There are many opportunities for people who want to make money on Amazon.
To get the main question out of the way: can you make money reselling products on Amazon? Yes, you can. But how you do it will depend on your objectives and how much money you want to make.
Old School Reselling on Amazon
Years ago, many people around the world thought they were onto something thanks to Amazon’s flat postage rates across categories.
No matter if you purchased a book, a videogame, or a pair of shoes, you would pay a flat postage rate. Every book would have the same postage and packaging added, and so on.
This meant that you could buy books in second hand, thrift, and charity retail stores, list them on Amazon for $0.01, and make a profit on the postage. All you’d need to do is send the book at the cheapest possible postage option, and you’d make a tidy profit.
The downside to this? Unless you were specifically looking to make a very small amount of extra income on the side, you’d need to work incredibly hard to make any money, as even if you were you lucky you might have only been able to break $2 profit per book sold. The time needed to buy books and take them to the post office would be demanding, too.
The old school way of reselling on Amazon was fun, but probably wasn’t something you could grow into a business.
Today, there several opportunities to make money reselling on Amazon, with arbitrage potentially being the best of them.
What is Amazon Arbitrage?
The principle behind Amazon arbitrage is simple. You look for products to buy elsewhere that you can sell at a higher price on Amazon. You buy at the lower price, and sell on Amazon to make a profit.
How Is This Possible? I Thought Amazon Was Cheaper Than Anywhere
It’s still true to say that it will often be possible to find products for sale on Amazon that are cheaper than they are anywhere else.
However, when retailers – and we’re talking about both small local stores as well as larger national and international chain stores – need to clear through stock, or host events such as flash sales, you might be able to pick up products that you can then sell at a profit on Amazon.
How Much Can I Make with Amazon Arbitrage?
The best and probably the most honest answer to this question is: as much or as little as you want.
If you want to indulge yourself in Amazon arbitrage just to make a small amount of extra money on the side, then fantastic. If you see arbitrage as a long-term opportunity and potentially becoming your primary source of income one day, then it’s possible that you could make this happen, too.
Probably the most important thing here is to understand that you’re not going to make a fortune overnight. Reselling on Amazon can be lucrative but it isn’t easy, and it definitely isn’t a get rich quick scheme!
Like most things in life, what you get out of your arbitrage activities will correlate with what you put in.
How Can I Make Money Reselling on Amazon with an Arbitrage Strategy?
There are a number of different ways you can approach Amazon reselling and arbitrage.
While there’s no harm in visiting physical retail stores yourself to seek out products for arbitrage, this can be time consuming and costly, particularly if you start out doing arbitrage as a means of making a side income. Although going to buy products for arbitrage in person yourself is often what people do when they’re just starting out, it actually probably makes more sense to do it as your arbitrage activities grow and to use it as an additional means of sourcing products.
When starting out the best idea is to source products online. Not only can this be more efficient in terms of finding products at a low price, but if you use an online arbitrage tool you can more easily find specific products to buy that can be sold at a profit on Amazon.
By signing up to Tactical Arbitrage you can access a seven-day free trial to try it out and get to grips with using an online tool to source products for arbitrage.
Once you know how you’re going to source products, you need to be clear how you will move them on at a profit.
The best option is to use Amazon Fulfilled by Amazon (FBA). All you need to do is set up a professional seller account on Amazon and then sign-up for Amazon FBA. This lets you send the products you’ve bought to an Amazon fulfilment center. You still sell the products from your own Amazon online store, but when the sale is made Amazon will pick and dispatch the order, as well as deal with any customer queries, on your behalf. This means you can give more of your focus to sourcing products, while if you’re just getting started and have another job it will minimise the time you need to commit – all you’ll need to do is buy the products and send them onto Amazon – while letting you make an income and start to build your arbitrage profits.
Making Money Reselling on Amazon
Whether you decide to get started straight away with an online arbitrage tool or prefer to source products either in-store or online yourself, there’s a big opportunity to make money reselling on Amazon.
Remember that it’s hard work, which is why not everyone is doing it, but by putting in the time and the effort you can succeed at online arbitrage, whether you want to make a small secondary income or have visions of building a business from which you can make your living.