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How I Arbitrage Retail Products and Resell them on Amazon Making $20K/month

Discussion in 'My Journey Discussions' started by TeKn1qu3z, Jul 11, 2016.

  1. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Hello BHW!

    I am excited to share with you all today a glimpse into how myself, and many other Amazon FBA sellers make money in 2016. The information being shared with you in this guide is a process I did up until a few months back, which is known as online arbitrage and retail arbitrage. The reason why I stopped was because I hit the end goal of every sellers dream, private labeling a product. I source from a manufacturer in China for the best prices. Now I am reaping the benefits of a recurring passive income stream while I focus on scaling this business. It's been 3 1/2 months thus far and we just hit $10K/month in sales with very minimal investment. I'm confident as we begin to scale and finding financial efficiencies, we can push $50K/month or more!

    What is Amazon FBA?

    Over 60% of the world’s online shopping is done on Amazon, making it a sellers paradise. There are tons of opportunities to upsell the same products that you can find in regular retail stores for 40% - 200% profit on Amazon. Amazon has a service called FBA (Fulfilment by Amazon) where you ship your products to their warehouses and for a fee, they take care of the packing, shipping, and customer service for your orders. The only thing you need to do is SELL!

    People LOVE to buy items on Amazon. With a Prime membership, users can get free 2-day delivery on millions of items. Amazon has increased delivery efficiency to some locations in the US to Same-Day or even within a few hours! Sending your products directly to Amazon takes care of the hassle of packing goods and opens up to preferred buying options from Amazon Prime users.

    The name of the game is arbitrage. AKA "BUY LOW, SELL HIGH"

    The price of products goes up and down all the time. If you ever wondered why stores offer sales and discount clearance items, it’s because they want to get rid of it to clear shelf space for new merchandise. There are millions of products sitting in clearance sections, garage sales, and thrift shops all around the world. Find a hot product for cheap, then you can flip it for some decent profit on Amazon.

    I just want to show how easy it is to retail arbitrage. If you are already selling on FBA, you know that it is a hustle game. Your time is your biggest investment.

    ***PRICES CURRENT AS OF DATE POSTED - 7/11/16***

    Here is an example of by re-selling on Amazon. Buy the product on Target -> Resell on AMZN.

    Product: Day Designer Academic Year 2016 - 2017 Weekly/Monthly 5.875 x 8.625 Planner Notes (Various Covers) (Coral Stripe)

    Target Link: http://www.target.com/p/planner-blue-sky-creamsicle-white/-/A-50865873

    Price: $7.99

    Amazon Link: https://amzn.com/B01FMRRLZW

    Best Seller Rank: #87,247 in Office Products; #448 in Office Products > Office Supplies > Calendars, Planners & Personal Organizers > Personal Organizers

    Price: $24.00

    Net Profit (after FBA fees): $9.84

    ROI: 123%

    *Target also has a promotion – Spend $25 get a $5 gift card, or $50 for a $10 gift card. The prices above do not reflect this promotion.

    So you can do is buy 10 of these planners for $80. Sell them on Amazon for $24, grossing $240. After FBA fees, you are left with $98.40 NET PROFIT on $80 investment (123% ROI)! Resell 100 of these, and profit $984! The Best Seller Rating is a ranking that shows how popular that item is compared to the entire category. The lower the seller rating, the more likely it is to be sold. As of 7/11/16, the Office Products category has 7.4 million product listings, putting this planner within the Top 1-2% in this category. Items in this category are sure to sell!

    If you have a registered FBA seller account, Amazon will tell you exactly how much your fees will be for a given product. For this example, the fees came out to $6.15

    Want to learn more?

    Great! Amazon FBA is an amazing place to make money whether you are a beginner or an expert marketer. I have been doing this since 2014, and is still very profitable to resell products while maximizing your ROI.

    I would start off by going to YouTube and searching “amazon fba”. There is a wealth of engaging quality content that I can not replicate so you are better off watching tutorials there. There are over 2 MILLION FBA sellers right now and growing. Don’t miss your chance to catch this wave!

    Feel free to PM me or post here if you have any questions about Amazon FBA, arbitrage, or private labeling. Best of luck to all FBA sellers and those starting out.

    Thanks for reading! :)
     
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    Last edited: Jul 11, 2016
  2. TheUnborn

    TheUnborn Elite Member

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    Congrats on your earnings and thanks for the method, do you use an arbitrage tool/software to find products?Just pm you.
     
  3. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Did some more research today and found some more opportunities as always.
    @Mods - this is for educational purposes only. I am not selling these items, nor are there affiliate links on these. I just want to show another example of what and how the arbitrage model works. Buy Low Sell High!!!

    ***PRICES CURRENT AS OF DATE POSTED - 7/11/16***
    Here is an example of by re-selling on Amazon.
    Product: ThermoWorks ThermoPop Super-Fast Thermometer with Backlit Rotating Display
    Link: http://www.thermoworks.com/ThermoPop
    Price: $29.00

    Amazon Link:https://www.amazon.com/dp/B00HZVJM4M/?tag=daisoulis-20
    Best Seller Rank: #10,559 in Home & Kitchen (See Top 100 in Home & Kitchen)
    #31 in Kitchen & Dining > Kitchen Utensils & Gadgets > Thermometers & Timers > Instant-Read
    Price: $75+
    Net Profit (after FBA fees): $28.31
    ROI: 98%
    *Some color skus are selling for $20.30. That's $8-9 more net profit if you sell these!

    Sell 10x of these, walk away with $283 minimum. Sell 100x, walk away with ~$3000.

    Yes, I have all the popular FBA premium tools: JungleScout, OAXRAY, CCC, Keepa, Inventory Labs, HowMany
     
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  4. ibmethatswhoib

    ibmethatswhoib Jr. VIP Jr. VIP Premium Member

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    Nice write-up. Some things for the beginners, don't buy what you can't afford obviously. You don't want to get stuck with product you can't resell. If it's popular enough and you think you can get at least what you paid if things go sour then go for it. You also have to build a reputation, you can start with selling random things and doing a good job with the customer. You can also advertise but I wouldn't really start doing that until get going if you're just starting. Check your competition and see what their reviews are, if they don't have many for the products you want to sell you can usually get on the first page fairly easily after some time.
     
  5. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Very well said. Best Seller Rank is something to always keep in mind. It is usually a pretty good indicator of whether or not a product is selling. Usually anything in the Top 5% is considered good. Some more advanced techniques include checking the inventory of your competitors, and changing price points to win the actual listing or winning the Buy Box.
     
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  6. rizumarian

    rizumarian Junior Member

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    Promising journey , I will follow your progress! Good luck ;)
     
  7. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    July 12th was Amazon Prime day. I actually didn't notice too much activity this day. Sales were on par with the average. I'm sure other products did better this day than others. Might just be the niche that I am in. Hopefully next year Prime day will be even bigger!
     
  8. Lacy Turner

    Lacy Turner Newbie

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    Hi im a new seller i have a online adult toys store and would like some tips on selling oline please.
     
  9. blommas

    blommas Senior Member

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    Interesting, bookmarking it for later
     
  10. adorableseo

    adorableseo Jr. VIP Jr. VIP

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    That's really nice method or journey, I want to ask is this method work in PAKISTAN?
     
  11. moneysavvy

    moneysavvy Junior Member

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    Op what tools do you use for finding good arbitrage opportunities?
     
  12. anatho

    anatho Elite Member

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    Hey,

    I really like this thread as it provides much valuable info, some stuff is even golden.
    I have just one question, could I also just sell "normally" on Amazon or does it have to be via FBA? Because I think just listing it like normal (dropshipping) will bring in even more profit, because at first I do not have to pay the monthly FBA fee and second, I do not have to buy the products in advance, so there is no risk at all. If they do not sell on Amazon, I did not spend a dime ....
     
  13. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Yes, you can do FBM (Fulfilled By Merchant) although you will likely miss out on a guide audience which is Prime members. Majority of Prime members only order Prime items for the Free 2-Day Shipping.
     
  14. elhosary

    elhosary Regular Member

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    what are the amazon payment methods available ?

    does there any other ways than DP , Check and gift cards used for affiliate?
    and which country you from
     
  15. tytytucke

    tytytucke Newbie

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    When thinking of another source of income, I totally forgot about this. Thanks for the info, and congrats on going private. I'm going to get into this. I didn't think people were making so much, so fast.
     
  16. web_riches

    web_riches Junior Member

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    @moneysavvy
    He listed them above and with a few searches in Google you can find them.. However I was curious as well so I tracked most of them down.
    ** None of the links below are affiliate links just direct links to the Products that OP mentioned.

    https://www.junglescout.com/

    http://oaxray.com/
    https://www.inventorylab.com/
    https://keepa.com/

    I did not find or know what:
    HowMany
    or CCC is..
    I googled them but well.. idk..

    Great read too! Would love to see how you use the tools above.

    Cheers~
     
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  17. planetgourmet

    planetgourmet Junior Member

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    Amazon is going blockbusters in the Pacific NW.
    Same day delivery. Over nite to lockers.

    Ok now your thoughts,
    difference between arbitrage amazon vs ebay ?
    Following. Awesome!
     
  18. TeKn1qu3z

    TeKn1qu3z Jr. VIP Jr. VIP Premium Member

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    Hey,
    Thanks for taking notes!

    CCC = www.camelcamelcamel.com - price tracker and sales rank tracker
    HowMany - Chrome extension that will tell you how much inventory your competitors have in stock

    Amazon > eBay. eBay does not offer a service like FBA, and Amazon is the largest eCommerce platform that you can immediately tap into. eBay is to sell anything you can't sell on Amazon.
     
  19. colantor

    colantor Newbie

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    If i buy stuff off target to sell on amazon, can i ship it straight to the amazon warehouse from target or do I need to send it to my house then ship it myself to amazon
     
  20. RafaViQ

    RafaViQ Power Member

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    This is mostly for US people right? Because the shipping from outside the US would be expensive as hell.