by mrtradingrobot ~
In this day and age it seems everyone is trying to look for ways to make money online. The internet is awash with people promising fast riches and financial freedom for working only 5 minutes a day – if only this existed! As part of my £0-£1000 challenge, I started looking into these various methods and stumbled across a rather ingenious way a number of bright sparks are actually earning decent £££ on the internet. Its called Online Retail Arbitrage.
The model is simple, by combining two of the largest marketplaces, eBay and Amazon, with one of the most popular business models, dropshipping, you can make a genuinely profitable business.
What is dropshipping / online arbitrage?
Dropshipping is a common business model where a business lists items for sale without holding physical stock of any of the items. Instead, when a customer places an order, the business orders the item from their supplier and has it shipped directly from their supplier to the customer. This means no inventory costs and no risk of holding money in lots of physical products that never sell. A win-win situation for the business.
How do you do this between Amazon and Ebay?
Simple. It’s 3 easy steps:
- You list products from Amazon for sale on your eBay store
- A buyer makes a purchase from your eBay store
- You order the item from Amazon and have it shipped directly to the customer
What items should I list?
Anything you want! The beauty of working with Amazon is you have a massive selection of products to choose from. I personally have listed a wide range of different items, everything from staple guns and USB connectors to horse feed and baby wipes. If certain items do not sell well, you simply remove them from your Ebay store and find new ones to list.
What price should I list my items?
There are 3 things you need to consider when deciding on a price for your listings:
- 10% Ebay Fee
- 3.4% Paypal Fee
- Your margin – this is entirely up to you, most Ebay dropshippers work on a 10-20%
Unfortunately Ebay does not let you list 10,000 items at once, you have to play the game. I have been uploading 30 items every other day to stay under the radar but maintain continual growth. As you rating grows and Ebay knows it can trust you as a seller you will be able to lift your limits and scale your business exponentially.
Since starting I have now listed over 1,000 items and hit over £5.5k in revenue with a blended margin of 14%
In a pre-corona world, a side hustle was often seen as a “nice to have” income that paid for life’s little extras, helped with the bills or fattened up your savings. With the mass closure of businesses overnight many have found themselves turning to these income streams as a way of survival. If this pandemic has proved anything it’s that the over-reliance on one source of income and living above your means is a no longer a nice-to-have but an essential life choice.
Interested? You can access the course I have been taking using the link and discount code: https://www.elevateecommerce.co.uk.
Discount Code: MrTradingRobot (£100)
Also follow: mrtradingrobot on TikTok!