Why I Quit Retail Arbitrage - Is Amazon FBA Retail Arbitrage Dying?
Published on: November 30 2022 by Carter Maxwell
Why I Quit Retail Arbitrage - Is Amazon FBA Retail Arbitrage Dying?
Table of Contents
Why I Quit Retail Arbitrage - Is Amazon FBA Retail Arbitrage Dying?
| startTime | durationTime | text |
| 00:00:00 | 00:00:03 | what's up guys in this video I'll be |
| 00:00:01 | 00:00:06 | going over why I quit retail arbitrage |
| 00:00:03 | 00:00:10 | and also going over the question is |
| 00:00:06 | 00:00:11 | Amazon FBA retail arbitrage dying off so |
| 00:00:10 | 00:00:13 | if you don't know me already my name is |
| 00:00:11 | 00:00:15 | Carter Maxwell I'm a 17 year old |
| 00:00:13 | 00:00:17 | entrepreneur and I go by the nickname of |
| 00:00:15 | 00:00:19 | the high school hustler and if you're |
| 00:00:17 | 00:00:21 | trying to create an online business and |
| 00:00:19 | 00:00:22 | make money while you sleep then this |
| 00:00:21 | 00:00:24 | ditch and refused to go ahead and hit |
| 00:00:22 | 00:00:26 | that scribe button just like any |
| 00:00:24 | 00:00:28 | business on Amazon there's always a |
| 00:00:26 | 00:00:30 | business model that someone else prefers |
| 00:00:28 | 00:00:31 | that someone else doesn't and basically |
| 00:00:30 | 00:00:33 | in this video I'm just going over my |
| 00:00:31 | 00:00:35 | personal opinion when it came to reach |
| 00:00:33 | 00:00:37 | arbitrage and just basically what I |
| 00:00:35 | 00:00:38 | think about it well those of you that |
| 00:00:37 | 00:00:41 | aren't familiar with what exactly |
| 00:00:38 | 00:00:43 | reach arbitrage is it is basically the |
| 00:00:41 | 00:00:46 | purchasing of a product from a retail |
| 00:00:43 | 00:00:48 | store such as a Walmart or Target or |
| 00:00:46 | 00:00:50 | Toys R Us with the intentions to then |
| 00:00:48 | 00:00:53 | resell that product back on Amazon FBA |
| 00:00:50 | 00:00:55 | obviously to make a profit so this |
| 00:00:53 | 00:00:57 | business the model has been around for a |
| 00:00:55 | 00:00:58 | long time and I just want likes to know |
| 00:00:57 | 00:01:00 | that this business bone actually is |
| 00:00:58 | 00:01:02 | really profitable and you can scale it |
| 00:01:00 | 00:01:04 | if you actually know what you're doing |
| 00:01:02 | 00:01:06 | so if it's a profitable business model |
| 00:01:04 | 00:01:08 | like I just mentioned then why would I |
| 00:01:06 | 00:01:11 | ever quit it well I'm actually gonna go |
| 00:01:08 | 00:01:13 | for a few reasons to why I quit retail |
| 00:01:11 | 00:01:16 | arbitrage and why just not for me so the |
| 00:01:13 | 00:01:18 | first reason being product prices so |
| 00:01:16 | 00:01:20 | what I mean by this is with interview |
| 00:01:18 | 00:01:22 | arbitrage to be one of those top sellers |
| 00:01:20 | 00:01:25 | you need to have a huge cash flow system |
| 00:01:22 | 00:01:27 | consistently purchasing new product to |
| 00:01:25 | 00:01:29 | then send back to Amazon and that's |
| 00:01:27 | 00:01:31 | basically the only way you can really |
| 00:01:29 | 00:01:33 | scale your business at a quick rate so |
| 00:01:31 | 00:01:34 | if you don't really have like that huge |
| 00:01:33 | 00:01:36 | cash flow it's gonna be a lot a little |
| 00:01:34 | 00:01:38 | bit harder to scale for instance the old |
| 00:01:36 | 00:01:40 | business model that I used to do is |
| 00:01:38 | 00:01:42 | basically just purchasing random product |
| 00:01:40 | 00:01:45 | to then set up the Amazon so I would |
| 00:01:42 | 00:01:47 | pick up like books and CDs and video |
| 00:01:45 | 00:01:49 | games from that dollar to a three dollar |
| 00:01:47 | 00:01:50 | range so then sell them all day long for |
| 00:01:49 | 00:01:54 | around that fifteen dollar price point |
| 00:01:50 | 00:01:56 | on Amazon so with retail arbitrage it |
| 00:01:54 | 00:01:57 | all comes down to the ROI of the product |
| 00:01:56 | 00:01:59 | which is going to be your return on |
| 00:01:57 | 00:02:03 | investment for example if you purchase a |
| 00:01:59 | 00:02:05 | toy for $10 most sellers look for a |
| 00:02:03 | 00:02:07 | hundred percent ROI so if they spend $10 |
| 00:02:05 | 00:02:09 | they want to make ten dollars back and |
| 00:02:07 | 00:02:10 | profit spend twenty dollars making |
| 00:02:09 | 00:02:13 | twenty dollars of profit just like that |
| 00:02:10 | 00:02:15 | so when it comes to margins |
| 00:02:13 | 00:02:16 | um different sellers have different |
| 00:02:15 | 00:02:18 | types some of the bigger sellers will |
| 00:02:16 | 00:02:21 | actually go down a little bit Martens |
| 00:02:18 | 00:02:23 | depending on the if it's a large enough |
| 00:02:21 | 00:02:26 | profit or if the product is going to be |
| 00:02:23 | 00:02:28 | a quick sale the second reason was |
| 00:02:26 | 00:02:30 | actually just the competition and so |
| 00:02:28 | 00:02:33 | what I mean by that is for instance if I |
| 00:02:30 | 00:02:34 | was to find a product at a Walmart it |
| 00:02:33 | 00:02:36 | could potentially be at every other |
| 00:02:34 | 00:02:38 | Walmart within the United States so if I |
| 00:02:36 | 00:02:40 | was to purchase that product then trying |
| 00:02:38 | 00:02:42 | to send up Amazon FBA look what tends to |
| 00:02:40 | 00:02:44 | be thousands and thousands of other |
| 00:02:42 | 00:02:45 | people purchasing that same product with |
| 00:02:44 | 00:02:47 | the intention to then sell it back on |
| 00:02:45 | 00:02:48 | Amazon FBA |
| 00:02:47 | 00:02:50 | which is basically going to tank the |
| 00:02:48 | 00:02:52 | price and minimize your margins and |
| 00:02:50 | 00:02:55 | that's currently why I use the business |
| 00:02:52 | 00:02:57 | model private label to where I order one |
| 00:02:55 | 00:02:59 | unique product I brand that product with |
| 00:02:57 | 00:03:02 | my company to then resell it back on |
| 00:02:59 | 00:03:04 | Amazon and minimize my competition don't |
| 00:03:02 | 00:03:07 | get me wrong you can make a large amount |
| 00:03:04 | 00:03:07 | a full-time income doing retail |
| 00:03:07 | 00:03:09 | arbitrage |
| 00:03:07 | 00:03:11 | I know tons of people through Instagram |
| 00:03:09 | 00:03:14 | and YouTube that still do it it's just |
| 00:03:11 | 00:03:16 | not the business model for me and I |
| 00:03:14 | 00:03:18 | actually am going to do some retail |
| 00:03:16 | 00:03:20 | arbitrage so I'm actually not quitting |
| 00:03:18 | 00:03:23 | but I'm just kind of postponing it and |
| 00:03:20 | 00:03:25 | so q4 comes up and q4 is gave me the |
| 00:03:23 | 00:03:27 | last three months of the year and that |
| 00:03:25 | 00:03:29 | is basically when ecommerce sales just |
| 00:03:27 | 00:03:31 | absolutely blow up so I'll probably do |
| 00:03:29 | 00:03:33 | end up doing it the last two months of |
| 00:03:31 | 00:03:35 | the year and just kind of dabble into if |
| 00:03:33 | 00:03:37 | I want to do some Amazon FBA but I was |
| 00:03:35 | 00:03:39 | kind of looking into March in fulfilling |
| 00:03:37 | 00:03:41 | two and so those last three months of |
| 00:03:39 | 00:03:43 | the year everyone is just purchasing if |
| 00:03:41 | 00:03:46 | it be for am upcoming for Christmas or |
| 00:03:43 | 00:03:48 | just preparing for the holidays people |
| 00:03:46 | 00:03:50 | are purchasing off Amazon like crazy and |
| 00:03:48 | 00:03:51 | it's honestly sometimes hard to keep |
| 00:03:50 | 00:03:54 | stuff in stok so that's what reach the |
| 00:03:51 | 00:03:56 | arbitrage is you're gonna see the best |
| 00:03:54 | 00:03:58 | margins and the highest returns and you |
| 00:03:56 | 00:04:00 | can also merchant fulfilled toys in |
| 00:03:58 | 00:04:02 | different ionises during q4 school |
| 00:04:00 | 00:04:04 | because there's just not enough in stok |
| 00:04:02 | 00:04:05 | in your being able to ship it from your |
| 00:04:04 | 00:04:07 | house as well and to your margins are |
| 00:04:05 | 00:04:09 | gonna increase because you are doing the |
| 00:04:07 | 00:04:10 | fulfillment obviously it's gonna be a |
| 00:04:09 | 00:04:11 | little bit more upfront work on your |
| 00:04:10 | 00:04:13 | side because amazon is not doing the |
| 00:04:11 | 00:04:14 | fulfillment you are doing it but it's |
| 00:04:13 | 00:04:16 | going to give you a lot more leisure and |
| 00:04:14 | 00:04:18 | your margins are gonna be a lot higher |
| 00:04:16 | 00:04:21 | but when it comes to the big question is |
| 00:04:18 | 00:04:24 | Amazon FBA retail arbitrage dying off |
| 00:04:21 | 00:04:26 | the answer is no it's not dying anytime |
| 00:04:24 | 00:04:28 | soon it's been here for the past |
| 00:04:26 | 00:04:29 | ten years it's gonna be here for the |
| 00:04:28 | 00:04:31 | next ten years there's always gonna be |
| 00:04:29 | 00:04:34 | thousands and thousands of new products |
| 00:04:31 | 00:04:35 | coming in to Amazon system even though |
| 00:04:34 | 00:04:37 | there's gonna be new sellers there's |
| 00:04:35 | 00:04:39 | just gonna be a ton of new opportunities |
| 00:04:37 | 00:04:41 | and it's all about how well you can |
| 00:04:39 | 00:04:43 | adapt how you're using your cash flow |
| 00:04:41 | 00:04:45 | and just how you're feeding Amazon keep |
| 00:04:43 | 00:04:47 | sending products to them to then resell |
| 00:04:45 | 00:04:49 | and get your profits back and how much |
| 00:04:47 | 00:04:51 | you reinvest back in the business |
| 00:04:49 | 00:04:52 | hopefully scale your business to that |
| 00:04:51 | 00:04:56 | point that you desire but that's it for |
| 00:04:52 | 00:04:58 | this video on why I quit Amazon FBA Reed |
| 00:04:56 | 00:05:01 | - arbitrage and going over the question |
| 00:04:58 | 00:05:03 | of if Amazon FBA reach arbitrage is |
| 00:05:01 | 00:05:05 | dying so if you enjoyed this video |
| 00:05:03 | 00:05:07 | please feel free to comment below any |
| 00:05:05 | 00:05:09 | questions and/or video ideas you would |
| 00:05:07 | 00:05:11 | like to see in the future also don't |
| 00:05:09 | 00:05:12 | forget to Like and subscribe as I'm |
| 00:05:11 | 00:05:15 | always gave away different tips and |
| 00:05:12 | 00:05:16 | tricks on how to make money online you |
| 00:05:15 | 00:05:19 | know that note I'll see you guys next |
| 00:05:16 | 00:05:19 | video |
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