Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Jan 21 2019 17:07:59

eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

By: Ina Steiner

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eBay banned the practice of "Amazon drop shipping," also known as a form of retail arbitrage, but the company failed to notify sellers, as we report today in EcommerceBytes Newsflash. 

There are two forms of retail arbitrage practiced by eBay sellers, one where a seller acquires inventory from a retailer *before* listing the items for sale, the other where a seller lists items for sale and orders it from a retailer (often Amazon or Walmart) once they receive an order from a customer. 

eBay has actively encouraged the former practice of product sourcing, even sending notices to sellers when retail stores in their areas are going out of business, such as this email sent in 2017 when it advised recipients to "Act Now: Inventory for Resale Near You - Find a variety of products at closeout prices." eBay even provided a map sellers could use to find the Kmart stores in their area.

As for the latter practice that eBay now prohibits, some argue it's irrelevant if an eBay seller uses Amazon "arbitrage" as long as the eBay buyer receives the item they ordered. But when the eBay buyer receives a gift receipt inside their package that indicates the seller used their Prime account to get free 2-day shipping (which is against Amazon's policy), some find it troubling - more so if the buyer had paid for shipping. This 18-page thread on the eBay discussion boards show how controversial the practice is among eBay users.

Is it okay to copy Amazon listings and post them to eBay and then use Amazon to fulfill the item to eBay buyers?

Would you be prepared if eBay asked you for receipts for items you listed?

See today's Newsflash article, "eBay Frowns on Orders Wrapped in Amazon Smiles" to see what changed, how eBay Australia led the charge against Amazon drop-shipping, and what you think about the new, yet-to-be-announced policy change.

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Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: corpuschristi1956 This user has validated their user name.

Thu Jan 24 04:43:47 2019

Can they legally ban this as opposed to banning all drop shipping without being accused of discrimination?

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: KV This user has validated their user name.

Thu Jan 24 04:50:54 2019

Warning to eBay sellers: If you drop ship, you are, by definition, 100% vulnerable to SNAD claims, since you have no idea what (if anything!) is in the box. The one time I received a package drop-shipped by an Amazon Prime acoount abuser, I opened a SNAD, got a full refund, AND called Amazon and reported him. Amazon is handing out $10 account credits to reward people who report Prime account abusers.

Amazon prohibits using Prime as a fulfillment service. I don't want to be part of anyone's scheme to break the rules, and I WILL make you pay if you drag me into your deception.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: lisapar This user has validated their user name.

Thu Jan 24 07:59:50 2019

Retail arbitrage is more than just an Ebay seller listing and shipping a few things from Amazon.  I found this out when I noticed a competitor on Ebay had my entire Amazon inventory in their Ebay store...along with 50,000 other Amazon listings.  

How they did it intrigued me, until I discovered that there are apps out there that manage this Retail Arbitrage method, with real-time inventory management systems.  If a product sells out on Amazon, or the price fluctuates, the seller's Ebay inventory updates immediately.

So the question is -- how will Ebay actually know that a seller is participating in retail arbitrage?  I do not sell FBA on Amazon (I'm a 3rd party seller), so I ship in plain boxes.  If a buyer on Ebay purchases one of my inventory items from the seller that is selling my item, the buyer would never know.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: Dellthorpe This user has validated their user name.

Thu Jan 24 08:09:56 2019

I no longer sell on Ebay because they point blank scam the smaller sellers and do not care. They r liers, thiefs and con artist that is why Amazon eats their lunch 24/7. They have a nasty reputation and always will because Pierre and they other founding slime balls all have scam in their blood. Ebay just wants to make a quick buck and go on down the road. If u as a seller have been scammed contact the FBI ant ic3.gov. Print off all the evidence and do not tell Ebay ur going to report them because they will delete your seller account. If u complain to the USDOJ or your state DOJ they will lie because everyone a Ebay r scam sewer trash alone with PayPal.

Elliot Management just bought a  4% stake at $1.5 billion in Ebay what idiots. They do not have a clue what Its going to take to make Ebay grow. Only a complete house cleaning of all board members, mangers to ever get Ebay to grow. They hall have balls to do the scams they do. I can not beilive the IRS has not gotten a hold of them for all the tax free money they scam from the smaller sellers.Even as a past seller I told all friend and relatives to stay away from Ebay for the will get scammed. Ebay does have a lot of honest sellers but too many buyers scam the sellers with the help of Ebay and PayPal.A buyer can ship back a empty envelope after buying a 50lb box and Ebay and PayPal will give them a full refund.  No doubt the new payment processor replacing PayPal will scam just like PayPal did and does. PayPal announced after the NC "bathroom bill" that they would not come to NC and we in NC say thank you very much we have enough trash coming here destroying our state. We dodged a big bullet whem Amazon did not come here as well. Bozo is another piece of trash.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: maxoptical This user has validated their user name.

Thu Jan 24 10:23:50 2019

Many sellers , including myself, got flagged by eBay bots and were identified as Amazon dropshippers incorrectly.  We lost weeks of sales while sorting this out with eBay.  In the end it was fixed but we lost 3 weeks of peak Dec sales and still charged full Anchor store fees.   We had to call in over 20 times before someone finally told us what happened and gave us a path to get it corrected at eBay.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: Sold it This user has validated their user name.

Fri Jan 25 13:17:55 2019

KV You have a very strange grasp of morals you have committed theft but have the cheek to call dropshippers dishonest.
What you have done is a criminal offence but you will never see a drop shipper getting charged by the police for dropshipping items from Amazon.
You are a petty theif so you can’t try to take the high ground after admitting that.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: Sold it This user has validated their user name.

Fri Jan 25 13:29:25 2019

KV Sorry my mistake you didn’t claim INR should have read it more carefully.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: val2525 This user has validated their user name.

Sat Jan 26 01:29:18 2019

The problem with sellers fulfilling their eBay orders from their own Amazon inventory is that the buyer doesn't know that is what you are doing.  Many buyers buy from eBay for a reason. If they wanted to shop Amazon, they would have, and are not happy when their eBay purchase arrives in Amazon packaging.

Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: Snapped This user has validated their user name.

Sat Jan 26 06:07:45 2019

The only real reason this particular eBay hypocracy ( they otherwise couldn't care less where items are sourced) is a 'problem' is branding 'confusion' and market share dilution.

Because every 'sale' for eBay made via Amazon abitrage is also a sale for the very 'competion' they're trying to so desperately emulate to capture market share from.  

Ask yourself....with every listing plastered with ads that link to offsite venues (another eBay hypocracy), ever see one linking to Amazon?  

Why not - if their justification for such is to 'best serve' buyer need?





Perminate Link for eBay Bans Amazon Drop Shipping but Fails to Notify Sellers   eBay Bans Amazon Drop Shipping but Fails to Notify Sellers

by: westcoastflea This user has validated their user name.

Thu May 23 14:58:05 2019

i shop ebay because I DO NOT want to purchase from sellers who sell defective items returned to large retailers only to be resold.
I DO NOT want to purchase from drop shippers whose feedback is almost always low, and whose listings are not straightforward. For example a 24 ounce bottle shown in gallery with a price from x - x only to have to click into listing to find the real price of what was pictured.
Is there a problem with making 6 listings featuring one size for each listing with the real price shown?? What kind of customer service is it to make misleading listings?
 
People need to stop blaming China for Everything, just shows racial bias,
I'm fed up trying to purchase anything on ebay, There are nothing BUT drop shippers now, their presence has turned ebay into amazon, and ruined the buying experience on ebay Thanks guys

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