The idea of buying and selling has been present since the beginning times of trade.

 Today, it’s the foundation of commerce. 

You buy an item at a low price to sell it at a higher rate. This is how retail works.

Stores purchase merchandise from their wholesale suppliers, and sell that merchandise to their customers
at a higher price. Or at least they try to.

The Same principle is used on the internet. The latest trend on the web is the eBay-Amazon arbitrage. You search for the same product on both websites and compare its prices. If eBay offers a lower price on the item, you buy it and then sell it on Amazon. Once you complete the sale, you will profit from the price difference.

What You Should Sell on Amazon

Amazon is a place where you can sell virtually almost any product that comes to your mind, as long as it is legal. Your primary step should be to ensure that the product is popular and can generate profit. The best way to know this is to check if the product had repeated or bulk sales. You can also check watch lists for the items of interest. Once you gather this valuable information, sort the products according to price. This will give you an idea of how much money you can get for an item, which will answer the primary question – can you make a profit from the sell?

You should ensure to avoid electronics, such as tablets, laptops or mobile phones. The reason is that they are, in most cases, sold by Asian wholesalers who offer extremely competitive prices. There is little chance that you can compete with their rates, so make sure to steer clear of those products.

The exception would be if you are purchasing an electronics brand that is not otherwise available for sale online.

It is also a good idea to avoid items that are on wholesale by other sellers. There are products that you can find on Amazon within seconds. However, there are also items that are not sold on the internet that often and you should target them. It would be great if you would be the first person to offer a particular item on Amazon. You can try to be creative and predict the next big thing. Alternatively, look for items that are sold out but in demand.

If there are items being sold directly by wholesalers on an Amazon marketplace, but you can purchase those items as closeouts, then you might be able to compete with the wholesale suppliers themselves.

Increase the Price of Your Product

A product can achieve a bigger price when a limited number of units is offered. People are willing to pay millions of dollars for diamonds because they know they are a scarce resource. This is why you should make sure to put an item for sale as if it the last one you have in stock, even when it isn’t. You also shouldn’t neglect a potential buyer’s reaction when he notices that it’s the last unit available. If you are the only seller of that item, he might just buy it right now just because he doesn’t want somebody else to beat him to the purchase.

Limiting your items to a single unit sales can help you make a profit. 

Be careful about stocking up on too many units of a wholesale item.

Prices on eBay can fluctuate. Imagine what would happen if you post a product on Amazon, and another seller shows up offering a lower price. Having a large number of items in stock means that you will need more time to sell them, which endangers your profit. 

On the other hand, ff you sell only a single unit of the product, and you run out of stock, you will miss out on future sales, so you do need to find the right balance.

You should be constantly searching on eBay for items that are being sold at an especially low price either because of the low quality of the listing, or because a seller has low feedback.

eBay listings that are not clear or descriptive will attract less and fewer bids, so those are the items that you can bid on and potentially buy at a very low price.

You would then take those items and sell them on Amazon at a higher price.

For example, an eBay seller might have a lot of wholesale Ralph Lauren dresses for sale, but his picture is not that great, therefore discouraging potential bidders.

You would place a low bid, and if you win the lot you would then try to resell this Ralph Lauren dresses on Amazon at a higher price.

There are restrictions and requirements when it comes to selling brand name and designer wholesale merchandise on Amazon, so you need to look into what they are, and work towards getting approved to sell those products.

Tools

Prices on Amazon fluctuate all the time. This is why you need to continuously monitor if someone showed up with a more attractive price. Fortunately, Amazon is a large online retailer and items are sold fast, so the chances are that your product will find its buyer quickly. 

There are various tools that can make your job of keeping up with the prices easier:

1) CamelCamelCamel – Amazon price tracker

2) Fbatoolkit.com – a comprehensive software for Amazon sellers

3) Priceyak – compare prices from many large online retailers

Failsafe Techniques

What if a customer ordered an item from you on Amazon and that same item got sold out on eBay? It can be tricky, but there are moves you can make to save your face. The first thing to check is if there are similar items on Amazon. You can buy that same product and ship it to the customer. In case you can’t find it, offer an honest apology. Say that you don’t have the item in stock anymore and ensure to provide a substitute. Most people will accept a product similar to the one they were looking for and make the purchase anyway.

Successful Advertising

Your posts on Amazon are what sells your product. They are your advertisement, and that is why they need to have a professional look. The idea is to entice people to check out your product. Make sure to put a lot of pictures so that the customer can get a vivid idea of what he/she is buying. Statistics say that visual ads have more chance of making a sale.

Pay attention to copyrights of the images you post. Some companies do not mind their photos being published anywhere on the web because they believe this can make their brand more popular. However, some companies won’t hesitate to contact you and ask you to take down the pictures. If you refuse, they might even go a step further and file a lawsuit.

Monitor Your Profits

Always remember that you are doing business, not charity work. First of all, make sure that you are, in fact, making money. Also always keep track of how much money you make. As for the profit, you should be satisfied with a 10-15% margin. If you can constantly keep it at that level, you are on the right track.

Ben Doyle is a reputable eBay-Amazon seller that makes a whopping $20,000 per month. He built his business slowly, starting from profits as low as $500. With time, he began climbing the revenue scale until he hit the five-figure goal.

But I can assure you that every seller had to be consistent with his business, since success is rarely an overnight occurrence, and there will challenges that might shake your resolve.

It’s possible to be successful in eBay-Amazon arbitrage. However, you have to be patient and put in great effort. Once your business starts growing, you will inevitably take pride in your success and become excited about the profits that you can make.