Is Amazon Arbitrage a Profitable E-Commerce Model?

If you’re thinking about Amazon arbitrage but wondering if it’s still a profitable business endeavor, here’s what you need to know about the e-commerce model.

Being able to work from anywhere and make thousands of extra dollars a month sure does sound nice but does it actually translate to a solid business plan when all is said and done?

Set Yourself up for Success

The thing about online arbitrage is that no one will do it for you. If you decide that you want to try this out, then you are going to have to be the one to set the wheels in motion.

Unlike other online businesses, you don’t necessarily need a partner to get started with Amazon arbitrage. Rather, you need time-management and research skills as well as patience because the process doesn’t work out overnight. Though you can use an arbitrage focused app like Tactical Arbitrage to significantly accelerate product research and sourcing.

All that being said, it is crucial that you set yourself up for success. This means getting started with the free individual seller account on Amazon and deciding on what kind of inventory you’re looking for.

Instead of trying to offer a variety of items, stick to a particular niche or category of goods such as women’s shoes or baby clothes. It might seem strange to have a lean inventory but it actually protects you in the long run in case you run into a particularly unprofitable month.

Use Technology to Help You

While you’re at it, be sure to download the Amazon seller app on your smartphone so that you can take advantage of the tools on there. There is a revenue calculator as well as access to product listings that can help you estimate your returns.

Besides the Amazon seller app, you might want to download others such as Depop, ThredUP, or Shopbop. With those, you might find products at a fraction of the retail price that you can resell on your Amazon store.

Moreover, you can try perusing or going on the Honey app to snag deep discounts on the items that you’re planning on buying. This way, you can purchase the goods at a steep discount and then resell them at their current shelf price for a bigger profit.

Know Which Brands Are Potentially Restricted

Granted, it’s more difficult for individuals to sell on Amazon today, it’s all about knowing the latest rules and regulations. For instance, Amazon has restricted specific brands for individual sellers who don’t have an authorization from the brand, in an effort to crack down on counterfeit goods and poor customer service.

While it makes sense, it can be a bummer for someone who was planning on cashing out by selling a bunch of Nike products. Before you get started with online arbitrage, make sure that you check which brands are off limits on Amazon so that you save yourself the headache.

Be Patient

This tip can’t be stressed enough. So many people want to make a quick buck but arbitrage rarely works like that. Instead, it’s about keeping things simple to begin with and getting your feet wet before diving all-in.

Learn the skills required to excel in data science and data analytics covering R, Python, machine learning, and AI.

Free Guides - Getting Started with R and Python

Enter your name and email address below and we will email you the guides for R programming and Python.

Saylient AI Logo

Take the Next Step in Your Data Career

Join our membership for lifetime unlimited access to all our data analytics and data science learning content and resources.