Online Arbitrage for Beginners: Setting Up Shop [Part 2]

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 provides a step-by-step guide to starting an online arbitrage business on Amazon. It covers topics such as choosing a niche, setting up your storefront, using essential tools, and sourcing products. By following these steps, you can successfully launch your online arbitrage business and start making profits.

Your First Steps: Setting Up Shop

The first step to being a successful online arbitrage seller (also known as an arbitrageur) is to set up shop wisely. You can diversify your sales channels for increased sales potential. But it's better to concentrate on a single marketplace when starting out. Amazon is an excellent place to start because of its massive customer base and several fulfillment options.

Finding Your Niche: Picking Products People Want to Buy

The "best" niche generates a healthy number of monthly sales and has low competition. There are different ways to find your niche. Research plays a huge role in this.

Top Items on Amazon

These are the top categories on Amazon that you can explore to shortlist the products you want to sell:

Top-Selling Items on the Amazon Best Sellers Page

A solid starting point for your research is Amazon's current bestsellers, or the most popular products based on sales. Depending on what time you check the page, you may get varying results since it constantly updates. 

For a broader reach, consider using tools like SellerRunning to explore bestseller lists across various Amazon marketplaces. This is especially useful if you plan to cater to the international market or want to research trends on sites like Amazon UK, Canada, Germany, or Spain.

Here's a sample look at the Amazon Best Sellers page:

https://www.webinterpret.com/us/blog/top-selling-items-amazon/ 

A few notes about finding inspiration on the Best Sellers page:

• The products listed on the Best Sellers page are often highly competitive, so breaking into this list can be a challenge.
• Pay attention to the trend. Some products may be trending down. You don't have to join the bandwagon just as the high demand wanes.
• Some items are popular but only have a decent sales margin, making them barely profitable.

Arbitrage Software 

Another outstanding tool for product research is arbitrage software like Tactical Arbitrage. An arbitrage tool can help you target the right niche and find specialized products. This software scans over a thousand websites and hundreds of thousands of product listings to provide the best profitable arbitrage opportunities.

With this detailed scope, you'll have a comprehensive view of different markets and find less saturated ones. The software can also analyze emerging trends and opportunities in niche product sales. 

Other Avenues to Consider

• Market Trends: Tools like Google Trends let you see what items people search for over time. You can also use tools like ScoutIQ, which lets you see if a product sells well on Amazon. 
• Competition: Check the listings of top sellers in the niches you like to get a bigger picture of market dynamics. This way, you can also identify gaps that your online arbitrage business can fill. 
• Social Media Networks: Check out social networks like Instagram, TikTok, Facebook, Pinterest, and Reddit to see what people are discussing and interested in.

Your Amazon Storefront: Creating Your Online Shop

When creating an Amazon seller account, make sure to take your time and read the prompts carefully:

Create an Amazon Seller Account

• Step 1: Go to Sell on Amazon. 
• Step 2: Sign Up. Click the “Sign up” button. Choose an Individual Plan (zero monthly fee; $0.99 per item sold) or a Professional Plan ($39.99 per month; zero per-item fee). It's important to know that Tactical Arbitrage and some other seller tools are designed to work with only a Professional account.
• Step 3: Create Your Account. Input your name, email address, and password.
• Step 4: Provide Your Information. Input your business name. Input your address and phone number. Verify your contact information.
• Step 5: Type In Your Payment Information. You must input your credit card details. You also need to input your Social Security number for tax purposes.
• Step 6: Create Your Store Name. Pick a simple and memorable name. 
• Step 7: Verify Your Identity. Upload a photo of your ID. Fill out additional forms Amazon asks for.
• Step 8: Start Selling. Log in to your account, add products, and list them as per on-screen instructions. 

Once you’ve set up an Amazon seller account, make sure to set competitive prices. Start by checking how your competitors price their products to see their strategies. Using automated tools like SmartRepricer can be very helpful. These tools automatically adjust your prices based on market changes and your competitors' prices. This saves you time and helps keep your prices competitive, letting you focus on growing your business without constantly changing prices yourself.     

Essential Tools: What You Need to Get Started (and What You Don't)

The right tools can make your online arbitrage business smoother and help you work more efficiently. Here's a list to get you started:

Sourcing Your Products: Where to Find Items to Sell

When sourcing your products, here are the go-to websites that you can explore first:

• Target
• Walmart.com
• Walgreens
• eBay
• AliExpress
• Overstock
• Facebook Marketplace
• The Home Depot
• Liquidation.com
• Dick's Sporting Goods
• Toys R Us
• Mattel Creations
• Craigslist
• Instacart

Look into smaller and more niche websites as well. At times, the more specific and less popular the site is, the better deals you can get.

Bottom Line

By leveraging the tools and strategies above, you’re well on your way to setting up your online arbitrage business with confidence. As you take these initial steps, remember to stay informed about market trends and adjust your strategy along the way. The next step to a thriving online arbitrage business is arguably the most important—product hunting. 

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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.

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Online Arbitrage for Beginners  

[Part 1] Getting Started 

> [Part 2] Setting up Shop  

[Part 3] Product Sourcing

[Part 4] Shipping & Storage  

[Part 5] Scaling Your Business 

[Part 6] Overcoming New Seller Challenges

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