In a little over a year of combining retail arbitrage with Amazon FBA, Robin and I were able to sell over $85,000.00 of merchandise and bank over $30,000.00 in profits. Some of this extra income was used to pay for a couple of cruises and a trip to Las Vegas. During all three of these trips, we continued to see sales come in, and were able to earn semi-passive income while we were on vacation!
You may be wondering how it’s possible to sell $85,000 worth of merchandise while working a full-time job. You may also wonder how we could continue to sell merchandise and make money while we’re away on vacation.
These are great questions. The answer to both is simple: retail arbitrage and Amazon FBA.
If you’ve had any experience trying to sell products online using sites like eBay, you know that – while it can be profitable – it comes with plenty of headaches. You’ve got to create your own listings, take your own pictures, answer tons of buyer questions, and worst of all – you need to be around to package, label, and ship off each item, one-by-one.
Fulfillment by Amazon is a totally new way to sell things online. Rather than having to make your own listings for each product that you’re selling, you simply offer your items for sale under listings that have already been created.
And, instead of having to send off items one-by-one as each item is sold, you instead send all of your inventory into Amazon’s warehouse in bulk shipments at your convenience. Amazon stocks and warehouses your products under your name, and then ships them off to your customers for you as soon each item is purchased. Customer service and returns are also handled by Amazon.
This new system of online selling allows you to run your side of the selling business on your own time, without having to worry about, or deal with customer service, warehousing, shipping, or returns.
As an FBA seller, your only job is to source your products wherever you choose, send your inventory in to Amazon, and literally let them handle the rest. Your purchasing decisions are made easy thanks to various price scanning tools, which will be discussed in detail later in this book; and your shipping costs are kept extremely low because of the reduced rates available through Amazon’s preferred shipping partners.
As a seller of merchandise purchased through retail arbitrage, you will not be dealing with wholesale suppliers or manufacturers. You will not be ordering products in bulk or dealing with factories overseas. All of your product sourcing can be done at the normal retail stores you shop in every day.
Retail arbitrage simply involves finding discrepancies between the prices charged by your local retailers and the prices charged on Amazon. While it may seem hard to believe that these huge price discrepancies exist, you’ll soon be finding them all over the place using the specific instructions and tools described in this book.
How Much Money Can I Make Doing Retail Arbitrage?
Great question. The answer is, that it’s totally up to you.
While retail arbitrage can be quite profitable, it takes some time and effort. And, unless you want to turn your retail arbitrage business into a full-time operation, the money you earn will probably not allow you to replace your day job.
That being said, I do know of people who have turned this into a full-time business and are making A LOT more money than me. They have actually been able to quit their day jobs, and earn six-figure incomes by selling products online. I also know that retail arbitrage at this level can get complicated and time-consuming.
Personally, I think there is a ‘sweet spot’ for the individual, couple, or family who simply wants to use retail arbitrage as a reliable source of supplementary income.
As an example, Robin and I are selling on average, about $6,000.00 in merchandise each month. After product costs and Amazon fees, this equates into about $2,000.00 in monthly profits. In exchange for this added income, we spend on average, maybe six to eight hours sourcing products and three to four hours packing and shipping.
Of course, since most of our product sourcing occurs when we’re just ‘out and about,’ this part of the process doesn’t feel like a job at all. It just feels like we’re out shopping as usual, but instead of coming home with bills – we’re coming home with future profits in the form of resale inventory!
The shipping part of this business can be done any time of the day, any day of the week. We usually put together one or two shipments a month, while we’re sitting on the couch in the living room with the TV on in the background. The next day, I just drop the boxes off at the local UPS store, and that’s all there is to it!
Working at a pace like this suits our personalities perfectly. It doesn’t really feel like we’re doing any work, but we’re usually banking an additional $2,000.00 every month!