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How do these Amazon-dropshipping eBay sellers make money?


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http://www.ebay.com/itm/301661108263?_trksid=p2060353.m1438.l2649&ssPageName=STRK%3AMEBIDX%3AIT

Helicarrier $340.45 - $34.05 (eBay fee) - $9.87 (PayPal fee) - $0 shipping cost (Amazon Prime Account) = $296.53 revenue

Amazon Price: $349.95 cost

Profit (loss): ($53.42)

These types of sellers have great reviews, and I've purchased a few sets from similar sellers with no complaints, but have always wondered how they make any money as they seem to just drop-ship from Amazon US.  Do the sellers get discounts based on volume? If so, I would expect to see many more of these sellers on eBay.

 

Screen Shot 2015-07-28 at 1.58.51 PM.png

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Hmmmm, should we revive this thread?

 

Thanks for the link (and that great Niko video). Interesting that he's been doing it for a while and no one has copied whatever he's doing. Even with a slightly favorable exchange rate or CC rewards, seems like the margins would be awfully low with the eBay/Pay-Pal fees.

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Same business model as Jet.com. We all must be missing something.

 

More I think about it, they could be converting their Amazon Trade In balance for cash. I have stumbled across quite a few deals that I could buy at XYZ store, immediately trade in at Amazon and pick up 20-30% in credit. I however don't really have the need (or spare cash) for several thousand in Amazon credit.

Edited by meowingthings
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Same business model as Jet.com. We all must be missing something.

 

More I think about it, they could be converting their Amazon Trade In balance for cash. I have stumbled across quite a few deals that I could buy at XYZ store, immediately trade in at Amazon and pick up 20-30% in credit. I however don't really have the need (or spare cash) for several thousand in Amazon credit.

I doubt those yahoo's selling on ebay got a 100 million dollar investment like jet.com so they can give away free money.

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Thanks for the link (and that great Niko video). Interesting that he's been doing it for a while and no one has copied whatever he's doing. Even with a slightly favorable exchange rate or CC rewards, seems like the margins would be awfully low with the eBay/Pay-Pal fees.

Don't think you read the whole thread. Niko is amazon on ebay, they just did not want to come out and say that they are selling on ebay since they are competitors (even though target and TRU both sell on ebay as well).

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Thanks for the link (and that great Niko video). Interesting that he's been doing it for a while and no one has copied whatever he's doing. Even with a slightly favorable exchange rate or CC rewards, seems like the margins would be awfully low with the eBay/Pay-Pal fees.

Drop Ship Domination will show you the basics. Blackhatworld will teach you the rest. Plenty do it.

http://www.ebay.com/itm/301661108263?_trksid=p2060353.m1438.l2649&ssPageName=STRK%3AMEBIDX%3AIT

Helicarrier $340.45 - $34.05 (eBay fee) - $9.87 (PayPal fee) - $0 shipping cost (Amazon Prime Account) = $296.53 revenue

Amazon Price: $349.95 cost

Profit (loss): ($53.42)

5% Amazon GC discount, 8% affiliate revenue, %10 total fees (TRS plus discounted paypal). Profit on this set is $10.17. Easy $300 per day for most of these guys.

 

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Drop Ship Domination will show you the basics. Blackhatworld will teach you the rest. Plenty do it.

5% Amazon GC discount, 8% affiliate revenue, %10 total fees (TRS plus discounted paypal). Profit on this set is $10.17. Easy $300 per day for most of these guys.

 

Interesting. Guess when you sell as much stuff per day (not just Lego) as they do, it becomes worthwhile. Not something the avg joe could do, which is why there are so few of these guys - at least selling $300+ sets under MSRP - on eBay. I think I'll keep my day job.

Not a bad deal on the big sets using 5%-discounted ebay gift cards + 2% back in eBay bucks.

Edited by TurboSpecC
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