Let me guess…
You’ve probably been looking for quite a long time at legitimate ways to make an extra income from home in your spare time.
Spare cash that can be used to improve your lifestyle without needing to take a second job that requires giving up your precious time and trading it for money.
The trouble is, most of the time you run into folks selling schemes and the only people who ever make any money are the “gurus” selling the training and information that doesn’t work!
Does that sound familiar to you?
I was tired of this situation too, but luckily about 18 months ago I discovered a way to make money online that didn’t require me to buy any expensive courses or to perform any BS “get rich quick” stuff that flat out doesn’t work!
The opportunity allowed me to make money selling physical products on Amazon, and the best part is it isn’t complicated at all to do.
In this article I’m going to share this business model with you, how it works, and how you (yes YOU!) can get started with it today.
I’m giving this information away for free because of two reasons:
1. Quite simply I don’t sell any training… I don’t have any paid courses or expensive coaching programs etc
2. I do have a cool software that will help you to automate the product sourcing process if you’re the type of person who values your time, so if you like the idea outlined in this post you may wanna try it out for yourself!
If you don’t want the software though, the information is totally relevant still and there will be no hard feelings!
It’s not for you if…
With that said, I’m going to be completely honest with you from the outset…
If you’re flat broke right now, or are looking to make money appear out of thin air then this WON’T work for you.
Making money on Amazon using the hands-free strategy I’m going to share with you today will only work if you have some start up capital to get started out with…
That capital can then be leveraged to buy products that allow you to make an extra monthly income selling on Amazon.
So if you have a few hundred pounds (or more) to invest in a new side hustle that gives you an extra monthly income with very little time-consuming work on your part…
Then read on as I’m about the lift the lid on an underground business model called “online arbitrage”…
That will allow you to get started selling online to make a realistic extra income (and works like crazy even if you’re a total newbie and never sold a thing online before.)
Introducing Online Arbitrage
In a nutshell, online arbitrage (sometimes called OA) is buying a brand name product from store A for cheap, and then reselling that same product back on to Amazon for a profit.
Because marketplaces are inefficient, at any one time there can be tens of thousands of these arbitrage deals in existence (priced cheaper than the exact same product is selling for on Amazon.)
So in essence, your supplier of a product is a retailer (think of your high street names like Tesco, Argos, Walmart, Toys R Us… any online store where you can purchase products from.)
You can go to these retailers online and buy 3, 5, 10 units etc of a product thats selling for cheap and that you have identified is selling for more money on Amazon…
And this price difference is your profit margin - arbitrage.
You send these products into Amazon and when they sell your profit is then realised.
What the profit looks like…
And it’s not just for a few pence of profit either!
Online arbitrage sellers can typically aim to make 30-100% return of investment (ROI) on each arbitrage deal… so for every £1000 invested into stock, it returns £300-£1000 back in profit after fees and the stock has been purchased!
That’s what makes online arbitrage very lucrative…
All from being a smart middle-man in the marketplace 🙂
Remember, you’re not making any products or creating your own brand here…
Online arbitrage is buying products that are already household names from a ton of different niches (Toys, Electronics, Sporting Goods etc), and then reselling them back onto Amazon for a profit.
There’s nothing to stop you doing this either, as once you have purchased the item it’s yours to do with what you want (and thousands of other people are doing this simple arbitrage business model every single day too.)
Why don’t the stores just sell on Amazon?
And if you’re wondering why the stores that you’re using to find arbitrage deals from (Tesco, Argos, Toys R Us, Walmart etc) aren’t selling these products on Amazon themselves…
They already have huge warehouses, huge marketing budgets and have their own websites already too.
They simply don’t need to pay Amazon a penny to sell products on their platform.
When you consider Amazon does billions in revenue every year, and around 50% of those sales come from third-party sellers like you and me, then you can see it’s a real opportunity!
Why would people pay more if they can get it cheaper elsewhere?
You leverage Amazon because it’s a business built on convenience buyers rather than those who are just looking for the cheapest product, and they are happy to pay a premium to access Amazon’s world-class delivery & support.
Amazon customers know that they can get a product cheaper elsewhere…
But they pay the premium regardless due to the huge brand loyalty and type of customer base Amazon has built up over the years.
Will I have to waste time shipping parcels all day long?
Now if you’re thinking you’ll need to be wasting lots of time packaging up parcels and standing in the post office, or speaking to customers all day long then I have some good news for you…
There’s a little known platform on Amazon that allows you to switch from supplying the public with products to actually being a supplier to Amazon…
And they warehouse, market, sell & ship products for you.
Intrigued?
Cool, read on and I’ll introduce you to a concept called “Fulfilment by Amazon”.
How to Tap Into The Amazon Sales Machine
Now this part is where the fire is lit under the online arbitrage business model.
It’s the part that allows you to scale your arbitrage business to the moon if you want…
And the part that let’s us make cool statements like make money while sleeping (as crazy as that sounds!)
You see, Amazon have a platform called “Fulfilment by Amazon” which is designed to let ordinary people like you and I to send products into Amazon’s warehouse…
The store the products, do all of the marketing and sales so you don’t have to worry about spending money on advertising and hosting websites…
And when an item sells they take care of the shipping and customer support so you don’t have to worry about shipping products or dealing with customers which is all a huge time-wasting headache!
With Fulfilment by Amazon (FBA) you are technically become a supplier to Amazon, and although you set your sell price yourself still, everything else is taken care of.
So yes, it means once you have sent products to Amazon your “work” is done and you can be selling products and having them shipped while you are at work, playing with your kids… or yes sleeping!
Feeding The Beast
FBA works if you’re sending in 1 products or 10,000, and Amazon’s scale means that once you get the ball rolling with your arbitrage business they can take as much stock as you can send to them…
We call this “feeding the beast” as the more inventory you send into the Amazon’s sales machine, the more income you’ll make back every month.
With online arbitrage and Amazon FBA, your only challenge is finding enough arbitrage deals every week to invest in, so you can send your products directly to Amazon and to grow your business.
For an Amazon customer, buying from an FBA seller like you is the same as buying from Amazon themselves, and means your products qualify for Amazon Prime delivery (which gives a huge uptick in sales!)
Pretty cool right?!
How to Get Started With Online Arbitrage
To wrap up this whirlwind introduction to the world of Online Arbitrage I want to help you to solve the biggest challenge that will cause you fail with an arbitrage business.
If you can’t find enough arbitrage deals to buy, you won’t make any money.
It’s a simple equation. The more products you find to purchase, the more money you’ll make.
You have a couple of options when it comes to finding arbitrage deals…
The “Fingers To The Bone” Way
You can be the “internet spider” yourself and comb through the millions of products yourself…
Picking a retailer and “copying-and-pasting” the titles to Amazon…
Checking each one manually to see if it’s selling for less money than Amazon…
Working out the FBA fees to see if it will be a profitable deal or not…
And working your fingers to the bone trying to find the nuggets of gold that will make you money (and starting all over again the next day.)
This is the “hard way” and was how everybody did online arbitrage in the old days before any software existed to do this heavy lifting.
Sure, it’s a free way to get started, and if you have a lot of time on your hands and patience it can be worth a try.
The Automated Way
Or alternatively you can try our FBA Wizard Pro software with hundreds of supported retailers that combs through the retailers for you on autopilot and emails you with a list of potential arbitrage deals.
You can then simply review this list of products and invest in the ones that appeal to you the most.
This is obviously the easy way to get involved in the online arbitrage opportunity, and if you value your time then you can learn more about our sourcing software here.
It comes with full training and support to help you to be successful from day one (and help you to avoid any costly rookie errors that cost you money.)
Conclusion
I hope you’ve found this guide to online arbitrage useful and it has whetted your appetite to start your own money-making Amazon arbitrage business.
It really is a very simple business and a genuine way you can use the internet to make some extra monthly income (without wasting time on “get rich quick schemes” or wasting money on expensive BS courses.)
Remember, your only job with online arbitrage is finding the deals that will fuel your arbitrage business and you can really scale things up!
Whether you choose to find products manually or using a software, the key is to take action and to get started. Online arbitrage is all about building momentum and those who are successful (as with anything in life) are the ones who take massive action on their goals!
Happy sourcing 🙂
Shaun “Amazon Wizard” Mitchell
Founder of FBA Wizard
BONUS: Join our secret Facebook group with 5000+ members where you can get the latest online arbitrage hacks and see stories of other regular people from beginners to experts all making an extra income from arbitrage on Amazon. Click here, it’s free to join!
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