Is Amazon arbitrage a viable business model? We answer common seller questions
Over the past few years, e-commerce has established itself as a profitable earning opportunity for many people and businesses.
And once choice many businesses are using is Amazon arbitrage. If you’re considering becoming an Amazon arbitrage seller, here’s some helpful information about the business model.
That’s the biggest worry about Amazon arbitrage?
One of the reasons why some people worry about Amazon arbitrage is that it requires sellers to have permission to sell certain brands and products.
This is designed to prevent counterfeit goods, but it can be an obstacle for many individual sellers by limiting the items they can sell on their Amazon storefronts, making them less competitive and potentially impacting their profits.
That said, if sellers have their own retail items and register them with Amazon’s Brand Registry Program, they will be protected from other sellers trying to make money off of their registered products.
And what’s its biggest plus point?
One big plus for selling via Amazon is that it’s maintained its position as the largest internet retailer. People from all over the world in different demographics use the e-commerce website to buy everything from pet food and tools, to clothes and home decor.
Success as an Amazon retailer depends on many things, not least what is trending at the moment, on and off of Amazon. For instance, lots of handicrafts and artwork sellers tend to go to Etsy or Redbubble to make sales.
How can you track your Amazon profits?
One handy tool for Amazon retailers is the Amazon seller app and revenue calculator. This can help you to estimate your profits each month, giving you valuable insights into the success (or otherwise) of your Amazon business.
It’s important to remember that you’re in control of your Amazon arbitrage business, and use all the fba tools available to ensure it’s profitable.
How quickly can you make money on Amazon?
Sellers who have been listing on Amazon longer tend to have more success – with time comes reward. So don’t expect to rake in thousands of dollars in the first month. Instead focus on building a lasting business on good business practices.
What’s the secret of successful Amazon arbitrage sellers?
What is the secret behind the sellers who succeed at Amazon arbitrage? Most tend to stick to a particular niche. Whether it’s organic body care, plastic-free water bottles, or PC gaming equipment, they know who their target demographic is and they stick with it.
Profitable sellers also often open themselves up to international buyers rather than just sticking with customers in their own countries. It’s amazing how much money people in other nations are willing to pay for a product that is only easily found in the US, Canada, or the UK.
These entrepreneurs also make wise use of technology and software, such as Tactical arbitrage. These tools help to streamline market and product research, giving the seller more time to focus on customer service. A win-win situation considering the customer’s experience is at the core of the whole activity.
What happens if it doesn’t work for you?
If Amazon arbitrage isn’t working out for you, who’s to say that you won’t fare better on another e-commerce site?
Depending on what your inventory focuses on, you could see greater returns on investment from Etsy, Depop, or any of the other dozens of retail sites out there. In other words, don’t immediately write off your business if it doesn’t work well on Amazon.
Photo by Bryan Angelo
