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Welcome to part three of the complete guide to online arbitrage for beginners. We’ve already explored getting started and setting up shop. Now, it’s time to dive into product sourcing.
What you’ll find in this article:
Part three will focus on key considerations when finding profitable products to resell on Amazon, like price, demand, and restricted products.
The key to winning as an online arbitrageur is choosing the right products. You need to find items that will make a meaningful profit and won’t cause problems with Amazon's stringent policies.
Finding products that sell involves time, intuition, and some luck. There are three parts to the process:
To get ideas for potential products, start with a broad view and narrow it down.
Choose an Amazon category with good demand and low competition—popular categories like clothing and shoes are great examples. Then look for trending subcategories like athletic wear or fashion sneakers (seasonal items like winter coats or summer sandals can also be profitable if timed right).
Finally, choose a few products you think you’d like to sell.
Once you have a few ideas for what you’d like to sell, you need to check whether they’re the right choices. Focus on three things here:
Unlike traditional retailers who build relationships with specific suppliers, arbitrageurs use diverse channels to source products. They continuously scan multiple marketplaces to spot opportunities to buy products at a low price and sell them for a high one.
So, don’t lock in with a single supplier. Stay flexible and learn how to spot the best deals across the web.
Tactical Arbitrage is the leading Amazon arbitrage software and is trusted by top sellers for good reasons. It can scan millions of products from more than 1,400 online stores in 11 countries to find the best deals.
Here's how to optimize Tactical Arbitrage for beginners:
Sign up or log in to Tactical Arbitrage. Follow the prompts to set up your account.
On the left navigation pane of your account, you'll find Quick Picks, one of the most valuable features. Quick Picks is pre-populated with thousands of products, using data from other people’s recent searches. That means you get an instant view of products without running a lengthy scan.
You can then use Quick Pick’s filters to hone in on profitable products. You can narrow down products by brand names, category, sales rank, seller numbers, search terms, stock status, and more.
Just note that because Quick Picks uses saved data, you’ll want to refresh any products that look like a good fit to ensure you have the latest information.
Once you’re comfortable with the basics, you can dip your toes into Guided Search and Product Search.
Guided Search is perfect for quick scans. It covers popular categories and retail sites to get you started fast.
For more control, Product Search lets you fine-tune your filters and zero in on exactly what you’re looking for. If you want to dig deeper, you can check out our detailed guide on Tactical Arbitrage searches.
You can also check out these two videos to better understand the ins and outs of Tactical Arbitrage:
Only some cheap products are great deals. Some items that look profitable can cause problems.
Pricing your products right requires a well-thought-out strategy:
Use the internet to search for the price range of your product. Then, check Amazon for similar items. Gauge the market rate and adjust your price without compromising too much.
The rule is to be competitive but not the cheapest. Undercutting everyone else can start a price war, and wholesalers will often beat you at that—you'll be left with lower profits but still won't have the lowest price.
Your selling price must cover all the expenses and maintain a healthy profit margin. So, when pricing, consider the purchase price, shipment cost, platform fees, and miscellaneous expenses. You can automatically include all these when using tools like Tactical Arbitrage.
Keep an eye on your listing. If a product isn't doing well, consider adjusting the price. Seasonal demand and competition can affect prices, so stay flexible.
Tools like SmartRepricer automatically adjust your prices based on market conditions. This can save time and ensure you always have the best pricing.
Online arbitrage involves more than just spotting bargains. You also have to ensure that your products meet Amazon’s standards, you avoid pitfalls, and you set competitive prices. Fortunately, with tools like Tactical Arbitrage, you can better navigate the complexities of product sourcing.
Next, we’ll explore the important aspects of online arbitrage shipping and storage to help you manage your inventory efficiently.
Bookmark this guide. It's a complete, easy-to-follow resource for learning about online arbitrage. Even if you have zero knowledge about it, we'll walk you through everything.
> [Part 3] Product Sourcing
