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Ebay, Amazon, Online Marketplaces, & Drop Shipping

by Aji Abraham

Sellers list products on Ebay that they have not purchased yet. When a buyer purchases the product on Ebay, the seller then purchases the product from Amazon and sends it to their customer as a gift. This process is called drop shipping.

Drop shipping is a supply chain management process where the seller or retailer does not actually keep goods in stock, but instead transfers orders and shipment details to a wholesaler or manufacturer. Then, they ship the goods directly to the customer.


If you have an Amazon Prime membership, then shipping on any orders will be free for $80.00 for the entire year. If you do not have Amazon Prime, only orders $25.00 and over have free shipping through Amazon. Ebay allows drop shipping and there are no penalties for these sellers; however, any seller that purchases products from Amazon and uses Amazon Prime for free shipping who then abuses these privileges by drop shipping because it is against policy, they will be stripped of their Amazon Prime privileges.

Some Ebay sellers claim that there are certain cases where inventory issues occur and rather than canceling the order and having issues with the buyer, they will purchase the item on Amazon and then send it out. In some cases, they have claimed to lose money or have made a diligent profit directly out of luck. This is something that they often risk in order to risk not receiving negative feedback.

Affiliate marketing is also compared to drop shipping. Similar to drop shipping, affiliate marketing allows a website to list an item for sale that is not actually in the marketer’s inventory which is then shipped through a third party.

The customer or buyer is often angry, but is this solely because they did not search for the best price online? Does the seller deserve the profit or is this just another ripoff scam? There is a correct way to use this process through sourcing the inventory of the retailer or wholesaler. You can setup your own online marketplace through iScripts MultiCart. Try the free demo of iScripts MultiCart Demo!

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