Do you know why many online sellers prefer arbitrage to other business models? Two words—profitable and easy. They can make massive profits just by buying undervalued products from eBay and selling them for higher prices on Amazon.
Here's what most of them don't know—selling products from Amazon to eBay is also possible. Of course, it's possible, but who in their right mind would do that? Common sense should tell you that selling products for less than they're worth results in losses.
Indeed, it does, but it depends on what products you're selling.
In this reverse arbitrage, you're not selling brand-new items—those have fixed prices and must be sold on Amazon at their full value. Instead, you're selling open-box returns. As the name suggests, these are items returned by buyers before or right after they open the box.
What constitutes an Amazon FBA open box return?
Amazon and eBay have slightly different definitions of "open box." Knowing this difference can help you decide if an open box return item from Amazon is appropriate to resell as an open box return item on eBay.
eBay describes an open box item as "in excellent, new condition with no wear. The item may be missing the original packaging or original wrapping, or maybe in the original packaging but not sealed. The item includes original accessories."
Amazon, on the other hand, has no single definition of the term. Instead, it classifies open box items as:
Renewed
- They've been thoroughly inspected and tested by Amazon
- They have minimal signs of wear
- They have slightly visible cosmetic damage when held from one foot away
- They may come with new packaging
- They include all accessories
Used – Like New
- They must be in perfect working condition
- The original packaging may have minor damage
- They may come with new packaging
- Package damage is clearly defined for each item
- They include all accessories
Used – Very good
- They've been used a few times but remain in good working condition
- They may show minimal signs of wear, including minor scratches or blemishes
- They may arrive with damaged or new packaging
- They could be missing some accessories, which are clearly defined for each item
Used – Good
- Wear is present, but the items remain in good working condition
- They may have markings or cosmetic damage
- They may arrive with damaged or new packaging
- They could be missing some parts, accessories, instruction manuals, or assembly tools
Used – Acceptable
- They are pretty worn but function properly
- They may have scratches, dents, and worn corners
- They may arrive with damaged or new packaging
- They could be missing some parts, accessories, instruction manuals, or assembly tools
Amazon's definition is undoubtedly more explicit than eBay's, but since you're selling on eBay, you should follow eBay's definition. Still, if we compare the two definitions, we can conclude that 'used – like new' is the closest Amazon open box return classification to eBay's open box definition.
Therefore, when selecting open box returns from Amazon to sell on eBay, you should focus on products that pass as used – like new. To avoid complaints and returns, don't try to sell products classified as something else under the same category. Consider selling them in the 'Pre-owned' category instead.
Why do buyers return products?
When you ship a product to a buyer, two things can happen—they'll either accept it or return it. Amazon's buyer-centric return policy makes it possible for buyers to return products for literally any reason. They may return it if it's defective, they didn't like the color, or if it arrived too late. They may even return it if they find a better price elsewhere.
Of course, Amazon will still investigate to verify the buyer's claim. If they deem the buyer at fault for any damage to the product upon return, they won't charge you for it. If they think you are at fault, they'll charge your account the product and shipping costs. If they deem they made a mistake that led to the return, they'll take full responsibility.
Knowing the buyer's reason for returning your product helps you determine whether it is suitable for flipping on eBay. Some products may be too damaged to consider reselling, while others may look fine but may not be worth a profitable price.
What do sellers usually do with returned items?
Amazon offers sellers three options for dealing with open box returns. One is FBA liquidations, which is ideal if the products are severely damaged or have lost much of their value. Instead of paying Amazon to store or destroy them, FBA liquidations allow you to sell them to wholesale liquidators for 5% to 10% of their average selling prices.
Another is FBA Grade and Resell. This program allows you to relist your products as 'used.' But this isn't automatic. Amazon will evaluate your products to determine their suitability for resale and classify them accordingly. Lastly, you may also choose to donate your products to charities Amazon supports, which is better than having them destroyed.
Of course, you can retrieve your products. You've already lost money anyway, so why not get them back to asses if you can resell them, even just at cost? You can even turn a profit if you find a generous buyer. And even if products don't meet eBay's standards, they can still provide valuable lessons to enhance your business in the future.
How do you sell Amazon FBA open box returns on eBay?
So, you finally received the Amazon open box returns you've been waiting for, evaluated them thoroughly, and deemed them suitable for resale on eBay. Here's what you should do next.
Step 1: Create an eBay seller account.
Sign up for a personal or business account if you haven't already. Follow these instructions.
Step 2: List your products.
Go to 'Sellers Hub,' hover above 'Listings,' and click 'Create a listing.' If you've been a seller for a while, you probably have listing templates available on your account. You can either use one of those for this new listing or one from other existing products on the platform.
If you can't find a matching template, click 'Continue without a match.' You'll be asked to choose one from four product classifications that best describes your product—new with tags, new without tags, new with defects, or pre-owned. You'll notice that there's no 'open box' in the choices. That's because open box items can be described as any of the first three options. Then, click 'Continue to listing.'
Important: While choosing a matching listing template makes the job easier, you risk including inaccurate information, especially since the product you're listing requires a unique description. If you have to replace most of the information on the template, you might as well create a new one.
Step 3: Upload images.
Photograph each product from all possible angles to show all its details. Do not use an editing tool to preserve your product's color, gradient, and texture. If possible, use a white background to create a solid contrast that can make the features of your product pop better.
Step 4: Add a title and a description.
Your title should be up to 80 characters long. I suggest you use all the available characters and include keywords or phrases that describe your product, such as 'open box,' 'like new,' and 'in perfect working condition.' This way, buyers will know exactly what to expect and not mistake your product for a brand-new one.
Most of the information you'll include is clickable on the description page. You just have to choose matching details. On the condition description, however, you must provide an exact product description.
Here's a tip: Be as honest as possible when describing your product in the condition description. Explain what works and what doesn't. If it was returned due to minor damage, mention the damage in detail. Paste this same information, along with the title, on the Description.
Step 5: Decide the price.
You can choose between fixed pricing or auctioning off your products. A general rule is to auction off only products you know are highly in demand. Otherwise, just put a competitive price for faster sales.
Step 6: Choose a shipping method.
Choose a shipping method that suits the dimensions and weight of your product. For small to medium items, use standard shipping. If you're not planning to cover shipping but are unsure how much to charge, especially if your target buyers are spread out across the country, consider using the calculated cost option, which adjusts the shipping fee according to buyer location.
If you operate within the US, shipping should take at most three days. Buyers don't like to wait longer than that to receive their parcels. Also, decide whether to enable the return option for domestic or international shipments. Just know that you'll pay the cost of all returns, but enabling this on your listings demonstrates trustworthiness.
Flip Amazon FBA Open Box Returns on eBay Now!
Turn losses into profits by maximizing the sales opportunities offered by eBay. Whenever a buyer returns a product, remove it from Amazon storage and prepare it for resale on eBay at cost or profit. Make it a mission to only have inventory destroyed or donated if absolutely necessary. However, preventing returns must be your top priority. Maintain the quality of your products and solutions to satisfy your buyers. This way, if returns are inevitable, your open box returns will remain suitable for resale.