Online Arbitrage: How to Make Money on Amazon FBA

Amazon Marketplace is one of the most well-known marketing platforms for online retailers, and you can easily make money on Amazon FBA.

What is Amazon FBA?

FBA stands for Fulfilment By Amazon (FBA). It’s a service Amazon provide to people or businesses that have a product(s) they sell online by providing storage, packaging, and shipping assistance to sellers.

The benefit of using FBA is that it makes your product(s) more visible to millions of customers who already shop on Amazon. It helps you reach more customers with benefits like fast Prime delivery and easier selling across Europe. Increased customer reach generally means more sales, so it’s great for taking your business to the next level.

You simply send them your products, and they take care of storage, delivery to customers, customer service and returns handling.

yellow amazon truck with boxes

What is Online Arbitrage?

Online Arbitrage is the concept of buying something online at lower price and selling at a higher price. In this instance, you would buy something online that may be on sale or discounted and sell it on Amazon for a higher price.

Bear in mind that the items might not necessarily have be on sale as Amazon can demand a higher price due to services they offer such as Amazon Prime delivery which are appealing to customers. 

How does it work? 

The process is really simple; particularly if you regularly shop online. I would shop the sale/clearance section on Boots, for example. Once the order arrives at my house, I might have to prepare the shipment for Amazon by putting bar code stickers on the items but I then ship them off to Amazon.

Amazon receives the parcel and places the items into my inventory. They then sell them and ship them for me. It really is as simple as it sounds! 

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What do I buy and sell? 

I buy a huge variety of items – anything goes really. I buy a lot of beauty items as it’s what I usually shop for and therefore come across deals for them. I’m not limited to beauty though – I’ll buy and sell books, toys, DIY items, homeware and anything else I come across.

There are so many of deals to be found out there, and because Amazon sells such a wide range of products, it’s not too difficult to find good deals to sell! 

Going back to Boots as an example, I also buy items from my local store as they often have a big clearance shelf with some bargains on it.

How much does it cost?

FBA is a pay-per-use service and there are no minimum inventory requirements. This means you can send as little or as much stock as you want.

How much money can I make?

As with anything, the more you sell, the more money you can make – and the numbers vary. If you’d like an extra £200 a month as a side hustle, that is totally doable. Equally you can scale your business up and make £1500 a month turn it into a full time income.

The main factor to consider is how much money you have available to put into buying stock. Of course, the larger amount of money that you can put in, the more you can earn immediately. I started with £250 back in March and last month I made £1500 profit – so it is achievable.

TOP TIP – You can also use TopCashback on the items you purchase as an added extra source of income! *winks*

Read more: 5 Ways You Can Make Money Online With Fiverr


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