Things to know if you're starting an Amazon FBA Business
For the past months, we’ve seen Amazon founder Jeff Bezos compete with Microsoft co-founder Bill Gates as the richest man in the world; this can only be possible as Amazon is now so dominant that it can be boldly called the largest online marketplace where consumers go looking to buy a product. As big as Amazon is, consumers get the product they want at the best price, but sometimes they could have gotten the product at a cheaper from other online stores. This is where we PROFIT
So, this has made it the reason why online arbitraging is possible, and it has become so popular among online resellers. So, are you thinking of becoming an online arbitrager, here are some of the things you should know about online arbitraging.
1. What is online arbitrage ?
Online Arbitrage means reselling products you source from online retailers with the aim of taking advantage of a price mismatch between two marketplaces and selling the same product so you can make some profit. So, if you’re an Amazon reseller and you’re interested in online arbitrage, all you have to do is to look for products selling for a lower price on an online store or marketplace (apart from Amazon, although possible). And re-sell your stock back to Amazon.
2. Is it hard to source products for online arbitrage?
All you have to do when doing online arbitrage is to source for products currently being sold on Amazon for a lesser price on other online stores – however, this can be a tedious task sometimes as the prices on Amazon are always less competitive. All you have to do is have the right skills or take advantage of services such as fbaleadsuk who do all the sourcing for you. Giving you more time to buy.
3. What kind of products should you buy?
Below are some of the rules of thumb you can follow:
• Look for products that are on sale or clearance also end of line items seem to sell higher on Amazon. As you know some fees will also be added so you need to buy at a reasonable price so you can get a decent margin. Using this tool here will help calculate profits and avoid you from buying restricted items. Click Here
• Select products with decent seller ranking our rule of thumb is to buy items under 100k rank but does deeply depend on the category – you don’t want to be stuck with inventory for a long time, so you need products that are selling consistently. Pick items with a minimum 5 sales a month
• It is also advisable to avoid bulky items so you can keep your fee & shipping costs low.
4. How much investment do you need to get started?
Online arbitrage low entry cost one of the reasons why people find it attractive. You still need some financial investment to get started, but you don’t have to invest thousands of dollars/pounds at first, some low hundreds of dollars/pounds are okay.
5. Is online arbitrage legal?
Yes online arbitrage is very much legal, avoid sourcing any counterfeit products and brands and try avoid any restricted items otherwise you’ll have to return them back to the stores (Amazon are very strict with this type of infringements). To avoid any restricted items download this extension
The bottom line is online arbitraging is one of the most proven methods of making money, and you also have nothing to lose. So, you can give it a try!