Retail Arbitrage - Anyone Tried It? | Warrior Forum - The #1 Digital Marketing Forum & Marketplace

11 years ago

Originally Posted by justlukeyou

Hi,

I had some spare time at work so I went onto the clearance section of a retailer. They had around 30 watches all with big discounts from $100 reduced to $30. So I checked the ISBN number of some of the watches on Amazon and eBay many of them were being sold for the $80.

So I bought one from this retailer and sold it on Amazon or eBay I could at least double my money. However when I checked it further the sales ranking were quite poor on Amazon. However if I purchased a watch for $30 and it for $60 I would still double my money.

I have about retail arbitrage from YouTube but I full understand and believe it works.

Anyone tried it?

I am considering buying a watch I would keep and list it on Amazon for 6 months. If it doesn't sell I will keep it. If it does sell I could at least double my money. But does retail arbitrage work or is it a myth?

Arbitrage in general is a great way to make money...

A friend of mine is a power seller on ebay, and he makes a very good living flipping physical products. I can tell you a few of the methods I know he uses...

He buys stuff at 2nd hand stores, garage sales, or even the salvation army, and every once in a while he finds a product that he makes really good money on. He also browses the Craigslist free ads, if something is worth his time in his local area, he goes and gets it and sells it on ebay...

He was just telling me the other day, he was buying refurbished electronics on amazon, after he purchase he would ask the seller to delay shipping. He would then list the same item on ebay with a mark up of course, and when he sold it, he would just give the amazon seller his ebay customers shipping info and he didn't even have to worry about storing/shipping... That amazon to ebay method is really risky, but he does have over 5k positive feedbacks on ebay with just 1 negative so I guess he has it figured out...

So to answer your question directly...

There is DEFINITELY money to be maid utilizing retail arbitrage...

There's also sites like beezid, or quibids which are also auction sites. They're not as busy as the big sites so every once in a while you'll find a diamond in the rough and the profit is there...

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justlukeyou

11 years ago

Hi,

Im trying it with used books.

Im trying to check some of the rankings of the watches, they are around 18,000. I dont know if that is good or bad for watches.

Thanks
1 reply

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VinnyBock

11 years ago

Originally Posted by justlukeyou

Hi,

Im trying it with used books.

Im trying to check some of the rankings of the watches, they are around 18,000. I dont know if that is good or bad for watches.

:confused::confused::confused:

What do you want to sell books or watches? :confused:

What rankings? - Do you mean search volume?

Thanks

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justlukeyou

11 years ago

Hi,

The sales rankings on Amazon.

I can only get used books at the weekends so Im looking for something I can get during the week.

The site has many items cheaper than Amazon but they are not well ranked .

Thanks

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salegurus

11 years ago

I'm trying hard to understand your OP, seems like you were in a hurry and left words out or used the wrong words in some places?
Anyway....

Originally Posted by justlukeyou

So I bought one from this retailer and sold it on Amazon or eBay I could at least double my money. However when I checked it further the sales ranking were quite poor on Amazon. However if I purchased a watch for $30 and it for $60 I would still double my money.

You did not count on- eBay + Paypal fees (12.9%)
Amazon referral fees 8-25%
Shipping and supplies (If you are shipping)

Originally Posted by justlukeyou

I am considering buying a watch I would keep and list it on Amazon for 6 months. If it doesn't sell I will keep it. If it does sell I could at least double my money. But does retail arbitrage work or is it a myth?

Buying one item at a time to sell is not going to make you any money.

Thanks
1 reply

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justlukeyou

11 years ago

Originally Posted by salegurus

I'm trying hard to understand your OP, seems like you were in a hurry and left words out or used the wrong words in some places?
Anyway....

You did not count on- eBay + Paypal fees (12.9%)
Amazon referral fees 8-25%
Shipping and supplies (If you are shipping)

Buying one item at a time to sell is not going to make you any money.

But buying one item is a okay method of testing it. I just need the confidence that it will sell.

Thanks

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NewParadigm

11 years ago

Call it what you want, its all the same.

You buy low, and sell higher, hopefully covering all your costs and making money.

If you are not adding much value, or any to the process, to customers, the margins will shrink over time and the gig could be up. so jump on it. You'll continually be searching for distressed/mispriced merch.

A better way might be approaching businesses and partnering with them to clear out their distressed/obsolete inventory. Bring in a team of interns with laptops/tablets/cameras to inventory the stuff(doing the hard work the business doesn't want to do) and listing it for them. Pay them a higher cut if they can drop ship the item for you once it sells, pay them less if you have to do that work for them. You could get very efficient listing products in a hurry, something that is a pain for businesses to take the time and do. profit.

Thanks
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justlukeyou

11 years ago

Originally Posted by NewParadigm

Call it what you want, its all the same.

You buy low, and sell higher, hopefully covering all your costs and making money.

If you are not adding much value, or any to the process, to customers, the margins will shrink over time and the gig could be up. so jump on it. You'll continually be searching for distressed/mispriced merch.

A better way might be approaching businesses and partnering with them to clear out their distressed/obsolete inventory. Bring in a team of interns with laptops/tablets/cameras to inventory the stuff(doing the hard work the business doesn't want to do) and listing it for them. Pay them a higher cut if they can drop ship the item for you once it sells, pay them less if you have to do that work for them. You could get very efficient listing products in a hurry, something that is a pain for businesses to take the time and do. profit.

Hi,

But it sounds to good to be true. Walk into a high street shop. Stick it on Amazon and 2 weeks later double your money.

I found a retro games console which is ranked 8000 on Amazon but I dont know if they is good or bad.

Thanks
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LilBlackDress

11 years ago

Originally Posted by justlukeyou

Hi,

But it sounds to good to be true. Walk into a high street shop. Stick it on Amazon and 2 weeks later double your money.

I found a retro games console which is ranked 8000 on Amazon but I dont know if they is good or bad.

It depends on where it is ranking 8000. If an item is ranking 8000 in say Amazon books that is pretty darn good. Remember the lower the number the higher the sales. But I would think watches are slower sellers, so if it is ranking 8000 in the watches store than that means 7999 watches are selling before that one. That does not mean it wont sell, just that it may take time. You also have to price your item to sell before the other ones if it is a slow seller and factor in the shipping fees/Amazon fees.

Another thing to look at is the date of the reviews. Some items are hot sellers when they first come out and possibly hard to find in stores. Then when they become easier to find in the stores, unless there is a big savings, sales at Amazon may slow. So look to see how many reviews an item has (the more the better) and the date of the reviews (hopefully recent ones which means it is still selling)

I have flipped lots of goods in the past and it is a great way to pick up some extra cash if you have time.

Thanks
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justlukeyou

11 years ago

Originally Posted by LilBlackDress

It depends on where it is ranking 8000. If an item is ranking 8000 in say Amazon books that is pretty darn good. Remember the lower the number the higher the sales. But I would think watches are slower sellers, so if it is ranking 8000 in the watches store than that means 7999 watches are selling before that one. That does not mean it wont sell, just that it may take time. You also have to price your item to sell before the other ones if it is a slow seller and factor in the shipping fees/Amazon fees.

Another thing to look at is the date of the reviews. Some items are hot sellers when they first come out and possibly hard to find in stores. Then when they become easier to find in the stores, unless there is a big savings, sales at Amazon may slow. So look to see how many reviews an item has (the more the better) and the date of the reviews (hopefully recent ones which means it is still selling)

I have flipped lots of goods in the past and it is a great way to pick up some extra cash if you have time.

I have the time but I dont want to buy duds. I am flipping used books which is going okay but Im trying to get into new products.

I did buy and sell a brand new cookbook but only made around $8.

Thanks
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LilBlackDress

11 years ago

Originally Posted by justlukeyou

I have the time but I dont want to buy duds. I am flipping used books which is going okay but Im trying to get into new products.

I did buy and sell a brand new cookbook but only made around $8.

You are very likely to buy some duds to learn the business. Try to aim for a profit of 3X per item. Don't buy very pricey items you are unsure about. I know someone who buys shampoo and other every day products that are marked down. Then ships to Amazon for FBA and makes a profit.

Thanks
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justlukeyou

11 years ago

Originally Posted by LilBlackDress

You are very likely to buy some duds to learn the business. Try to aim for a profit of 3X per item. Don't buy very pricey items you are unsure about. I know someone who buys shampoo and other every day products that are marked down. Then ships to Amazon for FBA and makes a profit.

The strange thing is that everyone makes it sound so easy.

Im also going to an auction a week on Saturday which sells reppossed goods.

I work with parents who cant afford to eat properly yet people make flipping products sound so easy.

Thanks
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BKenn01

11 years ago

Originally Posted by KingArthur

Please see the discussion that develops here before you decide.

http://www.warriorforum.com/main-internet-marketing-discussion-forum/837068-amazon-ebay-arbitrage-may-not-legal.html

Arbitrage is completely legal as long as you have obtained the goods legally thru authorized distributors/retail stores.

Originally Posted by justlukeyou

The strange thing is that everyone makes it sound so easy.

Im also going to an auction a week on Saturday which sells reppossed goods.

I work with parents who cant afford to eat properly yet people make flipping products sound so easy.

That is because to many people it is easy but like everything else it is hard at first. I am an ebay powerseller with over 6400 positive feedback. I have been doing it since 2004 as a part time business. You have to study, work, make mistakes and keep chugging along. I have never looked at Amazon rankings, I study completed auctions on ebay.

Of my feedback I probably have 3 neutral and 3 negative in all that time since 2004. I am known for customer service. You will pay for that though as I am not the cheapest on ebay. Believe it or not customers will pay for peace of mind.

Products are all around you. I suggest reading some of Lisa Suttora information on product sourcing, etc.

The absolute biggest mistake people make on ebay is thinking its a no cost no investment business, hence all the "how do I dropship on ebay" threads, etc. Like any other business it is best to have some starting capital. ebays forum threads are full of posts from novice sellers who made their first sale, sometimes as low as $20 and now the sale has went wrong and they are about to be out that money and they cant afford it.

Don't ever be that person, it is very stressful. Buy, Sell, Reinvest but keep a reserve for when things "go wrong" Give as much detailed information as you can in the listing but don't be a legalist. Don't threaten potential customers, in other words don't be Negative Nelly in a sales copy and that is just what an auction listing is a sales copy.

Be diverse, make sure your auction id is open for expansion.

As for purchasing products, yes if you go to the Coach shop and buy 10 purses, then come back a day later you are going to Red Flag them and they will cut you off. You have to be stealth, retailers use Outlet, Sale and Clearance as marketing, not to resale to dealers.

In short just research, you can do it.

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Unity96387 11 years ago

Originally Posted by BKenn01

I am an ebay powerseller with over 6400 positive feedback. I have been doing it since 2004 as a part time business..

Can you please give us the best books to read or courses to take that will help us to master retail arbitrage on ebay?
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Max Greenflame

11 years ago

Originally Posted by justlukeyou

Hi,

I had some spare time at work so I went onto the clearance section of a retailer. They had around 30 watches all with big discounts from $100 reduced to $30. So I checked the ISBN number of some of the watches on Amazon and eBay many of them were being sold for the $80.

So I bought one from this retailer and sold it on Amazon or eBay I could at least double my money. However when I checked it further the sales ranking were quite poor on Amazon. However if I purchased a watch for $30 and it for $60 I would still double my money.

I have about retail arbitrage from YouTube but I full understand and believe it works.

Anyone tried it?

I am considering buying a watch I would keep and list it on Amazon for 6 months. If it doesn't sell I will keep it. If it does sell I could at least double my money. But does retail arbitrage work or is it a myth?

It's just reselling. It always works.

Thanks

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justlukeyou

11 years ago

Hi,

I dont think its thats easy surely.

Many of the top ranked products on Amazon were sold out with the retailer having a clearance.

For experience, there was a Batman game that was $80 on Amazon and $40 with the retailer but half price but sold out. It was ranked 60 in the toys sale so should have sold quickly.

How can I "always make it work".

Thanks

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Lurk

11 years ago

OP i think you're on the right track as far as research. Like you say though, you gotta make sure item can be sold regardless of potential profit margin. Keep researching and look at frequency item is being sold to ebay.

Thanks

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DONT USE TIME CARELESSLY FOR IT CANNOT BE RETRIEVED. -LURK

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justlukeyou

11 years ago

How can I see how often something sells on eBay?

Thanks
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Lurk 11 years ago

Originally Posted by justlukeyou

How can I see how often something sells on eBay?

Go to ebay advanced type in product & completed listings.
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DONT USE TIME CARELESSLY FOR IT CANNOT BE RETRIEVED. -LURK
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- UnkwnUsr 11 years ago
  
  Flipping items is not hard but you must constantly be on the lookout for under priced items and know their market value on eBay and other venues. Things that can easily be bought and sold on eBay for profit include collectible video games, textbooks (buy when school is not in session sell during the back to school season), and items that are free with a rebate like personal care items. Yes it is work to find these items but it does pay off.
  
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Steven Miranda

11 years ago

Of course it works... I have been reselling on Amazon for about 6 months and I'm on track to do $8000 in sales in last 30 days.

Thanks

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Samuru

11 years ago

About flipping items, I have a close friend of mine who does this particular method. Selling wholesale items at low prices.

Let me break it down. He has a warehouse space (you can use another space, an area, rent a space, or do a garage sale) and he buys from Walmart and other retail stores. They have all this merchandise to get rid of in pallets (large quantities of a particular item or items mixed together). He might buy the whole pallet for $400-$500 (yes, lots of money!).

Then, he will take it apart, check all the items to make sure they aren't damaged or in any bad condition, then sell them at half price at least. Example, a Mr. Coffee maker that's $40 for $10. He makes a couple thousand from each pallet, makes almost $500 a day! Of course, he sells on ebay, has to pay shipping costs/materials, but most of his sales come from clients that visit his warehouse.

He's doing pretty well, and looking to expand. Just from buying stuff that walmart doesn't want.

Thanks
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KingArthur 11 years ago

Please see the discussion that develops here before you decide.

http://www.warriorforum.com/main-int...not-legal.html
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Jeannie Crabtree

10 years ago

I have sold on ebay before and am getting back into it. Product arbitrage can work out well. But Not all products you choose will be winners.

I have a source for name brand products that I buy at less than wholesale. I check out whether they are selling on ebay and at what price. If they are good sellers, I can sell a dollar under other sellers or at the wholesale price and can afford to give free shipping and still make a profit.

It is just a matter of doing your research to make sure the market might still want the items, or take a chance and start at a moderate price so it is appealing.

Then roll that money over and start saving some in reserve in case you have a refund, etc.

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marktechvanc

8 years ago

Hi,
of course we can do this.

Thanks

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marktechvanc

8 years ago

Hi,
off course we can do this

Thanks

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marktechvanc

8 years ago

Hi,
Off course we can do this. Going out of business sales of big stuff can be increase the big stuff locally. You can also retired direct sales consultants because of this they may not able to sell that inventory on auction sides but you can sell it. Arbitrage having many advantages to use it.

Thanks

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Retail Arbitrage - Anyone Tried It?

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