I first heard about Ebay Arbitrage when I got an email from Ann Sieg. She described how arbitrage worked, and said she would help me and give me “secrets” on how to make money doing it. I understood how it worked, but then I found a better way to make money online. However, in this review I am going to explain in depth how Amazon and Ebay Arbitrage works, who Ann Sieg really is, and if it is a scam.
What Is Ebay and Amazon Arbitrage?
Arbitrage means buying products low in one market, and then selling them for a higher price in another market. Taking advantage of the price differences to make a profit. On Ebay or Amazon, arbitrage involves buying popular items at a lower price on one site, and then selling them on another site for a profit.
Ebay and Amazon are huge competitors, no doubt about that. People are basically using them against each other to make money.
DS stands for “drop shipping,” meaning you sell a product, and then have it shipped directly from the wholesaler or manufacturer to the customer. Basically you are a middle man linking the customer to the product. I got an email from Ann Sieg one day, and she said she would help me be successful with Ebay arbitrage. Honestly all she gave me were links to webinars and other educational materials, so she does not help you personally but she gives you access to the education it takes to be successful. However, you have to be very committed and learn a lot about this business to really be successful.
Who Is Ann Sieg?
Ann Sieg is the author of some of the most read books on how to get new customers to come to you, she is considered one of the pioneers of attraction marketing. She actually spent a long time with MLM (Multi-Level-Marketing), attending meetings and cold calling. She started out in debt. Then she discovered how to attract prospects, and she is now a millionaire.
She has been on radio programs, media outlets, etc. and has helped educate many beginners how to overcome obstacles. She has created many success stories. I still get emails from her with information on how to improve with arbitrage. You can subscribe to her emails or download her free training. However, since I never pursued Ebay Arbitrage I don’t find it helpful, but you might. Ebay Arbitrage takes lots of work, education and dedication. It not a get rich quick scheme.
Her books include…
- The Renegade Network Marketer
- The 7 Great Lies of Network Marketing
- The Attraction Marketer’s Manifesto
How Does It Work? – Making Money With
Ebay and Amazon Arbitrage
Have you ever bought something on Ebay then received a package from Amazon? This is an example of Amazon to Ebay arbitrage. You purchase something on Ebay, which the seller purchased from Amazon. Some products on Amazon are cheaper than the same exact same products are on Ebay, and the seller just keeps the difference.
The seller does not purchase the item in advance, it is only bought by the seller once the sale has been made on Ebay. Amazon is being used as a drop shipper. You choose an item you want to sell and list it on Ebay, then copy the price from Amazon with a little extra cost added on.
After you sell the item on Ebay, you then purchase it on Amazon and ship it to the address the customer provided. The difference of your price on Ebay and the listed price on Amazon is the profit you make. However, Amazon makes millions of price changes every day, and this can be challenging to keep up with. Let me give you an example:
Here is a 24″ Roadmaster Granite Peak Boys Mountain Bike listed on Amazon for $96.90.
And here is the EXACT same bike listed on Ebay for $399.98.
This means that the person selling this on Ebay will make a profit of $303.08 if they purchase it from Amazon first. Now, usually people do not raise the price that much because it will not sell as easily. With expensive items like this it is wise to only raise the price about $50 so it will sell easier.
However, these days most products on Ebay are cheaper than they are on Amazon, which is called Ebay to Amazon arbitrage. So as a seller you would have purchase the products on Ebay and list them on Amazon at a higher price, using Ebay as your drop shipper. Here is another example:
Here is a pair of Beats Studio 2.0 Wireless Headphones listed on Ebay for $199.
And here is the EXACT same headphones listed on Amazon for $249.99.
This means the seller can purchase the headphones on Ebay and then sell them for more on Amazon, making a profit of $50.99.
Why Don’t People Buy From Amazon If It’s Cheaper? – Or Buy From Ebay If It’s Cheaper?
Most of the time people just don’t look. Checking prices on both Ebay and Amazon is not very common. Some believe Ebay has the best prices and just go directly to them, while other people believe Amazon has the best prices. Some might compare prices, but they still favor one or the other.
Another possibility is that Ebay has a Global Shipping Program that makes products available to international buyers who either cannot buy directly from Amazon, or find the shipping to be too expensive. They may know the item is cheaper on Amazon but still choose to buy it on Ebay. The seller has to arrange for the item to be shipped from Amazon to Ebay’s domestic warehouse, and lets Ebay arrange shipping to the buyer.
One final reason is if a buyer has balance in their PayPal account. They may choose to buy on Ebay because you can use PayPal to purchase products on Ebay, and you cannot use PayPal to purchase items on Amazon.
How To List Items On Ebay and Amazon
Listing on Ebay
In order to list products for sell on Ebay, you have to first create an account with them. After you have done that, you simply click wherever it says “New Listing.” Take the information from the listing on Amazon, and just copy and paste. Here are the steps it takes to create a listing…
- Create a Title: When you create a title you have to be very specific, so people will actually find your post. If someone is looking for a pair of headphones, chances are they know exactly the kind they want. They are not just going to search “headphones.” If they are ready to buy, they will be more specific and search for “Beats Studio 2.0 Wireless Bluetooth Headphones.” The more specific you are in the title of your listing, the more likely you will sell it.
- Select a Category: They give you suggestions on what category they think you should be in, or you can just browse and find a different category. However, it has to relate to your listing.
- After that it takes you to a page where you have to fill in the Condition of you item (new, used, etc.), and Upload a Picture (you can use your own, or use the manufacturer’s).
- Enter UPC: You have to enter a UPC, which is usually listed on Amazon and you can just copy and paste. If it isn’t then you can click “does not apply.” Adding it helps your listing appear in search results.
- Select a Brand: Here you just select the brand of your item, and if it isn’t listed then you can type it in.
- Enter MPN: This is the Manufacturer’s Part Number, and is again usually listed on Amazon. This also helps your listing appear in search results, but you can click “does not apply” here as well.
- Details: Here is where you would list all of the details about your listing. You can also just copy and paste the details that are listed on Amazon, which makes it easier. Or you can fill it in yourself.
- Enter Price and Quantity: Here you just type in the amount you want to sell the product for. Just make sure it is more than what is listed on Amazon, but don’t get too greedy or it will not sell. Then you enter in how many you have or want to sell.
- Shipping: Here you decide if you want a flat rate for all buyers, vary the cost by location, charge more if it is over 150lbs, or charge no shipping.
- Return Policy: There is an automatic return policy that Ebay recommends, but you have the ability to make changes.
There are also many other things you can fill out if you want to be extremely specific, and give your customers the most information (how you would like to be paid – PayPal, bank account, etc., how long you want the listing to appear, the size or color of the item, etc.) However, be careful because you could acquire fees based on you shipping and return policy.
Listing on Amazon
Just like with Ebay, you have to create an account with Amazon before you can create a listing. You have to give them all of your information, as well as credit card and tax information. Again, you can basically copy and paste the information from Ebay to your Amazon listing. Here are the steps to create a listing on Amazon, there essentially 6 steps…
- Search for an Item: Here you can search for an item you want to sell on Amazon. Find an item on Ebay, then search for it on Amazon. More than likely they will have what you are looking for. After you have found it,
- Description: Her you just describe the condition of your item, and any details that are important.
- Set Price and Collection: Here you decide how much you want to sell the item for, again make sure it is a little higher than it is listed on Ebay. Then you have to decide how you want to recieve the payment.
- Shipping: Here you select what shipping method you want to use. You can ship them yourself or use Amazon’s fulfillment services (fees may apply).
- Quantity and SKU: Here have the option to put how many of the items you want to sell. SKU is Stock Keeping Unit, which is recommended if you have many items because it can help you locate the item after it is sold.
- Confirm: In this last step you just confirm your listing. Review all the information to make sure it is correct, because you cannot make any changes once it is listed. If you wish to make a change after it is listed then you have to delete it and list it again.
Since Amazon changes millions of prices each day, you will have to review your listings often to make sure that if they sell then you will not lose money (if the price goes higher than yours). You can cancel your listing if you see the price was raised, but if you cancel too many then you could get banned from selling. There is a “repricer” specifically designed for Amazon to eBay arbitrage that you can use to change the price before the sale is made.
Also, you have to deal with the customer service. If something goes wrong with a sell, then you have to contact Ebay or Amazon to fix it. You need to maintain positive feedback on your seller account so customers will trust you. If someone leaves a bad rating or review, then you will lose business. You need to do whatever it takes to make them happy, even if that means refunding an order. This can take A LOT of work.
Is There An Easier Way?
Fortunately, there is a software that can automatically check Amazon’s prices for you every hour so you can stay on top of it. The more you can stay updated on the prices, the more items you can sell and make a profit. There are also tools that can find arbitrage opportunities, and provide lists of products that can be resold at a profit (ProfitSourcery, ScanDroid Pro, and FindSpotter). The prices for these programs range from $20 – $100/month.
There are lower level tools (OAXRAY and Cleer Platinum). OAXRAY creates spreadsheets of product information (selling prices, fees, etc.) for $99/month. Cleer Platinum adds links to product pages that take you to the same product on another major marketplace. It does it on Amazon, Ebay, and 20 other supported online stores. You can have access to Cleer Platinum for one payment of $97, and there is a free version called Cleer Pro with a lower level of features.
Arbitrage selling will always be a good niche, but only people with willpower and programming knowledge will be the most successful. It’s like trading on the stock exchange. However, I have not seen a way to get around handling the customer service unless you hire someone to do it for you.
Arbitrage is not a risk free way to make money online, and nothing is permanent. You may do well with a product category for a couple years, but then it is going to shift around. You have to be committed to this business if you want to be successful with it, do not buy a get rich quick video because it will not work. You have to get up every morning and answer support questions without fail.
Ebay Arbitrage, as well as Amazon Arbitrage, is more common than most people think, and people who do it don’t advertise it. Also keep in mind that you do not have to use Amazon and Ebay, you can use many other marketplaces, such as TradeMe, and source your products from the Walmart website.
I believe if arbitrage continues to grow, soon every product from every retailer will be available on every marketplace. Personally, I have found a way to create an income online with my #1 recommended program. It is FREE to try, you get help from other successful entreprenuers (through a live chat or messaging system), and you follow step-by-step tutorial videos to get your business up and running.
If you have any questions or have had experience with Amazon or Ebay Arbitrage, please leave a comment below!