Prior to September of 2014, I had never heard the terms ‘Retail Arbitrage,’ or ‘Amazon FBA’ before in my life.
I couldn’t have guessed, that within just fourteen months, my girlfriend, Robin, and I would earn over $30,000.00 in clear profit, simply by buying clearance items locally and re-selling those items on Amazon.
Robin and I first learned the concepts of retail arbitrage and Amazon FBA in late September, 2014, while listening to a podcast guest describe the success she was having and the money she was earning by using these methods.
We learned the term ‘retail arbitrage‘ refers to buying items at local retail stores, and selling them for a higher price online. ‘FBA‘ stands for ‘Fulfillment by Amazon,’ and it is the process by which regular people can send items for resale in bulk to Amazon, and Amazon will handle the sales, customer service, shipping, and returns.
And, instead of creating a new listing for every item, (like on eBay), all you do is add in your item to sell under the Amazon listings that are already up and running.
To make things extra easy, there is a smartphone app that makes it possible to estimate an item’s potential profit before you even buy it, just by scanning its UPC barcode.
Skeptical, but curious enough to give it a shot, Robin and I set up a seller account on Amazon and downloaded the scanning app. We went on a “retail treasure hunt,” and sure enough, it paid off.
In fact, we were blown away by the number of items we found sitting on the shelves at our local store that we could sell on Amazon for three times their price – sometimes more!
After a couple weeks of this retail treasure hunt, we sent our first shipment in to Amazon on October 20th, 2014, and we started seeing sales right away.
When just our first three sales earned us a combined profit of $130.00, we knew we were on to something that had the potential to make some good money.
Between October 30th and Christmas, 2014, we kept shopping, shipping, and selling. The fun part was that most of the items we were selling were just sitting on the clearance shelves of stores within ten miles of our house.
By January 31st, we had cleared a net profit of over $4,000.00 and were able to enjoy a seven-day cruise to Mexico and Central America while we plotted how to best manage, what was quickly becoming a successful side business.
During the cruise, the money continued to come in as our Amazon store continued to generate profits around the clock. In fact, during the first week we were gone, we racked up another $1,450.00 in sales!
After returning from vacation, we eventually did invest in some formal training on retail arbitrage and Amazon FBA, which taught us some new skills and techniques. We also expanded our product categories and continued to make some profitable discoveries of our own.
Before our first year was up, our Amazon sales exceeded $65,000.00 and generated a net profit of well over $20,000.00! (If you’re curious what we were selling, click here for our list of the top 20 retail arbitrage products that earned us over $20,000.00 in profits!)
As we hit the next holiday season, we broke our own previous sales record with sales of $14,546.04 for the month of December alone! When the year ended, our sales since starting had topped $85,000.00 and we had earned profits of over $31,000.00.
At this point, I recorded everything that we had learned and put it into my new book, Retail Arbitrage Money Machine, which is now available for purchase on Amazon.com.
I understand that all this may sound a little fantastic. Fortunately, for the record, I documented our process every step of the way with photos, screenshots, and videos of our experiences as they happened. Much of this documentation is included throughout the posts on this site. To follow things as they happened, you can check out my first blog post here: How I First Learned About Retail Arbitrage and Amazon FBA.
For complete video instruction on how to do retail arbitrage yourself, you can check out my recommended training program here: RETAIL ARBITRAGE TRAINING.
Thanks for stopping by, I hope you find some helpful information here!