How I Made My First $100k dropshipping with Amazon/eBay


#1

Hey Everyone!

Just a newbie here excited to be a part of the community and start adding some value. I thought I’d share a pretty simplistic way that I made my first $$'s online. Since then I’ve taught this method to a bunch of people. Some succeed, and some fail. Before I even begin, I just want to start by saying this method involves excellent customer service. The way you will be providing value essentially is by making sure every sale you make on Amazon goes smoothly.

What is dropshipping?

Before I get into anything, dropshipping is the act of selling a physical product without ever holding inventory. Many times you are also able to not spend a single dollar until you have already made a sale. This is done by making deals with suppliers that allow you to purchase products from them with the agreement that they will then ship it out to your customer, instead of shipping the product to you.

What will you need to get started?

-An Amazon Seller Account (takes about 15 min to set up)
-An eBay Account
-A credit/debit card to make purchases on eBay

Amazon as the sales front and eBay as the supplier

With this specific method it allows you to not have to make deals with suppliers, but rather just search eBay for products that are selling cheaper than what they are selling for on Amazon. Why, you ask, do products sell for cheaper on Amazon then they do on eBay? Well, it all comes down to customer service (and historically people had problems with eBay or think that it is all second hand products so never gave them a chance after Amazon go as big as it did).

So what will you be doing? You will be scraping through eBay and cross referencing products on eBay, with their current selling price on Amazon. This is the most time consumer part. I spent upwards of 20 hours the first time I searched, listed 100+ products, and I think on 5 of them ended up ever selling. However, the 5 products that did sell were a gold mine.

What makes a good product?

A good product will be something that is selling for cheaper on eBay than it is on Amazon (including the Amazon sales fees which range from $2-$8+ depending on the product price and niche). The product that you are purchasing from eBay will also have inventory. What this means is you wont be selling a product being sold by an individual, but you will be selling a product that has 20+ items in stock and usually being sold by a distributor. Average profit margins will end up being anywhere from $1-$20 per sale. This may not sound like much, but when you’re making 20 sales a day on a product with $7 profit margins this will add up quickly. Not to mention if you are using a credit card that offers rewards you will be racking up rewards quicker than ever, as well as earning eBay bucks to buy more products! Talk about TRIPLE (sometimes even quadruple) dipping! If you ever receive a return, rest assured that you will be able to then turn around and return this product back to eBay, or sell it to another customer. This ensures that it is VERY hard to every lose money with this method of dropshipping.

A good product will be ranking on Amazon under 100,000 in a single niche (sales rankings are inverted, so a LOW sales ranking is better, a sales rank of 1 being the best, ex. of sales rank provided in image below). This will help ensure that the product sells, it won’t hurt to list items above this sales rank, it just probably won’t sell. A good product will also, as mentioned before, have inventory available on eBay so you’ll be able to purchase it when your customer does. A good product will also preferably be a non electronic problem, just to avoid problems down the road, however electronic products can be sold if you are careful about it.

image

This seems too easy…

Well the reality of it is that this is a very easy way to make money online…when you do it right. Finding products is time consuming. You can spend up to 40+ hours searching for products and not find a single one that seems to be selling. This can become a headache.

When you actually do begin selling products YOUR PRODUCTS ARE ONLY AS GOOD AS YOUR SUPPLIER. If you remember what I opened this post with is that this requires EXCELLENT customer service skills. You will run into problems with suppliers and customers due to not having quality control of the product you’re selling, and it will be up to you to fix those problems within 24 hours. If you do not, you risk being suspended by Amazon, and never able to sell on their marketplace again. This will require you to repurchase items for customers, pay for return shipping, and sometimes provide a refund without even getting the product back. This is not the dropshipping method to pursue if you are going to get greedy or want a 100% passive income stream (Fulfillment by Amazon or FBA is a more passive route and you will maintain quality control over your products).

Feel free to ask questions below and I’d be more than happy to help! This is not free money, like nothing ever is. However, it is a fairly good way to bring in money ESPECIALLY if you have minimal/no start-up capital. You’ll be hard pressed to find a better way to make money online for a cheaper cost of entry.

Due to school I have not pursued this method for a while. However I started up for around 45 days or so just to make some extra money a few months back. I’ve included a snapshot of the type of profits that are not super uncommon to make once you have done your product research and know what niche you are able to sell in.

Cheers!
Chopblock


#2

Great job.
I feel like it was cut short,i guess nothing ever comes easy.Half way in i was actualy hoping it would be a complete guide :smirk:


#3

I guess he’s open for questions :slight_smile:


#4

Whats up man! I’d be more than happy to help with any questions you have anytime. The most important thing is just to open the Amazon Seller Account, start getting the hang of cross referencing products b/w eBay and Amazon, and then just making some listings and seeing what happens.

How do you cross reference products?

When you are on the Amazon Seller Dashboard you will go to Inventory > Add a Product.

It will look like this then
image

Then you will want to start searching eBay for terms you think might sell.

For example: Meat Claws (a grilling tool that I came up with the idea for searching after I searched Grill Brush and couldn’t find a good example)

Found this Product selling for $7.95

When cross referenced on Amazon I found that it was selling for $7.98 Buy Box, but as low as $6.60 from other sellers. This is obviously not a good product, so you just move on to the next thing. It is ALOT of trial and error

I’d love to offer help in anyway that I can, but to begin your first step will be spending a few hours cross referencing products between Amazon/eBay using the method described here.

Looking forward to helping more :slight_smile:


#5

Hi,

Do you know about AliExpress?
I believe the margin would be much higher if you use them.


#6

Hey LightnightKing,

I’ve looked into AliExpress a bit but never got super into them just because the main products I ended up selling they didn’t carry. They definitely have solid margins though if you are able to find a product that is carried by them and not already being sold at a lower price on Amazon. Alibaba was always more enticing to me because even though I’d have to hold inventory (or do FBA) then I’d be in complete control of quality assurance and the profit margins would be the highest. The only risk with holding inventory is the fear of not being able to sell the products you buy, so this just requires alot of market research using a tool like JungleScout.

Cheers,

ChopBlock


Whats the best type of items to sell on Aliexpress for dropshipping
#7

Anyone who wants to learn feel free to post questions here or message me. Look forward to helping everyone make some side cash :slight_smile:


#8

Thank you so much for this thread! I feel like it’s time to start digging around for potential items…I have a few interesting ideas.


#9

Its all about having unique ideas and realizing most of those ideas are going to lead you to dead ends, but not letting that discourage you. Realize it’ll prolly take about 15-20 hours of searching eBay and cross referencing prices before you have a solid enough listing page on amazon where products will begin to sell. Most items will be dead ends, but the ones that do sell usually sell fairly well. It’s all about searching products quickly, but completely. Hope this gives you some motivation :slight_smile: now is the perfect time to get your Amazon grind on!


#10

Love me some old ol’ fashion arbitrage.

Whats funny is that I used to do the same thing but in reverse. Selling on eBay and fulfilling with Amazon.

Worked pretty well and made a decent chunk of change, but my one downfall was selling items that were too expensive $200+. When you sell high dollar items you can squeeze out a little more money but you have to come into with a little more capital than normal to compensate for the lag in actually receiving your payments. So I guess the odd problem is too many sales haha which sounds lame, but gimme a break I was still in high school haha.

Welcome to MPsocial btw


#11

Love seeing other people that have taken the arbitrage route at an early age to make some coin. Sounds like you just needed a credit card with a higher limit :wink: (hard to get in high school for sure though haha). Its funny when the problem of making too many sales comes into play in any entrepreneurial venture. Always a great problem to have, but not always the easiest one to correct while maintaining full equity.

At one point I was selling some vacuum cleaners and those were decently expensive. Luckily I never had to deal with a return on those, but I dreaded the day when I was goona have to pay return shipping and lug around this big ass box to the post office while floating around $500 until I got my return money from eBay.

Thanks for the welcome, and I’m excited to be part of a community I can relate to :slight_smile:


#12

With the new year upon us it is an awesome time to get into some dropshipping. Especially with all of the new years resolutions that create and influx of workout/health focused goods.


#13

definitely sounds interesting


#14

So, how much have you made using this method??


#15

Hey @jklmno

So I’m also a full time student. I started this at the end of a semester, ran it through the summer hard, and then shut down for a little after my first holiday season just due to sales being crazy. This was in 2015, I was barely 20 and didn’t outsource any of the work. With that being said in those 9 months I did 130k gross, and netted about 40k from that.

OVERALL since my start I’ve netted well over 100k while being a full-time student with multiple part time jobs. I grind like an animal too though…haha

Since that time there is alot of automation I’ve realized I can utilize. HOWEVER, I strongly advise against automating any process at first. With internet gigs like this I know everyone good behind a computer can scrape for products, automate sales transactions (copying and pasting shipping info), hire VA’s to handle emails, etc.

The reason I advise against automating many of these things is because at the end of the day the reason why the cost of goods is different between Amazon and eBay is essentially a customer trust factor. Your profit margins will stem directly from the quality of customer service you are able to provide, and until you learn how to handle things when shit hits the fan (such as not knowing the dates of Jewish holidays that don’t allow you to work, and not knowing that you are purchasing from suppliers that practice these traditions and then find out that 100 items aren’t going to meet the shipment date requirement and you have to purchase 100 new items from a new supplier, while hoping that when your first supplier gets back from vacation they cancel your order instead of shipping the products resulting in your customer getting duplicates and then HOPING the customers will send those duplicates back) its better that you handle things yourself, slowly.

Ultimately Amazon is strict as shit and if you don’t follow their rules to a T they have no problem banning you from selling for forever.

Just wanted to make this post as a cautionary tale of entering in too quickly when first getting a taste of profits like I’ve seen my friends do and fail quickly.


#16

I read somewhere that Amazon and Ebay both are fighting hard against the Dropshipping these days but then you made this thread which came as a light.

Thanks for making such an awesome thread, I have bookmarked and I am going to read it for more details.

Why don’t you try your own website instead of Amazon/Ebay?


#17

Nice guide and thanks for sharing it :slight_smile:

Here at Europe the things are different with Amazon but will take a look in the future if I found something profitable to sell on the big AZ


#18

Amazing to read.

Right now I am looking into the dropshipping niche, but it seems everyone is doing it right now. Everyone wants to get a part of the cake. My 2 other businesses are growing on Autopilot pretty much and I can’t figure out how to scale them more so I thought dropshipping might be a good idea.

How do you run the marketing stuff? IG and MP? Or do you pay for Adds?

This is from ebay in the last 90 days: Working good so far but I would LOVE to go for the 6 digits :wink:


#19

looks interesting! Will look into this :slight_smile: Thank you


#20

Is this dropshipping on eBay? Where do you buy then?