When you’re not spending tons of money on a website to promote your product, retail arbitrage is an excellent option. You can purchase products at low prices from retailers – including online stores. For example, you can buy a product for $5 at Walmart and then sell it for $20 on Amazon. Some people even buy products online and then resell them on eBay. This type of retail arbitrage is known as online arbitrage, or buying low and selling high.
If you’re new to retail arbitrage, start small. For example, if you’re selling sidewalk chalk on Amazon, you may want to sell five or ten units to test the waters. This way, you can see whether or not sidewalk chalk sells well. Make sure your return on investment (ROI) is higher than your initial investment. If you can make more money in the long run, keep selling on Amazon.
Once you’ve created a merchant account, you need to find products to sell. You need to decide whether you want to handle fulfillment yourself or hire Amazon to do it. There are different options available, including Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA). Once you’ve found a product to sell, you need to find the products to resell. A free app is available from Amazon that makes it easy to manage your business.