Online arbitrage involves buying products from a store at a discount and then selling them for a profit on Amazon, and other marketplaces. It’s a great way to make money online. This post is about to give you a comprehensive guide on how to run a successful online arbitrage business. Continue reading to learn all about online arbitrage for Amazon FBA.
How To Sell Your Online Arbitrage Items On Amazon
You can resell your online arbitrage purchases on Amazon in two ways. You can either use the Amazon FBA program or merchant fulfill them. Using the Amazon FBA program means that you list the products on Amazon, store them at your house, and then ship them out to the customer when the products sell. But when you merchant fulfill them, you list the products on Amazon, ship them to an Amazon warehouse, they are stored in the Amazon warehouses, and then Amazon ships them to the customer when the product sells.
Pros and Cons of The Online Arbitrage Sourcing Method
If probably, you are wondering if online arbitrage is the right sourcing method for your Amazon business, here are some pros and cons for you.
- The pros include the ability to lower your overall price, save time, ability to buy and sell more items at once, etc.
- The cons include lower profit margins, massive competition, potential issues with packaging and damage can be overwhelming when searching for products on online stores.
Every sourcing method has pros and cons, so it’s important you know them to make an informed decision on how you want to run your business. Selling online is different for everyone. Just make it work how you feel most comfortable.
Checking The Amazon Best Sellers Ranking On Online Arbitrage Items
After finding a product that is selling more on the retail site, check the best seller rank on Amazon. This is the way to tell if the item is selling on Amazon, rather than just being listed. Do this before checking its profitability, because there is no point in checking profitability if the item isn’t selling well to start with.
Calculating The Profitability Of Online Arbitrage Products
After getting a product match from the online site to Amazon and verified it has a good best seller’s ranking, know how much money the product would make if you resell it on Amazon and what the profit margins will be. There are two ways you can check to see how profitable the item is after all expenses. The first method is completely free using the Amazon FBA Calculator. The second method, using RevSeller, does have a cost associated with it.
Ensure You Can Sell The Item On Amazon Before Making A Purchase
This is the most critical step in buying inventory online to resell on Amazon. Not all items sold on Amazon can be resold by all sellers. Check if your account is not restricted from selling the item if it’s not meltable and if the brand doesn’t file IP complaints against sellers. Many people skip this step and end up buying inventory that doesn’t sell and all the money spent on inventory gets wasted. Don’t let that happen!
How To Automate Online Arbitrage Sourcing
Selling online with the online arbitrage method of sourcing can be tedious and sellers prefer using tools to help automate the process a bit. There are three ways recommended that’ll speed up your online shopping sessions. They are advanced strategies because they all have some sort of a learning curve to using them. They also all have a recurring monthly fee associated with them. They include;
- Using An Online Leads List Sourced By A Virtual Assistant
- Using Source Mogul to Automate Finding Online Deals
- Using Tactical Arbitrage To Automate Finding Online Arbitrage Deals
Ways To Increase Your Profit Margin When Sourcing Online
There are a few ways you can avoid paying a higher price than necessary that only work online. This includes using coupon codes to lower item prices or using cash-back sites to earn rebates when shopping online.
Two Tools You Should Be Using When Doing Online Arbitrage
I recommend you add these two tools as soon as you can when doing online arbitrage. These tools will save you time, make you more efficient, and help you avoid costly mistakes when you purchase inventory online. Many online arbitrage pros are using these two tools in their businesses. These tools are RevSeller (an Amazon on-page revenue calculator) and IP Alert (an on-screen indicator that helps you avoid intellectual property (IP) complaints on Amazon).
Amazon’s online arbitrage is a great way to make money online. By studying and following this guide on online arbitrage, you can research profitable products, source them, and resell them on Amazon for a profit. Remember that, like any business, it requires research, patience, and hard work to succeed. Keep learning and stay consistent. This will help you to achieve success with Amazon FBA online arbitrage.
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