What's up with FBA selling on eBay?


#1

Out of my 1500 supplies / personal item orders I’ve made, about 95% are on eBay, the other 5% are on misc. platforms, I’ve always been a person that has to get the lowest value unless I need it ASAP (but I never do, I always plan ahead) so Amazon has never really fit that need of mine for my buying.

As of the past year however I’ve noticed a influx of FBA items arriving to me from eBay, now at first I thought it might of been some 3P platform that was just allowing people to print Amazon labels for off-site sales but even despite it being sales from a string of different eBay accounts, I’ve come to realize that it’s definitely not even 3P and has to be coming from Amazon Warehouses.
It’s really weird though because alot of these items are super cheap, under $10 and even then, the items alway comes as the two day shipping (despite obviously not paying for Prime being that I’m buying on eBay) and the product is actually cheaper than it’s avaliable on Amazon for. (What the…?)

Has anyone else experienced this or might have some opinion / insight on the matter?


Petition to Jeff/Executive Team regarding FBA Issues
#2

Amazon offers multi channel fulfillment- so you can pay them to fill your orders from all your selling platforms -from your inventory housed in thier warehouse


#3

Have they always offered this or is this something that’s been becoming more of a thing as of recent times? Does it cost more to the original owner (person sending to FBA) or is it just a added bonus anyone sending to FBA can do?


#4

Bingo!

OMG, I think you just might have hit on it.

It’s the inventory they’ve been stealing from FBA sellers, since July, 2017. From some, just a few items. From others, entire shipments that were delivered on pallets.

There have been reports and complaints that sellers have found their inventory selling on eBay, or listed under Amazon Warehouse Deals. They thought it was warehouse staff, but they are hard working, and follow stringent security procedures. I knew it wasn’t them. Since some of it disappeared a month or so after they had it, someone with access to our records and inventory, such as; FBA Operations, for example, would be in on it.

When you come across these, I’d appreciate if you send me a PM letting me know which products they are. I hope to match them up with the seller that lost them.

Thanks,
Funky


#5

Huh? Why do you think this is all the missing fba stuff. This is just MCF or ebay sellers using their amazon buyer accounts to drop ship.


#6

I have seen sellers who do not sell on amazon speak of storing their items there so they don’t have to worry about the shipping process.
I have also seen sellers state they have amazon ship items for them from orders from other sites so they don’t have to keep inventory in separate locations.

I believe I saw this program launched several years ago. Anyone can pay for this service. It is not free to any way.


#7

I am with @Get_Cracking. This seems like someone using their Prime membership to have Amazon drop ship to their customers from eBay sales. A clear violation of the Prime TOS.


#8

That makes a lot of sense actually, at least for the majority of the items as some are a hint higher (10-15%ish) than the Prime avaliable options on eBay. That doesn’t explain the listings that are cheaper than Amazon though unless theres some kind of buyer deal that you can have with Prime that makes the items cheaper that I’ve never heard of.

It’s definitely been becoming a larger problem though, it use to be the odd item here or there but lately in the past year it’s becoming a rather common occurance. It doesn’t bother me so much as obviously it’s cool getting the item ASAP but it seems like it’s just shafting other people as how can anyone compete with that and I’d imagine Amazon is losing bank mass shipping out these $5-10 items on 2 day shipping.


#9

Hi all,

I have no idea why this thread is showing up for me right now–but I did want to mention that when we ship on eBay, we often re-use our Amazon Prime boxes that we have received as buyers (reuse is better than recycling!), after removing tape and labels. Is this a way that someone could think that Amazon had actually shipped their order?

Also, since we’re FBM and new to Amazon, I don’t know much about FBA. I saw a product today that was an Amazon Warehouse deal, sold as Used-Very Good, undercutting all other 3P sellers by at least 25% due to “damaged packaging”. My assumption was that packaging was damaged due to Warehouse error and that the original seller would be compensated for the item at a fair market price, while Amazon tried to recoup some costs by selling at a discount–is that accurate? Are FBA sellers compensated if the Warehouse damages packaging?

Thanks for reading!


#10

It definitely was from Prime, we figured they are drop shipping, or at least that’s the best case scenario as there is minimal harm in that (apart from it being against Prime TOS but that’s between Amazon and the seller(s)).

Not to scare you from FBA as it’s definitely a great source, especially if you’re dealing in bulk and can’t keep up or even just want to expand further but undoubtably go to places like Youtube and look up a ton of assorted guides before doing it. If you don’t, you risk getting pummeled by Amazon as they have so many specific rules and processes that you have to follow and if you don’t, the corrections can cost you a lot of money.

As-for Amazon Warehouse Deals, it’s a complete scam IMO, Amazon ‘damages’ the packages in the warehouse, they’ll refund the seller the cost they paid per unit which is usually well below actual value, then they’ll turn around a make a big profit on it and pocket the cash.


#11

There’s also a scam from the seller side. It’s the same system everyone knows (multi-channel inventory, pushed to Ebay, no harm done). When a product sells, the seller pays Amazon with stolen credit cards. It’s all under Amazon FBA, so they eat it, and the FBA sellers never know. The Prime account gets suspended. And the scammer moves onto another name/account. It’s all the same small group of people.

It’s a pretty clean process, as Amazon picks up the fraud charges. The scammers only use FBA inventory, so no small business ever sees the fraud. And Ebay/PayPal never learns about it, because the scam is occurring on the Amazon-purchasing side.

I suspect that I have a friend of a friend (living in the USA) who does this for a living. But I’ve never had the nerve to ask them about it.


#12

We used to get scammed this way on our own website. CC fraudsters would purchase from us to fulfill a sale on eBay. Problem is that the eBay purchasers could care less that what they were buying was stolen.


#13

I sell items via Multi Chanel Fulfillment. My inventory goes to Amazon and if I one of those items sell on Ebay or any other platform I just fill out an order form on Amazon telling them where to ship. On the order form I select which method of shipping i want be it expedited, standard, or overnight and I will be charged a shipping fee. Amazon does not charge me a ‘pick and pack’ or ‘handling fee’, they will however charge any storage fees that may apply. On those Items I choose to sell this way the shipping charge from Amazon for 2 day delivery is usually cheaper than if I were to ship the item myself standard UPS 3 - 5 days(and that is with a negotiated lower rate from UPS). At this time Amazon does not offer the service of customized packaging so no matter how I send my items into FBA they will get put in an Amazon box before being shipped. I price my items to be competitive on the platform, sometime the same item will be cheaper on Ebay sometimes it’s the other way around. There isn’t anything scammy about it, if you look the same item up on Ebay, Amazon, Walmart, and BestBuy your likely to find 4 different price points.


#14

If you qualify, you can actually ship through FBA, for an eBay sale, from your Shopify store (for example). Like @DelanoDynasty mentioned, the prices can be different for different sites because that functionality is provided through the primary shopping platform (in this example, Shopify).

This would be completely legit–no scam or dropshipping.


#15

Multi-Channel fulfillment. We use it, we don’t like to use it was eBay orders because most of our orders must ship the same day, but occasionally.


#16

@everythingmusic Yeah I took some hits early on because even though the item arrived on time Amazon doesn’t always provide the tracking number fast enough for me to update Ebay and meet next day shipping requirements. I adjusted the shipping time on my Ebay items that I do this for. I lose top rated plus on those listings but the cost savings to ship from FBA to my Ebay buyer is so much cheaper then shipping myself ($5 - $8 on a 6 lb $45 item) that is just makes sense.


#17

As others have already stated multi-channel fulfillment is pretty common. Anyone storing products in FBA can place an order through Seller Central to have their item(s) shipped to their customers on different platforms It does take them a few days so as others have said we prefer to ship our eBay orders ourselves but often times our inventory is in FBA so we have no choice but to use the multi-channel fulfillment option. Sometimes it actually cheaper then if we ship the items ourselves (like an item that weighs between 1-2 lbs.

Some sellers may even take a loss or break even on an item that they only have stock in FBA because they don’t want to have to cancel the order in eBay. We try to ship from our warehouse first because the MC FBA orders can take anywhere from 1-3 days. A few times we will even have to pay extra to have the orders expedited to make sure they arrive on time. It’s more expensive but still well worth it when the alternative is having to cancel an order on a customer.


#18

I have to ask - this is apparently still profitable despite paying the fees on the Amazon and Ebay ends ??


#19

I think it’s fair to say that there are sellers on Amazon that earn well over $100,000 a year, some earn that in a single in a day! They ship thousands of items priced from low to 100’s of dollars.

There is no single answer to this question, other than to address your own situation. Can you make a profit from this?


closed #20

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