The Benefits of Arbitrage Selling on Amazon
Amazon retail arbitrage is a method of niche-specific online retailing where you purchase an in-demand product from a well-known retailer, typically on the Internet, and then resell it on Amazon for a profit. For example, you can purchase those cute pencils from a popular designer and then resell them on Amazon for a nice profit. Or, you can purchase that designer’s handbag from a well-known designer, but have it sitting on your bedroom floor, because you don’t use it. However, you can also purchase that designer’s handbag but never wear it, because you’re broke and can’t afford to pay full price.
To learn how to arbitrage on Amazon, start by using an Amazon seller scanner app. The primary purpose of the seller scanner app is to create a virtual portfolio of products. These are called “bargains” or “credits.” Once you find one of these bargains, upload it to your Amazon account, and begin bidding, buying, and selling the right products on Amazon with the appropriate prices. Amazon offers a variety of methods for payment, and most will automatically send you an electronic payment when the auction is over.
Some of the methods used to purchase items include: buyer’s credit cards, PayPal, wire transfer money, and bank transfers. Each one requires that a buyer is willing to supply valid contact information, a clear description of the item, and a price quote. To learn more about payment options and what to do once the auction is over, read the “What You Must Know” section below. If the buyer is interested, the buyer’s credit card will be charged. And, if you accept the buyer’s credit card, then you must complete an electronic transaction with Amazon.
To sell on Amazon through the arbitrage method, select the “Sell On” tab at the top of the website, then click “Search.” A list of current listings will appear, along with a brief overview of each one. Click on the seller’s name to access their listings. For each listing, there will be a short description that includes the product name, a description of the product, and a price. Click on each of the listed items to see if the price is high enough to make it a good choice to sell on Amazon, and then add the product to your virtual portfolio.
After creating your account, you will need to verify your email address. This is usually a simple process and can be completed within minutes. If you have an Amazon store account, your account information is already verified. If you do not have an Amazon store account, follow the link in the left hand navigation bar to sign up for one.
After creating your “Buy Now” product listing, you will need to fill out the form for the customer. The form asks basic questions about the product you are selling, and you will be expected to provide standard information. Some of the information required may include your buyer’s credit card number, address, and phone number. If you elect to charge a recurring monthly fee for your Amazon account, you will need to enter that information here as well.
After setting up your Amazon account, you can begin shopping for products to sell on eBay. When a buyer bids on your item, you will check the price against the Buy It Now price shown on Amazon, then pay the difference. Your buyer’s credit card will be charged. Once your auction is finished, you will note the amount of money from your Amazon auction and your gross proceeds.
With Amazon, arbitrage selling presents an opportunity to save a significant amount of money. Because you do not have to hold a conventional inventory, you do not have to pay upfront fees for products. In addition, the cost to list an item on eBay is considerably lower than the cost of maintaining a warehouse and storage facility. For the investor who is interested in selling on eBay, Amazon offers many advantages. However, you should be careful to determine if the benefits you are receiving are sufficient to offset the disadvantages. Only you can determine whether arbitrage selling on Amazon is right for you.
