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Author Topic: Selling Bitcoin on Amazon  (Read 8788 times)
BitcoinMarket
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October 09, 2012, 04:10:40 AM
Last edit: October 09, 2012, 04:24:49 AM by BitcoinMarket
 #1

I have just opened a seller store on amazon to sell bitcoins to any amazon user.  You can use any of the traditional amazon payment methods.

I am currently offering bitcoin packages in dollar value amounts of $50 $20 and $10
there is a small fee, most of which goes to amazon for processing the payments.

If Amazon charges shipping, and I am trying to keep them from doing it, I will add that amount of bitcoin with your order


Sale is also backed by Amazon's A-to-z Safe Buying Guarantee

As difficult as bitcoin is to get for new users, I believe this will be a good service.  Let me know if you have any suggestions


You can get strait to my amazon store here
http://bitcoin.hostedbyamazon.com/
Or just by doing a search on amazon for bitcoin, as I am the only one selling them
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October 09, 2012, 04:24:47 AM
 #2

nice move! hope it sustains!
BitcoinMarket
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October 09, 2012, 04:26:15 AM
 #3

I cant believe no one beat me to it, amazon makes setting up a store fairly easy
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October 09, 2012, 04:48:24 AM
 #4

There is a reason you're the only one selling bitcoin on amazon, what happens when people start filing chargebacks for the transactions with their credit card company?

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October 09, 2012, 05:06:26 AM
 #5

Amazon offers protection to both buyers and sellers.  If I can prove that I have sent the bitcoin, and I can, the credit card company will cancel the chargeback.
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October 09, 2012, 05:09:33 AM
 #6

Amazon offers protection to both buyers and sellers.  If I can prove that I have sent the bitcoin, and I can, the credit card company will cancel the chargeback.

LOLZ.  Even if that were true what about stolen credit cards?  Have fun.  Don't say you weren't warned.
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October 09, 2012, 05:23:44 AM
 #7

We (all the old timers) know that this will end badly - it always does.

However, it is interesting so I bought one of your $10 packages.  It charged me for shipping so you owe me about $15 worth of Bitcoins.  You have my shipping address but what you really need is a Bitcoin address to ship me the BTC.  Now what?

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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October 09, 2012, 06:38:53 AM
 #8

Thanks for being my first purchase, I have to wait for the bank to open and I will have them to you ASAP
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October 09, 2012, 07:30:35 AM
 #9

if I order from your site can i pay with my amazon balance ? if yes when I receive the bitcoins from you ? thanks
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October 09, 2012, 07:45:11 AM
 #10

Yes I believe so, you will recieve them within 24 hours

using this link, shipping is not included
http://bitcoin.hostedbyamazon.com/
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October 09, 2012, 07:47:26 AM
 #11

Oh man, good luck and keep us posted.
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October 09, 2012, 07:50:32 AM
 #12

How many buyers so far?

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October 09, 2012, 07:55:05 AM
 #13

Sigh, I'm getting this error when checking out:

Quote
Your request is missing information or needs correcting. Please fix the areas indicated below. When you are done, please press the Continue button to send your information again.

Right at the point where I'm choosing shipping address (International) and have all fields filled out. Probably Amazon's error.

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October 09, 2012, 07:58:24 AM
 #14

This is really handy for me at the minute, the whole UK market is a bit tricky to navigate and untill im back online i think ill try a buy Smiley

So you add the BTC value of any shipping charges added? Also, which exchange rate are you basing your conversions off of?

I noticed a previous poster mentioned that you have no section to add in a BTC address to receive the coins after we purchase, is this right??

Suppose i could just email you my address and follow the transaction the normal way

-Buying/Selling graphics cards every month
--Buying BTC every month £/$/€200+ wanted
---UK based re-seller of physical bitcoins  Click here to buy
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October 09, 2012, 11:40:05 AM
Last edit: October 09, 2012, 11:51:31 AM by BurtW
 #15

Thanks for being my first purchase, I have to wait for the bank to open and I will have them to you ASAP
Please explain this statement.  You are saying you need to go to the bank.  Why is that?  Just curious.

Also, here is my order information:

Code:
Shipping Method: Standard
Items:                    $10.70
Shipping & Handling:     $4.49
                    ------
Total Before Tax:    $15.19
Tax To Be Collected:     $0.00
   ------
Order Total:            $15.19

How many BTC do I get for my $15.19?

How does your system work?  How do you find out where to ship the BTC?  Do you even get the customer's email address from the Amazon invoice you receive?  Assuming we were not talking here (on this forum) how do you contact your customers to get their Bitcoin address?  Your system must work with just the information you get from Amazon or it will not work.  Or maybe, are you shipping me a paper wallet, Bitcoin check, or something like that to my mailing address?  It seems to me if you were going to be shipping out the BTC on a physical device you would state that on your web site.

How many buyers so far?
AFAIK just me so far.

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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October 09, 2012, 11:55:24 AM
 #16

According to the website:

Bitcoins are directly transferred to you into your bitcoin wallet.  There is no physical bitcoin to be shipped.  You must obtain a wallet to receive bitcoin, or at least an email address for the voucher to be sent to while you are obtaining a bitcoin wallet. 

So Burt, did you enter your email anywhere?


/GoK

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October 09, 2012, 11:58:37 AM
 #17

dis gon' be good.
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October 09, 2012, 12:04:08 PM
 #18

According to the website:

Bitcoins are directly transferred to you into your bitcoin wallet.  There is no physical bitcoin to be shipped.  You must obtain a wallet to receive bitcoin, or at least an email address for the voucher to be sent to while you are obtaining a bitcoin wallet.  

So Burt, did you enter your email anywhere?


/GoK
It does show up on my copy of the order information along with my shipping address and billing address, etc.  But I do not know what he, as the seller, gets.

using this link, shipping is not included
http://bitcoin.hostedbyamazon.com/
This appears to be true.  I tested the system by going to www.amazon.com, logging into my account, searching for the key word "bitcoin", his products do show up in the list, then I went through the normal checkout and was charged shipping.

However if I go through the link to his website and order, shipping does not appear to be added.

There must be a way to tag your items as "electronic items" or something since you can sell Kindle books which also would not have shipping so that going through the main site will not add shipping.

This is all a short term exercise as we know how this is going to end.  But it is fun while it lasts.

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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October 09, 2012, 01:08:03 PM
 #19

Yes, I am trying to figure out how to get them listed as an electronic item so that shipping won't be charged.  I am still figuring out how to use Amazon's system.  I will have to add a request for your bitcoin address to the order form, however I can email any buyer through Amazon without even seeing the email address. 


I have to wait for the bank to open because I am buying them with cash deposit
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October 09, 2012, 01:54:09 PM
 #20

I think you really have to ask yourself why this has not been done before.
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October 09, 2012, 01:58:41 PM
 #21

Maybe it will work? Let's see. It may help out our UK peers right now.

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October 09, 2012, 05:33:08 PM
 #22

I have some bitcoin now and I am ready to send. 

I do understand that this is risky, but it really makes me mad that bitcoins are somewhat difficult, and so expensive to aquire for the first time.  I am actually loosing a little money with these first few orders because of all the transaction fees, but I hope with a little increased volume that I will be able to come out ahead.  My goal is only to make 1-2%. 

It is very frustrating that bitcoin is a way to stay away from traditional currency and transactions, including transaction fees, and everywhere you look people are charging so many fees for the bitcoin transactions, and often requiring multiple transactions to get them so that the bothersome 5% fee become a cumbersome 15% fee.

Right now I have paid $104 for $95 of mtgox funds, and I will have to pay ~5% transaction fee on amazon.  Luckily bitcoin value is constantly going up, so just holding on to my inventory for a week or so will usually allow me to break even
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October 09, 2012, 05:38:08 PM
 #23

What about sending a flash drive with Bitcoins on it?  Amazon or CC company couldn't claim that the item wasn't shipped, but user-driven feedback would keep your reputation in check.  Cheap flash drives can be bought for $1 or less in bulk, and you don't need any more room beyond just holding a simple text file.  Hold on to the private keys that you send, so that if a customer says their flash drive contained no bitcoins, you could retrieve the coins and resend them via email or something.
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October 09, 2012, 05:42:25 PM
 #24

What about sending a flash drive with Bitcoins on it?  Amazon or CC company couldn't claim that the item wasn't shipped, but user-driven feedback would keep your reputation in check.  Cheap flash drives can be bought for $1 or less in bulk, and you don't need any more room beyond just holding a simple text file.  Hold on to the private keys that you send, so that if a customer says their flash drive contained no bitcoins, you could retrieve the coins and resend them via email or something.

Why don't you just sell $12, $22, and $52 flash drives? Put $10 worth of BTC on the $12 drive, etc.... That's what prepaid CC's are basically doing. Then you have a physical product as well.
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October 09, 2012, 05:53:32 PM
 #25

What about sending a flash drive with Bitcoins on it?  Amazon or CC company couldn't claim that the item wasn't shipped, but user-driven feedback would keep your reputation in check.  Cheap flash drives can be bought for $1 or less in bulk, and you don't need any more room beyond just holding a simple text file.  Hold on to the private keys that you send, so that if a customer says their flash drive contained no bitcoins, you could retrieve the coins and resend them via email or something.

Why don't you just sell $12, $22, and $52 flash drives? Put $10 worth of BTC on the $12 drive, etc.... That's what prepaid CC's are basically doing. Then you have a physical product as well.
Right, that's exactly what I am saying.  Or was trying to say.  Wink
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October 09, 2012, 06:03:57 PM
 #26

Soz, didn't see your post. At least we agree Cheesy
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October 09, 2012, 06:07:27 PM
 #27

Also, if cheap flash drives can be bought in bulk for $1, I can't find where.  But $3.50, at the very least.  Wink
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October 09, 2012, 06:27:10 PM
 #28

There.  I put in an order, we'll see how it goes.
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October 09, 2012, 06:31:03 PM
 #29

Well the idea with the flashdrives is the idea that will sell the most, imo. Users with less technical experience and don't have interest enough to get invloved in Bitcoin, they are the ones. It would be a way to make bitcoin physical indirectly, or at least the bitcoin currency would get to be considered something physical by the kind of users I just described.
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October 09, 2012, 06:31:18 PM
 #30

OP is totally new to bitcoins. Why are people actually trying this out? He is going the bank to buy the coins with cash deposit and getting burned on fees... and people are buying?
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October 09, 2012, 06:32:50 PM
 #31

OP is totally new to bitcoins. Why are people actually trying this out? He is going the bank to buy the coins with cash deposit and getting burned on fees... and people are buying?

I think the idea is to show the OP how this is going to end in total failure, before it has to end in total failure.
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October 09, 2012, 06:59:23 PM
 #32

I very much like the idea, and i think it should work.
But what exchange rate do you use, and the one that i see when i klick on "buy" or the one you see when you ship my coins?
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October 09, 2012, 07:00:43 PM
 #33

Questions for OP:
  • Where are you getting your exchange rate (USD to BTC)?
  • Do you have different rates for the $10, $20, and $50 increments?

Comments:
  • I was hoping I could pay with credit card points, but it appears not.
  • Looks like I can pay with Amazon gift cards, though.
  • The $50 denomination shows $0.00 for shipping/handling.  I think that goes with Amazon's free shipping on orders > $25.
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October 09, 2012, 07:01:50 PM
 #34

I still and not sure what your packages mean. I mean how many bitcoins do you get for each package?
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October 09, 2012, 07:14:47 PM
 #35

I still and not sure what your packages mean. I mean how many bitcoins do you get for each package?
You are buying a certain number of dollars worth of BTC.

So you send him dollars and then when it comes time to send you the BTC he calculates exactly how much to send you at that time.  You do not know how many BTC you will get until he sends them because he does not know what the exchange rate will be at the time he sends you the BTC.

Where he is getting his exchange rate has already been asked but I expect it is Mt. Gox since he is sending cash to his Mt. Gox account in order to buy the BTC to send you.

Obviously you can just go to BitInstant and do this all yourself - but he has a twist on an old idea that has failed dozens of times in the past and he wants to try it so he will.

So that in the future I can say "I told you so" here is what will happen to this business:

It will work for a short time.
The scammers will find his business
They will use stolen credit cards to buy BTC
Others will simply get the BTC and then reverse the charges on their credit cards
All this money will be taken back
The OP will lose a ton of money

We have seen this pattern dozens of times.

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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October 09, 2012, 07:19:58 PM
 #36

BTW so far so good on the transaction.  He sent me an email through Amazon asking for my Bitcoin address, I generated one and sent it to him, so now I am just waiting for my BTC to arrive.

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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October 09, 2012, 07:24:55 PM
 #37

    • The $50 denomination shows $0.00 for shipping/handling.  I think that goes with Amazon's free shipping on orders > $25.

    There is no shipping if you go through his web site.  I went through the main amazon site and found the coins that way.  In that case there was shipping, but it does not matter as he give you BTC for the shipping charges anyway.  So, instead of buying $10 in BTC I ended up buying about $14 worth.

    Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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    October 09, 2012, 07:52:32 PM
     #38

    Its not going to go well, countless people have tried to do the same and every single person has failed.

    This is not true... I have been scammed here and there but I have not failed. Selling bitcoins with paypal or credit card can be done without failing.

    I would agree that anything larger than small time sales of .5 to 5 BTC is probably going to result in an overall fail but on small scales you can mitigate your risk by paying close attention to details and being part of a scammer reporting guild.




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    October 09, 2012, 07:56:22 PM
     #39

    You've been here for about a month and no one knows you're selling Bitcoin. Small wonder you haven't failed yet.

    Just wait a little longer for the failboat to arrive.
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    October 09, 2012, 08:01:27 PM
     #40

    why do the fixed rates not fail? what do they do for security?
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    October 09, 2012, 08:09:28 PM
     #41

    I wasn't talking about fixed rates, I was talking about not selling 400 bitcoins in a shot. Keeping it to smalls sales (.5-5 BTC) helps reduce risk. I'm also talking about not selling at all using digital delivery.

    Digital delivery is the best way to get scammed.

    Switch to paper delivery for the least scam potential. It's still there but it's far easier for them to scam someone else who is offering digital delivery. Scammers, like all predators, prefer easy prey.


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    October 09, 2012, 08:17:43 PM
     #42

    I cant believe no one beat me to it, amazon makes setting up a store fairly easy

    Thought about it. Researched it. Amazon has huge fees they charge the seller and VERY high chargeback risk. There is also a lot of fraud using amazon giftcards to make purchases and claim the item never arrived to have the funds reloaded back on the amazon card. Amazon sides almost exclusively withe the buyer like Ebay.

    That being said, best of luck to you and I hope you're successful!
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    October 09, 2012, 08:33:38 PM
     #43

    my question was: what differs fixed rate shops from this guy? why do they not fail?
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    October 09, 2012, 09:00:52 PM
     #44

    my question was: what differs fixed rate shops from this guy? why do they not fail?

    amazon shops pay a monthly fee and get better "closing fees" though not much. And shops can add products to sell on Amazon. There is no actual difference other than that. Frankly, Amazon was a waste of time for my business so I shut down the shop before the trial period ended. Either the market place for copper bars and copper pennies on there is ridiculously small, no one found me, or no one wanted a better price. I never understood why people pay over $10 a pound for shiny .999 copper bars with buffing and shiny stamps on them when you can buy the same exact metal price for under industrial commercial price.
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    October 09, 2012, 11:24:10 PM
     #45

    I do realize that this is a risky business, and that my profits are very slim.  I do however have a few different methods that I am keeping to myself to track orders and prove that the items were sent to the seller's address.  I am doing this because I know how difficult it is for new people to get started with bitcoins and the run around you get when trying to buy them the first time.

    I hope this service proves usefull and safe for both parties

    Thanks for my first 4 orders, I believe they are all from members of this forum
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    October 09, 2012, 11:51:23 PM
     #46

    Please let us know how you make out with your amazon coin sales. I am very interested to hear about it. I use eBay myself.

    On a side note, I have never advertised my auctions on the forum. I'm not so sure it's safe to do so.

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    October 10, 2012, 05:03:31 AM
     #47

    I am happy to report that I got my BTC.  The transaction went as follows:

    Code:
    Total paid:    15.19
    Fees:          -1.06 (7%)
    Paid for BTC:  14.13
    BTC received:   1.17919

    Cost of BTC:   11.9828/BTC

    Mt.Gox low:    11.57
    Mt.Gox high:   12.35

    Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
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    October 10, 2012, 05:25:43 AM
     #48

    I cant believe no one beat me to it, amazon makes setting up a store fairly easy

    You are about to get screwed in the a$$ Smiley


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    abrkn
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    October 10, 2012, 07:35:04 AM
     #49

    I am happy to report that I got my BTC.  The transaction went as follows:

    Code:
    Total paid:    15.19
    Fees:          -1.06 (7%)
    Paid for BTC:  14.13
    BTC received:   1.17919

    Cost of BTC:   11.9828/BTC

    Mt.Gox low:    11.57
    Mt.Gox high:   12.35

    What payment method did you use?

    keybase.io/abrkn/key.asc
    BurtW
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    October 10, 2012, 11:50:20 AM
     #50

    I am happy to report that I got my BTC.  The transaction went as follows:

    Code:
    Total paid:    15.19
    Fees:          -1.06 (7%)
    Paid for BTC:  14.13
    BTC received:   1.17919

    Cost of BTC:   11.9828/BTC

    Mt.Gox low:    11.57
    Mt.Gox high:   12.35

    What payment method did you use?
    Totally 100% reversible good old-fashioned VISA credit card that I have on my Amazon account.

    I am not a scammer so I will not be reversing the charge any time in the next 180 days.

    BTW does everyone know that the 180 day chargeback limit is really just a "rule of thumb".

    Actually, chargebacks can and do happen even after the 180 day "limit" in certain cases.  Just Google "How long after a transaction can a customer initiate a chargeback?"

    There are cases of chargebacks being initiated after one year!

    Sucks to be a vendor taking credit cards.  I believe that this is one of the strongest, if not the strongest selling point for taking Bitcoin as payment as opposed to credit cards and we as a community should really drive this point home when talking about Bitcoin to all vendors.

    If it sounds like I am trying to scare you out of doing this as a business - that is correct.

    There is a very good reason you have not found anyone else doing what you are doing - and it is not that you are the first one to think of it!

    Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
    FLHippy
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    October 10, 2012, 12:03:57 PM
     #51

    I am happy to report that I got my BTC.  The transaction went as follows:


    Holy crap, he's doing digital delivery? I missed that part.

    Yeah, you shouldn't do that.

    There are some beautiful paper coin designs you can print yourself. And you can buy copper coin blanks and sell those too. Physical goods are the best way to limit the scams.


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    ookape
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    October 11, 2012, 06:45:13 AM
     #52

    I'm really interested in this service too, btc exchanging is a pain, and I use amazon pretty much every day. Keeping an eye on this also.
    BurtW
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    October 11, 2012, 07:32:30 AM
     #53

    I'm really interested in this service too, btc exchanging is a pain, and I use amazon pretty much every day. Keeping an eye on this also.
    Welcome with your very first post!  Congrats!

    Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
    jimmyk83
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    October 11, 2012, 08:28:13 AM
     #54

    Will be keeping an eye on this, although buying from 'traditional' online shops, like ebay always seems an expensive way to buy. Struggling to find many options at the mo though
    Ailure
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    October 11, 2012, 11:51:39 AM
     #55

    Most bitcoins are sold out already. I'd give it a try if it wasn't for that. Wink I assume it would be the fastest if you're around when I pay.
    Luno
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    February 21, 2013, 09:50:50 AM
     #56

    A question to a very old post: Would it be possible to make selling Bitcoins on Amazon work if Amazon giftcards was used as only payment method?

    I don't think that chargebacks are possible with gift certificates, am I right?
    Benja
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    February 21, 2013, 10:08:28 AM
     #57

    I'm interested in this - could I use amazon coupons to pay?
    TheButterZone
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    February 21, 2013, 10:23:52 AM
     #58

    No. Amazon gift cards have to be purchased with cash (provable by receipt) to be unchargebackable.

    Saying that you don't trust someone because of their behavior is completely valid.
    Luno
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    February 21, 2013, 10:37:52 AM
     #59

    Okay thanks, bummer.
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