Why Amazon arbitrage has become more than a side hustle

Business News | 5 Jul |

You’ve probably heard of Amazon arbitrage and how people in Arizona, and all over the U.S., are using it as a side hustle to supplement their income every month.

What many people don’t know is how Amazon arbitrage can transcend the realm of pocket change and become a part or full-time revenue stream.

Here’s why it is way more than a pet project for some people.

It Rewards People for Shopping

Essentially, that is what’s going on here. Individuals will spot items that are deeply discounted and then they’ll snatch them up and resell them on their Amazon seller account for a profit.

The profits can range from a couple of dollars to $20 or more and that’s just on one product. Is it really any wonder how people are raking in the money month after month with Amazon arbitrage?

Before you worry about the logistics of this business model, keep in mind that it is a totally legal process and Amazon actually has a number of regulations put in place to protect manufacturers, sellers, and customers.

It Requires Business Acumen

At least to some degree, sellers should have some business savvy, including how to generate revenue costs and analyze the market. Depending on what they want to sell, they will have to research their target demographic, whether it be new mothers, millennials, or middle-aged men.

Sellers don’t need to be math whizzes but they should always keep the numbers in their heads. For example, they need to consider what price they will buy the product at and what they can sell it for, as well as the costs of shipping and any additional seller fees. This will give them their total estimated profit.

To gain an advantage over the competition in the arbitrage space, sellers also need to have a strategic approach to sourcing their products. For instance, sourcing products from unique locations unknown to other arbitrage sellers, would be a great idea.

Sourcing profitable products faster than the competition would also be a winning strategy, thanks to apps like Tactical arbitrage that help streamline the product research and sourcing procedure. Sellers also need to understand that when it comes to business, sometimes less is more.

For instance, having a more niche inventory can be more convenient to them and consumers rather than a shop that just sells a little bit of everything. Focusing on one category gives your shop more legitimacy and makes it look streamlined and professional.

It Pays to Be Patient

A side hustle can come and go but Amazon arbitrage is good to those who wait. People who expect to see their sales take off in the first month aren’t going to get very far. Clearly, this endeavor takes a bit more effort than most side hustles but the rewards can also be much greater.

That being said, Amazon arbitrage is very business-minded so sellers need to keep track of their analytics, spending, returns, and more. Fortunately, the seller app by Amazon helps with a lot of this, but yes, numbers are a huge part of this side project, especially if it’s going to become a full-fledged job.

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