Dropshipping from eBay to Amazon and FBA
Hey guys, I'm excited to bring you guys in early on what new venture I'm getting into. I've always heard of drop shipping from eBay to Amazon or vice versa but the reason why I've never done it is because it's time consuming, the margins are low and it's kind of a shortcut win/waste of time in the long run. But things have changed and I'm excited to start!
So why am I looking into eBay/Amazon Arbitrage now?
Because it has become a clear path to importing your own products from China and building a brand. Even though I'm doing quite well with my dropshipping stores, I don't own the brands, I'm still just a middleman. I've made over $80k in profit from my traditional dropshipping stores, but now I'm thinking long run and in the long run, I want to create my own brand.
In this post I'm going to share with you my: 5 Step Guide to dropshipping from eBay to Amazon.
Why I don't Private Label Now?
In Anton's dropshipping course, he recommends selling high priced items, which range from $200-$2,000. Often these items are large, bulky, and even with good margins, the capital to get started is still really high.
If I were to start importing and private labeling the types of products that I currently sell in my dropshipping stores, my cost price per item would be $100 - $500 and since the minimum order quantity (MOQ) and minimum stock levels you would want to have on hand if you were to start launching a brand would be 500 units, that would be an initial investment of $50,000+ which I wouldn't be comfortable risking. If I were to only order 50 units to get started, my prices would be much higher and if it went went well I would run out of stock and have to wait 6-8 weeks to get more from China.
How does eBay to Amazon FBA Arbitrage Work?
Its actually pretty basic and is something you can start right if you follow my steps below. If you follow them you can start making sales within a few days, turn a small profit and most importantly, test to see if the item is worth importing from China in mass quantities or not.
Step 1: Find a underpriced item on eBay
The reason why this product is under priced at only $1 with free international shipping. is because it only has one product image, which is ugly and has no description, brand or backstory.
Step 2: Jazz it and add perceived value
Find better quality photos, make up a brand for it, and write out a nice product description.
A man is only as useful as the tools he carries. Keep this Knifecard in your wallet at all times, just in case. Don't be caught in a situation wishing you had it. You never know when you'll need it.
Step 3: List it for sale
If you found the item on Amazon, create a nice listing for it on eBay. If you found the item on eBay, create a nice listing for it on Amazon.
You'll be surprised how little Amazon customers shop on eBay and vice versa. People become loyal and stop price shopping once they have found a website where they get comfortable ordering from. Here is an example of a similar item on Amazon selling for 8x the price on Amazon, but this one has higher perceived value.
If you really want your item to have even higher perceived value, buy the domain KnifeCards.com (which is actually avaliable), set up a simple one page website for it using Shopify and start selling on your own store off both eBay and Amazon.
Step 4: Drive traffic and Start Selling
Start with posting in existing facebook groups that are related to your niche product niche. Or use paid ads to target people in that group or like those types of pages.
Facebook allows you to only show ads to people who like pages such as PreppersWorld.com which is a survivalist website. These people are your exact target audience to buy your new Knifecard.
Step 5: Fulfill your orders with Arbitrage
Whenever someone orders your product, simply collect the money through paypal or shopify payments, and then go to eBay.com and order the product for $1 + freeshipping, and have it sent to that persons address. Make sure you tell the eBay seller that it is a "GIFT" so they don't send the invoice saying how much you paid for the item.
That's it. If you sell the item for $9.99 and bought it for .99 cents, you just made $9 profit without ever having to touch the product. Take into account the eBay fees and facebook ad cost, and you still pocket $6.
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Downsides to eBay Arbitrage:
If the above 5 Step system sounds too good to be true, well, unfortunately as with everything in life there are pros and cons. The good news is that it works. The bad news is that it is unsustainable, time consuming and it makes you rely on an eBay shipper who can run out of inventory, decide to raise their price or drop off the face of the earth.
But what is AWESOME about eBay arbitrage is that it is a quick, easy way to test if your product sells and if it does, it gives you both capital and confidence to start importing and private labeling your own products from China right away.
How did I learn all of this and what next?
I recently joined a course called The Arbitrage Magician (ArbitrageMagic.com) I have a few friends in it that do quite well and even though I know 90% of what to do, I'd rather just follow along on a course that I know works instead of potentially doing it wrong and wasting valuable time and money.
As a lot of you know, I learned how to build my first Dropshipping Store using AntonMethod.com and even though it was pretty expensive to join, it has paid me back 120x the investment the first year and is still my primary source of income today. I have literally made over $60,000 in profit from following the steps in the course over the last year which is why I am a huge fan of paying for courses that I know actually work.
So why the heck join another course?
As a lot of you know my dream is to start importing and private labeling my own products from China. I was tempted to put an order in for $7,500 worth of products as I'm pretty confident the niche I chose will sell well on Amazon FBA. But honestly, its not worth trying to figure out on your own especially if there is a step by step video course out there already.
I can't personally endorse Arbitrage Magician yet because even though I have friends who have been successful with it and liked it enough to join myself, I'm still just starting out with it. But keep in touch on this blog and I promise I'll let you guys know once I make back my initial investment from the course and give you guys the green light to start yourself.
But in the meantime here's a sneak peek of what is inside the course:
Arbitrage Magician 1.0 vs. 2.0
I honestly wasn't that interested in the 1.0 version even though it is great for testing and getting started with no capital. The entire reason why I am interested in the course now is because in the new version, Dr. Ben teaches you how to build your own brand and start importing and private labeling products from China and how to setup FBA.
The best part is all members of the first course also get access to the second course and vice versa which is super cool because if he ever comes out with a 3.0 version you'll get that as well.
What is Amazon FBA?
It stands for Fulfilled by Amazon and it is the most exciting thing for location independent entrepreneurs since free wifi. Basically, instead of dealing with inventory. You have your manufacture in China send your products directly to Amazon and they will warehouse it, pack it, and ship it out to your customers for you. They will even handle all of the customer service, returns and exchanges, meaning you can travel around Thailand or wherever else in the world you want to be while your business runs.
The best part of it is that it is 100% scalable, which means it takes the same amount of effort on your part to sell 2 items a day or 200. This is why I am excited for FBA. I personally know four people in SE Asia that have products on FBA that sell between 3 - 25 products a day and they never touch it. My goal is to go through the course with my girlfriend Larissa, test our products and make the first 20 sales manually using Arbitrage 1.0 then follow Ben's steps in 2.0 to start importing products from China and sell it through FBA.
Keep in touch on the blog and I'll let you guys know when we start crushing FBA, which I have a feeling will be very very soon. Best wishes to everyone in your own journeys, my goal is for all of my friends family and blog readers to stay up to date on what I'm currently working on and what has been proven to work so too can enjoy all of the success that I've stumbled onto this past year.
Resources mentioned in this post:
I never ended up going through with Amazon FBA or Arbitrage Magician so I can't recommend them. The course itself seemed pretty good but it just wasn't for me and wasn't the best use of my time especially since I already have dropshipping stores that are profitable.
FBA is still a great way to get into ecommerce for people starting out, but during the few weeks we spent in niche research and talking with suppliers in China, I didn't find a product that I was excited about and didn't want to just do arbitrage as that's not building a real brand. If you're just looking for a way to sell from Amazon to Ebay, it's a lot simpler, you can check out my review of David Vu's Ebay course here.
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