Retail arbitrage is the new trend in online marketplaces. It has become an everyday job among some online retailers. Retail arbitrage is actually the way a seller buys products from a marketplace for a low price and sells it in others.
Even though it sounds a little odd to the genuine sellers this really works for some. And it has become the worst addiction for them to make money instantly.
Amazon to eBay arbitrage
Amazon to eBay arbitrage is a simple concept and the trendsetter in the arbitrage field. If you are planning a business based on amazon to eBay arbitrage model then you have to buy products from Amazon and sell them on eBay.
So the secondary marketplace will deal with the products shipping, handling and customer support. For instance, If you buy an item for $10 on Amazon and sell them for $20 on eBay. This will gross you a small profit after all the shipping fees, seller cost and other charges.
Steps to do amazon to eBay arbitrage
Make your retail arbitrage business more profitable by knowing the major steps that constitute the amazon to eBay arbitrage. They are as follows
Check trending items in eBay
Always ensure you do thorough research for the trending items on eBay. This will give us a good insight into the products shoppers are looking for or demand the most. Make sure you take note of the items with their prices. Also, check the trend in Google trends.
So that you can check for the cheaper rates of the products in other sites to make quality profit margins.
Look at third party sources
For getting a kick start in the business you can rely on the third party sources for the product listing. Some of the third party sources are crazy lister, repricer express and other similar sources.
These sources provide the sellers with a listing of ten or more products to get instant profit from this retail arbitrage model.
Decide product value
To make a good profit you have to determine the value of the product by checking the buy and sell values. The product value should always be an average price you find on eBay and Amazon.
After calculating the price you have to reduce 10% from the amount for the precise value.
Compare both platform sellers
After deciding the price value for the products now you have to check for the sellers., The sellers who can provide you with the minimum price for the items in marketplaces.
Your prices should be on top of the other seller’s price to make a precise position in the marketplace as well as a profit margin. If you find a perfect amazon seller for your items then cross-checks with their prices to make a profit margin.
Purchase the item and sell in eBay
If the product receives a good profit then make sure you buy bulk quantities from the amazon sellers and sell on eBay. This can increase your profit margin instantly
Now here we will add some other tips you can rely upon to increase your arbitrage profit.
Keep away from greater values
Stay away from the most expensive and cheapest products to be a more budgeted business. For instance, If you buy a product which is extremely expensive from the market by the current market demand of the product. But if suddenly the market demand falls for the product it will affect your business adversely. So stay away from extremities.
Purchase bulk orders to get in cheap rates
If you want your products to be bought cheaply then make sure you buy them in bulk. Selling tons of low priced goods can add up to your profit instantly.
For Amazon, to eBay arbitrage business model the drop shipping is not a recommended route as its risky in the market.
In eBay also they welcome all their sellers till you start your dropshipping. They feel that dropshipping can affect their marketplace reputation adversely.
Take an edge over other sellers errors
Some Amazon sellers will make mistakes which will avoid them from selling their products. Here on this customer products, you can take advantage to make a quality business. This types of unintended mistakes are as follows
Sellers have to be careful in the spelling of the product names and keywords as the shoppers type this for purchase. So the wrong spelling can degrade their online business and you can take advantage of this.
Lack of quality product images
Product images can attract more customers to your online store. Always make sure you post quality pictures on the marketplace which gives the shoppers a clear idea about the product. So if you lack clear photos of the items then it will diminish your online sale rates.
Missing product description
The product description is a must in online business. As the shoppers are not getting a chance to touch, smell or see the texture of the product directly you have to add a perfect description to the products that can give them a clear picture of the product.
So if the sellers lack product descriptions for their products it can degrade your business opportunities.
Issues regarding amazon to eBay arbitrage
Actually eBay is not against any sellers but if you start dropshipping from other marketplaces then eBay will start to check your business. Some of the activities that become an issue later are
Duping of buyers
The chances of customers receiving products with the cover of amazon will increase by this arbitrage business, So as a result shoppers will lose trust and post negative comments in response.
In some cases, amazon sellers feel cheated as their products gross more profit in eBay. And eBay is not encouraging the sellers to dropship as their good name is under risk.
As the shoppers found that their prices are a bit higher than amazon they will lose customers too.
If you are already a member doing this business then this is the best business model to increase your monthly cash flow. To be more successful in this field the precise thing to do is automation. If you have more than 1000 products then automating can help you to stay ahead of the competition.
Furthermore, be an active person who looks forward to new opportunities and avoid the dropshipping element completely from your business strategy. This can save you from many of the problems regarding the product sourcing, eBay and your beloved customers.
So if done right Amazon to eBay arbitrage is a best practice to your promising future business.