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Welcome to the Complete Guide to Online Arbitrage for Beginners! This series of articles is designed to provide you with a comprehensive understanding of online arbitrage, from the basics to advanced strategies. Whether you're a complete newcomer to selling online or looking to expand your business, this guide will equip you with the knowledge and tools you need to succeed. (You’ll find a list of all the articles in the series at the end of this post.)
What you’ll find in this article:
This article focuses on how to find profitable products to sell on Amazon through online arbitrage. It covers key considerations like price, demand, and avoiding restricted products. Tools like Tactical Arbitrage are helpful for product research. Pricing your products competitively is also important. By following these steps, you can successfully find and sell profitable products on Amazon.
The key to your online arbitrage business is choosing the right products. Finding items that will make a profit is essential because not all will. Some products can even cause problems with Amazon's stringent policies.
When searching for products, look for ones priced at less than half of what they sell for on Amazon. Amazon takes a fee for each sale, plus there are storage and shipping fees if you use FBA. You need enough profit to cover these fees and still make money.
Finding products that sell involves research, intuition, and some luck. Amazon's online arbitrage product sourcing includes three parts:
Choose an Amazon category with good demand and low competition. Popular categories like clothing and shoes are great examples. 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.
Refer to Section II for more information.
Ensure the product will sell well, that you can sell it on your Amazon account, and that it will be profitable. Tactical Arbitrage’s Product Search feature can automatically filter out restricted items, intellectual property issues, and products with too many bad reviews. While intellectual property claim filtering requires Tactical Arbitrage's Pro plan, the regular Online Arbitrage plan covers the rest.
Arbitrageurs focus on finding profitable deals by identifying products at a lower price from various sources. Unlike traditional retailers who build relationships with specific suppliers, you can leverage diverse channels to source products. Continuously scan multiple marketplaces to spot profit opportunities.
Tactical Arbitrage is a top Amazon arbitrage software trusted by top sellers for good reasons. It can help you scan thousands of products across multiple online stores to find the best deals. Its scanning portal currently lists over 1,450 sites and stores from the following countries:
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. Study these user guides to learn the basics and explore Tactical Arbitrage's many features:
On the left navigation pane of your account, you'll find Quick Search, one of the most valuable features. Quick Search helps you quickly discover profitable products. It uses cached data from Tactical Arbitrage to give you an instant view of products from a retailer. Instead of spending hours looking through thousands of items, Quick Search shows you a broad range of products to sell on Amazon right away.
In the Retailer Filter section, you can refine results by search terms, stock status, and categories. The category dropdown changes based on the retailer you choose for an easy experience. In the Amazon Filter section, you can narrow down products by Amazon brand names, category, sales rank, and seller numbers.
Just note that because Quick Search uses cached data, it may already be outdated by the time you view it. To get up-to-the-minute data, you need to use Product Search instead.
It’s vital to integrate your Tactical Arbitrage account with Amazon to easily pull live product data directly from the platform. If you have an Amazon Professional account, simply "authorize" Tactical Arbitrage to connect.
Here are two resource videos to help you better understand the ins and outs of Tactical Arbitrage:
Video from Tactical Arbitrage: https://www.youtube.com/watch?v=XTT7dV3agVg
Video from Profit Guru: https://www.youtube.com/watch?v=L12bc81N4AE
Not every deal is a great deal. Some products may look profitable but 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. Check Amazon for similar items. Gauge the market rate and adjust without compromising too much.
The rule is to be competitive but not be 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 and still won't have the lowest price.
Your selling price must cover all the expenses and maintain a healthy profit margin. When pricing, consider the purchase price, the shipment cost, the platform fees, and miscellaneous expenses.
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. These tools can save time and ensure you always have the best pricing.
Online arbitrage involves more than just spotting bargains. It’s ensuring that your products meet Amazon’s standards, avoiding pitfalls, and setting competitive prices. 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, don't get overwhelmed. We'll walk you through everything. In this section, we'll tackle the basics and see if this business model is right for you. We're dedicated to helping you build your business with the right knowledge and tools.
> [Part 3] Product Sourcing
[Part 5] Scaling Your Business
[Part 6] Overcoming New Seller Challenges
