Amazon is the hottest name in e-commerce. The low prices, the convenience of shipping right to your door, and the all-embracing customer service adds to its power as the No. 1 electronic bookseller.
When you’re the biggest seller on Amazon, what do you do with all your extra merchandise? Who needs that unsold DVD cover? Well, you put it on eBay, and then you’ll sell a few more.
And if you sell a lot of products on Amazon, you can make money by taking advantage of their wholesale discounts. Amazon is offering many items for sale at wholesale prices. So it makes sense to buy several of these items from Amazon and sell them on eBay.
Wholesale discounters offer their goods for a flat rate. Their prices are lower than the market price at which the retailer buys the item from Amazon. They also have larger inventories than retailers. So they can afford to offer their items at lower prices.
Amazon’s wholesale partners come up with the products at Amazon’s warehouse. The wholesalers take care of packaging and shipping the items to Amazon warehouses, where they are sold at discounted prices. Amazon has no need to pay warehousing or inventory costs, so there is no markup.
Wholesale distributors are legal in most states, and they have to be licensed by the state. You’ll need to find a wholesale distributor near you that offers Amazon discounts.
Amazon is not the only company offering discounted products. There are a number of companies that do so. On eBay, these companies sell as well. Amazon is the largest provider, but you can find retailers in the thousands who sell products at wholesale rates on eBay.
Amazon isn’t the only retail site with a discount on its products. But since Amazon seems to sell everything, its customers are the only ones who benefit. Retail arbitrage is great for you.
Start by finding a wholesale retailer that offers many products for sale. Some wholesale sellers are limited in their list of products. Others carry a selection of thousands of items that you can choose from.
Once you’ve found a wholesale seller, put together a list of items that you want to sell. Take a look at Amazon and eBay. See if you can find a seller that offers items you want at wholesale prices.
Once you find some sellers, contact them and ask for a wholesale discount. Amazon won’t give you one unless you have a verified account. You need to either be a member of eBay or have an active seller’s account.
Once you have a verified account, you’ll be able to request a wholesale discount from Amazon. Before you do, take a look at the retailer’s list of items. There may be a handful of products you want to sell that are priced too high for the wholesale seller to sell them at a wholesale price.