If You are interested in the world of online business and making money online, I’ll share my exact recipe, if you read to the end you too can learn how to retail arbitrage and earn money with eCommerce while building an to affiliate marketing niche website like I do!
In this amazing world of opportunity we live in, I am constantly being amazed by the platforms that are available for the average person to have success making money online! I never thought I would be writing an article titled how to retail arbitrage, but recent events with my daughter starting a retail arbitrage business has opened my eyes and I felt that I had to share this with you!
The world of E commerce is one that has multiple ways and platforms that one can succeed with, but the tactics and methods used in retail arbitrage are so incredibly simple to learn and take action on, literally anyone can have success in a retail arbitrage business to make extra money or even create a thriving online business with very little money up front!
Let’s take a look at Retail Arbitrage and see what it is about and how someone can get started!
What is retail arbitrage?
That name arbitrage is a funny sounding term that is used in quite a few areas of business!
Arbitrage with Amazon FBA is the same as any other type of arbitrage and is simply buying something and reselling it at a profit. The same is said of Ebay, where we buy used items and sell them for a profit.
In retail arbitrage you apply for an Amazon Seller’s Account and download the seller’s App. Once you get to that point you are ready to start scanning!
You simply use your phone’s camera to scan bar codes on products. The app will tell you how much it sells for on Amazon and the amount of profit you can make. All you have to do is subtract the purchase price you pay and you have your profit!
The object of course with retail arbitrage is to make a profit, and the best way to do that is by following the lead set by many others in starting with Books and Clearance items. The reasons are that these are the easiest items to source and get started with, without getting in over your head and losing money.
You can use the clearance and books option as a safe bet, but don’t think because it’s a safe bet that there isn’t some great opportunity there to make serious cash! In fact there are people doing retail arbitrage with Amazon FBA and Ebay and their special niche is books and clothes. There are people easily making 6 figures with books and shoes!
Reselling on Ebay is no joke either !
You may think that there is no way you can make serious money with books and clothes but you would be greatly mistaken!
I personally have purchased books at thrift stores and flipped them on Amazon for amazingly good profit!
One such book was one that was purchased at a Goodwill store. The book was in excellent condition and cost me a total of $1 out the door. I listed it on Amazon for $123 and it sold within 2 weeks !
There are people every year that make six and seven figures by simply reselling books and clothes! If you use the thrift store and garage sale avenue to source your inventory, it is very easy to pay as low as $.50 for a shirt or pair of jeans and resell them on Ebay for $20-$30! There are also times when you can find expensive brands that are in like new condition and get a $50 or greater return on a $1 investment!
I try to list at least 500 books on Amazon every two weeks when possible! They are easy to find and inexpensive!
The best books to target are textbooks. If you can get a lead on text books they are the ones that can earn $50 and up! It doesn’t take a lot of sales to make some real money!
Like I said above, I don’t just use books on my Amazon FBA account! I search for pretty much anything I can but and earn at least a 30% R.O.I. on .(Return On Investment)
Books are a great way to get started though and there is some great potential! I started with books and home goods like products you would find in your kitchen and bathroom.
Another point I should make here is that some name brands like Nike and pretty much all toys are restricted when you first start reselling on Amazon because they want you to show that you will follow the rules and do it the right way. There are too many instances of fake merchandise and Amazon doesn’t want to take the chance that their customers will get ripped off or have a bad experience!
But just because you start with some restrictions, doesn’t mean that you can’t build a wildly successful business selling on Amazon!
The EBAY factor!
It would be a really good idea to consider Ebay as a part of your online effort as well as Amazon!
Amazon is a fantastic platform for selling new products and EBAY is a great platform for selling used products ! Just imaging how much money you can make flipping items that you buy at thrift stores and yard sales!
I suggest that everyone keep a close eye on the potential that EBAY presents as I will state in more detail to come!
If you think EBAY is an avenue for you, that is awesome !
I would however choose one of the platforms and get it running and making money before trying both.
Who is retail arbitrage on Amazon and reselling on EBAY for?
Pretty much anyone can get started at some level with reselling.
In my case, I had a reader of my blog send me an Email asking what I knew about retail arbitrage and reselling on EBAY. I answered with a short and simple answer that I had no experience with it, because I was using Affiliate Marketing to monetize niche websites that I was building and having a great time while seeing success.
Then there was another Email, and another! Over a period of 2 months I had gotten at least 6 Emails asking about retail arbitrage and selling on Ebay. Each time I would simply ease away from the subject because my expertise was in Affiliate marketing ad driving free traffic to niche websites. But after a short time I began to think it over and decided to start investigating the subject.
I watched several YouTube videos and subscribed to some bigger YouTube people and Instagram influencers to learn more about the subject. My goal was to simply learn what I could over a couple of months and then use it as content for a blog post article like what you are reading right now. But the more I learned the more interested I became .
After about a month of checking out the retail arbitrage scene I decided (with my daughter Chelsea’s help) to start sourcing some products and try my hand at retail arbitrage. After all the time it takes is something that fit in wonderfully with my main priority of to affiliate marketing and I could get a taste in just a day or two a week!
I had no idea what would happen, but I knew that I would learn a lot and be able to pass along what I learned to my readers. In that way everyone wins. But when I saw how easy it was to get started and be successful, I was hooked !
Retail Arbitrage basics.
There is no real secret involved in sourcing products and reselling them via Amazon FBA, or EBAY. The secret is in learning what to source and what will sell.
Retail arbitrage takes some money to get started obviously. But it doesn’t have to break the bank! I started with a budget and decided that I would see how far I could scale that one time investment of $200. At first the results were mixed, but I was impressed that there really are no secrets and no traffic involved !
My specialty is driving traffic to my niche websites as I said earlier. My expertise is in S.E.O. (Search Engine Optimization) and I know that there is no reason to start anything on line unless you can get traffic and convert it to sales. The great thing about reselling on these awesome platforms is that there is no traffic to drive, at all! Amazon and Ebay are the masters of E commerce traffic! They drive the traffic.
Great platforms for getting started with retail arbitrage!
Amazon and Ebay.
There are more ways to get started than Amazon or EBAY, but we will concentrate on those two in this article because the basics are very similar within all the different platforms. There are really big differences that will be the reason for you to choose, Like the ones mentioned below.
If you have lived on planet Earth for a minimum of a day, you have most likely heard of Amazon!
Amazon has become the worst nightmare of many big box stores, for many reasons! The chief of which is convenience. The convenience of shopping on Amazon and never leaving your home is something that we take for granted in this day and time, but just two decades ago the thought of doing all your shopping online was like science fiction!
The success of Amazon and the C.E.O. Jeff Bezos is astounding and has made him the wealthiest person on Earth, and it isn’t even close!
The reasons for his success is mainly because, as a visionary he wanted to create an eCommerce platform that not only catered to the customer from a convenience standpoint, but also a customer satisfaction standpoint. When a customer places an order from Amazon, the satisfaction of that customer is paramount and job one!
Amazon has also made various avenues for the average person to leverage the tremendous shopping platform to carve out a niche within Amazon and potentially make extra money and even become wealthy within the framework of Amazon.
These avenues of earning money through the Amazon platform are varying, but all offer tremendous potential if you use it correctly and follow the guidelines and agreements with Amazon! Amazon doesn’t play games with the rules as it should be! The business of customer satisfaction is #1 at Amazon ad as long as you realize that the customer is the customer of Amazon and you are being allowed to tap that awesome synergy, you will never have a problem !
When I started online my first successes came in to affiliate marketing with niche websites and promoting products through the Amazon Associates platform.
The Amazon Associates platform allows you to sign up for your account and upon approval, promote many thousands and thousands of products that are sold within Amazon with your dedicated affiliate links to that product. Much like many affiliate programs, when someone clicks on that link from your website, social media or other traffic source and goes to Amazon to view the product they are visiting on your “Cookie”. If they purchase that product or any other product during the life cycle of that cookie, you will get a commision for that sale. It’s really cool and you can make a lot of money with to affiliate marketing!
The second way I started making money with the platform at Amazon is referred to as reselling or Retail Arbitrage. This has proven to far exceed my expectations, and looks as though it will be a viable income stream going forward
Reselling and Retail Arbitrage with Amazon!
Next to my Affiliate marketing websites I really love doing reselling!
I am fairly new at reselling and retail arbitrage, but found it to be a very simple way to get started earning money online, and doing it ethically and honestly!
Reselling and Arbitrage is pretty much the same thing, but you can go a couple of different directions with it.
I started with retail arbitrage by going to big box stores like Wal Mart, Target, and Ross among others and getting into their clearance!
With the Amazon sellers account you can then download the free app for your phone and get started right away! The app combined with a smartphone allows you to scan items that are on clearance as well as some that aren’t on clearance. The app will then give you the info that tells you, is you should purchase the product for reselling on Amazon! Metrics like the price the product sells for on Amazon, the Amazon Fees, the product rank (How fast it sells) and the profit you can earn are all displayed right on your phone in mere seconds!
Once you have made your desired number of purchases you can then pack the items all in the same box and ship them to Amazon! They take care of storing, picking, packing and shipping! Once you send your box full of goodies to Amazon you are done!
I will take this opportunity to inform you that when you start a new account, you will be restricted from many of the name brands and you will absolutely be restricted from major brands of shoes like Nike and Addidas. But after you are a seller for a while you can request to have the restriction lifted.
The reason for restrictions is that of fake products like Chinese Nike shoes that can be passed off as the real deal. Once you have shown that you are legit and that you want to work within the Amazon rules, you can resell more and more merchandise! But in complete honesty, there are still hundreds of thousands of products that you can resell through Amazon FBA! The brand name restrictions are really not an issue!
I started and still concentrate on selling books through Amazon FBA !
Books on Amazon have really great profit margins and you will be amazed at the prices that some books bring! For instance, I scanned a book and found that it sold on Amazon for $67 and I would earn $52 after fees ! There were 4 of these books there when I scanned ! That’s $208 profit with about 10 seconds of work!
Books are everywhere!
Go to your local Flea Markets, Yardsales , thrift stores and even many retail stores and start scanning books ! I wish I could be there to watch your jaw drop!
One of my most profitable stops was a small thrift store that I stopped in. They had a decent sized book shelf full of books with a sign that said “10 books for $1”. Wow ! That was cheap enough! But that was only the beginning of the amazement! When I started looking through the titles and getting ready to start scanning UPC codes I realized that many of these books were educational textbooks! These bring some biggest profits!
One of the YouTube rock stars in the Amazon FBA book sales category is a guy who goes by Reezy Resells. Reezy was shouted out by a huge influencer named Gary Vaynerchuck for selling almost $800,000 worth of books on Amazon in ne year! Yes I said one year!
The secret to doing this isn’t a secret at all! It is hustle! You have to go out and source or buy the number of quality books you need to make that happen! You never know what the next book scanned will be! Sometimes it’s the books that you were thinking no one would want that sell for the most profit!
For instance, when I was talking about the 10 cent books at the thrift store, the second or third book I bought for 10 cents scanned at $73 profit, and the 27 books I purchased came to a total of $473.96 profit, and it only took 30-45 minutes! Not all stops will be as profitable, but almost every stop at a thrift store can have a potential of at least$100 profit!
But you don’t have to limit yourself to books by any means! Go to all the big box stores in your area and scan every clearance item on the shelf! You might be amazed at what you find!
A young couple from Michigan named Kyle and Janet was telling me that they replaced their income from their full time jobs by reselling on Amazon FBA and EBAY. But not only did they replace that income, but they are now earning more money than they have ever made and work half the hours!
I’ve sold some other miscellaneous clearance items besides books on Amazon with great profit, but books still remain my #1 favorite niche because the profit margins are really amazing and it is super easy!
When you add all the potential of reselling on a platform like Amazon with the ease of doing it, it’s really a no brainer!
My favorite difference between Amazon and EBAY is that when selling on the Amazon FBA program, I source all my products and of course books. Then I label them with the correct Amazon barcode label and ship the lot to Amazon! There is no picking orders, packaging them or shipping involved. Once you ship the bulk shipment to Amazon, your job is done!
With other platforms like EBAY, you are responsible for all shipping. This task alone makes the Amazon fees more than worth it, plus you know when you send the order to Amazon exactly how much you stand to earn when you list your items and they sell.
Reselling on EBAY!
When you first get involved and start selling on Amazon, you will find that there are multiple products that you are restricted in such as name brands like Nike, HP and others. After you have sent in some products and start building a little reputation, you can request to be ungated from these products. But in the mean time there are still millions and millions of products that you can resell in retail arbitrage and books.
Many online resellers use the platform at EBAY to sell items that they may be gated or restricted in on Amazon, and also to sell used items that are restricted on Amazon!
There is some really big potential reselling on EBAY with a small investment !
There are people selling on EBAY, and earning really good profit selling everything from used clothes to car stereos. The possibilities are actually limitless! I’ve even searched EBAY for pine cones and found several sellers!
While there are many online platforms for reselling such as ETSY, the most popular and time tested by far is EBAY. And there is good reason why EBAY is so popular among resellers!
Flea Market Bonanza!
I absolutely love Flea markets and garage sales! That love is very compatible with selling on EBAY!
It’s not uncommon to stroll through a flea market or garage sale and find some pretty interesting items! I have found things like Abu Garcia Ambassaduer fishing reels for $5 and sold them on EBAY for $75! That isn’t too surprising considering that these fishing reels can fetch upwards of $150 and beyond new! The surprising thing is that you can find people selling them cheap at yard sales and flea markets !
Fishing reels aren’t the only treasure hiding at garage sales across the country either!
For instance a couple that I watch on YouTube who are full time resellers look for factory car stereos and sell them on EBAY! One such stereo was purchased at a garage sale for $30 and sold on EBAY for over $400!
Clothes, shoes, recreational merchandise and just about anything else you can think of can be purchased at flea markets, garage sales and thrift stores and sold for really good profit! It’s no reason why so many people are earning a living going to garage sales !
If you want to learn more about getting started with to affiliate marketing and using niche websites to promote your affiliate links, you can learn the exact way I did ! Get Started Here !
Pick a Platform and get started!
I would not suggest in a million years that you try to start a business on both the Amazon and EBAY platforms at the same time! That is just too much to have going on at once!
I recommend that you choose one platform and get to work setting up your account and start selling. After you have gotten to a point of seeing some success, start working on the other platform if you want. But remember that you should always keep the main thing the main thing! Don’t try to do 2 or 3 things at the same time! You will be stretched too thin and greatly increase the odds of failure!
When making a choice between online platforms for your retail arbitrage business you will find that there are many other platforms besides Amazon and Ebay!
The choice is completely yours concerning the platform you choose. There are also others like Etsy that can be a real game changer as well, but within the different platforms there are differences that really dictate which one will better for what you are after.
For instance if you want to concentrate on sourcing new and clearance products the Amazon FBA platform may be the best for you.
When I started testing which platform I wanted to use, I decided to get started with Amazon FBA because I could start quickly and easily.
But everyone doesn’t have the same niche or taste when it comes to where they want to invest their time and energy, so I recommend that you take your time to learn as much about the platform before pouring your heart and soul into it.
Multiple Income Streams
I have been using Amazon FBA and EBAY as two of my three income streams and I love them and have a lot of fun with it while earning money!
My main income stream is to affiliate marketing with niche websites and my online reselling is the second and third income stream.
You can get started in to affiliate marketing very easily and build a really nice money earning business!
The to affiliate marketing I do is simply promoting other people’s products through websites like Amazon and earning a commission! It is passive income, but requires that you do the work up front and enjoy the rewards later!
The rewards can pay off for a long time to come, but it isn’t an overnight success and takes work, patience, and time.
If you are interested in getting started making money online with to affiliate marketing, you need to know that it will take some time, effort and patience like I said before. But if you are willing to follow the hustle you can create an awesome passive income, and build other streams of income with reselling to start making money sooner.
For this reason I started the Amazon FBA and EBAY reselling business. It was a way for me to instruct the people I coach in a way to build a business with multiple income streams and start earning money fast!
If you are interested in learning to affiliate marketing from ground zero with no experience you can get your free membership below !
Resources to learn more about reselling as well as Affiliate marketing with niche websites !
Thanks for taking the time to read my article on retail arbitrage and how to use reselling to boost your income with 2 more revenue streams while building an to affiliate marketing business !
If you have comments, questions, or feedback I would love to hear from you in the comments below ! Your feedback helps me to better serve my readers !
Have a great and blessed day!