One of the easiest online businesses to start today is online arbitrage. This is the practice of finding an item online at a deep discount and reselling it for market value on another marketplace. I’ll be going over online arbitrage sourcing that will make you 5k/month.
Where to Sell
eBay and Amazon are both great platforms to practice online arbitrage. However Amazon is leaps and bounds a better option to use. Amazon has their FBA service which is how Prime works. You ship your products into The Amazon warehouse and let them take care of shipping and returns for a cut.
Other reasons Amazon is the clear winner are the countless apps created to make the process easier to find profitable products.
One such app is the Jungle Scout chrome extension. This is a paid feature but could prove to be very useful to determine how quick a product is selling on Amazon. The key to successful online arbitrage is to turn your inventory as fast as possible. If you opt out of paying for the Chrome extension, be sure to find the products best seller rank. This should be under 100,000 as a rule of thumb.
Another useful Chrome Extension is the OAGenius. This app allows you to source certain websites in bulk as opposed to checking each item individually. It supports such retailers as Walmart, overstock, Costco and Bed Bath & Beyond to name a few.
Amazon Seller Central
To start listing on Amazon you need to set up a seller account. It’s important to know Amazons guidelines, restrictions and terms of service. New sellers can only re-sell in certain categories. As you become a seasoned seller you can request to be ungated in more categories. This will determine what products you will research.
Even though you are un-gated in certain categories, does not mean you can sell anything you want. Some major brands like Nike, Yeti, Grayco and so on do not allow you to re-sell their products new. In some cases used is ok. The only way to know for sure if you are allowed to sell an item is to plug the product ASIN # (amazon standard identification number) into the back office of your seller central account.
Online Arbitrage Sourcing
GameStop -Deal of the day
Wal-Mart -Spotlight Savings
Bed Bath & Beyond
Dollardays.com – must buy large quantity
Hjcloseouts.com -must buy large quantity
No online retailer should be excluded. Find what works best for you. The truth is that the YouTube gurus aren’t going to tell you where the best deals are. They don’t want to lose their profit margin either, in an ever growing popular side hustle.
Pro Tips for Discounts
It’s up to you to determine how much profit is worth it to you. In my opinion $10 is a good price point to be after. A great way to get as much profit as possible is by using a chrome extension like honey. This app will scan the internet to find coupons for you to use.
Another good practice is to use gift cards to make purchases at bigger retail online stores when you can find the card for a discount. topcashback.com is a great place to find such deals.
Once you have all of your items in hand and labeled correctly, it is time to ship them. Amazon will tell you which warehouse to send them to. You will be paying for shipping but at a nice discounted rate. All of your items can be placed in the same box. Note that each item shipped will likely come out on average to cost less than $1. Amazon pays out every 2 weeks.
I hope you found this online arbitrage sourcing guide helpful. If you have had any success with the shops listed let us know. If you have any questions about the process, we would love to help you out as well.
Check out How to Make Money While You Sleep, if you enjoyed this article.