Online Arbitrage is a simple method that you need to consider while selling on Amazon. With Online Arbitrage, you simply need to buy products cheaply from an online store and then sell them for a profit on Amazon.
This Online Arbitrage model seems like an easy way to make money, but it won't. By avoiding these common mistakes, you can increase your chance of getting higher profits while selling on Amazon.
MISTAKES THAT ONLINE ARBITRAGERS NEED TO AVOID
1. INSUFFICIENT RESEARCH
This is a mistake that many Amazon sellers indulge in the beginning, not doing enough market research.
Some sellers find their products based on what they buy or intend to sell, instead of based on data provided by Amazon.
Product researching is the key to your Amazon business, it will help you avoid other possible pitfalls.
Fortunately, there are tools available online that allow you to source profitable products to sell on Amazon.
Here, we recommend you the free platform which is Amz Online Arbitrage which helps you to find profitable deals from various online stores.
Also, it provides you the data such as Net profit, Sales Rank, ROI, Sellers Count, and Est. Monthly Sales.
And also two free google chrome extensions:
Amz OA ASIN Checker that every seller needs.
2. FOCUS ON DEMAND
Amazon sellers tend to always focus on products that offer the highest net profit. Remember, if product sales go higher or lower it totally depends on the visibility of the product, and the demand it has.
If you overlook those categories, which may bring in a few pennies instead of products that have a higher net profit, you could be missing out on a consistent profit.
Those categories can positively impact your business by relatively improving your Amazon seller rating, and also improving your visibility on Amazon.
By focusing on those smaller items with an online arbitrage model, you can save a lot of your money to grow your business.
3. PRICING WARS
As a seller, we know that your focus is only to sell all your products and move all your stocks as quickly as possible. For that, you will undergo a struggle while fixing pricing for your products.
Pricing too high or too low is not feasible for your products, you need to be competitive while fixing your products with the consideration of factors such as product demand, market analysis, customer expectation, and a lot more.
Also, remember that prices on Amazon are constantly fluctuating and they tend to consider customers' buying behavior and expectation not to move out the inventory and make sales. Trying to compete with Amazon products is quite a complicated process.
4. IGNORING GATED PRODUCTS
Amazon restricted certain categories due to the safety and well-being of the customers, by missing out on these categories in turn you miss out on greater opportunities.
All Amazon sellers tend to think like this, due to this it has less competition to compete with but it has a lot more demand.
If you want to get approval from Amazon in any of the restricted categories, you need to contact The Funnel Guru an ungating service provider that gets you ungated in any of the categories with their expert knowledge.
5. MONEY TRANSFER
If you sell items on Amazon’s international marketplace you’ll need to make currency transfers through either Amazon's in-house service or via bank, and for that, you need to pay a lot.
Not managing the transfer of profits from sales in foreign currencies in the most cost-effective manner can be easily avoided.
With the Online Arbitrage model, you can save a lot of money, time, and effort selling on Amazon, so that you can focus on your sales.
Also with the recommended free tool Amz Online Arbitrage you can sell profitable products on Amazon a lot easier.