How to Make Money With Online Arbitrage 2020
Online arbitrage offers a unique opportunity to those who are looking for short term gains and a chance to start a small business. In this article we will talk about the difference between retail arbitrage and online arbitrage and how you can use this opportunity to your advantage.
The concept of arbitrage is easy enough to understand but there are so many different types of it that it is confusing to explain. The simplest way to explain it is with an example. Let’s take this business from Amazon.com, this is retail arbitrage.
What is the simplest way to describe what happens here? Every product that you buy at Amazon.com is priced at the same price at the same store. The stores mark up their prices on the products to the end consumer ends up paying more than the price they originally paid. So if you bought a hundred dollars worth of widgets at the same store, you would be getting 100 dollars worth of widgets in your pocket.
But what is happening here is that the widgets are listed for sale at different prices on eBay. The seller wants to sell them at the same price, in eBay parlance, at the same store. They have to mark up the price on the items and sell them at a higher price so that they get the money from their listing fee and commissions.
Here’s the key difference between retail arbitrage and online arbitrage. The profit is the difference between the actual price that the item sold for and the price it was sold for on eBay. It is not the amount of money that you make from selling the item.
But what is the most profitable way to make money on eBay by arbitraging? Many people can tell you what that is. Well, there is no way to put a dollar figure on the profits. Everyone will have their own secret formula and claim that it is the best arbitrage.
Learn what works best for you. This means being honest with yourself. You are going to have to be patient and learn what is working and what isn’t.
I use a reputable site to find products to buy and resell. So I can do a search on one of the Google word search tools and get a list of keywords that people will use to search eBay. Then I go through each one of these keywords and see which ones are most popular with sellers of eBay products.
I pick the reworded search terms out of the results and I add them to my email auto responders so that I can receive them through my inbox. I do this for about a dozen or so of the most popular keywords. I don’t want to bombard myself with thousands of emails, just the keywords and then forget about them.
So I have that list, as well as a list of products to buy and resell, I only need to send out the emails to get an average income of around $50. That is great, but I know that is not what I should be doing. I want to build a substantial income, not rely on the Internet for income.
I want to focus on increasing my income and not spend a lot of time chasing products for profit. Once I get some success with those twenty percent I have been sending out the next two-thirds of my income is going to come from my eBay earnings.
You can set up your business as a success and use this same approach. It’s not difficult, it just takes a little time and effort.