A lucrative way to make money these days is through online arbitrage. It doesn’t require a special license, and when it joins with Amazon FBA, it works well.
What Is Online Arbitrage?
In online arbitrage, the sellers find the products at a low price in one online marketplace and sell them at a higher price on another online marketplace, generally Amazon. Amazon is the most popular online marketplace globally and offers a Prime shipping service that delivers the products to your door. As this is very convenient, people willingly pay more for it.
Online Arbitrage Leads
The main key to success in the Online Arbitrage business is all about sourcing the products online and reselling them on the Amazon marketplace. Finding profitable leads is a process of searching through various websites. If you want to discover the most beneficial products and buy them, you need a solid sourcing strategy. The best way is to use a lead list to do it effectively and speed up the process. The lead list narrows down your search, and you can use it as a cheat sheet. Generally, you can provide the online arbitrage list by yourself or obtain this service from particular tools. Building your own lead list requires too much effort and time, so it isn’t easy, but you save money. You should pay for it when you decide to use software or tools to have an online arbitrage lead list. As these lead lists are given to other people at the same time, the competition is high.
How to Find Profitable Products to sell on Amazon?
For choosing products that drive more sales on the Amazon marketplace, you can have different strategies. Here we explain these accessible strategies
- Amazon Best Sellers
If you are an entire newbie in selling products on Amazon, Amazon’s Best Seller Page is one of the best places to start, which gives you 100 top-selling products in all categories. Generally, their place is within the top 5-10% of any category. You can identify the products which are highly trending and sell in high volume. They have relatively low competition and haven’t been found yet by other sellers. Monitor Each Best Selling Product
Check each product in a new tab, and view all sellers. Look at these details to increase your opportunity:
- On the listing, Amazon doesn’t exist as a seller.
- It has a low number of sellers. Ideally 5 sellers, but under 10 is also acceptable.
- Check the number of Amazon FBA sellers. It would be great if no one offers this service, but under 5 is also good.
- Try to avoid big manufacturers, as it would be harder to sell.
- Find ideas on Pinterest.
This social media platform has an option for images they may be liked: ”pin.” So everybody can see these images—the number of pins that an item has shows that it is trending online.
- Search the Amazon Trends Report
There is an excellent resource on Amazon that the trending products on different platforms are listed.
- Get Help From Product Research Tools
You can use many softwares or tools which help you select profitable products for selling on Amazon.
- Perform Keyword Research
It is helpful to discover the keywords that resellers look for and which keywords receive the most online research. To reach that, you can use two methods:
- Use Google Trends
- Use Keyword Research Tools
- See other MarketPlaces
There are many eCommerce giants that people use for online shopping, like Aliexpress, Alibaba, and eBay. Look at these platforms to see popular products on the market.
Is Online Arbitrage Still Profitable in 2022?
Generally, compared with other eCommerce platforms, the revenue of online arbitrage on Amazon can be considerably high. Because of the pandemic, online shopping has grown substantially. We expect that online arbitrage on Amazon will also stay at the forefront of this growth in 2022. Besides, nowadays, more tools for analyzing data help you choose the best product with a higher profit margin. So there are still lots of opportunities for those sellers who just started their online arbitrage business.
Final Thought
If you follow our advice to find your first product, you can build a successful online arbitrage business. On Amazon Arbitrage, you as a seller buy products cheaply from online suppliers and resell them on Amazon at higher prices for profit. As you can see, finding items to sell on Amazon would not be that difficult by having a solid strategy and using the right software. Online arbitrage leads that Amazon sellers use are automatically discovered online arbitrage deals by especial softwares.