Have you ever bought a product from one site and then sold it to another? If yes, then you have done what is now known as retail arbitrage. To be more specific, “eBay-Amazon” is a process in which sellers on eBay, source and ship amazon product as their “supplier”. More and more people are showing interest in online retail arbitrage due to the margin of profit it creates. However, you would need to have certain angle to this general idea in order to gain maximum profit. Online retail arbitrage means to take advantage of the price difference in markets by buying from one place and selling higher on other.
Yes, this is often determined as get-rich-short-cut scheme, but it is just one side of the story. There is a whole different aspect you need to know about.
How to find what you can sell on eBay
Whenever you decide to sell an item on eBay, first make sure that the item is selling on eBay. You can do this by simply looking for the items listing and finding out if it has any watcher or not. I suggest you to use markdown manager (5% off) once your listings have watchers. All of your watchers will then be messaged.
Whenever you are searching for an item on eBay, make sure to use “best match” option. Once you view the results, you will get to know the most popular items.
Pro tip: You will have great successes in selling items that are not generally associated with internet. This is where your creative thinking will help you out the most.
Price comparison eBay-Amazon
Never list your item on eBay with quantity >1. This is important if you want to manipulate the customer into buying your product with sense of urgency in mind. Not only this, but you will also be held responsible for cancelling orders in case amazon prices are not in your favor.
For instance many price conscious people observe prices of popular items both on amazon and eBay. They may decide to buy your item once they see sharp increase in amazon pricing. When you limit your item’s quantity to only 1, you save yourself from fulfilling many orders at loss. Once you have 100% assurance that pricing on Amazon is stable and your listing has done well, then simply go ahead and list multiple quantities.
Two cons of sourcing items from Amazon:Fluctuation in price
What to do when Amazon runs out of an item?
- Inform your customer
- Buy on eBay
- Ship it to them
How to list items on eBay
Now first of all keep 3 tabs open in our browser.
- eBay ( to search sellers)
- eBay ( to list items)
- Amazon (to source items) s
Although eBay has numerous promotions that enable you to list items free, but get an eBay store to proceed efficiently. A $50 store will get you about .o5 listings. Moreover, you will get email marketing for our customers and eBay research will also get better.
Not all categories have a listing fee. You can save money by taking up residence and listing from these categories
Keep in mind to use pictures in your eBay listings. It will make your listing more prominent and attractive. You can either depend on Amazon for stock photos or source them yourself from the product’s manufacturer site. Beware of the copyrighted images. Although most of the manufacturers are okay with their product pictures being used in listings, but some of them can even sue you for legal purposes.
Observe your profit margins
You must know that although it all seems rainbows and unicorns, the reality is, selling items on eBay is not a cheap method. EBay and PayPal fees can cost you a lot, almost 14%-15% of your transaction. You will need to keep these factors in
mind while setting a price for your item. Rule of thumb is to have at least a 5% profit margin for yourself.
For instance if you see an item listing for 25$ and you can source the product for 13$, and then if you sell it for 24$, you will have a 5% profit.
Sell! But where?
Start selling on eBay, but once you get the hang of it, you can then start selling on different marketplaces as well. Make sure to choose only those marketplaces that have a good amount of traffic and do not have any restriction on the number of listings.
Others like Amazon?
It is hard to believe, but there are many amazing suppliers other than Amazon. Walmart and Overstock are also used by many people doing retail arbitrage. Actually any ecommerce site can do the job for you if it has stable stock, good customer base and competitive prices. You can check out these sites. dx.com, dhgate.com, aliexpress.com.