Learn How To Dropship Sell On Amazon And Ebay

So, you want to learn how to drop ship sell on Amazon and eBay

Many people who want to learn how to drop ship sell on Amazon and eBay make the mistake of putting Amazon and eBay in the same basket. They do not realize that the differences are vast.

Imagine that you are a mechanic. Now someone with no experience with cars walks in and tells you that repairing a custom car is the same as fixing a pickup truck! You would tell them that yes, the concept is the same, but you go about it in very different ways.

This is the correct way to understand the differences between Amazon and eBay. But, this is difficult for new sellers to recognize.

To know these differences enables a seller to earn a good profit on both sites. But a lack of knowledge can quickly cause a seller to lose a lot of money fast.

Some of the differences that every seller must understand include:

Retailer Versus Wholesaler

Amazon is a retailer, while eBay is basically a wholesaler. A retailer sell products to a wide customer base at a reasonable price. A wholesaler sells at the lowest price possible, usually to retailers who will resell the goods to consumers.

This means you can charge a higher price and make higher profits on Amazon. It also means that Amazon can be a great place to sell wholesale items purchased through resellers.

A Simple Matter of Control

Amazon’s business model gives you much less control than eBay. eBay lets you choose between a fixed price and an auction format. Amazon only allows sellers the option of a fixed price format.

eBay lets you create your own product descriptions, but Amazon creates the product descriptions for you. In other words, this means you will do less work on Amazon, but you will have less control over your marketing.

Automation

Because Amazon's features are automated, you will only have to perform a few basic tasks.

But with eBay the features are not automated and require at least some attention from sellers. Keeping track of items on eBay can be difficult even with more advanced features like Selling Manager Pro.

Fee Structures

Amazon and eBay have different fee structures. eBay charges you a monthly rate for listings. Amazon lets you list for free but takes a cut when you make a sale.

eBay charges fees based on your sales on a monthly basis. This means that selling on Amazon can be much more expensive than eBay. It is best to list only items that have a high volume of traffic on Amazon.

Payment Process

The way Amazon and eBay pay you is very different. eBay pays you directly when you make a sale; if you use PayPal, you get all the cash right away. eBay then bills you at the end of the month, which ensures you have a constant cash flow rather than waiting for a payday.

Amazon takes out the charges when you make a sale and puts the money in escrow for two weeks to cover refunds and returns. This means it can be difficult to generate a constant cash flow on Amazon. If you need a quick or constant cash flow, eBay is often a better deal.

Size of Customer Base

The customer base you can reach on Amazon is higher than on eBay. Statistia.com estimated that there were 237 million active Amazon.com customers last year. In December last year, the Trefis Team estimated that there were only around 70 million active eBay users.

It means that products sold through Amazon are more likely to reach a mass consumer market. Those seeking high volume sales are more likely to find them on Amazon.

A Different Type of Customer Base

Amazon serves a mass market customer base, while eBay serves smaller and more specialized markets. Since it is an auction site, eBay caters to those with a strong interest in specific products.

Those buying and selling on eBay are more likely to be bargain hunters, merchants and entrepreneurs, whereas those buying on Amazon are more likely to be ordinary consumers.

A Common Thread

eBay and Amazon do have something in common: It takes a lot of time, a lot of practice, and usually quite a bit of money to succeed in selling on both sites.

In saying this, developing a good understanding of these sites and the differences between them will make it easier to set up and operate a successful online store.

Taking Advantage of the Differences between Amazon and eBay

You can take advantage of these differences in marketplaces to improve your chances of becoming a successful seller. If you truly want learn how to drop ship sell on Amazon and eBay. Try leveraging the following techniques:

Understand which products sell well on Amazon versus eBay. Generally, cheaper items that would appeal to a mass market, such as new clothing, nutritional supplements, and new toys, are popular on Amazon.

Used, unique, and unusual items, such as antiques or old books, sell better on eBay. Cheaper products that sell for low margins but in high volumes also do well on eBay because the seller fees are lower.

Check out the banner below for a wholesale dropshipping directory to locate the kinds of items that can be easily resold on eBay and Amazon.com.

 

Do an Amazon Test Run

Try doing an Amazon test run by purchasing a wholesale lot of items and listing them on Amazon. This can show you if you would actually enjoy selling through Amazon. It helps you familiarize yourself with the process.

Sell items on eBay first to test the difference in the platforms, and to see how well these items sell. Then start offering your better selling items on Amazon (also, try Amazon's Fulfillment by Amazon program. It will make your selling much easier). Again, be mindful of the differences in markets.

Be sure to closely monitor your earnings from Amazon and eBay. Concentrate all of your attention on the selling platform where you are making the most money.