Over the years, I've scaled many different eCom businesses, and Online Arbitrage (with the right approach - is still one of the best for beginners...or anyone trying to make some extra side money each month....ESPECIALLY during Q4 when sales for many products go through the roof....and HUGE discounts on these products can be found if you know the right places to look.
This approach entails buying products from retail stores or online websites at a lower price and then selling them on different marketplaces, such as Amazon, at a higher price. The resulting difference in price becomes your profit. What makes online arbitrage particularly attractive is its accessibility. Virtually anyone can get started, regardless of their experience level...and make some money.
However, unlike conventionally taught strategies, I don't recommend physically going to stores in person...because that can waste hours and hours with no promise of actually finding profitable products to sell. So, instead of spending hours scouring physical stores for products, I advocate using software that does the legwork for you.
Personally, I've found Source Mogul to be a game-changing tool. This software scans hundreds of websites, comparing product prices against Amazon's extensive catalog. It's like having a virtual assistant that hunts down the best deals for you....AUTOMATICALLY.
So, how can you capitalize on online arbitrage effectively? Let's break it down into three crucial steps.
1. Product Selection: The software will generate a list of potentially profitable products. However, before making any purchases, ensure that you can actually sell the product on Amazon by making sure your Amazon seller account allows YOU to sell the product ....and whether it remains profitable even after accounting for Amazon fees.
You can check the profitability of an item by using any number of google chrome extensions created for just that purpose. But if you're looking for a free option, you can use the one hat comes in seller central. Just google "amazon fba calculator" and it should pop up.
2. Sales Estimation: To avoid guesswork, determine the product's sales estimate on Amazon. This data is crucial in making informed decisions about the quantity of units to purchase. Because even if a product is super profitable....if it's not selling there's no point in buying it.
I personally use the jungle scout chrome extension for this. But if you need a free option, they also have a free estimator you can google too. You just have to copy and paste the product and prices in each time.
On top of the sales, you also need to consider competition on that product listing; too much competition might limit your sales potential. So it's important to check how many sellers are on a listing (and how much inventory they have in stock). You can do this for free with the google chrome extension called "online seller add on."
3. Ship your purchased products into Amazon's FBA. This ensures faster delivery times, increasing your chances of winning the Buy Box and getting more sales. You'll struggle to compete if you don't do this b/c "availability to the customer" is one of the biggest things Amazon uses to decide who to award sales to (only after price).
I've done an entire "how to ship in fba" video if you want to learn how to do that.
I also recently did an in depth tutorial on how you can use source mogul to find profitable products to buy (even as a complete beginner).
There's literally no better time than right now to start sourcing products to resell on Amazon. Q4 is almost here...and sales go CRAZY from now until the end of the year. This could be your opportunity to make lots of easy money...and in a world full of "get rich quick schemes" and hype videos that are hard to believe...I don't say that lightly.
This is tried and true....practical...and proven. Give it a shot.