Selling on Amazon: Retail Arbitrage

How to sell on Amazon, let me count the ways… starting with Retail Arbitrage.

It sounds fairly simple – find product people want, they order and give you money. Rinse and repeat.

Sure, but taking a closer look there are several ways that you can sell product on Amazon. I’ll be giving you an overview of three popular methods in separate posts.

Those methods are:

• Retail Arbitrage
• Private Label
• Wholesale

Retail Arbitrage – What is it?

Buy low, sell high(er)…  

The Retail Arbitrage method of selling on Amazon typically entails buying products on sale in a physical store, shipping them to Amazon from your home and marking the products back up to average retail prices for you to make a profit.

For example, if you live in an area where the weather changes with the seasons, seasonal products sell for a short period of the year. When the season is over, any surplus stock goes on sale to be liquidated.

So while lawn & garden supplies won’t sell in the winter where you are, they will be selling in Southern California for instance.

And since you’ll want to sell common brand name products you won’t need to create a listing, take photos, or write a description.  All sellers of the same product come under one product listing in Amazon. Other benefits include not having to do giveaways or run PPC ad campaigns which can run up your costs in a hurry!

Retail Arbitrage is your “gateway” to selling on Amazon. It takes very little cash and product turnover can be quick. And it allows you to get your feet wet to start learning how to be an Amazon seller.

You know that everything has advantages and disadvantages, so…

Retail Arbitrage: The Upside

• Easy to get started. Buy products that sell well at low cost and ship them to Amazon to sell at a profit.
• Can be a source of “quick cash” to enable you to invest in another method of selling on Amazon.
• No need for a website –  you’re selling on Amazon, one of the largest online marketplaces on the planet.
• No need to create a listing. You’re listing on the page of a product that’s already selling.
• No need for large inventory. You can buy single units or small quantities as you find them.
• Low start-up cost.
• When you choose your products properly they sell quickly.
• No international freight, brokerage, import duties, warehousing or product inspection fees to pay.

Retail Arbitrage: The Downside

• You’re always on the hunt for product.
• Can be time intensive shopping in person.
• Can’t always replenish your best-sellers because your source has dried up or their price has gone up and you can’t make a profit.
• Your livelihood is 100% at the mercy of Amazon.
• Difficult to scale this business model as it’s based on continuously finding bargains.
• Best done when you’re in the same country as the Amazon marketplace you’re selling on to avoid cross-border shipping fees to FBA and duties.
• More and more Amazon is pressing sellers to get approval from brand name manufacturers to sell their products, making arbitrage riskier. IE you could be stuck with inventory you can’t sell.
• May not be sustainable for the long term if you want a real business and not just “make money online”.

 

Retail Arbitrage Videos

I’ve selected a few videos for you on how to get going in Retail Arbitrage on Amazon. They’re not all of the same quality and the speakers are of varying experience levels.

However, what these videos all have in common is that there are nuggets of great info you can act on immediately to get started!

I like what Stephen Smotherman has to say about building an Amazon business. His approach is very down-to-earth. That said, take a peak at his 5 Tips for RA Success video below.

 

 

See more videos by clicking the links below.

Step by Step Amazon FBA – HOW TO SEND INVENTORY Retail Arbitrage

Amazon FBA Retail Arbitrage – Walmart Sourcing Tips

How to start and succeed in Amazon Arbitrage: Online Arbitrage and Retail Arbitrage

How To Make Money Doing Retail Arbitrage On Amazon FBA

How To Start Selling On Amazon With Only $200 (Retail Arbitrage For Beginners)

Amazon FBA Retail Arbitrage – Making money shopping at WALMART/TOYS R US in 2017 (Dos and Don’ts)

How To Start Selling On Amazon With ONLY $50 (Retail Arbitrage For Beginners)

HOW TO MAKE MONEY WITH WHOLESALE & RETAIL ARBITRAGE PRODUCTS TO RESELL & MORE