Even with Amazon’s increasing competition, online arbitrage can be a rewarding venture. It’s accessible to start and grow your business without requiring a large upfront investment.
Choosing the correct product is crucial to turning a profit. Primarily, successful online arbitrage revolves around thorough product research. Finding profitable products demands a significant amount of time and effort.
Continue reading to learn strategies for locating products suitable for online arbitrage and how to streamline your product research process.
Choosing Profitable Products for Online Arbitrage
Online arbitrage involves buying products at a lower price and selling them at a higher price to make a profit. The key idea is straightforward: purchase items at a discount and resell them for a profit. Online arbitrage sellers search for discounted products online and resell them on Amazon.
Selecting the right products for online arbitrage begins with generating product ideas. Afterwards, it’s essential to assess product profitability, sales potential, and any restrictions in place.
Selecting Amazon Online Arbitrage Product in a Few Simple Steps
Step 1: Think of product ideas by finding items at lower prices.
Step 2: Dig into product research to uncover sales potential, restrictions, and any account health issues.
Step 3: Thoroughly analyze the product to confirm it will be profitable when sold on Amazon.
How to Find Product Ideas for Online Arbitrage?
Discovering a good deal for online arbitrage involves knowing what to look for, selecting a popular product category, and the item itself.
Criteria for finding online arbitrage deals:
- Best Seller Rank (BSR) below 30,000;
- BSR stability for at least 90 days;
- Price ranging from $15 to $100;
- Average rating of 4 stars or higher;
- Reviews between 5 and 500;
- Item must be in “new” condition;
- Standard dimensions;
- Popular product category;
- Not sold by Amazon;
- Not a Private Label product;
- Amazon is not in the Buy Box;
- Legitimate product variations;
- Not a product highly dependent on seasonality or trends;
- Not a very niche product.
What are the Popular Online Arbitrage Categories?
- Home & Kitchen;
- Toys & Games;
- Books;
- Beauty & Personal Care;
- Grocery & Gourmet Food;
- Health, Household, & Baby;
- Kitchen & Dining;
- Baby;
- Office Products;
- Pet Supplies.
Where Can You Search for Product Ideas for Online Arbitrage?
- Utilize product finder tools (e.g., Tactical Arbitrage, Search Mogul);
- Explore discounted deal websites like Brickseek for your product;
- Check out discounted offers from other online sales platforms such as Walmart or Etsy;
- Purchase researched Amazon deals lists.
Examples of websites for discovering online arbitrage products:
- Google trends;
- Brickseek;
- eBay’s trending list;
- SaleHoo Market Research Lab;
- Walmart;
- Etsy;
- Pinterest;
- Shopify stores;
- AliExpress’s best-sellers list.
How to Conduct Product Research for Online Arbitrage?
Product research includes assessing the item’s sales opportunity, confirming sales limitations, and ensuring it won’t harm account health.
Evaluating Sales Potential
- Check the Best Seller Rank (BSR) – it should be under 30,000 and stay relatively stable for at least 90 days;
- Analyze the Buy Box behavior over a 3-month period – it should remain consistent;
- Determine the total number of Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM) sellers on the listing – aim for 2 to 10 sellers;
- Estimate potential product sales if you were to start selling on the listing as an additional seller.
Verifying Sales Restrictions
Confirm that the product is not from a restricted category or brand. If it is, you must seek approval from Amazon before selling it.
Checking for Sales Limitations
Ensure that the product is not:
- Oversized or easily breakable;
- Meltable;
- Intended for adults only;
- In a prohibited category.
Ensuring No Account Health Issues
Check that the product does not have:
- Suspected intellectual property infringements;
- Received intellectual property complaints;
- Customer complaints regarding product authenticity or condition;
- Issues related to food safety or product safety;
- Violations of listing policies, restricted product policies, or customer product review policies;
- Any other policy violations.
How to Automate Product Research?
Product research can be a challenging job for online arbitrage sellers. It’s a repetitive job that consumes a significant amount of time and energy. Additionally, when online arbitrage sellers review hundreds of products daily, the likelihood of errors rises.
There are tools available to automate this intricate process. Seller Assistant App is one such tool. It’s a potent product research tool designed for online arbitrage sellers, allowing them to access key product metrics directly on the Amazon search page and store data in Google Sheets.
Product research may seem like a repetitive job. Seller Assistant App can quickly inform you of any sales restrictions on a product or any issues that may have affected your account’s health in the past. It offers various functionalities like an FBM & FBA profit calculator, Quick View, UPC/EAN to ASIN converter, ASIN Grabber, Stock Checker, and Restrictions Checker all in one convenient tool.
Give the Seller Assistant App a try today. Sign up for our 14-day trial and boost your confidence in growing your Amazon business.
How to Do Product Analysis?
Product analysis is important to determine if a product can be sold profitably on Amazon with a decent profit margin.
Quick assessment of product profitability:
- Subtract your buying cost from the Amazon selling price;
- Subtract additional expenses like shipping, taxes, Amazon fees, and shipping to Amazon;
- Review the remaining amount;
- Calculate ROI (should be at least 10%).
If the outcome is positive, the product is profitable.
Seller Assistant App can simplify product analysis process by automating it for you.
Conclusion
When it comes to using the online arbitrage method for selling products, conducting thorough product research is essential. Ultimately, it helps you decide whether or not to proceed with selling a specific item. Seller Assistant App can streamline this process, enhancing your decision-making with comprehensive data and analytics.
