Is Sourcing Products From Retail Stores Profitable?

A question I get asked all the time as an eBay and Amazon Consultant “Is sourcing products from retail stores profitable?” The answer I always give is It depends on what you are sourcing, and where you are sourcing and what price you buying the item for. Remember in retail selling either online or offline you make your profit when you buy the item not when you sell the item.

What do I mean, when I say this…….. You make your profit when you buy and not when you sell. Well if you buy your item too high, there will not be the opportunity to flip the product on either Amazon or eBay and make a healthy profit. So you need to buy as cheaply as possible, which will then give you the opportunity to flip on Amazon and eBay for a higher price.

When you source remember, you need to take into account the Amazon or eBay / PayPal fees. Amazon fees as a general rule are 30% and eBay / PayPal are 15% together. Now while the eBay fees may look cheaper and yes they are, you got to ask is that the right place to sell your items. Also remember that you are paying Amazon to store the items for you and then to pick, pack and ship them out to your customers.

So once we have identified products we like the look of and scanned them with an app on our phone if doing offline arbitrage or used extensions on our computer for online arbitrage and we have find a good item we need to work out how many do we buy. To start only buy a few of each item take your money and go wide not deep. You are far better buying many different products than just a large quantity of one or two items. (Once you find good sellers then you can buy larger amounts and then move into wholesale) But for now we will just do the Retail Arbitrage side of the business.

So is sourcing products from retail stores profitable the answer is using the right tools on your phone. buying small quantities of each item the answer is a big yes.

Easy Steps To Help You Get Started.

  • Use an app such as the Amazon Sellers App which is free for iPhone and Android
  • Source from retail stores both online and offline
  • Go for all types of stores not just the large brand name stores. Very often some of the small retail shops have great offers and closeout items
  • Go wide and not deep
  • Look out for offers such as Buy one get one free, three for two, Buy one get one half price, and look out for sales and clearance items.

Just keep those eyes and ears open and you will start to see products all over the place that you can buy to resell.

Andrew Milburn has been selling on eBay and Amazon for many years
and is now helping many others from around the world learn the
freedom of selling on Amazon and eBay can bring. Andrew is currently
working with Jim Cockrum and Skip Mcgrath as an Amazon Consultant  and eBay Consultant and offers coaching through their coaching programs. For further information please fill out the box to the left.

Toys Sell At Christmas Time

 

Toys

Yes it is still true toys sell big time on the run up to the Holiday and Christmas period. Ever since time began parents gave children special presents during holiday periods. In the early days it was just a rock (Only because that was around), and then over the centuries the toys have got better and better and with that they have become more expensive.

On our TV screens and in every magazine we are seeing adverts for the hot presents for children this Christmas and believe me, we have only just began. Over the next weeks those adverts will become bigger, louder and more hyped. Persuading everyone their Toy is the this years top toy.

So how does this effect you a seller on sites such as eBay and Amazon. You need to be both clever and also willing to take a risk or punt on some of the these toys. And there are several ways of doing this.

The first way is go to a wholesaler and buy some boxes of these toys and add them to your eBay and Amazon listings and if you and those in the marketing world you will make money. But you will need to buy in bulk. This means lots of money and storage space.

Another way, is to play the Retail Arbitrage game. This both fun and also less risky. You hear family, friends and the media talk about this hot latest toy, and while out at Tesco’s you see this said toy, but you also notice they are going fast, so you put a few in your shopping trolley. Get home and list them at auction, few days later news is they are out of stock………..your items sell at 4 times the normal selling price. And this can and does happen many times over.

Another tip, each year some toys are always good sellers year in and year out, but due to supply and demand they always sell out on the run up to Christmas. So why not buy some of these items each month and when you hear stocks are running low, you put your items up for sale and the final selling prices will go through the roof.

The above was talking about Children’s toys but the same principal can be applied to any item and also at any time of year. Buy while there is stock, and then re-sell when the stock has run out. Think of those times when companies bring out limited edition sweets, drinks, make-up. Buy extra, and then sell at higher prices.

In closing please only use money you can afford to loose. There will be times when this principal does not work, but in those time, just sell the items at cost price or just below cost price, and move on. Life is too short to hold regrets and it is part of the principal of buying low and selling high.

Andrew Milburn Is An eBay and Amazon Consultant Based In The UK.

Retail Arbitrage – Book Review – Part One

Retail Arbitrage – Book Review – Part One

I am doing this review of Retail Arbitrage as I work on improving my Amazon FBA Business, and thought I would do a review as I went through the whole process, in the past I have found this type of review helped me the most. To start with I want to cover what this book is all about.

Chris Green the author of Retail Arbitrage talks you through the whole process. Chris Green is one of those people who walks the talk, as you read the book Retail Arbitrage he talks you through each step of the way in an easy to understand way, and the only way he can do this is because he walks the talk. Chris does this for a living. He does not make money from talks and conferences, books and courses. (yes he does have a book and software) but his money was and still is made by buying at a low price and flipping the item or product and selling it at a higher price on Amazon FBA.

Retail Arbitrage is no small book book either it comes in at well over 200 pages, and this is not 200 pages with large type font either. Looking at my copy I would say the type font was around 12pt, and is evenly spaced. Chris only uses graphics and screen shots where it is needed, so what you are getting is a book / Manual that is full of content that will take your Amazon FBA business to the next level. And remember because we are talking Amazon FBA, we can supply products not only to our Amazon customer that almost any other customer that we may have. The list is endless

Retail Arbitrage by Chris Green is a complete course, you can build your Amazon FBA business from start to finish and need nothing more than stock and an account at Amazon. But he does mention some tools that he has developed over the years that he does sell for a monthly fee. Do you need these tools – No, but as your business grows and you are sourcing and selling more my the FBA system then the tools will help you in your business and will in fact save you time. But for now, the Retail Arbitrage book by Chris Green is all you need. Well as with anything once you have read it, you need to go and take action.