9 Tips for Online Arbitrage on Amazon

In this post, we would like to share with you some recommendations for Online Arbitrage on Amazon based on our personal experience.

• 1. Don't make a large investment all at once.

Test the product by selling a few copies before making a large purchase. Focus on positive feedback first, rather than a large number of sales. Sales will follow positive feedback.

A small purchase will also allow you to check the reliability and quality of the supplier.

• 2. Do not sell brands that only licensed resellers can sell.

Avoid any counterfeits. Amazon has a very strict policy regarding such violations.

• 3. Buy items at least 50% cheaper from their price on amazon.

Don't forget the amazon fees. Make sure you can get a good margin. Avoid bulky items to spend less on shipping and storage. Choose items that sell well. Your goal is to sell fast, not keep them in stock.

• 4. Don't concentrate on toys.

For some reason, a lot of sellers want to work with the Toys & Games category on Amazon. However, this category is very competitive and, accordingly, margins will be lower. These products usually stay in stock longer.

• 5. Sell in different categories.

Try selling products in many different categories. You may earn nothing in one, but become very successful in another. Keep your budget in mind and keep selling different products. You will gain valuable experience and in the future you will be able to sell successfully in different categories.

• 6. Amazon is not afraid of losing money.

Amazon may start selling at a loss if the manufacturer decides to lower its prices. If you see that a certain product has become cheaper, Amazon is likely to lower the price too, even if you bought it at a higher price. By the way, ASINSpotlight has a filter that will exclude all listings where Amazon is present.

• 7. Research the product you are going to purchase.

Research prices in the niche, competitors, customer feedback and demand. Pay attention not only to the current price, but also to its history. Keep in mind that strong competitors can always lower the price, but can you?

• 8. Don't try to outsmart Amazon.

Any attempts at foul play with Amazon will sooner or later lead to an account ban. It is not a fact that you will be able to withdraw your money. The right strategy is to work for the future and build long-term relationships with all partners.

• 9. The key is patience and perseverance.

Of course, you would want to sell out of all the items quickly. Ideally, all items would sell out in a month. The reality is far from that. The market doesn't stand still. Prices change, new vendors emerge. Competitors can attach themselves to listings. If you lower your prices, it may lead to sales, but it will stop your growth. Best practices advise taking your time and choosing your product carefully before launching.

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