Introduction
If you follow this instruction to the word, engage with the community to actively improve and scale your business and keep us apprised of any issues you face, I can almost guarantee you will be making a profit upwards of $3000/month within 6 months. And that’s when we get into the really lucrative models like rebranding, warehousing and turnkey brand name stores. But you gotta learn to walk safely before you run. That’s why we’ll focus on Amazon-eBay dropshipping.
Definition of Dropshipping
It is the age-old model of “buy low, sell high” applied with a twist. Here you don’t keep the item in stock, but instead forward orders to manufacturers or retailers who will ship the items for you.
Benefits of this method are obvious:
- Nil capital requirement. You could of course speed up things with a little out of pocket expense in a few ways but it’s not a requirement.
- You avoid the hassle of warehousing, packaging and shipping.
- Less risk. It’ll never happen that your investments are stuck in goods you can’t move.
- Wide selection of products that you can sell since there is no infrastructure requirement.
It’s not all sunshine and rainbows though. There are quite a few problems that you need to contend with:
- Account Limits: All new sellers will have to face this roadblock. To eBay, a new seller is just a liability and to minimise any risk to the buyer, your account will have initial limits (Both with receiving funds and selling limits)
- Tight margins: Tight margins are an understatement. Since anyone can start dropshipping, the competition can be fierce, especially with retail arbitrage. Some ways to avoid this are to use different suppliers or wholesale sources.
- You still have to manage a virtual inventory: You must keep your store updated at all times not only so you remain competitive but also to avoid bad sales (Say the source went dry or there’s a price increase. All sellers take appropriate action but you. Guess what, all the orders flood to your now suddenly attractive offer and you are stuck with loss making trades or worse, that you can’t fulfill at all.)
- Dropship.place innovative software can effectively keep track of your inventory and pricing.
- Shipping reliability: Since it’s out of your hand, it’s also difficult to control if/when something goes wrong. The supplier delivers to a wrong address and you are on the hook with the customer.
- The competition: Your items will be up against stores that are doing very well for themselves (upwards of 10K sales/day). This doesn’t necessarily translate into conflict-like-competition but you need the technological edge to survive and prosper.
Model has been tested and is still around after years with a thriving ecosystem that has whales raking in millions yearly and thousands of small fishes taking their baby steps. The model is not going anywhere, and it’s up to you to carve out your niche and do the work.
Amazon-eBay dropshipping
This is pretty much the easiest setup to get into dropshipping. To start, even with the high fees eBay does a fine job of getting people to site. Think of it as marketing budget. The combination of price and shipping speed and reliability that Amazon provides is hard to beat.
The model is pretty simple. You find Amazon items that are selling well on eBay with a favourable price difference. List the items and with each sale, place an order on Amazon using the funds you received and ship it to the buyer’s address as gift (so that packaging is discreet).
It’s not all ice-creams and sundaes though. Popular items frequently go out of stock or change prices. You need to keep your eBay store updated. And always submit the shipment tracking number on eBay to protect yourself from the occasional troublesome buyer. Ship the items promptly and be polite and you’ll never have a problem with the buyers.
Also understand that neither eBay nor Amazon like you piggybacking on their infrastructure. To avoid issues it’s very much recommended that you follow all the necessary guidelines of both platforms, as much as possible. Obviously doing retail arbitrage will never mean you will be able to adhere to the rules 100% so here are some important tips. Fast shipping is ultra important so using amazon prime is ideal, however Amazon is known to limit prime accounts who keep shipping to different addresses. To combat this, it would be a good idea to create multiple amazon accounts and use them in rotation when purchasing and sending items. You may also choose to use their super saver shipping.
Checklist for eBay-Amazon dropshipping
➔ Get the overnight riches out of your head. If you are in urgent need of cash, this won’t solve your immediate problem. It takes months to nurture your dropshipping business. As a dropshipping veteran once told me, “Minimal effort is not what the game is about”.
➔ Paralysis by analysis. There’s a lot of things you need to do right to be successful in this game. We’ll cover the basics in this guide, but expect a few surprises during your journey. And don’t let the competition faze you. Instead, turn them into your research assets. Dropshippers come and go.
The model has been around for years. You’re not going in to capture a market but to carve out your slice in it. And always remember, you’re part of a community of newbie and veteran dropshippers who are in the same boat as you.
➔ Start off with low risk items. Low risk as in there’s very little chance of the customer being dissatisfied with the item itself. Following examples should give you a general idea:
Low risk: toolboxes, toys and novelty items, stationary, appliances and utensils, home-gardening equipment, hand-made artisanal crafts. Medium risk: Apparels and accessories, facial creams and makeup, jewelry, furniture, power tools, computer accessories.
High risk: Luxury goods in almost all categories, electronics, collectibles
➔ Buy an eBay store subscription. The listing fee you save itself make it worth it in purely mathematical terms. You also get to send customized emails to buyers and gently remind them down the line to leave you a feedback. Very handy. Once your store grows, consider buying an anchor store, it provides many benefits, most notable of them being protection against copyright and VERO
➔ Put some effort into building up the eBay store. Take a few minutes to design a nice banner on https://www.canva.com/. And add a nice profile pic (hint: google:“clipart”). If you want something more personalised you can head to https://www.fiverr.com/ where you can get great design done for as little as $5
➔ Get to gold star (10+ feedback) instantly. Buy 10 $1 items from some large stores (It’s likely they have an auto-feedback system, if not message them politely to leave you feedback). eBay combines buyer and seller feedback so you can easily get to gold star in $10 without selling any items. It’s a good way to kickstart your account rather than starting at 0 feedback and no star.
➔ Setup customized emails. Example:
“Hi {BUYERUSERNAME},
Thank you for your custom. We are processing your order and will soon ship out the item to you. We are doing our best to provide you the best shopping experience, so please don’t hesitate to contact us if you have any concerns or questions. We’ll update the shipment tracking in 24-48 hours.
Let us know our performance is top-notch by sending us positive feedback. We look forward to doing business with you in the future and hope to see you again.
Cheers,
<YOUR STORE NAME>”
Also add messages updating them when you submit tracking info, one kindly reminding them to leave you a feedback. A common theme in all messages should be “Please don’t hesitate to contact us” and “Please leave us feedback”.
➔ Multiple accounts: You should kick off with a single account and add more as you get the hang of it all. Also read the chapter: How to create stealth accounts. If you already sell on eBay using other methods, it can sometimes give you a head start by avoiding the 21 day holds. In the other hand, you’ll notice a significant jump in search rankings and sales when you get to “Turquoise star” (100 to 499 ratings). Plan accordingly.
➔ Aspkin.com/forums is a great place for information on stealth accounts, paypal issues and other e-com related information.
➔ Pace yourself: A good rule of thumb when you’re just starting out is to post no more than 5 items a day. This is mainly to avoid hitting selling limits or eBay pacing you by force. But also, if you spend some time doing research now, you’ll be better able to identify the hot products later. Oh and you also do NOT want to be stuck in a position where you can no longer fulfill orders because all your cash is stuck in PayPal’s 21 day hold. Really, pace yourself. By the time you get your first “Turquoise star” you will have a good handle on the system and a good cash flow. Then start creating more accounts at your own pace. You can grow these accounts faster by supporting them with the cash flow from the first account. After 90 days the 21 day holds should fall off and you can really scale this business up.
➔ You will generally be posting “Fixed-price listings” on eBay. It’s a good idea to post them as “GTC” otherwise you’ll be paying relisting fee every month. Pro tip: Set the quantity available to 1. By putting up more, you tend to get more “watchers” on the item. When it’s just 1 item for sale most would-be watchers just buy instead.
➔ Handling refunds and returns. You will have to deal with this occasionally. Make sure your seller policy states that buyer pays for returns and maybe add a small restocking fee to discourage frivolous returns. Whatever the reason, it’s better to go through the return rather than argue with the buyer. Make you sure you keep the communication channels open so you get the opportunity to cancel the order instead of them filing a chargeback. When cancelling orders, make sure to select “Buyer requested cancellation” or it counts as a negative feedback on your store. Then just return it to Amazon with some valid made-up reason and you’re good to go.
➔ Be prepared for chargebacks. A chargeback occurs when a customer calls their bank/credit card company or PayPal and disputes a charge on their account. Chargebacks happen with online sales and we’ve seen it for just about everything. Your customer could be unhappy with the product, forgot they bought it and are now disputing it, didn’t recognize your business’ name on their checking account and are disputing it, or it could simply be fraud. To avoid this, submit your shipment tracking info to eBay and be prompt in replying when an issue is raised.
➔ Don’t use your personal account for Amazon purchases. It’ll get blocked very soon. Always start with a new stealth account every time. Sign up for 1 month Prime trial and move on before it ends.
➔ Raising your selling limits. You can call ebay to raise your selling limits about once every 30 days. Click here to contact eBay. Don’t be fazed by the prospect of a phone call. It’s a routine process, they approve thousands everyday. You want to sound like you know what you’re doing. You can mention that you’re being trained by a power seller so you have the selling selling process down and now want to scale up (it really shows your commitment). Answer politely and confidently and they won’t dig further than the main 3 questions in most cases:
Question “What kind of items do you sell on eBay?”
Answer “I sell a variety of goods <insert 2-3 of your primary categories>”. That’s it.
Question: “Please walk us through your business model” or “From where do you source your items?”
Answer: eBay is aware of dropshipping model. While they don’t exactly encourage dropshippers, if you stand by your listings and provide good service to buyers, you can be upfront and tell them you source from Amazon.
Question: “Why do you want/need higher selling limits?”
Answer:“I really like how easy it is to sell on eBay. At the moment I’m devoting 1-2 hours daily but I can easily do 3-4 hours. Selling limits is the only thing holding me back at the moment.”
➔ 21-day hold. This is probably the most annoying part, and is often unavoidable until you wait a good 2 to 3 months (have at least 20 feedback and have $2500+ worth of sales under your belt but that’s achievable fairly quickly). What this means is though the money is in your PayPal account, you can’t withdraw or spend it. So that means spending out of your own pocket to buy the sales while you wait for the funds to be released. However if you aren't doing any scamming you will always get your money along with your profits after 21 days without hassle. Just make sure to keep evidence of every item you sell to anyone. The holds fall off after 90 days.
➔ Use Amazon Prime: If you are starting out, stick with “Amazon Prime” offers. Their fast and reliable shipping will help you accrue feedback.
➔ Be prepared for an occasional eagle-eyed customer. If you ever get a message from a customer asking why their invoice is from Amazon, you can tell them “We use Amazon FBA (their fulfillment center) for all our wholesale packaging and shipping needs”.
➔ Pay your taxes. Usually your money transfer goes like this:
Paypal accounts linked to eBay accounts >>(for good/services)>> Another fake account(s) >>(personal payment)>> Real account
All this hiding around is for the benefit of eBay and Amazon. The most they’ll ever do is block your accounts. Don’t try to pull shit with your tax department. Keep a spreadsheet of all your sales (buying price, selling price, transaction Ids, fees, shipping codes). Declare the incoming funds on your real account and pay taxes on it.
Creating stealth accounts
We’re finally getting to the good stuff. All the stealth accounts have a common process.
- Buy a private proxy. Each set of accounts get a private proxy and you always, always use that proxy to login (even for example when logging into eBay for authorizing any tool to make changes to your account). Pro tip: Create browser profiles for each set of accounts. Save both proxies and logins in each profile and you can now access all accounts reliably without hassle.
- Visit https://tracemyip.org through the proxy you just bought and note down the location. Find an address around the location. (hint: “google:pizza <town name>”)
- Sign up
- Get a free number for texting and calling through an app, like https://textplus.com or https://textnow.com .
- Verify using a VCC (You can get one at https://entropay.com, https://greendot.com. Pretty much any prepaid credit/debit card will do).
A proxy is especially needed in countries where PayPal doesn’t operate or operates under restrictions (like India). It’s a good idea to save all the account data in spreadsheets.
VPN from 24vc is also a great choice for US IP address
Common Factors
eBay and paypal have undeniably, complex systems of tracking you. It applies to everyone and it's just a procedure to prevent criminals from exploiting the system. The common factors are as follows. IP address, CC information, email address, Website URL (if you have one), Cookies (linked to your PayPal), Flash cookies, eBay accounts, first and last name, address, “email beacons” (which is still being debated about), country, SSN, EIN/Tax number and lastly ID.
This is just to point out how carefully everything needs to be done when creating and maintaining new accounts. Using a Virtual Machine you can keep all accounts separate with their own IPs, cookies, and passwords.
With a virtual machine and the method we laid out to create the accounts, eBay should have a very hard time linking any of your accounts together.
PayPal & eBay
This will work for everyone regardless of location. PayPal and eBay accounts are closely linked, so you want a PayPal account for each eBay account that you open (usually it’s going to have to be the same email). For international users, its advisable to either have an additional stealth account or a personal one which is connected to your local bank/card to which you will receive money from your stealth accounts. Alternatively, you can create or buy cheap disposable vcc’s to dispose the money too. *WARNING* in order to avoid any problems, it’s advisable to send the money to your paypal as either the “friends or family” or “pay for goods or services” WITHOUT including your main address your stealth paypal is associated with.. Make sure to always use a Canadian proxy or a VPN and address. PayPal doesn’t require your SIN (equivalent to SSN, EIN, PAN) in Canada (it’s illegal). The most they’ll ask for is an id which is easy to fake. US/CA VCC will be required.
Note for US Paypal: In order to use a US paypal you will need a bank account to withdraw to. If creating lots of accounts make sure to not create more than 3 bank accounts a month. The United States has Chex Systems which keep track of all banking activity. Opening too many accounts too fast can trigger warnings on your Chex System’s report.
Amazon
Get a local phone number, proxy and VCC for the country in which you plan to sign up. Sign up for free Prime trial using the VCC. Create a new account with new email before the trial is up.
Making payment
The best way to pay for amazon purchases is with gift cards. There are solutions online like piranha.zinc.io to buy with paypal or if you live in the US you can buy these cards at stores with credit cards for cash back. This can greatly increase your profit margins.
Using Dropship.Place
OK, now that everybody is on the same page regarding the model, let’s take a look at how we’re going to operate.
Product research: part 1
What’s the easiest way to find results? Why, copy them, naturally. We’re gonna piggyback on the research of dropshippers who are doing well for themselves, undercut them where they are weak and carve out own marketplace. Brutal, eh? Here’s how.
Go to the search page. Enter a random keyword and category as shown and hit scrape
Now the tool is going to find some possible dropshippers using the input. Sellers with > 1 hits are pretty safe bets to be a dropshipper.
Now select a dropshipper with feedback at least 100 (better chance they know what they’re doing) and less than 100K (don’t start out competing with a whale), click on “Browse Store” and you’ll see a sample of the seller’s listings. Now you need to make a call if most of these items might be found on Amazon as well (hand made artisanal stuff for ex. would probably not be available on Amazon). One you’ve found your mark, declare wa.. ahem.. start scraping. The scraper will now look for each of this sucker’s item on Amazon. You should see something like this. The tool has >95% match rate and we’re constantly updating our algorithms. In case it pops out a wrong match, click on “x matches” to see if the correct match is in there.
You can shortlist ASINs by clicking on the little star button next to them. To start, you want to shortlist all items that have >25% margin.
Rinse and repeat till you have at least 10x the number of items you want to post today. Scrape at least 5 different sellers to add variety and avoid bias. Now put these ASINs through part 3 of product research.
Product research: part 2
You can do your own research as well instead of piggybacking on others. Although you really shouldn’t be doing that unless you know what you’re doing. Start gathering ASINs by entering a URL or a category/keyword combo or simply paste text/html containing ASINs and proceed to part 3.
Product research: part 3
Now that you have the ASINs from part 1 or 2, time to extract the cream of the crop. Paste the ASINs in analyzer and click “Analyze”. You should be able to see the best offer on eBay for each asin. This is important as most of the sales obviously go to the best offer. Un-shortlist the ones that show less than 25% margin, we’re panning for gold here. Also check the number of sales.
So now you have a handful of well researched hot products that you are able to undercut. Rinse and repeat till you have enough ASINs for the day, then onto next step, listing.
Listing ASINs
Before we proceed, make sure you’ve opted into ebay business policies and created one of each policy type “Payments”, “Shipping”, “Return”. In “Shipping” profile if you’re only dealing with Prime offers as you should, select a 2 day expedited shipping service, so your listing shows “Fast shipping” in search results. Definitely helps with sales. Also, 1-day handling time is pretty much a requirement for “Power Seller” status.
Also make sure you’ve added the required settings
Offer selection: Stick with “Prime only” if you’re just starting out. “Free shipping” offers wider selection of products but carries a greater risk of late delivery with it Shipping deadline: You generally want to set this to 2 or 3 days, unless you deal in imported items and have communicated as such to the buyer. You definitely don’t want to mix Prime shipping with a large shipping deadline.
Default stock: Keep it at one as we discussed earlier.
Fees and Margins: Self explanatory. Currency specific values must be set in all currencies in which you plan to operate.
Margin vs Min margin: If the total margin calculated using Margin % and Margin flat is less than what Min margin., Min. margin will be used in calculating eBay price instead.
Finally, now we can list the ASINs here. Paste them in and click “Proceed”. The browser extension will now open a new tab and navigate to each ASINs product’s detail page and then send the HD images and some item attributes back to the tool. Finally you should see something like this.
Now the most important part is title. Amazon title is sometimes longer than 80 characters allowed on eBay so you’ll need to fix such cases. For other items, stuff the remaining title length with useful keywords. Think of what you will enter in the search box if you were looking for something similar. Take your time, it pays off.
Once your are satisfied with the title, look for any item with a problem (shown in red background). Could be missing margins for the currency or that an item attribute could not be prefilled. Click on the cross button to fill missing attributes.
Fix the remaining issues and click on “Post Listings” and we’re done. Congrats, you’re listings are live. Now we wait for the sales to roll in.
Repricing
The tool will perform hourly runs to update the price of your listings based on your margin and offer selection settings. If you have already existing listings in eBay from some other lister and you want to check if the tool has picked up their ASIN, go to live listings page and check if any items have an empty ASIN column. For missing ASINs you need to upload a csv like this.
Note on Optimisation
eBay has a complex search algorithm based on a few key factors which determine product rankings. For most sellers 80% of the sales are earned by 20% of the listings, therefore it pays to identify your top performers and optimize them further. And it's important to generally rank as high as possible for your products to be exposed to the majority of the buyers. Below are some ways to improve search rankings:
➔ Title: the title is arguably one of the most important ranking factors because eBay still heavily relies on its search algorithm. It’s an extra step your competition would not be doing and it's wise to spend a few minutes to make sure the title is optimised. To do this, go to http://title-builder.com/title-builder/, enter your products title e.g “red dr dre beats” and the title builder will pull up a list of the most searched keywords. Now all you have to do is pick out the best keywords and try to form a coherent title. If I titled my item “Red Dr Dre Beats”, it wouldn’t get very well but if I titled my item “NEW Beats by Dr. Dre STUDIO 2.0 Over-Ear Wired Headphone - Red” it would rank to page one. All you need to do is simply put the best keywords together and voila.
➔ Description: eBay likes to see good and formated description. There isn’t really a hard rule of thumb but try to make your descriptions formated, full of relevant keywords and error free if possible.
➔ Picture optimisation: a little while ago, eBay introduced a new image policy and in doing so, has also introduced their keyword based algorithm into images. Now eBay does not read the text within images, however it does pay attention to the filename so the best practice would be to use your product images that have been renamed with dashes, then uploaded onto your listing. A good example would be “dr-dre-beats-red.jpeg”. Make sure to have at around 3 keywords if possible.
If you take these 3 points into consideration, you stand a much better chance of getting more sales. Most people skip this step, but it's crucial if you want to rank and get sales fast.
Order Processing
Awesome, now you’ve got some orders coming in. Go to order processing. (The system we have currently running is semi-automatic. We’ll implement a fully automatic system in one form or another very soon)
Select the date range and click “Go”. You should see a list of pending orders. Enter when you last ordered to mark any that are older than that. Check the ones you are ready to process. Note down the sales record number and click on “Prepare Cart”.
Now the browser extension will take over. Avoid interacting during this to avoid unexpected results, except for when it asks to login on Amazon.
The tool will the following actions in order
- Clear old cart
- Add new items to cart
- Clear all old addresses except your primary address. (Use your primary address as the billing address)
- Add new addresses
- Select the correct address against each item. In case it missed any it will show an alert and mark the rows with red background.
Check the order and make the payment. Go back to order processing and mark the orders you just processed “Paid and Shipped”.
These orders now move to the second tab “Submit tracking info”.
Now we wait for Amazon to ship items. Once they do, go back to order processing and open the second tab “Submit tracking info”. Here, enter the number of Amazon shipment you want to trace then click “Trace shipments”. The browser extension will extract the shipment tracking infos and send it back to the tool. The tool matches each shipment to orders awaiting shipping info. You can manually match any that it missed, and then click on submit tracking.
That’s all there is to it, you’ve completed the sale and earned your profit. Process orders daily and be prompt in replying to buyer queries and you’ll go a long way with dropshipping.
Conclusion
Dropshipping is a proven way to make money with low overhead, paved with fierce competition and lost souls along the way. You won’t be able to quit that job tomorrow and it most definitely won’t make you rich overnight. But in the mid-long term, this is an excellent and reliable cash cow that grows as you nurture it. You should start with putting in at least 1-2 hours everyday researching and listing products, reading up on the subject matter and interacting with the community. Once you get a hang of the system, we’ll start getting into other markets like Aliexpress, Walmart, Etsy and more lucrative models, but that’s a story for another day.
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