Amazon is among the top online retailers for retail arbitrage marketing. Amazon offers a special promotion for merchants with their Amazon Prime membership. By using the Amazon Prime program, merchants can sell on Amazon and take advantage of their free two-day shipping. However, there is a catch. You must become a member to be able to sell on Amazon.
Finding products to sell on Amazon is just the first step in finding products to sell online. If you have no experience in retail arbitrage, it may take a lot of time looking. There are many books and websites that provide proven strategies for finding products to sell on Amazon. In fact, Amazon itself is a good source of eBooks and other resources that you can use to help you with your retail arbitrage business.
Amazon also offers a very valuable tool called Amazon Tracer. This product allows you to do a free reverse search. A tactical arbitrage is the opposite of a retail arbitrage strategy. A tactical arbitrage is where you purchase a product from one merchant at a discount, then turn around and sell it another merchant for the same discount.
Here’s an example using Amazon. One of our affiliates, Jason sells a camera from Lens Crafters. However, he cannot find any discounts on this item. He does not know if Amazon sells cameras in his country or not. To find this item, he does a standard online search for “digital cameras” along with the city he lives in.
When he does a wholesale analysis for his site, he finds out that there are many cameras made by different companies in his own city. He then does a Google search for “digital cameras” plus the city he lives in. He will get over ten million results. He then takes all of these results and filters out the ones that he does not think will be profitable. He then does a keyword search for those products and uses the Amazon Tracer method to find out what the competition for those keywords is. This gives him the information he needs to find the best products for his store.
Here’s an example using Amazon. Jason has set up an online store called JoesMart. He does a pay per click search for “jeans”, plus “mart”. He gets over fifty thousand hits. He then does a product search page for these products. Instead of seeing a long list of low cost competitors, he finds a very profitable niche called “jeans” plus “mildly expensive leather goods”.
He then uses Amazon’s” Amitriya” page to find products for his store. Since he is not trying to make money, he does not bother with low-cost competitors. He just uses Amazon and its “Amitriya” page to find deals on great Amazon and third party merchants. Instead of having to write all this code, Jason uses a tactical arbitrage system to do all the tedious work for him. He then makes a profit on almost all of his buys and sells.
Here’s another example using Amazon. Chris wants to sell some Target apparel and shoes. Instead of writing all his own code to find bargain deals on Target merchandise, he instead checks Amazon’s “awsome seller essentials” page. He knows that Amazon has some really great deals on Target products, so he goes to that page and searches for deals on Target apparel and shoes. Again, he doesn’t bother to write all the code he needs to find deals since Amazon’s “abusable seller essentials” page will have all the bargains he is looking for.
The point is that most merchants are using Amazon and similar ecommerce portals to find product lists and sell them on. They don’t need to write anything since Amazon has created the necessary systems and automated processes for them. That’s why most online arbitrage marketers have gone straight to Amazon and used Amazon’s “Amitriya” page as their portal. Now, let’s examine how these same online arbitrage marketers use the “tactical arbitrage” tactics. Instead of browsing the Amazon website tediously, what they do is go to the” Tactics” drop down menu and select “Search Tactics.” Once they click on” Tactics,” they are presented with a list of “searchable” Amazon product lists that they can choose from to find products to sell.
Once they make their selection, they click on each individual deal. In this way, they are searching for only the deals that have a low minimum bid price and are therefore easy to sell on Amazon. These deals will be offers of products from small-to-medium-sized niche market merchants. These merchants have a very high risk of being sold out so the eBay market for these products is very high. The Amazon “Amitriya” pages do not provide the inventory data for these niche merchants, so it’s up to the online arbitrage trader to either learn how to obtain that information or spend a lot of time looking for it.
At one time, I used the Facebook Pages function to look for Amazon products to sell on eBay. I spent many long hours searching the website using the Yahoo search engine. Finally, I learned that the “AFS” (Alexa website worth) had a list of all the websites worth their salt on Facebook. Armed with this list, I was able to focus my attention on finding products to sell in the areas I wanted to.