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How To Do Retail Arbitrage On Amazon FBA For Beginners | STEP By STEP Tutorial

Published on: November 30 2022 by Carter Maxwell

How To Do Retail Arbitrage On Amazon FBA For Beginners | STEP By STEP Tutorial

How To Do Retail Arbitrage On Amazon FBA For Beginners | STEP By STEP Tutorial

startTime durationTime text
00:00:00 00:00:03 what's up everyone carter here and in
00:00:02 00:00:06 this video i want to break down
00:00:03 00:00:07 exactly how you can start making money
00:00:06 00:00:10 using the retail arbitrage
00:00:07 00:00:11 business model on amazon even if you're
00:00:10 00:00:13 a complete beginner
00:00:11 00:00:15 now my overall goal for this video is to
00:00:13 00:00:16 kind of give you a more tutorial
00:00:15 00:00:19 step-by-step
00:00:16 00:00:20 easy digestible breakdown on how exactly
00:00:19 00:00:22 the retail arbitrage
00:00:20 00:00:24 business model works and how you can use
00:00:22 00:00:26 it to make money on amazon
00:00:24 00:00:28 so before we get any further into the
00:00:26 00:00:29 video if you could just smash that like
00:00:28 00:00:30 button i would greatly appreciate it and
00:00:29 00:00:32 let's go ahead and get
00:00:30 00:00:34 right into the video now before we get
00:00:32 00:00:35 into step number one on how you can
00:00:34 00:00:38 start a read to arbitrage
00:00:35 00:00:40 business on amazon i want to briefly
00:00:38 00:00:41 touch on what exactly retail arbitrage
00:00:40 00:00:43 is
00:00:41 00:00:46 and how exactly it works so essentially
00:00:43 00:00:46 retail arbitrage is the purchasing of
00:00:46 00:00:49 product from
00:00:46 00:00:52 retail stores like walmart's targets
00:00:49 00:00:53 home depots basically any retail stores
00:00:52 00:00:55 you might have around you with the
00:00:53 00:00:58 intention to then buy and resell that
00:00:55 00:00:59 product online for profit in our case
00:00:58 00:01:01 we're going to be reselling these
00:00:59 00:01:03 products back on amazon and so
00:01:01 00:01:05 essentially the reason the retail
00:01:03 00:01:07 arbitrage business model is so popular
00:01:05 00:01:08 is because if you find a product that's
00:01:07 00:01:10 hot or
00:01:08 00:01:12 trending and it's in stok at a walmart
00:01:10 00:01:12 depending on where you live you might
00:01:12 00:01:15 have
00:01:12 00:01:17 five 10 15 walmarts within a pretty
00:01:15 00:01:18 decent distance so if you can find a
00:01:17 00:01:20 couple items at each
00:01:18 00:01:22 walmart you can really make some good
00:01:20 00:01:25 money using the
00:01:22 00:01:26 business model and also the products
00:01:25 00:01:28 that you're buying
00:01:26 00:01:30 using the retail arbitrage business
00:01:28 00:01:32 model already have demand already have
00:01:30 00:01:34 people searching on platforms like ebay
00:01:32 00:01:36 and amazon
00:01:34 00:01:37 wanting to buy that product but for some
00:01:36 00:01:39 reason
00:01:37 00:01:41 there's an opportunity for you to buy it
00:01:39 00:01:42 in the store for retail price or
00:01:41 00:01:45 discount price
00:01:42 00:01:46 to then resell it back on amazon for a
00:01:45 00:01:48 profit you know maybe it's a newer
00:01:46 00:01:50 released item
00:01:48 00:01:51 you know maybe it's trending or popular
00:01:50 00:01:53 there's some reason
00:01:51 00:01:54 that you're able to purchase that item
00:01:53 00:01:55 in a retail store and then mark it up
00:01:54 00:01:57 online
00:01:55 00:01:59 to make a profit after selling it so the
00:01:57 00:02:02 first step that i want to tok about
00:01:59 00:02:03 is what exactly do you need in order to
00:02:02 00:02:05 start a reta arbitrage business
00:02:03 00:02:07 on amazon and the main thing that you
00:02:05 00:02:09 need is an amazon
00:02:07 00:02:11 seller account now there's two different
00:02:09 00:02:12 seller plans you can select from i'll
00:02:11 00:02:14 throw some screenshots up there
00:02:12 00:02:15 the first one is going to be the
00:02:14 00:02:17 professional center plan i believe it's
00:02:15 00:02:18 39.99 per month
00:02:17 00:02:20 comes with all the great features and
00:02:18 00:02:21 benefits of being a professional seller
00:02:20 00:02:23 on amazon
00:02:21 00:02:25 and then there's also the free
00:02:23 00:02:27 individual solar plan you just pay 99
00:02:25 00:02:30 cents for each item that you sell
00:02:27 00:02:31 personally i highly recommend using the
00:02:30 00:02:34 professional seller plan
00:02:31 00:02:36 however amazon does make it a little bit
00:02:34 00:02:37 difficult in order to sign up as an
00:02:36 00:02:38 individual seller
00:02:37 00:02:40 so what i've heard you have to do is you
00:02:38 00:02:42 have to sign up as a professional seller
00:02:40 00:02:44 and then within your seller central
00:02:42 00:02:45 account you can then contact amazon
00:02:44 00:02:47 seller support
00:02:45 00:02:48 and downgrade to the individual seller
00:02:47 00:02:49 plan a couple of other basic things you
00:02:48 00:02:50 need
00:02:49 00:02:53 obviously a cell phone which you most
00:02:50 00:02:55 likely already have and then the amazon
00:02:53 00:02:57 seller app which is free you're able to
00:02:55 00:02:57 access and log in to the amazon seller
00:02:57 00:03:00 app
00:02:57 00:03:02 once you have your amazon seller account
00:03:00 00:03:03 verified and now inside that app is
00:03:02 00:03:04 where you're going to be doing all your
00:03:03 00:03:06 research you can see
00:03:04 00:03:08 you know your sales dashboard for the
00:03:06 00:03:10 day and basically everything that goes
00:03:08 00:03:11 into your amazon seller account there's
00:03:10 00:03:12 actually a scan feature within that app
00:03:11 00:03:14 so you can scan
00:03:12 00:03:16 you know the barcode of an item to see
00:03:14 00:03:18 what the sales rank is at the item and
00:03:16 00:03:20 what the current pricings are so
00:03:18 00:03:21 you can make a great buying decision so
00:03:20 00:03:23 step number two
00:03:21 00:03:24 is where are you going to find product
00:03:23 00:03:26 to sell
00:03:24 00:03:28 on amazon so after you have your seller
00:03:26 00:03:29 account set up and you have the amazon
00:03:28 00:03:30 seller app
00:03:29 00:03:32 you're ready to go out and start
00:03:30 00:03:33 scanning and finding some items that you
00:03:32 00:03:35 can purchase
00:03:33 00:03:37 to resell on amazon now there's a ton of
00:03:35 00:03:39 different retail stores
00:03:37 00:03:41 out there obviously some of the bigger
00:03:39 00:03:42 retailers are you know your walmarts
00:03:41 00:03:44 your targets your home depot
00:03:42 00:03:45 some of those bigger retailers but
00:03:44 00:03:47 depending on where you might live
00:03:45 00:03:48 there's also some smaller retailers that
00:03:47 00:03:50 also have some great
00:03:48 00:03:51 opportunities personally one of my most
00:03:50 00:03:54 favorite stores
00:03:51 00:03:55 is walmart it is probably the largest
00:03:54 00:03:57 retailer
00:03:55 00:03:58 um and i find so many great
00:03:57 00:04:00 opportunities there they're always
00:03:58 00:04:02 stoking the best
00:04:00 00:04:04 name brand items and there's a ton of
00:04:02 00:04:04 walmart's which means there's a lot more
00:04:04 00:04:06 opportunity
00:04:04 00:04:08 for me to find hot products if there's a
00:04:06 00:04:11 lot of walmart's in my area
00:04:08 00:04:12 step number three is what products
00:04:11 00:04:14 should you be looking
00:04:12 00:04:15 for now when it comes to selling on
00:04:14 00:04:18 amazon unfortunately for
00:04:15 00:04:20 new sellers there are certain brands and
00:04:18 00:04:21 categories that as a new seller you are
00:04:20 00:04:25 restricted for
00:04:21 00:04:27 so stuff like toys or brands like lego
00:04:25 00:04:28 or brands like nike you have to go
00:04:27 00:04:30 through a process of getting
00:04:28 00:04:32 ungated in order to sell those brands
00:04:30 00:04:33 that's why i highly recommend starting
00:04:32 00:04:34 out with a category like home and
00:04:33 00:04:35 kitchen
00:04:34 00:04:37 patio lawn and garden those are two of
00:04:35 00:04:39 the bigger categories that you can
00:04:37 00:04:40 actually sell in as a new seller as far
00:04:39 00:04:42 as myself you know i've had
00:04:40 00:04:44 really great success in home and kitchen
00:04:42 00:04:46 patio linen garden
00:04:44 00:04:47 toys category sports and outdoors and
00:04:46 00:04:49 some other categories as well
00:04:47 00:04:51 however i still know that a lot of
00:04:49 00:04:52 resellers especially new resellers on
00:04:51 00:04:54 amazon
00:04:52 00:04:56 really struggle with finding new
00:04:54 00:04:58 opportunities new products to add
00:04:56 00:05:00 to their reselling business and that
00:04:58 00:05:01 actually led me to creating the selling
00:05:00 00:05:03 fast lane discord community
00:05:01 00:05:06 it's an online commute that i've created
00:05:03 00:05:07 for ebay and amazon sellers to come
00:05:06 00:05:09 together and work together
00:05:07 00:05:11 to make more money in their reselling
00:05:09 00:05:13 business and most importantly
00:05:11 00:05:15 inside that community i actually upload
00:05:13 00:05:17 and post daily lead information
00:05:15 00:05:19 on products that you can go out and find
00:05:17 00:05:20 in your local area to purchase and then
00:05:19 00:05:22 resell on
00:05:20 00:05:24 amazon so if you're ever seeking any
00:05:22 00:05:25 more guidance or help in growing your
00:05:24 00:05:26 reselling business or your read to
00:05:25 00:05:28 arbitrage business on
00:05:26 00:05:29 amazon definitely go ahead and check out
00:05:28 00:05:31 my community i'll have a link to it
00:05:29 00:05:33 below in the description of this video
00:05:31 00:05:35 so before we get to step number four i
00:05:33 00:05:36 want to go ahead and show you an example
00:05:35 00:05:38 of a product that i just recently found
00:05:36 00:05:39 on one of my sorcery trips at walmart so
00:05:38 00:05:41 let's go ahead and i'll show you what
00:05:39 00:05:43 exactly that product is here's an
00:05:41 00:05:43 example of a product that i recently
00:05:43 00:05:45 found
00:05:43 00:05:47 going to walmart so as you can see this
00:05:45 00:05:48 is godzilla right here and we actually
00:05:47 00:05:50 have
00:05:48 00:05:51 35 of him because we're able to buy him
00:05:50 00:05:53 for
00:05:51 00:05:55 and 84 cents at walmart and they're
00:05:53 00:05:57 actually reselling for over 30
00:05:55 00:05:58 dollars on amazon now to kind of give
00:05:57 00:06:00 you a more breakdown although some
00:05:58 00:06:04 screenshots up there
00:06:00 00:06:06 the current lowest price is 30 however
00:06:04 00:06:07 the current buy box price which is
00:06:06 00:06:09 rotating through quite a few sellers
00:06:07 00:06:11 has been trending around 40 so let's
00:06:09 00:06:13 just say i plan on selling this product
00:06:11 00:06:16 for 35
00:06:13 00:06:19 through fba on amazon including the tax
00:06:16 00:06:21 which is our buy cost of around
00:06:19 00:06:22 cents 10.65 a little 30 cent fee to ship
00:06:21 00:06:25 that product to amazon
00:06:22 00:06:27 it's going to leave us with around 15
00:06:25 00:06:30 and 32 cents in profit per unit
00:06:27 00:06:31 now remember i was able to oops i was
00:06:30 00:06:34 able to pick up
00:06:31 00:06:37 35 units so that it's gonna name me over
00:06:34 00:06:38 five hundred dollars in profit so that
00:06:37 00:06:41 brings us to step number four
00:06:38 00:06:43 so after you've got your account set up
00:06:41 00:06:43 you have your amazon seller app after
00:06:43 00:06:45 you started
00:06:43 00:06:47 hitting some retail stores scanning some
00:06:45 00:06:48 items and you found some items after you
00:06:47 00:06:50 purchase them
00:06:48 00:06:52 then it brings us to basically the last
00:06:50 00:06:54 step which is basically creating a
00:06:52 00:06:54 shipment on your amazon seller central
00:06:54 00:06:56 account
00:06:54 00:06:58 shipping all those items to fba or
00:06:56 00:06:59 essentially an amazon warehouse where
00:06:58 00:07:01 they're going to store
00:06:59 00:07:04 all of your inventory for you while it's
00:07:01 00:07:06 for sale on amazon and then obviously
00:07:04 00:07:07 after someone buys your item off amazon
00:07:06 00:07:09 the amazon fulfillment team is going to
00:07:07 00:07:09 ship that product to the customer for
00:07:09 00:07:11 you
00:07:09 00:07:13 and essentially the last step is to
00:07:11 00:07:15 basically purchase items
00:07:13 00:07:16 list and create shipments choose price
00:07:15 00:07:18 points conditions
00:07:16 00:07:20 and then have those products sent to
00:07:18 00:07:22 amazon and that obviously brings us
00:07:20 00:07:24 to step number five and the fifth step
00:07:22 00:07:27 is to basically repeat that process
00:07:24 00:07:28 as often as and as frequently as you can
00:07:27 00:07:31 the name of the game
00:07:28 00:07:33 when it comes to growing on amazon and
00:07:31 00:07:35 generating more revenue generating more
00:07:33 00:07:38 profit for your amazon business
00:07:35 00:07:40 is to overall continually be finding new
00:07:38 00:07:42 opportunities new products
00:07:40 00:07:44 to add to your amazon business and
00:07:42 00:07:46 honestly when it comes to making more
00:07:44 00:07:47 money on amazon it just comes down to
00:07:46 00:07:49 buying
00:07:47 00:07:50 more product because the product's going
00:07:49 00:07:52 to sell you're literally going to be
00:07:50 00:07:53 buying products that you already know
00:07:52 00:07:54 has demand
00:07:53 00:07:56 you already know has sellers that are
00:07:54 00:07:58 profitably selling it and you can see
00:07:56 00:08:00 based off of the sales rank how well and
00:07:58 00:08:03 how often that item is actually
00:08:00 00:08:04 selling on amazon anyways that's it for
00:08:03 00:08:06 this video hopefully you like that quick
00:08:04 00:08:09 little breakdown of what exactly retail
00:08:06 00:08:10 arbitrage is how it works i was able to
00:08:09 00:08:12 actually show you
00:08:10 00:08:13 an example of me using the read to
00:08:12 00:08:16 arbitrage business model to buy
00:08:13 00:08:18 products to resell them back on amazon
00:08:16 00:08:19 for profit once again if you have an
00:08:18 00:08:21 amazon business and you're looking for
00:08:19 00:08:23 some more guidance some more help
00:08:21 00:08:25 i do have a reseller community on
00:08:23 00:08:26 discord called the selling fastlane we
00:08:25 00:08:28 have well
00:08:26 00:08:30 over 250 members in that community every
00:08:28 00:08:31 single day we're communicating working
00:08:30 00:08:33 together
00:08:31 00:08:34 to grow our reselling businesses so if
00:08:33 00:08:35 you're potentially interested in
00:08:34 00:08:37 learning a little bit more about that
00:08:35 00:08:38 community or potentially joining i'll
00:08:37 00:08:40 have a link below in the description of
00:08:38 00:08:42 this video so definitely check it out
00:08:40 00:08:43 anyways if you did get any value from
00:08:42 00:08:45 this video if you could just smash that
00:08:43 00:08:45 like button i would greatly appreciate
00:08:45 00:08:47 that
00:08:45 00:08:48 if you have any questions regarding
00:08:47 00:08:50 anything that i toked about or went
00:08:48 00:08:52 over in this video feel free to comment
00:08:50 00:08:53 below i'll do my best to get back to you
00:08:52 00:08:55 and of course if you want to see more
00:08:53 00:08:56 content on how you can create an
00:08:55 00:08:59 additional stream of income
00:08:56 00:09:01 online then go ahead and subscribe to my
00:08:59 00:09:03 channel and i hope to see you all in the
00:09:01 00:09:03 next video

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