Dropshipping Arbitrage - Who Does It?

[TJFromUSA]

Who here makes money with arbitrage dropshipping?

Such as buying off of Walmart and selling on another platform?

What do you do to increase your margins?

My friend is doing over $100,000 per month with just this. I've been learning everything I can. One thing he does is uses gift cards that gives him a discount, so instead of buying an $80 item and selling for $100, you instead are getting that now for $74 and selling for $100. With a volume game anything counts.

It has been fascinating to watch and I'm curious if anyone else here is doing stuff like that.

 

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Who here makes money with arbitrage dropshipping?

Such as buying off of Walmart and selling on another platform?

What do you do to increase your margins?

My friend is doing over $100,000 per month with just this. I've been learning everything I can. One thing he does is uses gift cards that gives him a discount, so instead of buying an $80 item and selling for $100, you instead are getting that now for $74 and selling for $100. With a volume game anything counts.

It has been fascinating to watch and I'm curious if anyone else here is doing stuff like that.

Sounds like your friend is bamboozling you, buying something with a gift card an reselling it doesn't make you $100k per month.

 

[HallLiz]

Hi TJ,

Welcome to the forum. A few years ago I did something similar. I got a catalog from a store then came home and posted the products online for a profit. Made $600 my 1st month. I would meet the people locally. I had to have the money to buy the products.

 

[TJFromUSA]

Sounds like your friend is bamboozling you, buying something with a gift card an reselling it doesn't make you $100k per month.

No, I've watched him do it and hung out with a lot. He has 5 employees all doing it and working on it simultaneously. He isn't trying to bamboozle me with anything.

 

[Billy Batts]

No, I've watched him do it and hung out with a lot. He has 5 employees all doing it and working on it simultaneously. He isn't trying to bamboozle me with anything.

Even so, 100k a month so 1.2 million a year, I doubt it.

 

[Simox123]

Have you seen a proof of the 100000 $ ? (per month ofc).
and only 5 people working for 1.2 M

I don't believe it.

 

[IG Professor]

100 Wamart giftcard for 74$ ? where ?

 

[Jiung]

Stop leading the thread in another direction people. No need to call his friend out for a scam, he was just asking if there was anyone that did anything somilar to him.

 

[Gabriel Ponce]

If you dont mind running around you can do alright. I made an extra 500-1500/month doing this. I stopped because I wanted to focus on way to build brands and services for a larger earning potential. However, when I'm strapped for cash it's my golden goose. Here is my formula I do product research on Amazon, by at a big brand store sell on eBay or Craigslist when the prices online raise. its like any trading buy low, hold then, sell when the price raises. Quick product flips make less money than the buy- hold -sell strategy. I have a garage so i don't have the overhead of storage. Good luck

 

[Gabriel Ponce]

If you dont mind running around you can do alright. I made an extra 500-1500/month doing this. I stopped because I wanted to focus on way to build brands and services for a larger earning potential. However, when I'm strapped for cash it's my golden goose. Here is my formula I do product research on Amazon, by at a big brand store sell on eBay or Craigslist when the prices online raise. its like any trading buy low, hold then, sell when the price raises. Quick product flips make less money than the buy- hold -sell strategy. I have a garage so i don't have the overhead of storage. Good luck

Full disclosure : be perpared to have items that sell and items that you lose on. look at the you months sales as whole and dont dwell on the items that didnt sell.

 

[uyuyuy99]

100 Wamart giftcard for 74$ ? where ?

Re-read his post. He said $80 GCs for $74.

OP, it's certainly possible to make money this way if you can hustle, but $100k/month? Really? Are you sure he's not trying to pull a fast one on you? Even making a couple grand a month takes a LOT of effort for most people.

 

[JamesBlake]

Arbitrage always will work as long as you can beat the market and source products at either a good price or drive enough volume. Either way, automation and traffic are the only things that will limit growth. As interesting as it is, I'd prefer to produce and control the product itself than rely upon another source.

 

[EloquentGentleman]

Wow im shocked people dont know about this... if you have a large, reputable ebay account or have software or in his case employees to help do this you can make ALOT of money. I have dabbled in this in past but admit its not very easy especially if you have limits on your ebay account. Amazon i havent tried so much but again if you have software/employees i cant see why you couldnt do big numbers like that. Its people with like 20,000+ items in their amazon/ebay accounts. If you have just a small % of items that sell multiple times over a day lots of money can be made. Then to top it off with gift cards and/ or ebates plus cashback cc's you can increase your margin. But again... takes a lot of time/effort if you start from scratch.

 

[IG Professor]

Re-read his post. He said $80 GCs for $74.

OP, it's certainly possible to make money this way if you can hustle, but $100k/month? Really? Are you sure he's not trying to pull a fast one on you? Even making a couple grand a month takes a LOT of effort for most people.

Ok. $80 GCs for $74, where?

 

[IamAlu]

Ok. $80 GCs for $74, where?

Maybe in the shop itself? i dont know about walmart since its not existent in germany, but our local stores have such offers very often, especially with itunes, steam and other electronic-products gift cards. 40€ gc for 50€ happens alot here

 

[TJFromUSA]

I don't get why you are all just running around saying "scam" and he's trying to "run me around." He isn't trying to get me to do anything, I was just hanging around him and slowly as I asked more and more about what he was doing, that's when I found out. He's not trying to get me to do anything.

I have a few friends doing over a million per year with eCommerce, so I guess for me when I hear someone making a lot of money it doesn't make my brain automatically disbelieve people succeeding.

Ok. $80 GCs for $74, where?

He gets different gift cards from different sources. Walmart gift cards are good because you can get 5% discount and if the customer returns the item, it goes back to the gift card. So you can get $1,000 gift cards for $950 for example. When you're doing volume, everything counts.

 

[Badboy Enterprise]

Lol thats nothing new, i see a lot of ppl buying amazon gift cards for 60% of the real price
then they order a product > refund > double sell > 2x profit
only bad thing is that you need different adress for each order

 

[uyuyuy99]

I have a few friends doing over a million per year with eCommerce, so I guess for me when I hear someone making a lot of money it doesn't make my brain automatically disbelieve people succeeding.

It's not that it's hard for us to believe you can make 7 figures a year with eCommerce, it's just hard to believe he's buying all his items at places like Walmart. You usually have to have better sources than Walmart to be making that kinda dough through dropshipping (or so I thought) unless you're finding really good deals on the Walmart GCs themselves, and $80 for $74 doesn't sound that impressive.

Just keep asking your friend more questions and/or start snooping around a little bit. You might be able to reproduce his method.

 

[IamAlu]

Lol thats nothing new, i see a lot of ppl buying amazon gift cards for 60% of the real price
then they order a product > refund > double sell > 2x profit
only bad thing is that you need different adress for each order

call me stupid but what do you mean with "double sell"?

to me this seems like a good way to make money but as op said, you need to go big, which means having large amounts of shekel to start with.

maybe it would be a good idea to wait for a big sale (20% or more) on itunes cards, spend at least 5k on them and then sell them.
they sell very good on european and asian market, cause some stuff u can only get with an US itunes account due to licensing.
u get around 52€ (=58$) for 50$ itunes card on ebay germany.
now take a 20% off offer, maybe a good cashback program, customer card with additional % off and get started, right? the first time in my life i wish id live in the US, fml.

one might even gamble and keep the €, predicting that the new godimperator will ruin the dollar (at least a bit) and then turn the € to dollar for even more profit.

oh well, guess i went a bit off topic.

anyway, cheers

 

[MonteCarlos]

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