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
Table of Contents
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 |