We are so lucky to have so many ways of making money from home. All you need is an internet connection and you’re ready to start making money. You can try to make some extra money, or, you can even make a full-time income. Some methods are more complicated than others. A very simple one to do is retail arbitrage.
Retail arbitrage is when you go to auctions or yard sales and buy items still in the box. Then you create an account and list on Amazon to sell the items there. Once you have a listing done, you send the item to the warehouse that Amazon tells you, and then it goes live for sale. In this article, we will go over the essentials to have so you can make as much as possible.
1 – Set up a shipping system
Before you start buying your items, it is important to set up a system. Since shipping is essential to your success it makes sense to have this part figured out first.
Start out by getting yourself a scale so you can weigh the items before you send them. This is important for the listing so you have to know exactly how much it weighs when it’s in the package.
The next thing is to shop around for the fastest shipping with the best rates. Getting the package into Amazon as quickly as possible is crucial so that you can make sure there is not as much competition on your listing.
Then, you should look into a local courier since you can usually get a better rate. For instance, if you live in Florida then using a Florida delivery service is your best option.
2 – Figure out the pricing
The one downside of doing arbitrage is that you are buying individual items and can’t usually get a wholesale price on them. This makes it tricky to get a good profit margin. Make sure only to buy items that have a decent price point on Amazon and can give you a profit you are satisfied with.
If you are buying something at an auction then decide how much you are willing to spend before you bid. Go onto Amazon and see what the item is being sold for. You won’t be able to ask for more and may need to sell it for less than the average to make sure it does actually sell.
Then, add in the fees, the cost of shipping it to the warehouse, and the cost of the item and subtract that total from the target price. See if it leaves enough of a profit for it to be worth the time involved to sell it.
3 – Do your research
The key to success is knowing what sells and what doesn’t. Don’t just buy things because they are inexpensive and you think you can make a profit. Research what types of products are selling already and how many of the same items are for sale.
You risk having your product sit on a shelf in a warehouse racking up storage fees if you don’t pick the right products.