Marketplace sellers who use arbitrage to earn money effortlessly are starting to lose sales specifically on the eBay platform.
Arbitrage is the method of copying listings from another website like Amazon and reposting them to eBay at higher prices.
It costs nothing except a software for sourcing products from other marketplaces, plus it entails no responsibilities.
If a buyer has a problem with the item that they received and wishes to return it, they will contact its original source and not the arbitrage seller.
However, eBay won’t tolerate such scheme, hence preventing sellers who are practicing it from making any more sales.
That’s according to SaleFreaks, an Israeli company that offers an all-in-one retail online Amazon to eBay arbitrage tool, who have joined forces with their clients to file a legal case against the eCommerce giant.
They said the listings of their clients on eBay have not been showing up in the Best Match search results since April, hence resulting in lower sales.
SaleFreaks CEO Adi Reiss accused eBay of manipulating the Best Match results, stating on Facebook:
“eBay admitted that they indeed manipulated the “best match” search results against “dropshippers” relative to sellers not “dropshipping” from online sites in order to “preserve eBay’s integrity” and “protect purchasers.”
It may sound like eBay do not support dropshippers, but their website says otherwise. In fact, they explicitly define dropshipping as:
“Typically used by sellers who buy stock in bulk from their supplier. After the seller receives an eBay order, they work with the supplier to have the item sent directly to the buyer. If you use drop shipping, you’re still responsible for the safe delivery of the item within the timeframe you stated in your listing, and the buyer’s overall satisfaction with their purchase.”
eBay have yet to comment on this issue and the allegations thrown at them.
What’s your take on this? We’d love to hear it from the comments below.
To your continued success,
Dave & Matt