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Amazon FBA Retail Arbitrage 2022: What It Is + How Beginners Can Start

Published on: November 30 2022 by Carter Maxwell

Amazon FBA Retail Arbitrage 2022: What It Is + How Beginners Can Start

Amazon FBA Retail Arbitrage 2022: What It Is + How Beginners Can Start

startTime durationTime text
00:00:00 00:00:04 what's up everyone carter here and in
00:00:02 00:00:06 this video i'm gonna break down exactly
00:00:04 00:00:08 how you can start making money on amazon
00:00:06 00:00:09 using retail arbitrage and most
00:00:08 00:00:12 importantly i'm gonna break down the
00:00:09 00:00:13 exact steps that you can start taking
00:00:12 00:00:15 even if you're a complete beginner so
00:00:13 00:00:16 please do me a favor and smash that like
00:00:15 00:00:18 button and let's go ahead and get right
00:00:16 00:00:20 into the video and before we get any
00:00:18 00:00:22 further what is read to arbitrage and
00:00:20 00:00:24 how does it work so essentially retail
00:00:22 00:00:26 arbitrage is the business model of
00:00:24 00:00:28 actually buying products from retail
00:00:26 00:00:31 stores for example walmart with the
00:00:28 00:00:33 intention to actually resell it back on
00:00:31 00:00:34 amazon for profit so let's say christmas
00:00:33 00:00:36 is coming up and there's a hot
00:00:34 00:00:37 decoration that you can buy at your
00:00:36 00:00:40 walmart for twenty dollars and resell
00:00:37 00:00:42 back on amazon for 40. with the retail
00:00:40 00:00:45 arbitrage business model your goal is to
00:00:42 00:00:47 buy as many different items in these
00:00:45 00:00:49 retail stores that you can make money on
00:00:47 00:00:51 so i've had the best success on amazon
00:00:49 00:00:53 using the retail arbitrage business
00:00:51 00:00:56 model i've made thousands and thousands
00:00:53 00:00:59 of dollars in the year of 2020 i sold
00:00:56 00:01:01 over 300 000 on amazon using this exact
00:00:59 00:01:04 business model selling items such as
00:01:01 00:01:07 patio heaters vitamins christmas
00:01:04 00:01:09 decorations toys any different item that
00:01:07 00:01:11 i could buy and make a profit reselling
00:01:09 00:01:12 it back on amazon i did just that so now
00:01:11 00:01:14 that you have a better feel for how read
00:01:12 00:01:16 to arbitrage works let's start getting
00:01:14 00:01:19 into step number one and step number one
00:01:16 00:01:21 is to create your amazon seller account
00:01:19 00:01:22 now i'm not gonna dive too deep into
00:01:21 00:01:24 this step but essentially there's two
00:01:22 00:01:26 different seller plans that you can
00:01:24 00:01:27 choose from there's the individual
00:01:26 00:01:30 seller plan in the professional seller
00:01:27 00:01:32 plan the individual seller plan is free
00:01:30 00:01:34 they charge you 99 cents for each item
00:01:32 00:01:37 that you sell and on the professional
00:01:34 00:01:39 studio plan it's 40 per month however i
00:01:37 00:01:40 highly highly recommend you start out
00:01:39 00:01:43 with the professional
00:01:40 00:01:45 seller plan i know it does cost 40 per
00:01:43 00:01:47 month but there are a few more features
00:01:45 00:01:49 and benefits that are gonna make your
00:01:47 00:01:50 life as an amazon seller much much
00:01:49 00:01:52 easier so after you've completed step
00:01:50 00:01:54 number one which is setting up your
00:01:52 00:01:56 amazon seller account that leads us to
00:01:54 00:01:58 step number two which is product
00:01:56 00:02:00 research obviously the most important
00:01:58 00:02:02 thing to a business on amazon are the
00:02:00 00:02:05 products that you have for sale so the
00:02:02 00:02:07 question is carter how can i find
00:02:05 00:02:09 profitable items to buy at my retail
00:02:07 00:02:11 stores to sell back on amazon for a
00:02:09 00:02:13 profit let me show you three different
00:02:11 00:02:15 options option number one is to just go
00:02:13 00:02:17 into your retail stores and start
00:02:15 00:02:20 scanning different categories and
00:02:17 00:02:22 different sections of items so you're
00:02:20 00:02:23 not necessarily having a certain product
00:02:22 00:02:25 that you're looking for but maybe you're
00:02:23 00:02:27 just going into the toy section or maybe
00:02:25 00:02:29 you're going into the beauty section and
00:02:27 00:02:31 you're just scanning different items
00:02:29 00:02:33 checking the retail price then checking
00:02:31 00:02:35 what it's currently selling for back on
00:02:33 00:02:37 amazon and seeing if there's any margin
00:02:35 00:02:39 for you to make a profit step number two
00:02:37 00:02:41 is to research items ahead of time and
00:02:39 00:02:43 create what i call a buy list
00:02:41 00:02:46 essentially your buy list is gonna be a
00:02:43 00:02:48 list of items profitable items that you
00:02:46 00:02:51 want to look for at a specific store now
00:02:48 00:02:54 the reason a buy list is so profitable
00:02:51 00:02:56 is because it's efficient you're walking
00:02:54 00:02:58 into the store already knowing what
00:02:56 00:03:00 items you want to look for because
00:02:58 00:03:01 they're already profitable you're just
00:03:00 00:03:03 checking the store to see if they're
00:03:01 00:03:06 potentially in stok and option number
00:03:03 00:03:08 three is to buy leads or products that
00:03:06 00:03:10 are posted in discord communities a
00:03:08 00:03:12 discord is essentially an online
00:03:10 00:03:15 community where amazon sellers can join
00:03:12 00:03:17 they usually have to pay a monthly fee
00:03:15 00:03:20 to be a part of but that community
00:03:17 00:03:21 actually generates and posts profitable
00:03:20 00:03:23 leads for the members of the community
00:03:21 00:03:25 to actually buy and resell back on
00:03:23 00:03:27 amazon this could be an extremely
00:03:25 00:03:29 beneficial option especially for
00:03:27 00:03:31 beginners because when you're first
00:03:29 00:03:33 starting out you might not know what
00:03:31 00:03:35 items to look for or even how to do
00:03:33 00:03:36 product research so a discord group can
00:03:35 00:03:39 be extremely beneficial now another
00:03:36 00:03:40 great question is carter what stores
00:03:39 00:03:43 should i be shopping at now that really
00:03:40 00:03:44 depends on you your location in the
00:03:43 00:03:46 united states what retail stores you
00:03:44 00:03:48 have around you i've done extremely well
00:03:46 00:03:51 in the past from stores like walmart
00:03:48 00:03:53 target even stores like home depot
00:03:51 00:03:54 lowe's and academy however there's so
00:03:53 00:03:56 many different retail stores out there i
00:03:54 00:03:58 recommend you give all them a shot now
00:03:56 00:04:00 another great question is what
00:03:58 00:04:02 categories or what items should you be
00:04:00 00:04:04 looking for now this is actually a great
00:04:02 00:04:06 great question because as a beginner
00:04:04 00:04:08 amazon seller there are certain
00:04:06 00:04:10 categories and brands that you are
00:04:08 00:04:13 actually restricted from selling on
00:04:10 00:04:15 amazon for example the brand nike you
00:04:13 00:04:17 were actually unable to sell that brand
00:04:15 00:04:19 on amazon as a beginner seller you have
00:04:17 00:04:22 to go through what's called a process of
00:04:19 00:04:24 getting ungated in order to actually be
00:04:22 00:04:26 able to sell that brand on amazon
00:04:24 00:04:29 however for a category like books you
00:04:26 00:04:31 can sell any item in that entire
00:04:29 00:04:33 category which is great for beginners so
00:04:31 00:04:35 now that you have a better feel for what
00:04:33 00:04:37 retail arbitrage is how it works let me
00:04:35 00:04:39 give you a real life example of a
00:04:37 00:04:41 product that i actually bought and sold
00:04:39 00:04:43 on amazon for profit and i actually
00:04:41 00:04:45 posted this item in my discord community
00:04:43 00:04:47 the selling fastlane discord i'll tok
00:04:45 00:04:49 about that a little bit later on in this
00:04:47 00:04:52 video but we were buying this nativity
00:04:49 00:04:54 set from walmart for 49
00:04:52 00:04:56 and as you can see from the screenshots
00:04:54 00:04:59 above they were selling on amazon
00:04:56 00:05:02 anywhere from around 140 to 180
00:04:59 00:05:04 plus depending on what time of the last
00:05:02 00:05:06 holiday season that you ended up
00:05:04 00:05:09 actually selling the item so with a buy
00:05:06 00:05:12 cost of 49 and an average sale price of
00:05:09 00:05:14 around 160 on amazon after shipping at
00:05:12 00:05:15 fees that leaves you with an extremely
00:05:14 00:05:17 nice profit margin so for those of you
00:05:15 00:05:20 that might not know i actually own my
00:05:17 00:05:22 own discord community called the selling
00:05:20 00:05:24 fast lane i've essentially created an
00:05:22 00:05:26 online community where we help new
00:05:24 00:05:29 amazon sellers as well as current amazon
00:05:26 00:05:30 sellers make more money in their amazon
00:05:29 00:05:33 businesses inside our community we
00:05:30 00:05:35 actually post the daily profitable leads
00:05:33 00:05:37 that you can buy and sell on amazon for
00:05:35 00:05:39 profit we have a full-time staff that
00:05:37 00:05:41 works around the clock to answer your
00:05:39 00:05:45 questions and most importantly we have
00:05:41 00:05:46 over 500 amazon sellers in our community
00:05:45 00:05:49 that you can network with and learn from
00:05:46 00:05:50 so if you're a amazon seller looking to
00:05:49 00:05:52 get started and looking for a little
00:05:50 00:05:54 more guidance or maybe you're a current
00:05:52 00:05:56 amazon seller that's just looking to
00:05:54 00:05:58 make more money i think that discord can
00:05:56 00:06:00 be a great community for you to join so
00:05:58 00:06:01 if you want to check out that community
00:06:00 00:06:02 all you have to do is click the first
00:06:01 00:06:05 link in the description of this video
00:06:02 00:06:07 and also feel free to use coupon code
00:06:05 00:06:09 youtube all caps to get 50 off your
00:06:07 00:06:11 first month so let's say you've found a
00:06:09 00:06:13 profit product now you want to actually
00:06:11 00:06:15 sell that item on amazon and that's
00:06:13 00:06:17 going to lead us to step number three is
00:06:15 00:06:19 you need to list your item for sale on
00:06:17 00:06:20 amazon and there's actually two
00:06:19 00:06:23 different ways you can get this done
00:06:20 00:06:26 there's one way which is known as fba
00:06:23 00:06:29 fulfillment by amazon or fbm fulfillment
00:06:26 00:06:31 by merchant now the most popular method
00:06:29 00:06:33 i think is probably fba so let's say you
00:06:31 00:06:36 bought 10 of these dry erasers that you
00:06:33 00:06:39 want to sell on amazon using the fba
00:06:36 00:06:40 method you are going to create a
00:06:39 00:06:42 shipment within your seller central
00:06:40 00:06:43 account you're going to choose your
00:06:42 00:06:45 price points you're going to find the
00:06:43 00:06:46 listing you want to sell under you're
00:06:45 00:06:48 going to select the quantity you have
00:06:46 00:06:50 available and you're actually going to
00:06:48 00:06:53 ship all 10 of those dry erasers to a
00:06:50 00:06:55 designated amazon warehouse now once
00:06:53 00:06:57 amazon receives your shipment they're
00:06:55 00:06:59 going to scan your items into their
00:06:57 00:07:01 inventory base and your item is going to
00:06:59 00:07:04 be for sale on amazon and the beautiful
00:07:01 00:07:06 thing is once someone buys one of your
00:07:04 00:07:08 dry erasers on amazon the amazon
00:07:06 00:07:10 fulfillment team actually picks packs
00:07:08 00:07:12 and ships that item directly to your
00:07:10 00:07:15 customer for you so that method is
00:07:12 00:07:17 obviously very very popular in the sense
00:07:15 00:07:20 that it's semi-automated to where once
00:07:17 00:07:22 your items sell amazon actually ships
00:07:20 00:07:24 those items to the customer for you now
00:07:22 00:07:27 there's a second method that's also
00:07:24 00:07:29 fairly popular known as fbm or fulfilled
00:07:27 00:07:32 by merchant so let's say you want to
00:07:29 00:07:33 sell 10 of your dry erasers you're going
00:07:32 00:07:35 to go through the same process you're
00:07:33 00:07:36 going to find the listing you want to
00:07:35 00:07:38 sell under you're going to select your
00:07:36 00:07:40 price point the quantity you have
00:07:38 00:07:43 available the condition of your item and
00:07:40 00:07:46 then your item is actually listed
00:07:43 00:07:49 immediately on amazon for sale now when
00:07:46 00:07:51 someone buys your dry eraser you are
00:07:49 00:07:53 actually going to fulfill the order that
00:07:51 00:07:55 leads us to step number four and i've
00:07:53 00:07:56 kind of already explained this step and
00:07:55 00:07:58 this is kind of the final step of the
00:07:56 00:08:01 process which is basically fulfilling
00:07:58 00:08:03 the order so for example if you sold
00:08:01 00:08:05 your items fba obviously amazon's
00:08:03 00:08:06 fulfillment team is going to handle all
00:08:05 00:08:08 the customer service and they're going
00:08:06 00:08:10 to ship the item to the customer for you
00:08:08 00:08:12 now the second option is let's say you
00:08:10 00:08:14 listed it merch in the field you sold
00:08:12 00:08:16 the item now you have to go through the
00:08:14 00:08:18 process of actually purchasing the
00:08:16 00:08:21 postage to ship the item to the customer
00:08:18 00:08:24 and step number five is to continually
00:08:21 00:08:26 feed the beast and what do i mean by
00:08:24 00:08:29 that i mean repeat steps one through
00:08:26 00:08:32 four as often as you can the name of the
00:08:29 00:08:34 game on amazon is all about purchasing
00:08:32 00:08:36 as many proper products as you can
00:08:34 00:08:39 getting them listed getting them sold
00:08:36 00:08:41 taking those profits and reinvesting it
00:08:39 00:08:43 back into the business so you can buy
00:08:41 00:08:45 more inventory and continuously go
00:08:43 00:08:46 through the same cycle now before i let
00:08:45 00:08:49 you all go i do want to give you a final
00:08:46 00:08:52 few pieces of advice that you can use as
00:08:49 00:08:54 a new amazon seller so tip number one is
00:08:52 00:08:57 to look out for discounts clearance
00:08:54 00:08:59 items or sales that stores are running
00:08:57 00:09:01 for example a buy one get one 50 off
00:08:59 00:09:04 those discounts those clearance items
00:09:01 00:09:06 can give you an advantage over other
00:09:04 00:09:07 sellers because obviously you're going
00:09:06 00:09:10 to be able to get that item for a lower
00:09:07 00:09:13 buy cost tip number two is to use tools
00:09:10 00:09:15 like brick seek and keepa brickseek is a
00:09:13 00:09:18 website where you can actually check the
00:09:15 00:09:20 stok at different storefronts for a
00:09:18 00:09:22 certain item which can save you a lot of
00:09:20 00:09:25 time and keepa is an extension that you
00:09:22 00:09:27 can use to actually look at past sales
00:09:25 00:09:29 data history of different product
00:09:27 00:09:31 listings on amazon which makes product
00:09:29 00:09:33 research much much easier as a seller
00:09:31 00:09:36 and tip number three is to use credit
00:09:33 00:09:38 cards credit cards have so many benefits
00:09:36 00:09:40 behind them as far as it's cash back or
00:09:38 00:09:41 reward points and also you get to build
00:09:40 00:09:44 your credit up over time and credit
00:09:41 00:09:46 cards can come in clutch especially when
00:09:44 00:09:48 you're purchasing large amounts of
00:09:46 00:09:50 inventory you can really utilize credit
00:09:48 00:09:52 cards increase your limits so that you
00:09:50 00:09:54 can buy more inventory to sell on amazon
00:09:52 00:09:56 retail arbitrage is by far one of the
00:09:54 00:09:58 greatest business models for beginners
00:09:56 00:10:01 on amazon you can start this business
00:09:58 00:10:03 model with a low amount of capital you
00:10:01 00:10:05 don't have to run any advertising and
00:10:03 00:10:07 you're selling products and items that
00:10:05 00:10:09 already have established created
00:10:07 00:10:11 listings and customers looking to
00:10:09 00:10:13 purchase so if you have any more
00:10:11 00:10:14 questions regarding the retail arbitrage
00:10:13 00:10:16 business model and you want to get in
00:10:14 00:10:17 contact with me personally all you have
00:10:16 00:10:19 to do is click the link below in the
00:10:17 00:10:21 description of this video click on the
00:10:19 00:10:23 link to my instagram page and go ahead
00:10:21 00:10:25 and send me a direct message i'd be
00:10:23 00:10:26 happy to answer any questions you have
00:10:25 00:10:28 with that being said if you got any
00:10:26 00:10:30 value from this video please smash that
00:10:28 00:10:32 like button i greatly appreciate it and
00:10:30 00:10:33 if you want to see more content just
00:10:32 00:10:35 like this on how you can create an
00:10:33 00:10:37 additional stream of income online then
00:10:35 00:10:38 go ahead and subscribe to the channel
00:10:37 00:10:41 and i hope to see you all in the next
00:10:38 00:10:41 video
00:10:49 00:10:51 you

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