Retail Arbitrage – A guide to Amazon to Ebay Arbitrage

Amazon to Ebay Arbitrage Review

Introduction

I’d heard about the world of retail arbitrage but up until 3 months ago had let it slip me by. It was almost three months ago to the day that in a hurry I purchased a watch strap on eBay. Within a day the item had arrived and I noticed that there was a small gift receipt thanking me for my purchase. At the bottom of this receipt was the Amazon logo. When undertaking some further investigations I noticed that the same item that I had purchased on eBay for £35.91 was available on Amazon for £29.90. A mark up of £6.01 between the two platforms (please click here to see the eBay item and here to see the Amazon item).  A similar more recent example is posted below.  You’ll be amazed at the phenomena of Amazon to eBay arbitrage!

It was at this point that I realised the power of retail arbitrage and in particular, Amazon to eBay Arbitrage.

Amazon to eBay Arbitrage

What is retail Arbitrage I hear you ask? Arbitrage is essentially buying a product at a low price and selling it for a higher price, quite simple when you think about it and one that nearly all company models follow. The act of retail arbitrage involves buying a product from one online retailer (in this case Amazon) and selling that item on another online platform for a small profit (in this case eBay). Many also refer to this practice as dropshipping and Amazon to eBay Arbitrage.  The company which I purchased the item from had over 51,000 items for sale and over 11,000 positive feedback. Once you allow for eBay and Paypal fees of £3.59 and £1.42, this meant that for every item sold the seller was making an easy £1.00 per item. As these items are sent out as gifts by someone with an Amazon Prime Account, there is limited Amazon branding and details of the purchase on the packing. In addition sending through an Amazon Prime account means that the postage is always free.

From the feedback left, I estimated that the company I had purchased my item from was selling something in the region of 100 items a day resulting in a profit of £700 per week or £3033 per month. What made it even more interesting was that the company didn’t have to buy the items up front and only had to buy the item once they had received funds from the purchaser. As such, there were nearly no start up costs and consequently the return on investment is through the roof.

It was at this point that I went away and decided that for the limited work involved an additional income of £3k per month would be most welcomed (believe it or not!). I then spent a weekend trying to develop an excel program which would automatically update pricing from Amazon to eBay (to ensure I was always making X% profit on each deal) as well as making products unavailable when they had ran out of stock on Amazon. I managed to get relatively far and developed a program which could handle 5-10 items, however it was almost impossible to scale to the 50,000 items I thought was necessary to start making some serious money.   Back to the drawing board for me.

Having spent a considerable amount of time pushing water up a hill it twigged, the company that I had purchased the item from had been using an online software provider by the name of Profit Scraper. I found this by a small logo at the bottom of each item they were selling.   Don’t let the name put you off, I’ve had nothing but excellent results since I signed up nearly 3 months ago.

Profit Scraper Review – Amazon to eBay Arbitrage

There was very little in the way of reviews on the Profit Scraper software however with a 7 day free trail available, there seemed to be little downside and potential for some considerable upside.   Profit Scraper is a bespoke tool which has been designed for Amazon to eBay Drop shipping and as such offers numerous functions to make the process more automated.

Profit Scraper works as follows:

  • Allows you to source various items where other companies on eBay have identified a retail arbitrage
  • Automatically loads the items into Profit Scraper and your eBay Account
  • Constant price monitoring to ensure that if the product goes out of stock it is removed from your listing or similarly if the price increases on Amazon it is automatically increased on eBay
  • Automatic Ordering. This is probably the best function of Profit Scraper, whereby it will link into your Amazon Prime Account (sign up here for a free 30 day trail) and automatically purchase the items on your behalf. As such once you have set up the software it can be almost fully automated with you only having to deal with any customer questions and queries.
  • Update 5/11/2017: Due to the popularity of Profit Scraper they have currently closed there membership so you’ll need to sign up to the waiting list.  Fear not, we’ve reviewed Profit Scraper’s closest competitor Pricematik (see review here) and think the service is equal if not better than Profit Scraper. Click here for a free 14 days trail.   

Having set up my eBay Seller Account / Paypal Account / Amazon Prime Account (covered in full detail later on in this post), I began listing items on eBay. In fact I began listing what seemed to be a scary amount of items and in the first 24 hours I was the proud owner of a shop on eBay selling well over 200 items. The first item I sold was a pair of ski googles which can be found here. At the time they were being sold on Amazon for £7.88 (including shipping because I have a prime account) and I sold them for £10.70. After deducting eBay and Paypal fees I made a very easy profit of £1.55. I’ve set out in the table below a breakdown of sales, amazon costs, fees payable to eBay & Paypal, profit and orders in the first 7 weeks.

Sales Cost Fees Profit Orders
Week 1 £529.31 £373.50 £57.74 £35.58 22
Week 2 £1863.80 £1535.07 £207.58 £121.15 71
Week 3 £1376.66 £1142.24 £162.73 £71.69 49
Week 4 £1904.15 £1602.23 £224.78 £77.14 49
Week 5 £1944.26 £1615.14 £235.76 £93.36 64
Week 6 £1030.55 £844.33 £145.09 £41.13 40
Week 7 £710.08 £567.05 £99.30 £43.73 32
Total: £9,358.81 £7,679.56 £1,132.98 £483.78

Note that this is not a true reflection of the amount of profit I have earned. What has not been included within the above is the following:

Costs

Additional Revenue

  • I signed up to the American Express Platinum Cashback Credit Card (please see my review here) which gave me 5% cashback on the first £2,500 spent and 1% thereafter.  American Express are currently also offering £25 when you spend your first £1 on the card.  Based on the Amazon costs of £7,697.56 I have made £176.79 in cashback on the card.
  • I also met a very nice man by the name of Guy who had Amazon Vouchers that he wanted to sell. In total I purchased £550 of vouchers from Guy and on eBay for £498.90, saving a further £51.10.

As such my net profit, allowing for the various costs and additional revenue, was in the region of £513.95 or £73.42 per week. Note that at the start I had no feedback and as such it has taken a little time to get traction (I currently have 129 feedback from my 327 orders all of which are positive). In addition I only list 500 items in comparison to some of the larger seller who have 50,000 items. If I was to scale the business to say 10,000 items (20 times current amount) I feel that profits in the region of 10 to 20 times current average profit (i.e £730 – £1460 per week) may be achievable. I’m in the process of expanding the number of items and hope to beable to update the blog once this has been done.

Profit Scraper Sign Up

Now that you’ve seen that the product works and it’s possible to make some extra cash, I thought it would be useful to provide a step by step guide to setting up your Profit Scraper Account. Note that there’s a far easier to follow YouTube video which can be found here.

Profit Scraper pricing works on the number of items you are currently listing on eBay. The lowest opinion is 500 items for $67 per month (don’t worry, profit scraper charges in dollars but links into eBay / Amazon within the UK, US, Canada, France, Germany, Italy and Spain) and increases as follows:

  • 500 Active Items – $67 per month
  • 1000 Active Items – $97 per month
  • 2500 Active Items – $167 per month
  • 5000 Active Items – $297 per month
  • 10000 Active Items – $497 per month

I would recommend signing up to the free 7 day trial (click this link for the offer) initially and then once you’ve spent a month or two getting the hang of the software scaling your operations from there. I’d highlight that after 2 months I’m still using the 500 Active Listings but will seek to increase this shortly.

Update 5/11/17 – Please do check whether Profit Scraper have reopened their subscription however you may want to also check out Pricematik which offers a cheaper service than Profit Scraper when you lift over 3,000 items.  See my full review here.

Signing Up to eBay / Paypal / Amazon

Next you’ll need to set up an eBay seller account and most likely a seller shop.   There are three main shop options you can go for which are as follows:

  • Basic eBay Shop: £19.99 a month and offers 200 free listings
  • Featured eBay Shop: £59.99 a month and offers 1200 free listings
  • Anchor eBay Shop: £249.99 a month and unlimited free listings

I’d strongly recommend the Featured shop as you’ll easily reach the free 200 listings with the Profit Scraper software and as such need 1200 free listings. Make sure the shop name is in line with the image you want to portray, I’ve used Online-UK-Saving in the past. Click here to get signed up to an eBay shop.

Similarly you’ll need to set up and verify a Paypal account. This is straight forward and should take no longer than 2-3 minutes. Make sure you verify your account to remove an sending/receiving limits which Paypal may apply to new users. Click here for a free £5 voucher when you make your first purchase on Paypal.

To benefit from free shipping and reduced prices you’ll also need to sign up to an Amazon Prime Account. Follow this link to get the first 30 days for free.

Amazon to eBay Arbitrage

Setting up Profit Scraper

Now you’ve signed up to the various programs, you can start setting up Profit Scraper. Setting up Profit Scraper is relatively straight forward with various videos on the website walking you through the various elements.

You will need to start by connecting your eBay Seller Account to the Profit Scraper Platform. This is as simple as clicking two links to give permission for Profit Scraper to access and update your various links (should the prices change etc). Click here for the video showing exactly how this is done.

You’ll then need to update the various market place settings within Profit Scraper.   These include:

  • Setting up auto ordering on Amazon
    • Confirm whether you would like Profit Scraper to purchase each of the items for you. Note that there is a cost of 40 cent per item. The software will automatically add the various addresses into Amazon for free and it usually takes about 1 minute per item to order. I usually process orders once I have say 15 purchases and as such it takes about 15 minutes. It’s completely up to you if you go for the full auto ordering option however at 40 cent per item this would be $6 for 15 minutes work. On the basis that I’d be happy to work for $24 per hour it makes sense for me to upload these items myself. If I’m away or particularly busy I just switch on auto ordering.
    • Make sure that send orders as gifts is completed
    • Turn on Automatic dispatched on eBay
    • Adjust Max negative profit allowed. This is when you get an order on eBay and within the say 12 hours (if you are processing orders yourself) between the order and purchasing from Amazon, the price shifts for some reason. I have only had this once and actually I left the item for a day and the price came back down so no profit lost.
  • Set up eBay market place settings
    • Make sure that repricing and monitoring items is enabled. This will make sure that if prices change on Amazon, they are automatically repriced.
    • Final Value Fees (eBay Fees) can vary between 8-11% depending on the various categories the item is listed within. I’d recommend setting this to the highest setting of 11% initially and then adjusting accordingly at a later date.
  • The final setting you’ll need to update is the profit settings. I currently have these at either 5% of the value of the item with a minimum of £1.75 per item. You can adjust these to the levels you consider appropriate.
Listing Items on eBay

Now that you’ve made sure that all the settings are correct, it’s time to start finding items to sell. The way to do this is by clicking on the tools heading and selecting item finder. This will then bring up a box as seen below:

Amazon to eBay Arbitrage

You’ll need to then find another eBay seller who is also undertaking Amazon to eBay Arbitrage. This is relatively simple and can be done by searching eBay using the name of the original item I purchased (found here). Once you’ve found the names of half a dozen sellers copy these into the seller ID box, only search by sold listings in the last 30 days and use just prime items. Then run the report.   Once you’ve run the report you’ll then need to go into the search report and click view to see the most recent items. In this window I would add some advance filters to ensure that all of the items are linking correctly.  Try using a filter which searches for items where a profit is in the region of say £0.5 and £4. Once you’ve applied the filter you’ll need to go through and just check that each of the pictures (by hovering over the eBay listing title and then source code) look the same, if they don’t then there has been an error so do not upload. You’ll find that say 10% of the items haven’t matched up correctly so you’ll have to stay alert when checking. This is the most tedious part of the whole process, sorry!

Amazon to eBay Arbitrage

Once you’ve selected all the items you want to upload, just click upload selected items to eBay in bulk. You’ll then need to review these items. Note that eBay will not allow you to upload items with certain words in the description (knifes / guns etc) or similarly certain brands so these will need to be deleted. Some titles will also be too long for eBay and will need to be reduced (usually highlighted in red). Once you’ve amended these you’ll be in a position to bulk upload and they should begin to appear on your eBay shop. This usually takes no longer than 20 minutes.

Processing Orders

So you should now have a fully operational shop with anywhere from 500 to 10,000 items depending on the subscription you have gone for. I’d strongly recommend starting off small and slowly increasing the scale of your new business. Depending on whether you have auto ordering set up, when you get your first order you’ll need to process the order. Lets assume you haven’t got auto ordering set up like me. Click on the auto ordering tab contained within the reports drop down list on Profit Scraper. This will take you to a list that looks similar to the below:

Amazon to eBay Arbitrage

Now for each of the items click on the Amazon link which will take you directly to the item and add to basket. Do this for each of the items that you have sold. Once completed, go to the basket and make sure you click on the box labelled this order contains a gift. Then proceed to check out. You’ll then have the option to ship to more than one address, make sure this is clicked. You can then match the addresses (which have been automatically updated to Amazon by Profit Scraper) with the various items which have been ordered. You can then add you own message to the gift card, I usually go for something along the lines of “Thank you for your purchase. Kind regards, Thrifty Pence”.

The final thing to do now is to pay for the item (s). As mentioned earlier, I would strongly recommend using the American Express Cashback Platinum Card and making sure you use this link to get a further £25 cashback when you make your first sale. In the 7 weeks I’ve been using Profit Scraper I’ve made an additional £176 in cashback from the card, a definite perk. Please find a review for the card here.

Once you’ve ordered the items make sure that you move the items from the addresses section of the auto order page of profit scraper to the completed. Similarly make sure that you update eBay once you’ve sent the items out.

Amazon to eBay Arbitrage Summary

I hope you’ve found the step by step guide to eBay to Amazon Arbitrage useful. As I highlighted above, it is more than possible to scale the existing £73 per week I’m currently making to provide a reasonable income from Amazon to eBay Arbitrage.

Just to sum up, the various items you’ll need to sign up to set up Profit Scraper are as follows:

I’ll be scaling my Amazon to eBay Arbitrage business over the next month, so please tune back in to Thrifty Pence for an update.

Update 5/11/2017:  Due to the popularity of the Profit Scraper Software, at the time of writing this article they’ve closed all applications to the software.  I’ve been inundated with queries as to other software providers and as such spent sometime test running the Pricematik software.  You can see my full review here.  By using the following link you can receive a 14 day free subscription to Pricematik.  Just click here to sign up now

As always please do share our page if you think friends would find the Amazon to eBay Arbitrage / Profit Scraper review useful and please do contact me in the comments section below if you have any questions.