Sticky

Ebay bans arbitrage accounts for dropshipping items.

Nowadays dropshipping at Ebay or Amazon is increasing ,with thousands of sellers trying to profit due to a difference in price provided from their suppliers to final sale.So Ebay started aggressive blocking and suspending arbitrage accounts.

The problem is that many sellers are trying to gain profit without ever bought the item listed.They do dropshipping with an unaccepted way that ebay rules prohibit such selling behavior.So Ebay started aggressive blocking and suspending all accounts acting like this.

Reading carefully ebay guidelines we find the exact article refering to that:

Drop shipping, also known as product sourcing, is when you buy stock from a supplier and work with them to send items directly to your buyers without ever handling them yourself.

Drop shipping, where you fulfill orders directly from a wholesale supplier, is allowed on eBay. Remember though, if you use drop shipping, you’re still responsible for the safe delivery of the item within the time frame you stated in your listing, and the buyer’s overall satisfaction with their purchase.

However, listing an item on eBay and then purchasing the item from another retailer or marketplace that ships directly to your customer is not allowed on eBay. In such cases, we may remove your listings from search, display them lower in search results, or remove them completely from the site. We may also limit, restrict or suspend your ability to buy, sell, or use site features on eBay, and you could lose any special status and/or discounts associated with your account.

It seems eBay has developed tools that can quickly find such listings, cancel them, and restrict the sellers.

For sellers who are thinking about trying dropshipping arbitrage sales, it seems the days are basically over and they’ll spend more time trying to evade eBay detection than making sales.

Even online retailers such as Amazon, a popular source for products to sell on eBay using arbitrage, updated its buying policy that effectively prohibits the practice too.

Fundamentally, marketplaces (such as eBay), brands (product manufacturers), and supplying retailers (online retailer such as Amazon) prefer straight forward supply chain sales.

It boils down to consumer transparency and dropshipping arbitrage sales seem to increase the risk of consumer confusion, complaints, and returns.

On that point Yiwusafetrade.com gives the solution to all online sellers.

  • A certificate of suppling products is provided,so online sellers can use it everytime ebay requests proof of ownership.

  • Free 30 days storage is provided in Yiwu, China so all sellers can use it for warehouse retail dropshipping to their customers.

For sellers who are thinking about trying dropshipping arbitrage sales, it seems the days are basically over and they’ll spend more time trying to evade eBay detection than making sales.

What do you think of eBay’s crackdown on arbitrage? Please use the comments section below or head over to our Facebook Page and interact with other small business owners.

And don’t forget to follow us on FacebookTwitter, and LinkedIn to stay up to date with important news, business insights and hot new selling products for your online retail business.