If you are thinking of entering the world of eCommerce or already a seasoned online trader, you may well be pondering on what to sell. It could be your first online business venture where you know you want to be a successful retailer but still not sure of what product or niche to enter. Perhaps you are already an established and successful brand but still open to new ideas on how to maximize your profits. So today i’m going to be discussing a question that may well be on many of your minds. Can i make money from Retail Arbitrage?
Can You Make Money from Retail Arbitrage?
Okay! Before we Start, i want you to do something. I’d like you to think of a product. Any product.Then type it into the Google Search. When the results come up, click on the “Shopping” Tab and see what results you see. Now (unless your product is very rare) you will probably see a list of similar items showing. They will be from different sellers and all at various different prices This means that there’s scope.
What is Retail Arbitrage?
Retail Arbitrage is when you see a product for sale at a particular price on One website and list it on another site at a mark up. If someone purchases the product from the site you listed it on, you basicly buy it from the original and send it to the customer, thus making a profit for your efforts. There are many ways of doing this, some of which you don’t need any cash outlay upfront. In fact, by using Dropshipping methods you can even avoid any physical contact with the product altogether.
What is Dropshipping?
Dropshipping is where you see an item listed at a certain price in one store, and as above you list it in another with a mark up added. When a customer buys the product from your listing, then you have the webstore who are selling this product ship it direct to your customer. Then all you do is collect the profit. Most retailers these days are more than happy to accommodate drop shippers and many even offer White Label goods and Gift wrapping with your own Brand on it.
This of course takes an element of management but the rewards can be high. Put the right product into the hands of many who seek it and the skys the limit on the amount you can earn. You can read up some more on the subject in my article “How can i Make Money from Dropshipping”
Retail Arbitrage on Amazon
It’s amazing the factors that influence consumers who are shopping online. Price is often a key factor. But so too is Brand Reputation and it’s amazing just how many shoppers are content to pay over the odds for a product from a webstore with a good reputation even though they can get it for a fraction of the price elsewhere. It can never be under estimated just how much peace of mind plays a key role in a buyers decision to make a purchase. One such brand that holds such reputation and has authority in Online Shopping is the retail giant Amazon. They are the type of webstore that many buyers feel secure in making purchases as Amazon has become a household name.
Often a shopper will see the product they want listed much cheaper elsewhere. Stores like Ebay can also offer products for a fraction of the value Amazon does. However, eBay has attracted a rather unsavoury reputation over the years. Quite often you hear consumers complain that they never know what they’re getting or who they’re buying from on eBay. Ironically, they may often be unaware that many of the vendors they are buying from on Amazon also have stores on eBay. Again, a prime example of just how powerful Brand reputation can be.
With Ebay you can more or less use the same procedure as you would on Amazon. However, it’s worth bearing in mind that this is lower ticket sales and a step in the direction of the bottom. But there are still many Online retailers out there that beat eBay on price such as Alibaba, AliExpress and Wish.
They will often be able to offer you cheap prices as long as you (and more importantly, your customer) doesn’t mind waiting a few weeks for it to arrive from China. This still has profit potential though if you’re willing to compete with the many other Bargain stores in a race to the bottom.
Bricks & Mortar Stores
While we’re all having great fun comparing rock bottom prices online, it’s still worth paying attention to the Physical shops. Sometimes you can still actually find goods in the good old fashioned Bricks & Mortar Stores. Places like Poundland usually sell a whole range of items that you could chance your arm with on the net. Take advantage of Free listing weekends with eBay as well as other occasional deals offered by Amazon, Etsy, Bonanza and any other online marketplaces.
The Chances are, you probably carry a half decent camera around with you in your pocket installed on your Mobile Phone. Why not keep your eyes open for Arbitrage Opportunities the next time you’re in the shops and grab a few snaps of any products that interest you.
The Pros and Cons
Well, like anything else we decide to do, it’s always good to weigh up the pros and Cons of whatever the gig is, so let’s have a look at them shall we.
Retail Arbitrage can be a great way of earning some quick profit without too much research being required. You can pretty much take any product you can think of and use the Google Shopping Search engine to show you the Scope in the price range for it. Find something with potential and put it up for sale. If someone buys, then your on a winner. If no one buys its, then nothing lost except for maybe a listing fee where applicable. But a small risk for potentially big prizes.
It can also be an excellent way of vastly expanding your listings Inventory without needing to own any stock. So there’s a much lower risk factor as the only time you may lose money is if something happens to it en route to your customer orlost in the post and you have to refund the customer from your own pocket. But the chances of that are slim in comparison to what you would likely be earning. This works well for those who want to start up in eCommerce but have very little or No money to invest. You can cover many options without having to spend first.
Retail Arbitrage, is basically an Instant Fix type of gig with little to nil contingency potential. It’s great for making a few bucks in the here and now or in quick time. But it’s a one off sale. The only way to make an actual living at this is to be constant. This means that if you don’t adopt other methods, then you will still be working away at the same thing in 10 or 20 years time from now. Bear in mind that we live in fast changing times and these chances may not be just as easy by then. So this may well be something you’d want to do as a start up. Get yourself some money and experience while you build something more secure and stable that draws a regular income.
Keep your eyes open
So, as you can see, there are quite a lot of opportunities to earn yourself some money using Retail Arbitrage. Especially if you want to make money quick. When you see something for sale, especially if it strikes you as a good price, remember, there’s doubtlessly someone out there who will pay more for it. So every product has potential.
Remember, just because you wouldn’t pay a particular price for a product, doesn’t mean that there’s not someone who will. With the power of the world wide web that we have at our fingertips these days, it has never been easier to find these buyers and provide them with the products they want and earn yourself some cash for your efforts.
Many more ways to Earn Money Online
Well, i hope this article might be of some help for any of you looking for ways to make a break into the vast and fast expanding world of eCommerce looking for a start up. If you play it right you could actually go from rags to riches in no time at all.
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The fact you’re here shows you have what it takes to make as much as you desire by using your initiative. So take a moment to congratulate yourself on that before you boldly march on towards your goal.
Good luck with your Enterprise!