Look for products that won’t cost you too much but are also in demand and likely to be bought quickly online.
Retail arbitrage has the potential to earn you a stable income, and it’s still as lucrative in 2022 as it was a few years ago, if not more. With Amazon’s steady growth, you can expect to be able to build a successful business just by investing enough time and staying on top of sales.
Here’s how you can succeed in retail arbitrage in 2022.
What is Retail Arbitrage?
Retail arbitrage is buying items from retailers at discounted prices and reselling them online. Amazon is the most popular platform available, but it’s certainly not the only one. We’ll base our guide on that, but you can take these tips and apply them elsewhere as well.
Create an Amazon seller account
Your first step is to create a seller account on Amazon. The steps you need to follow are very simple and easy to follow.
You can choose to create an individual account, which is free, but will incur a fee of $0.99 per item sold. Once you’ve sold more than 40 items, you’ll need to upgrade to a pro account, which costs $39.99 per month.
Get the Amazon Seller app
You will then need to start sourcing the products you want to sell. The Amazon Seller app is a great way to get started, as it will allow you to scan a product’s barcode and tell you its price on Amazon.
You can also use it to manage your listings, message customers, and find items you want to sell in the future.
Visit your local stores
You then need to start looking for the products you want to sell. You can do this online, of course, but you can also start visiting your local retail stores.
Look for products that won’t cost you too much but are also in demand and likely to be bought quickly online. Also, be sure to look for decent discounts, because something that’s only 10% off isn’t going to earn you a big commission.
Stores often advertise their sales in advance, so be sure to visit regularly and check back regularly to see what’s available. You can also check social media to see what people are talking about and where they recently shopped at discount prices.
Find sales online
You should also not neglect online shopping and online stores and sales. There are plenty of apps and tools you can use to help you find the kinds of prizes that are worthwhile.
You should also make sure to sign up for coupons or become a member of loyalty clubs and programs that can help you save a lot on an order, which you can then leverage to make a more profitable sale on Amazon.
Make the right calculation
Although you are only working with a handful of items, it will be very easy to stay on top of your prices and profit margins. But as you start working with larger volumes, you may also start experimenting with different prices.
Your goal is to always earn at least a small amount for each sale. You want to factor in the time it took you to research and list the item under consideration. However, you can also lose a little on an item or two if it will save you a lot elsewhere.
Your overall calculation should stay in the green. So, keep track of your numbers and regularly re-evaluate your articles to get the most out of them.
List and promote your items
Once you have your clearance items, you can list them on Amazon. Make sure you do your best to stand out and write great product descriptions that will entice buyers to make a purchase from you and not your competitors.
Remember that you need to promote these products as well. So, to fuel your sales even more, develop a marketing plan that you have both the resources and the knowledge.
Final Thoughts
Retail arbitrage is a great way to get started in e-commerce. Just make sure you buy quality products that you can sell for the right price.
