Everyone has heard of eBay, they’re one of the biggest web companies out there. For this reason, I’m not going to dive any deeper into what eBay is, but rather, how you can use it to make money.
This tutorial is best for people looking to make some extra money on the side, so someone that doesn’t have a job yet, students and people in a similar situation.
Additionally, I’m going to assume you’ve got a base level of knowledge on how to actually use eBay.
I know what eBay is, but what is “retail arbitrage”
Arbitrage is the act of selling something that you don’t own yet, and by taking the money your customer has spent, you buy the item for them at a cheaper price. You profit from this by taking the difference between the price you sold at and the price you bought at.
- I sell a DVD on eBay, for £15;
- I recieve the £15 from my customer;
- I goto the shop, buy it for £10;
- Send the DVD to the customer and pay £1 for postage; and
- Gross profit £4.
Of course, it’s far more lucrative when you start selling at volume, or you sell more expensive items.
That makes sense, but how do I do this with eBay?
Well, eBay makes this whole entire process, super easy. They care of the traffic to your listings, and you only pay fees when you sell.
You might also pay insertion fees, but these are miniscule, and can be lowered by purchasing an eBay store.
Another benefit of getting an eBay store is that you can keep your listings open until cancelled; so you don’t have to keep re-creating the same listings time and time again.
Product research for arbitrage
The initial work is usually quite fun.
You need to grab your smart-phone, or tablet, download the eBay app, go to your nearest store.
Barcode scanner apps can grab your product details and also compare them with eBay prices too.
If you’re a walk away, then this is really effective.
Go for the bargain stores. Stores with tonnes of discount on.
Supermarkets can be really effective because you know you’re going to have a consistent flow of stock.
But again, discount stores are your best bet.
Scan what interests you
The eBay app, click on the search bar, and then on the barcode image.
Then simply scan the barcode on the item that you’re looking at.
You’ll see the current selling price of these goods on eBay.
When you find an item that you can buy cheaper than it’s being sold for, you list it.
Fortunately, when you scan the barcode, the majority of the content, including images, is filled in.
Update the rest of it when you get home.
Boost the sales
I created a video where I go over ranking your eBay listings in 10 minutes. It’s easy to do when you know how.
Fulfillment of the orders
So, when you get your sales through, you obviously need to go and buy the products that you have sold.
I don’t really need to explain that you need to goto the store that you went to find the products, but you do.
Throw the items in a package, post them out. And enjoy your profit.
Making the big money
There are two options I’m going to discuss here.
Both are super effective.
Places like CostCo and other wholesale stores are going to sell a massive amount of products, and great prices too.
This open up the opportunity to sell “lots” to other businesses, or bulk-packs to savvy customers.
When you’re moving larger amounts, you definitely need a car, or even a van.
But think, when you’re moving a van load per day, you’re making good money on every single thing in your vehicle.
How you scale this way is down to you.
Luxury & Premium
Luxury items and generally expensive items such as TVs, and other electronics, are really good ways of getting a good premium for a single product.
Head over to your local electronics store and scan the TV, Xbox, Playstation, Oculus rift codes.
Or head over to a watch shop, a gucci store, or a designer department store.
That’s all for now, if you have any questions, drop them in the comments section below and I’ll get back to you super quick. I’m always online.
Until next time,