In this post I will be sharing my Top 10 Online Arbitrage Tips for Beginners. If you follow some of the tips shared here today, I’m 100% positive you can take your Amazon FBA game to the next level!
1.Use Cash Back sites.
Make sure you are taking full advantage of cashback sites. Cashback is completely free, it’s simple to use and it’s not a scam. Last year I made £3000 on cashback alone.
Check out the image below to see exactly how using cashback websites work.
When you buy something online and you get a great deal, there is going to be a lot of competition. Other Amazon sellers will start penny pinching and trying to sell the same item for a fraction less to try to get the sale over your item.
However if you are patient, prices will rise online and then there will be less competition from other Amazon sellers and you will still get your sales but the key is that you must be patient and not panic if the item doesn’t sell straight away.
3. Manual Sourcing
Manual Sourcing will always get you the best deals and whilst there are some great sourcing software’s out there, one thing that you have to realise is that you will not be the only one using these softwares and therefore, there will be a lot more competition.
It will never beat going out and finding the deal yourself, you get ahead of others finding the deals.
4. Use Honey
If you don’t know what Honey is, it’s a free chrome extension that scans the entire internet for discount codes for the store/site you are buying from. I didn’t find this for the first two years of selling on Amazon however now I pretty much always get discount codes added to my basket when sourcing online and using Honey, It will save you so much money.
5. Stack Cashback Deals
There are so many advantages to sourcing online like stacking your cashback deals. For example, use Honey to get a discount, use AirTime Rewards to get discount on your mobile phone bill, plus a cashback site and then also use a credit card to buy the products which can give you cash back and rewards too.
Use everything that is free to get you the most discount and rewards that you can. Take full advantage of spending a lot of money online.
6. Go Wide, Not Deep
When you are first starting out don’t put all of your money into one product. The product could fail for some unknown reason, or you could end up with the listing being crashed by other sellers meaning your product could stop selling and you end up stuck with a load of that one product. It is better to buy more different products and lower on the quantity side.
If you want to just source thousands of the same product then you may be better of going into Private Label.
7. Don’t be scared to sell dead stock at break even
Don’t be scared to sell dead stock.
Let’s say you bought 50 units of the same product and the first 40 sell really well, then the item gets crashed on Amazon by other sellers and your product stops selling. It is sometimes better to just sell it off at a cheaper price and break even so you can use that money to then source another product.
8. Don’t buy every software at the start
Don’t spend too much money on software’s at the start. When you are first starting out it is easy to end up getting tied up in buying lots of different software’s that you don’t need. I would recommend only one, which is an analyser tool. BuyBotPro. This is what I have used from the start and it has saved me so much time and money.
I recently did a live interview with the co-founder of BuyBotPro who took me through a demo of its new features, click here to watch. It is a great product and personally I think to start with all you need is an analyser tool then further down the line you can look into other products.
9. Don’t ignore your refunds
As an Amazon seller you cannot avoid getting returns. It is a natural thing to happen, especially around Christmas time if you are selling toys.
Don’t just leave them as they still have value.
I made this mistake in the beginning. However, about 6 months ago I listed them all on eBay and sold them all for a profit and really regretted not doing this sooner. So take my advice and get them listed on eBay as soon as they come in so you don’t end up with them all batched up in the corner of your storage space taking up unnecessary room.
10. Stay Consistent
It’s a little cliché, but stay consistent. Don’t buy products, list them and wait for them to sell, you have to keep going before you list again. Set days aside each week to source products and keep a consistent pattern with your business if you want it to grow. If you leave it a month or so you will loose consistency and it is much harder to grow at a steady pace. Consistency is the only way you will succeed.
I hope you found this post useful, feel free to share it with any friends who are starting out on Amazon or considering it.