Has Anyone used Amazon as a Dropshipping Company for eBay?

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[TD="class: alt1, bgcolor: #F5F5F5"]After selling a lot of my own stuff on eBay I done some research on the guys who were selling more than me in the DVD area for example and noticed this on some of their listings:

"Some of our products will be shipped from Amazon as we hold stock at their fulfillment centre"

That's fine I thought as this is perfectly acceptable but I then thought -

What if they didn't have their own stock there and were actually just using Amazon as the biggest dropship/supply company in the Country?

So I looked into it and a few of the sellers were selling around 2000-3000 products per month all shipped from Amazon amongst other places. I ordered one Cheap DVD and it did come Direct from Amazon with the message that 'seller' was sending it as a gift to me.

The prices of almost all the DVDs sold are around less than $1.50 cheaper on Amazon and so by using the free Delivery service also and charging for delivery on eBay, after fees they are probably making $1-$2 per item sold.

Not much you say and it would take a good few hours a day to admin all that but as a full time job you would be making around $2000 per month.

Now if you are using the same Credit Card on Amazon to purchase the stock and have delivered to different customers than surely the benefits of spending over $20,000 per year on one card would be huge wouldn't they?

I know eBay allow dropshippers but Amazon are a bit sketchy in their T&Cs. The Bottom Line is this - Is This Legal?
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It is too risky to dropship using just one supplier, if they run our of stock or delay their shipping you will be left unhappy customers!