Amazon FBA Retail Arbitrage is the latest method of taking advantage of the low cost of shipping to your door by selling on eBay. Amazon recently launched Amazon’s new retail marketplace with an eye toward increasing their bottom line. eBay, however, has long been a favorite place for entrepreneurs to market their merchandise. With eBay becoming more competitive by the day, more sellers are looking to Amazon as a way to get ahead on eBay and sell on their own websites.
Amazon’s new program, called Amazon FBA Retail Arbitrage, is an ingenious way for you to make a few bucks while being your own boss. Amazon offers an eBay-style platform that allows sellers to manage their eBay store on their own website or add an eBay-style shopping cart to their website, and then sell on their own website.
Amazon FBA Retail Arbitrage is simply the act of buying low on the internet, then selling for a profit online on Amazon. After reading about the program on Side Hustle Nation, they quickly turned that $200 in first inventory into over $180,000 dollars in profit in less than twelve months.
When you sell on Amazon through Amazon FBA Retail Arbitrage, you need to be aware that there are some fees involved. One of these is a one time fee which is charged per item you sell. This fee is not a hidden cost, but rather an expense that can be clearly viewed on the Seller Account page when you complete your purchase.
The next cost associated with Amazon FBA is a per item fee which covers the costs associated with your advertising and promotion efforts. As you see in the listing information on your Seller Account page, you will be charged an Advertising and Promotion Fee every time you add an item to your website and promote it. This is not a hidden fee; it is part of your overall cost of doing business. Amazon includes this fee with each transaction made to list your items on their website and you will need to be prepared to pay a little bit extra to offset the cost of this fee if you wish to continue to do business with them.
The final fee associated with Amazon FBA is a per sale fee, which you may have to pay if you run out of inventory before the end of your introductory period. Amazon does not refund any of your money if you become unable to continue making sales during this period. The cost of inventory is extremely important to an eBay businessperson who needs to generate money online.
These are all fees you will have to pay and each one is unique to the online auctioneer you chose. As a seller on eBay, you are responsible for paying these fees. In addition, you are responsible for the advertising and promotion costs of both eBay and Amazon and will have to pay a listing fee every time you list on one of their sites. However, the fees you pay to Amazon are a small price to pay for the opportunity to build a successful online business from home.
If you decide to sell on eBay instead of on Amazon, be sure to research Amazon before you join their online auctioneer. There are many reasons you may want to use this online auctioneer, especially if you want to build a successful online business and you may find that you like the online auctioning better than Amazon.
Before you decide, ask yourself questions to determine if you will be happy with your decision to work with Amazon. Will you prefer to work with someone who provides excellent customer service? Are you willing to take some degree of risk involved with selling on their site and being able to rely on Amazon’s customer service to help you resolve your problem?
Will you be satisfied with the price you are charged when you sell on Amazon? Is the payment processing time satisfactory or is it faster to have your money wired to your account through a third party like PayPal?
By answering these questions, you will be able to determine whether or not you would be better served by working with Amazon FBA to start or expand your online business. Once you have decided to work with the FBA system, you will be well on your way to building an online business that is successful.