How To Make Money With Amazon (Part 3) – Amazon Online Arbitrage
This is a part of “How To Make Money With Amazon” series.
It is for everyone who is serious about making money online.
We focus on the quickest and the least risky strategies with a minimum starting budget as possible. You will gain the knowledge that you can put into practice right now, for the money to start working for you instead you working for the money.
The series consists of 6 parts:
Part 1 – Introduction To Amazon FBA
Part 2 – Amazon FBA Retail Arbitrage
Part 3 – Amazon FBA Online Arbitrage
Part 4 – Amazon FBA Wholesale
Part 5 – Amazon FBA Private Label Products
Part 6 – Amazon FBA Seller Evolution
If you haven’t read previous parts, please go over them, so you will get the most out of this one.
Amazon FBA Online Arbitrage
How To Earn Money With Amazon FBA From The Comfort Of Your Home
In this post, I am going to talk about Amazon FBA Online Arbitrage. I assume that you have read a previous part of this series about Retail Arbitrage. If you haven’t, then I would encourage you to do so.
Amazon online arbitrage is a process of finding products in online shops that then can be sold on Amazon for a profit. Many people jump straight into it, but I still strongly believe that retail arbitrage is by fare the easiest and the quickest way to get your feet wet with Amazon FBA.
You need to remember that when you are doing online arbitrage on the Internet, everyone has access to the same websites and you can usually find better unique deals in your local physical shops.
Once you get yourself familiar with retail arbitrage and know how it works, you can add online arbitrage to your arsenal.
The process of online arbitrage is very similar to retail arbitrage, but instead of going to physical stores, you will be doing it online. If you are just starting and do not have money to invest in tools to help you with it, then you can do it manually. It is absolutely possible to do it, but doing it manually will require a lot of time.
When you find a potential product, you will have to apply your criteria to make sure that the product you are looking at is worth buying.
The main things to look at are:
- Eligibility – whether you are eligible to sell a product on Amazon
- Sales Rank – it gives you an indication of how quickly a product can be sold. The lower Sales Rank the better
- Competition – how many competitors are selling that product
- Does Amazon sell this product – if you are new, then try to stay away from these products
- Price and Profit level – is there enough room for the price to drop for you to still make a profit from it
To do online arbitrage successfully you will need to use tools to search for products and to analyze potential deals.
Here is a list of sourcing tools that can help you to find products – FBA Wizard, Tactical Arbitrage, Source Mogul. All of them are good and all have a trial period, so you can try them out and decide which one is the most suitable for you.
You can also use sourcing services, like Online Arbitrage Deals. What they do is they send you deals daily that they analyze for you, so you can spend less time on finding them yourself.
When you are just starting, I would recommend you to do sourcing yourself, but if you do not have enough time to do it, then services like Online Arbitrage Deals are great for you.
To analyze deals, I would recommend starting with Keepa. You can use a slightly more expensive BuyBotPro, which is a great tool. It actually uses Keepa data in the background and presents it in a more convenient way. Plus they add additional metrics on top of Keepa.
As with any sourcing model, there are pros and cons involved in it.
You can watch a video below where I cover the Pros & Cons of Amazon FBA Online Arbitrage.
Read the next part of this series here: Part 4 – Amazon FBA Wholesale