Published by Infinity, Infinity is an all-in-one dropshipping tool for eBay sellers. We deliver hand-vetted, high-margin product leads daily to help sellers grow profitable eBay businesses.

What Is Two-Step Dropshipping?

After making a sale on eBay, you have two options for fulfilling the order:

Ship directly from your supplier (like Amazon) to the buyer.
Ship the product to yourself or a warehouse first, then forward it to the buyer.

This second method is often referred to as “two-step dropshipping.” Here’s a breakdown of the pros and cons.

Advantages of the Two-Step Method

No need to use tools like TrackTaco to mask Amazon tracking numbers.
You can remove or repackage the item before reshipping (if needed).
Tax strategy advantage: if your resale certificate covers your state but not the buyer’s,
shipping to yourself first may avoid your state’s sales tax on the inbound leg.
(Example: if you're in NJ, you could save 6.67% per order.)
Packages ship from a ZIP code near your registered business address: something eBay’s algorithm tends to appreciate.

Disadvantages of the Two-Step Method

Slower fulfillment time since the package makes an extra stop.
More hands-on work: requires receiving, repackaging, and dropping off the item.
You’ll pay for the outbound shipping label to the buyer (whereas direct shipping from Amazon might be free).

Final Thoughts

Two-step dropshipping isn’t always necessary, but it can be a smart strategy depending on your scale, tax situation, and buyer experience goals. Infinity users who want tighter control over shipping appearance, tax savings, or account performance may find this method especially useful.

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