How To Make Money On Amazon By Doing Retail Arbitrage
There are a lot of ways to make money while working from home, but one of the most popular is to sell on Amazon. It makes perfect sense. There are not only millions of people on the site every day ready to buy something, but you are also having Amazon do the heavy lifting for you.
One of the easiest ways to make money with Amazon is to do retail arbitrage. If you are the type of person who can smell a deal from a mile away then this will be a great system for you. Doing arbitrage means that you buy items at a store, flea market, or yard sale and then send it in to Amazon to sell there for a higher price.
There are a few things to understand so you can get started. In this article, we will give you the basics so you can decide if it is a good way to make money for you.
Set up a delivery system
The way that arbitrage works is that you will buy a product locally and then send it in to Amazon for them to sell from their website. You don’t deal with the delivery once somebody buys it, but you do have to set up a delivery to get it to the right warehouse.
Set yourself up with a Florida courier service if that’s where you live so you can get the product into Amazon as quickly as possible. There are other people doing the same thing as you are and may be seeing the same deals on products. If you get your product there first then you are going to also sell it first and make money.
Not only are you the first one to sell but you can also make sure that you are the one setting the price. Somebody else may be sending in the same product and is willing to sell it much cheaper even while making a smaller profit. Being first will always end up making you more than being second.
Determine an acceptable ROI
Since you are not buying up loads of the same product but only one or a handful, you can’t really get a huge profit margin. Some items are already selling on Amazon so you can’t go too much higher than what they are already priced for.
This means that you have to have an idea of what kind of ROI you are willing to accept. Have a set number so that you are not buying products that you already know are not going to net you as much as some other products.
Do good research
You should be taking notes whenever you see products at rock bottom prices or going out of business sales. Then look on Amazon and see what those products are doing there. You will find some products sell well and some are slow to sell.
If you correlate what you are seeing on sale with those selling categories selling well on Amazon then you know where to focus.