knowledgeable as many members are, you know mistakes will be made - in both directions!
@albertabrightalberta wrote:JMHO, but I think the fine line between dropshipping/retail arbitrage and FBA is so close that I wouldn't even consider selling I don't have in my possession!
If experienced buyers and sellers sometimes struggle to tell the difference and we know that ebay bots aren't as knowledgeable as many members are, you know mistakes will be made - in both directions!
Interesting. What does having the product in your possession have to do with the determination if it is dropshipping or retail arbitrage?
Is it just because the inventory is held by Amazon that makes this determination even though the seller owns the product. The seller pays Amazon to stock and ship their product. What if it wasn't held at Amazon, what if the seller used another business that will store their inventory and ship it out as directed by the seller. The seller still owns the inventory and they pay the warehouse for their services. They are NOT purchasing their own stock RETAIL. They own what is in the warehouse to be shipped as directed.
