Online arbitrage sourcing is challenging for two major reasons:
- It’s time-consuming - On good days, you could find a good deal within an hour or two. On tough days, you could spend four hours and not find one good deal. It's a lot of effort to maybe get returns
- Amazon and other online marketplaces' pricing are always competitive so you have to constantly be on the lookout for price changes. A deal you found an hour ago might no longer be profitable when you check back.
If you choose to source profitable products you can resell on Amazon by yourself, you need a sourcing strategy. Here are a couple of questions to ask when sourcing for online arbitrage deals.
Is the item in stock at source?
You may find a deal that looks profitable but the minute you create an account or try to buy, you discover that the item is no longer in stock or maybe they don't have as much stock as you want.
Try adding as many items as you could possibly buy to your cart and then try to checkout. Some websites may not display that an item is out of stock until you try to buy so it's important to check if the item is in stock before running through other checks. It doesn't matter how profitable the product is if you can't even get the product to list.
Is it profitable after fees?
To determine the potential profit, you would have to consider a lot of factors like the product’s 30-day price on Amazon, Amazon fee, VAT, delivery fee, and prep center fees. After all the fees, is the product still profitable or are you barely breaking even?
Is it exactly the same item listed on Amazon?
Two products may look the same at a glance but when you delve further into the description and details, you may discover that they differ in size, weight, material, quantity, and sometimes manufacturer. For example, the product at source could be a single item while the Amazon listing is a bundle item which may explain the large profit that attracted you to the product.
- Is it the same size/weight/color?
- Is it the same manufacturer?
- Is the item bundled?
Double and triple-check to ensure the product at source is the same on the Amazon listing. You don’t want your seller account to get suspended by Amazon for delivering a product that is different from what you listed.
Take a look at these screenshots below. At first glance, they seem like the same product and it looks to be profitable. But when you take a closer look at the description, you will find that these items are made by different brands and have different features.
How many sellers are on the listing?
If you find just one seller on the Amazon listing, it could mean a couple of things; optimistically, it could be that you have just stumbled upon a goldmine that other sellers are yet to be aware of. More realistically, the product could be a private label or the manufacturer is on the listing and reporting every seller that tries to join that listing.
Listing an item that is Private Label may lead to an IP complaint so try to do a little more digging when you find just one seller on a listing. Discovering if it's the manufacturer on the listing wouldn't be that difficult - simply check if the Amazon store name and the manufacturer name are the same.
Does it sound like a lot to keep track of? That’s because it actually is. Using a lead list (deal sheet service) is one of the best ways to speed up the sourcing process.
One Good Deal will save you time and energyy spent on sourcing. Our sourcing specialists will find you profitable and fast-selling FBA deals with a minimum of 30% ROI. You also get instant replacements on unsuitable deals.
You could also get a personal VA to do all the hard work. Whichever route you choose, you would still have to do some quick checks yourself. As careful as the lead service or VA might be, a rare error might be made and your seller account takes the brunt of it so be sure to do your own vetting.