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Retail Arbitrage or Online Arbitrage
Can i use an individual seller account for Online arbitrage or retail arbitrage? Do i still need to approach distributors even i need small quantity of different products which can be bought from retail stores? If so let say i have 10 items to be sold on Amazon, can i simply post to customers myself? or is their amazon labeling to be printed off ?
13 replies
Seller_VUcjClrPIVFRy
Do not buy from retailers or online to be sold on Amazon as new.
Only buy from reputable wholesalers who allow to sell on Amazon and can provide an invoice if required by Amazon.
Guidelines to source products to sell on Amazon
You can post yourself using buy shipping is the easiest method.
Merchant fulfilled order processing best practices
Which Shipping Method to Choose?
There is also FBA, where you can send to Amazon and they can sell on your behalf.
I would suggest reading guides on Seller university if you are completely new.
Also I would make sure that if you are wanting to sell for a profit, then you are registered as a sole trader with HMRC.
Seller_ZVAz3d5lZuGid
Can i use an individual seller account for Online arbitrage or retail arbitrage?
No, you must have an Amazon Business Seller Account, though you can be on the individual selling plan (where you do not pay the £30 monthly fee, but pay an extra small fee per sale). You must also be registered with HMRC as self-employed, sole-trader.
...which can be bought from retail stores? - NOT the best strategy on Amazon, as they will likely eventually ask you for proper invoices, which you will not have, and they probably won't accept shop receipts.
can i simply post to customers myself? - yes, of course you can - known as FBM - fulfilled by merchant. You can buy your postage labels from Amazon.
If you are a new seller I suggest you go and read Amazon's Seller University.
Seller_kdbnxbw6aIAtB
Despite what the YouTube video told you. Retail Arbitrage is not a good way to make money on Amazon, not long term anyway. As others have mentioned, you WILL (not might, WILL) be asked by amazon at times to provide invoices to show that you have purchased your stock from genuine wholesalers etc. A retail receipt will not be accepted for items you are selling as new, and your account will be closed.
Either find a good reliable source of goods to sell, or sell the retail goods as used.
Best of luck.
Seller_RAXEWLxQ2dbmN
Possibly the main risk of doing retail arbitrage on Amazon is that you will likely get hit with a 'selling used as new' violation.
This can lead to your account being suspended or even blocked altogether.
Seller_KlbXZHzQGSDZv
As mentioned above No to the first question.
As an additional point to consider WHEN (not if) Amazon ask for receipts and you cannot provide them amazon will shut your account AND any money that they hold for sales will not be reimbursed until you can clear the offences. As you are buying from a retail store you will not be able to clear these offences and as such anything that amazon has of your money they will keep and when your starting out that can be quite a bit.
Basically forget what you see on youtube/tiktok those people make there money from people watching the videos not from abritage on here.
Seller_rMl5YA3AZSVeQ
If you want to do retail arbitrage, please read the Amazon Policies very carefully first.
This is a risky strategy. Your account can easily be suspended.
After that, visit Seller University.
Seller_EkGoiphKgUnUI
Don't listen to the people jaded by the cheap prices some of us get through arbitrage.
Its sometimes a bit of a battle when youre required to provide invoices, but I've cleared IP claims and proof of ownership many times with ADEQUATE RA receipts. By this, I mean a receipt that clearly describes the product. If you buy through OA, you will likely be able to get actual invoices anyhow.
You also are not required to list arbitrage products as used either, so long as their condition is absolutely unopened and in new condition. You will regularly hear differently on these forums, but I'm two years in and started off with arbitrage, and while its not always easy with receipts, its do-able.
Arbitrage though, is not the best long term business model, as its more hassle and very opportunity centric. You are also at the whim of the astounding amount of inexperienced new sellers who get a good deal initially worth 100% ROI+ and think crashing the price to get only 30% ROI, is the way to grow their business....
Wholesale can be the same too, as these seller who failed at arbitrage are now moving towards wholesale too, without learning their lesson.
If you're smart, you'll start researching PL today and begint making longer term, stable and replenishable listings that set you apart from the hustle to the bottom.
Seller_IQo80d99W2DzP
I say go for it, as you are not taking note of what anyone is saying, as then someone will report you, and you will get blocked by Amazon forever!
As a Buyer it annoys me when I get something that is clearly Arbitage, as the box is marked, or item inside not in a bag, manual missing, etc, so not as new.
Even more annoying when we sell the item, and I am having to compete on price when we sell a genuine new item, and someone else is selling something that is not exactly new.
Genuine competition is bad enough, but accepted. I always report if I buy something like this, and Amazon Buyers love a free item, so most will report as well.
I note the only Seller on here saying it is ok, ignore, has terrible feedback, all crossed though, so looks good, but how long before Amazon pick up on why was there parts missing, or the item was not sealed as it should have been, etc. I read feedbacks, so it would be a 'red flag' and I'd not buy. Some items can only be bought at Boots for example, so how can they be new sold on Amazon.
Sell as 'used like new', and I accept such, but not as brand new
It is also no wonder why Amazon are getting so fussy with genuine Sellers and no longer trust any of us, when some Sellers are defrauding Buyers. I think it is a pain being asked for invoices, but when this sort of thing happens, I can see why
Sell on the other site as Box open etc, even on that site, do not sell as new unopened. That is why Buyers get put off buying from any Seller other than Amazon, and righty so
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