Online Arbitrage for Amazon FBA: tips and tricks
An online arbitrage strategy for Amazon FBA sellers is a great way to run a business with no the need to have warehouse or office space. All you need is a laptop and Wi-Fi!
There are many online arbitrage tips out there to help you scale this business model, and that’s what we’ll be talking about today.
What is an online-arbitrage strategy?
When you buy an existing product online at a low price and sell it at a higher price on Amazon, that is an online arbitrage strategy.
This way offers sellers to start a business without huge risk or investment. That is, you simply buy goods from the manufacturer as an ordinary consumer, and not a business person.
Online Arbitrage for Amazon FBA: tips and tricks
We’ve picked online arbitrage tips to help you optimize your online business. Let’s go!
Delegate some tasks
Most sellers of the online arbitrage (OA) strategy believe that it is impossible to independently and constantly monitor the availability of inventory in the warehouse, for new products and ideas.
The best way to overcome this obstacle and achieve it is to use the time and knowledge of other people. You can hire and train a virtual assistant (VA), or you can subscribe to programs whose assistants will analyze and report problems and results to you (for example, Essential Daily Deals).
Check for product changes your supplier may make
At some point, the manufacturers of the products you sell may decide to “improve” the product they are selling or stop producing it if it does not sell well. But perhaps your customers like the original version of the product more than the “improved” product.
Just because something sold poorly to the manufacturer or one of their retailers doesn’t mean it won’t sell well on Amazon. If the only place they can get the product they are looking for is Amazon (or eBay), many of them will even agree to pay more to get what they want.
ONE MORE IMPORTANT THING: Always check the products’ expiration date. Amazon has very strict rules on this, so don’t sell expired items.
Products that are about to expire cannot be sold through Amazon FBA.
Buy enough items to qualify for free shipping
Online arbitrage orders are often shipped for free when you reach the threshold required by retailers for free shipping. For some retailers like Target, it’s only $ 35. For other online stores, the price can range from $ 49.75 to $ 99.
But there is one thing: free shipping is usually the slowest shipping method. Sometimes it is better for a customer to pay for shipping so that the order can be delivered faster, especially during the busy holiday shopping season.
Check each order personally
DO NOT ship your orders without prior verification!
If you use the services of the Amazon prep center, then they should do it for you.
If not, then personally check each item, rather than just sticking a label on the box and sending it to the Amazon warehouse.
You need to check the condition of the items, make sure the order is correct, and check all store tags and tags.
Remember time is money
Amazon provides a free FBA revenue calculator.
From the ASIN Vendor List, you can add 999 units to the cart for each vendor, one at a time, and Amazon will show you the actual inventory that each vendor has.
You can preview each product variant to see individual prices, number of reviews, number of sellers, and whatever else is available on the product page.
But as your business starts to grow, you will soon realize that your time has value. Time is money. And you spend a lot of time doing things manually that can be automated quickly and inexpensively.
For example, install the Keepa extension.
Keepa will alert you when a product reaches its target purchase price again and will assist you with detailed product analysis at any stage of your online business.
This extension for Google Chrome is very useful, convenient and functional.
Do the repricing consciously!
Reprice items manually if you are not using automatic re-pricing.
But, by the way, we talked about automatic repricing in this article.
Automatic repricing is a tool that allows you to sell more inventory at a faster rate.
If you still have questions about the article, leave comments! We will be happy to answer them!
Yours, Amaz.Markets
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