Everyone has heard of eBay, they’re one of the biggest web companies out there.
I’m not going to introduce you to what eBay is, and how to make an account, because a large proportion of you will already know.
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.
What is “Retail Arbitrage”?
Arbitrage is the act of selling something that you don’t own yet, taking the money you customer spends, and buying the item for them at a cheaper price.
Of course, you keep the difference, the profit.
For example (in order):
- I sell “the promise” of a DVD delivered to Tom, for £15.
- I goto the shop, buy it for £10.
- Send the DVD to tom, -£1 for postage
- Keep the £4 difference
How Do You Tie This In With eBay?
Well eBay makes this whole entire process, super easy.
You can list as much as you want on eBay.
Your only cost when doing this is going to be your listing fees, which are pennies.
You only pay the insertion fee for the listing, so when you run out of stock you can simply increase the stock number again, without paying fees.
How Do You Do Your Product Research?
The initial work is usually quite fun.
You need to grab your smart-phone, or tablet, download the eBay app, and goto 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.
Picking Your Stores
Go for the bargain stores. Stores with tonnes of discount on.
Super-markets 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 Products That Interest 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.
Boosting Your 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.
Fulfill Your Sales
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 to find the products, but you do.
Throw the items in a package, post them out. And enjoy your profit.
Scaling Up & 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 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,