April 7, 2020
What Is Retail Arbitrage – Tips for Selling on Amazon FBA

What Is Retail Arbitrage – Tips for Selling on Amazon FBA


what’s up everybody it’s Juston with
flipping profits and today we’re gonna be going through what is retail
arbitrage what are the pros what are the cons before we get into that please go
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what is retail arbitrage pros cons let’s throw that two minute timer on the clock
alright retail arbitrage so for those that are brand-new to retail arbitrage
I’m going to try and make it as simple as possible for those that are advanced
I’m going to try and throw some pros and cons in there so you guys can get the
meat and potatoes of this video as well all right retail arbitrage is the act of
going into any store buying a product either that is one just going out and
being discontinued to on clearance or three it’s going to be at regular price
that you’re going to turn around and any of those resell them online for
profit now for us we have found that amazon.com is the best platform and best
marketplace for reselling retail arbitrage items but ultimately you know
there are other platforms there’s ebay polish mark Macari you know there’s a
billion of them out there there’s new ones that are coming out every single
day so just know that ahead of time understand it amazon.com generally is
going to have more sales volume but we could talk about more about that in the
future of why we recommend selling on Amazon so what are the
and what are the cons number one usually you’re buying an item and getting a
really good return on investment that’s pro number one and really good invent
return on investment is honestly anything over you know forty or fifty
percent is insanely good for reselling you know there are some outlying cases
where you can buy products and a hang on to them for months and months and months
at a time and then sell an item and get a 300% return on investment that’s great
basically I’m not saying that that’s a bad business model but that’s not what
we do there is wholesale and generally so you guys are you know for those that
don’t know what wholesale is in our wholesale business we look for a product
that has a minimum of a 15% ROI and usually we’re shooting to try and get
more products that are closer to thirty percent return on investment so for
every dollar that you’re putting in you’re getting a dollar thirty back now
with retail arbitrage you’re like well way better why would I ever do wholesale
and the reality is is wholesale is just a little bit easier to graphs those
products it’s more consistent it’s more sustainable so with retail arbitrage
though one of the absolute best things is you can walk into a store a find a
product you know that you’re getting an 80 or 100 percent return on investment
on and successfully sell it now what are the cons what are the bad things Justin
that sounds so great you know why wouldn’t I want to
implement retail arbitrage and the reality is there is a lot of red tape
and retail arbitrage there’s a lot of you know companies that are out there
that are submitting what are called IP claims or they’re submitting trademark
infringement or counterfeit claims towards individual sellers just like you
and I it is a pain in the neck to go through that type of stuff it is you
know the best recommendation and the best thing that we always tell people is
do your homework beforehand you know figure out what brands that you can sell
figure out you know just because you are unguided in a brand doesn’t mean that
you can go out and start selling it tomorrow so understand the rules of the
road understand who’s gonna send it an IP claim against you who’s gonna take
down your Amazon account because ultimately that is you know the biggest
downside great upside but without risk there’s no reward right
so you have to take on that risk so I hope you enjoyed that two minutes hip if
there’s anything else that I may have missed make sure to leave it down in the
comments section below I’m interested to see what you guys think and we will see
you in the next video have a wonderful day see you tomorrow

13 thoughts on “What Is Retail Arbitrage – Tips for Selling on Amazon FBA

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  2. It's nice to have a video to look at everyday, thank you. My concern with RA are the IP trolls out there. It's scary to know that you are ungated in a category but not know every brand, etc… that you can't sell. Plus it appears that most resellers on YouTube have had the unfortunate event of facing an IP claim. Another reason to get proper coaching to avoid the potential pitfalls of the Amazon world. Can hardly wait for your course to start!

  3. Good video…another con is clearance items tanking. Most new sellers aren't prepared for this and can't afford to hold for prices to rebound. A big haul can turn into breaking even in under a weeks time

  4. I have an idea for a video. I found an inexpensive item at Walmart that sells profitably on Amazon, and has a decent rank…But the unit of measure on AZ is 2. Can you show how to properly combine two items before you send it in to FBA? Both in terms of packaging and labeling the items? If that video is already out there, pointing me in the right direction would be most appreciated as well. Thanks!

  5. Can the first sale doctrine be applied to physical products in defending yourself against an IP complaint? Watching daily, all your 2 minute tips are great.

  6. Yes…
    🔹Paul Rowen's suggestion on multi-packs for profit (and Amazon fees) sounds good.

    🔹Reselling New vs Used

    🔹Necessity of selling on other platforms

    🔹Finding products (Avoiding the Feast & Famine sourcing)

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