Beginner method. As you may see from the large number of online merchants, there’s no shortage of choices to execute your online arbitrage shopping. If you’re just starting out, and you’ve got an idea about what you want to buy, you can start sourcing products through a number of online merchants. The benefit of this approach is that you can often get lower prices on the exact same products as those available at full price in brick and mortar stores.
Online retail arbitrage, or buying products from another merchant at a lower price than you would normally pay, is one of the fastest selling online businesses. And it’s very easy to get started, too. Simply access your favorite search engine and type in “online arbitrage” along with the product you’re looking for. If you don’t know which merchant to choose, use your favorite search engine’s suggestions. For example, if you’re looking for an Apple laptop, use the name of an apple store. You’ll often find a list of suggestions along with price comparisons.
Another online arbitrage strategy involves sourcing inventory online. This is the more time consuming of the two strategies, but often yields better results. When sourcing online, it is important that you plan your buying and selling carefully so that you’ll be able to avoid common pitfalls. Here are some tips to help you get started:
Buy Boxes: Make sure you don’t buy an inventory that is overstocked, in excess of what you intend to sell. Buy in bulk, particularly when you’re buying in large quantities. Consider paying for insurance on the product to protect it in transit and protect you from costly storage fees. Buy box quantities at Costco or other bulk warehouse retailers.
Sell On eBay: When you’re buying in bulk, it can be very profitable to sell on eBay. The key is to determine the cost of the item versus the profit you anticipate from reselling. You may want to consider buying products that are on clearance or that go on sale frequently. These items may not always be available on eBay, so you can expect to pay shipping and storage fees. However, these costs can be minimized through strategic online arbitrage for beginners by finding products that sell well at great prices.
Build An Effective Stock Plan: It’s very difficult to conduct online arbitrage when you don’t know what you want to sell. That’s why it’s important to have a detailed inventory plan to ensure you’re buying the right things. Your plan should include the product you plan to buy, the quantity you plan to purchase and the cost per unit you’re planning to sell. Once you have these numbers, you’ll be able to determine which strategies are more profitable and which are not.
Determine Aids For Sourcing Inventory: Strategic online arbitrage for beginners often requires sourcing inventory in bulk. Buying in large quantities ensures you’ll pay less per unit and you’ll have plenty of room to hike up the price of an item to make a profit. This requires researching where the best bargains are found and knowing when to buy them. You can do this by scouring the newspaper or looking on eBay. However, you can also research reputable auction sites like eBay Motors for good finds.
Increase Your Exposure: If you’re an eBay seller, it’s important to build your business exposure. Buy box quantities at Costco or other wholesale warehouses and resell on eBay. When you’re buying in bulk, it’s much easier to increase your exposure to potential customers by reselling on eBay and making more money.