in this video we're going to talk about
how to make money through online
arbitrage now that might be afraid
you've never heard before but all we're
trying to do is purchase products at a
lower price and resell them on Amazon at
a higher price now you can either get
these Goods at retailers in person or
online
now these arbitrage opportunities are
different than some of the other methods
we talked about on this channel like
private labeling or wholesaling with
those you're either going to contract
with a factory to make your product for
you or find wholesalers that we're gonna
sell you their goods in bulk at a
wholesale rate instead we're actually
maybe buying the goods from retailers
and then reselling them on Amazon now
you might ask how do you get the goods
from retailers cheap enough so you can
make a profit selling them on Amazon to
do that we're gonna look for a deeply
discounted products or find products
that are in very high demand so the
price is elevated much more than normal
now since we're recording this while a
lot of people are in self-quarantine
we're going to be focusing this episode
on online arbitrage but as you can
imagine the brick-and-mortar style is
gonna be very similar in both cases
we're gonna be looking for low priced
goods so let's get started throughout
this video I want to give you a few
spots that are common for people to
purchase goods from however keep in mind
that throughout this video you want to
be taking in the overall concepts or
theories of how to get these low priced
goods because if I gave everyone just
this one spot to go to everyone will be
trying to purchase the same things now
there's two ways you can kind of get
started here
one way is getting started inside of a
tool like jungle scout the other way is
starting at these online retailers where
you're looking for the deeply discounted
goods I'm gonna show you both of these
ways but we'll get started with using
jumbo scout I'm inside jungle scout and
using one of the pieces of functionality
called the product database now all this
is is Amazon's catalog of products but
with a whole bunch of additional filters
so you can sort through Amazon's catalog
in ways that you otherwise wouldn't be
able to do so what you can do is you can
select the categories
interested in and are a bunch of
numerical filters over here and then
look at the results below for this first
example what I did is I searched for
books that costs at least $50 don't sell
very much so only sell up to 10 units
per month but they have at least 500
reviews what this is kind of telling me
is this is a higher priced item that has
a whole bunch of reviews so 1.0 is
extremely popular but right now there's
likely limited supply or the prices are
elevated because it has a whole bunch of
reviews but only sells a few units per
month now it spit out 273 results and I
can start to look through these
different results but what I be looking
for here are books that I think I could
purchase elsewhere and resell them on
Amazon so let's take a look at an
example alright so this particular book
has 635 reviews which is a ton jungle
scouts telling me that it sells 10 units
per month and it looks like there's only
one new offer for sale and it's being
sold for $58 and 76 cents timeout if
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videos alright let's get back to it the
reason I started with the book category
is because it's one of the few
categories that people are willing to
pay a really elevated price for goods
now let's see if we can find this book
elsewhere on Google the top couple of
results are at Amazon the next ones at
Barnes & Noble and here I see the book
for only $14.95 it does look like it is
out of stock right here so let me see if
I can find a different retailer where
they have this in stock it looks like a
books has three of these in stock for
$17.95 and if I go back to the Amazon
listing it's for sale for 58 dollars and
76 cents so I'm sure you're starting to
get the idea here but I could buy those
books for the cheaper price and then
resell them on
now Amazon does take a fee for selling
through their platform and for
fulfilling the goods and let me show how
you can calculate that the free way to
go about doing it is using the FBA
revenue calculator if you just google
search it it'll be the top result and
what you do is you paste in that
particular book I'm gonna scroll down
and grab the Aysen
for this one
nobody has entered the dimension so I'm
gonna just do estimated ones real
quickly all right I want to use the FBA
program which means Amazon stores my
goods for me in their warehouses and
they actually pick pack and ship it to
the customer when someone places an
order and the top line I'm gonna put in
what it's selling for so right now it's
selling for $58 the product itself was
1795 but let's go ahead and round that
up a little bit because there'll be some
shipping and handling involved in there
and I'm gonna go ahead and calculate so
if I purchase this product and get it to
my house for $22 and sell it for the
price at selling for an Amazon right now
at about 10 units per month I would make
19 dollars and 60 cents per book sold
which is pretty awesome
it looks like a books had three of these
in stock so I could order all three of
those send those three into Amazon since
they're selling about 10 units per month
I could probably expect to sell these in
roughly a half a month and for each of
those I make about 20 bucks so you can
see right here that I only spent a few
minutes searching for this and I was
already able to find a winner now as you
can tell this is a fairly manual process
and it takes some time so when you're
going through it I encourage you not to
get discouraged because sometimes it
feels like you'll go through spurts that
for twenty or thirty minutes you can't
find anything and then after that you'll
hit a hot streak and find a few
different opportunities in a row
when you're thinking about what to
search for I like to think about what
are people willing to pay higher than
MSRP prices for things that first come
to mind or like the hot toys of the
season or that new fashion accessory
that's really difficult to get but
there's a lot of other things too in
this particular example I've searched
for ink cartridges and I put a minimum
filter of $200 and they have to least be
making eight sales per month this is one
that I've run across in the past and
after people have already bought a
printer they're willing to pay quite a
bit of money for ink cartridge
replacements for that old printer that's
difficult to find what you can do is you
can sort through here for example this
pack is for four hundred and thirty
dollars and there's eight being sold
every month and then all I do is I just
take this and I search on Google for it
now three-quarters of the time you also
won't be able to find it on Google but
for one out of every handful you can
typically find somewhere else to order
it from it's some other kind of weird
website but you can order that from them
and then ship it in to Amazon and make a
healthy profit off of it so now I've
covered a few of the examples that I use
to search for products using jumbo
Scouts product database the other way to
go about it is the opposite way and
first look for the supply now to do this
the best method is to go to the big box
type stores websites and search through
their clearance section I've just pulled
up a list of a few of the most popular
but this is a great way to think about
all these different types of big-box
stores that sell their goods so let's go
ahead and just choose one of these
let's try Office Depot what I do is I
just search for office depot clearance
there we go it's right at the top and
now I'm looking at all the clearance
items on office depot now what we're
doing here is we're trying to find items
that are very deeply discounted that we
think we could purchase then resell on
Amazon as a general rule of thumb the
products typically need to be 50% off
or more in order for you to purchase it
sell it on Amazon and make a decent
profit let's start by just looking at
this desk which is exactly 50% off I'm
gonna search for it on Amazon here it is
it's actually selling for more three
hundred twenty four dollars on Amazon is
the price however we want to make sure
that it's actually selling in order to
do that I'm gonna use jungle Scouts
Chrome extension I click the button and
it pops up and it shows me how well this
particular products been selling and
lately it hasn't been selling the past
month it has sold zero units so for this
particular product you'd be taking a
little bit of a risk by purchasing it
you could probably make a healthy profit
off of it if you sell one however since
it hasn't even sold one unit in the past
month it might sit there for months and
months on end before it ends up selling
now a clever thing that you actually can
do when you find a scenario like this is
you could actually list this product on
Amazon using fulfillment by merchants
you could put a longer delivery window
say 7 to 10 days and then you could
actually wait until someone purchases it
from you and then you'd go and purchase
it off of Office Depot and then mail it
to the customer when you do this you
have to be careful that it's still for
sale on Office Depot because Amazon gets
pretty upset if you have to cancel
orders after a customer has placed it
let's try to find another example
products that are priced very low let's
say less than 10 or $15 there's
typically no money left over to make
profit off of it so I'm gonna choose one
of our filters over here to save 50 to
$100 and then look through this
particular list alright so looks like
these folders are typically $55 per box
and they're on clearance for 1393 which
is very cheap so I'm going to try to
search for this product on Amazon and
see what it sells for on Amazon now you
can either search directly for the same
title alternatively you can try
searching
for the manufacturer number which will
make sure that it's the exact same item
but oftentimes doesn't pull up so for me
the manufacturers number didn't show up
so instead I'm just going to search for
the title all right it looks like there
it is in the very top left this appears
to be the same item ten per box over
here
it also says packet ten now let me see
how well these are selling so for this
particular item it looks like it's
selling about seven units per month
which isn't very many but that does mean
that it sells one every few days so I
could order this product from Office
Depot I could then send it in to Amazon
so that it's eligible for prime shipping
and then I could expect to sell one
every few days now of course I wouldn't
make the entire 46 98 in profit to
figure out how much money I would make I
can click on this net number this has
done the Amazon fee calculations for me
I just need to enter how much I'm
purchasing it for so it's 1393 but we
have to factor in a little bit of
shipping so let's just say seventeen
dollars for the purpose of this demo and
it's showing I would make 17 dollars
profit we're a hundred percent 104
percent ROI return to my initial
investment so this particular item would
be a pretty good item you could start by
ordering just two three maybe four of
them or if you were feeling really
bullish even more than that but this is
how I go about finding opportunities by
looking for the product first and then
seeing how well it's selling on Amazon
let's now look for another example so on
targets clearance page they have a few
more filters I've selected a 50%
discount or more and 25 to $100 there's
only a few options here but I can go
ahead and start to look through them the
one that catches my eye is this Charlie
soap indoor and outdoor it says see low
price in cart which is usually a good
sign because
means they're not allowed to publicly
advertise the price because it's below
what the manufacturer will allow them so
let's go ahead and see what this is
selling for on Amazon alright here it is
on Amazon it's actually selling for one
hundred and nineteen dollars which is a
lot for a bucket of soap let's see what
Target selling for in the clearance
section so this one with free delivery
and tax it ends up being forty dollars
and 42 cents which is a lot less
expensive than 119 on this so let's see
how well this particular product sells
and good news it looks like this product
sells about thirteen units per month or
about one sale every other day now
Amazon of course is gonna take their cut
after Amazon fees there's 88 dollars and
13 cents left but at a purchase price of
$37 that still means I can make about
$40 profit for every one of these that I
sell now it is important for you to
understand about the buy box and other
sellers selling on a particular listing
this one right here it tells me there's
four new offers for this particular
listing what happens is Amazon rotates
different offers through the buy box as
long as they're within 2% of the least
expensive offer so in this example right
here I see that there are four offers
but the other three they're not within
2% of this lowest price and if there's
multiple offers at the same lowest price
they're gonna prefer the ones that offer
prime shipping so if I was going to sell
onto this listing and I was gonna sell
it for $17.99 I was also going to use
Prime I would get the buy box about half
of the time and this other person would
get the buy box the other half of time
when I say buy box I'm talking about
this area right here most consumers
don't know it but when they click Add to
Cart or buy now they're purchasing from
whoever's in control of the buy box
which
now is by Charlie's soap so those are
the two different methods that I use to
find products for the arbitrage
opportunity
I either start in jungle scout and use
the different filters inside jungle
Scouts to locate these opportunities
then try to find the product
alternatively you can try to find the
products first see how much they're
selling for on Amazon what your cut
would be and the most important thing is
to see how many units they sell per
month and how many other sellers are on
those listings now before you get too
excited about any one opportunity and
definitely before you spend your money
to order it I recommend you set up an
Amazon seller central account you can do
so with the individual account which is
free go in to seller central click Add
products and then enter the Aysen that
you're interested in selling you find
the Aysen under the product information
section so I'll copy this Aysen right
here I'm going to go into Amazon search
for it and this will tell you whether or
not you're eligible to sell that product
there are certain products on Amazon
that are restricted for various reasons
so I'm gonna select new condition
because even though I'm purchasing this
from a retailer I'm still selling it in
new condition because it's never been
used it's still brand new and then I see
I have the option to sell this product
so I am eligible to sell this particular
product let's see what it looks like
when I'm not eligible to sell a product
I mean it's I've been a different Aysen
this one's for Apple earpods
and I can see over here that the button
says not available so it won't let me
sell this the reason for this particular
one is Apple worked out some kind of
arrangement with Amazon to not allow
other resellers on their listings unless
they go through some kind of approval
process with them now sometimes you'll
see a button that says request approval
and I would encourage you always just to
request it for different types of
products and different categories the
approval process is different but
sometimes it's as easy as just asking so
you might as well ask and see if you get
approved
if you don't get approved for it then
unfortunately you're not going to be
able to sell this product so that's why
you definitely want to make sure to
check this before actually purchasing
the product from the retailer
so let's go to the example of this
candle which I am allowed to sell it's a
new condition so I'm going to sell this
product and the process from here is
pretty simple
this listing already exists on Amazon
I'm just selling on this listing so I'm
gonna say what price I'll be selling my
product at you don't have to create a
seller SKU it'll do it automatically for
you or you can just put in any
combination of letters and numbers that
helps you remember it
I could just say Lulu candle I'm going
to sell it in new condition let's
pretend I ordered three of these from
Target and down here I'm choosing
whether or not I want to do fbm which is
fulfilled by merchants or FBA fulfilled
by Amazon now the difference with these
two is fulfilled by merchants means that
you're gonna store the goods at your
house and when a customer orders through
Amazon you're going to fulfill that
yourself so you're gonna put in a box
and you're gonna ship it to the customer
FBA on the other hand or fulfillment by
Amazon means you're gonna send your
goods into Amazon ahead of time they're
gonna store it in their warehouse and
when a customer places an order they're
gonna go grab it out of their warehouse
put it in a box and send it to the
customer for you the reason I prefer FBA
is because I don't want to do all that
work I want Amazon to store my goods I
want them to ship it to a customer when
it gets placed I don't want to spend my
evenings packing boxes and fulfilling
orders to customers so I always choose
to do FBA on the next screen you're
going to click Save and continue we want
to make sure that the Amazon barcode is
the barcode type selected here they're
just asking if there's any dangerous
goods information about this like does
it have a battery or does it have
regulatory information and the answer to
those are no and a save and continue'
again now I'm going into the send
inventory flow and if you already have a
shipment plan created you can add this
these candles to an existing shipping
plan but I'm gonna do a new shipping
plan enter the address where you're
shipping the goods from so is typically
going to be your house it's going to be
individual
products cuz I can put multiple products
into the same box so I could do like
three candles and three buckets of soap
or whatever else and continue the
shipping plan it's asking me how many
units of these candles I want to send in
I said I'd three so we'll go three this
greens asking who's gonna do the prep if
any preps required now what you can do
is you can click no prep needed and
you'll see the category right here and
these are all the different types of
items that need additional prep for
example if it is a fragile or glass item
it might require bubble wrap to be put
around it if it is a baby product then
you need to make sure that if there's
any pieces of it exposed in the
packaging that it's inside of a plastic
bag for our example we don't need any
additional prep so we'll say no prep
needed and now we can go to the next
screen either we can do it ourselves by
printing the labels right here I just
click print labels for this page
alternatively we can pay Amazon 30 cents
a label to have them do it for us for
this example let's just pay Amazon the
90 cents to do it for us I'm go ahead
and click continue now it's creating the
shipment plan and what it's doing is
it's telling me where I need to ship
these goods to right here you can see
that they actually chose three different
distribution centers for me to send my
goods into now oftentimes what will
happen is you'll have a whole bunch of
different goods that you're sending into
Amazon you know you spent the week
ordering all these different products
from different web sites or all your
house now you create one shipment plan
with all these different types of goods
and then they're gonna tell you okay you
have to send one box to this
distribution center one here and one
here so one box is gonna have a candle
in it and something else and that other
stuff that you ordered and then it's all
going to be shipped off to New York then
there's another one that gets shipped to
California and there's actually two
that's gonna be shipped to California in
this example from here I'm gonna go
ahead and approve these and continue and
then this process is pretty simple you
click on work on shipment for each one
on that page it's gonna ask you how big
the box is how much it weighs and you
can actually use Amazon's account to
print out you
pS label you stick that on there and
then you either drop it off a UPS store
or have them come and pick it up and
that's all there really is to it as you
can probably tell from going through
these examples this is a fairly
time-consuming process you're not
necessarily setting up systems to make
money for you as you moreso are with a
private label product or wholesale but
this is pretty easy to do you can start
off with very little money you can learn
kind of how Amazon works you can make a
little bit of money off of it and then
what happens is a lot of people then
choose to move on to doing something
like a private label product on Amazon
with private label products it's really
nice because you're setting a system up
to make money for you and you don't have
to go spend hours searching through
these different sites but of course it
takes more money to get started and
there's a little bit more work to get
started so this is a really cool
opportunity for people who just want to
make a little bit of extra money and
kind of learn how the Amazon system
works
to recap you can find products either in
retail stores which we didn't do today
because we're focusing on online
arbitrage or online like we did today
when you're looking for products online
I either recommend searching through
jungle Scouts product database or going
straight to the department store
websites and looking in the clearance
sections you want to make sure there's
plenty of money left over for you after
Amazon takes their fees out you want to
make sure that the product is selling on
Amazon otherwise they're just going to
sit there forever and keep in mind that
you'll have to share the buy box with
other sellers if they're selling at the
same price as what you are and that sums
up this opportunity so now that you've
watched this video let me know in the
comment section below are you gonna give
online arbitrage a try I always loved
reading everyone's comments and if
you're enjoying jungle Scouts videos I
encourage you to hit that subscribe
button hit the little bell icon so
you're notified of new videos and thank
you very much for watching I've enjoyed
it take care
you
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