Have you ever thought about the number of people who are dreaming to launch their e-commerce business, and the tons of barriers which stop them from doing so? Finding a supplier, negotiating with them, getting the products, finding a warehouse for keeping your inventory and…
“Stop it, stop it!”
This is usually the reaction we get when we answer the “what do I need for an Amazon business” question, which we get from many people. Of course, we agree that it sounds scary; but if you you want to take the easier road, we have something great in store for you! Imagine that you are a successful Amazon seller who makes good money on the platform, without caring about international suppliers, warehouses and stuff like that. Your day is finally here, since today you are going to meet the tool that can turn your imagination into reality, and its name is Retailer Arbitrage.
“Buy for low, sell for higher!” This is pretty much retail arbitrage in a few words. As you can tell from the name, retail arbitrage isn’t exactly like wholesale, because you aren’t getting your products from suppliers in bulk. You’re getting them from physical retail stores instead. Sellers who operate under this method, get their products from retail stores at discounted rates, and sell them at higher prices on Amazon. And here’s the cherry on top:
It’s not against the law!
But there’s a question: out of millions, if not billions of products, which ones should you pick?
Research is Key!
Do considerable research into the market and how it operates. Keep an eye on trends. If you find a product which you think would sell well on Amazon, take a look at the competition. You can actually calculate the profitability rate by checking out other people who are selling the same product. Research is a great asset in getting good products. If you can spend the buck, hire a product research team who can handle the process for you!
There’s Always a Catch!
You should keep in mind that not everything is smooth with this type of business model. That’s because Amazon is very strict and condescending when it comes to retail arbitrage. The main reason is that Amazon wants to be sure that you are selling 100% genuine products, and therefore, asks that sellers provide all the necessary invoices in order to prove that the products they have sourced are really authentic. But since you are sourcing your goods from brick and mortar stores, you cannot prove to Amazon that you are selling genuine products, as a result of which you can get suspended due to inauthentic claims.
Remember, Amazon wants you to be the seller of record on all the products you are selling!
We at Got Suspended Clients face such kind of issues every day; we see sellers who are indeed selling genuine products, but get suspended because they don’t have any evidence to prove that they are sourcing from authorized supply chains.
If you ever find yourself suspended for this issue, as well as any other issues on Amazon, all you need to do is give us at Got Suspended? Clients a call, and we’ll tackle your suspension for you, reinstating your account sooner than you think!