$1,200/hour with Online Arbitrage

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As an online seller, one of my biggest goals is to maximize profits while minimizing costs. It’s a never-ending quest to find the best deals, and I’m always on the lookout for new strategies to make more money. Recently, I stumbled upon a technique that allowed me to make over $1,200 in just 15 minutes. In this article, I’ll explain how I did it and share some tips for saving money when purchasing inventory online.

The first step in my money-making strategy was to find a product that I could buy at a discounted price and sell for a higher price on Amazon. I used a combination of email sales strategy and software called Tactical Arbitrage to find profitable products.

The email sales strategy is simple. I set up a new email account specifically for online arbitrage and signed up for newsletters from every online retailer I could think of. This way, I would receive coupons and news about sales directly in my inbox. When I did my searches on Tactical Arbitrage, I started with my email and used the information I received from the newsletters to program my search parameters manually. This allowed me to uncover profitable items that I wouldn’t have found otherwise.

Tactical Arbitrage is an industry standard for online arbitrage. It’s a powerful software that allows me to scrape hundreds of websites and compare prices against Amazon to find profitable products. The software is very robust, but it’s not cheap, so I did my homework before signing up for it.

After using these strategies, I found a product that I could purchase at a discount and sell for a higher price on Amazon. It was a Playskool Heroes Ironman Adventure Playset that I was able to purchase for $40 each from Kohls. The regular price was $60, and they were selling for $100 to $140 on Amazon.

I purchased 20 of these toys before Kohl’s started limiting my purchase. At worst, I would make a $20 profit by selling them for $100 each on Amazon, and at best, I would make a $60 profit by selling them for $140 each. Of course, there were fees involved, and Amazon takes about 15%, but I was still able to make a profit of over $1,200 in just 15 minutes.

To clarify, I didn’t even touch the product, and it wasn’t dropshipping. When you buy stuff from one website and sell it on another website, that’s called scalping online arbitrage. I used a third-party prep center that received my inventory from Kohl’s, prepared it, and shipped it off to Amazon FBA for me. The prep center also ensured that everything was there and that nothing was damaged.

Using a prep center saved me both time and money. Most prep centers are located in states that do not charge sales tax, which is great because even though I have sales tax exemption at some stores, some stores do not allow me to have sales tax exemption. This is where a prep center comes in handy. They also help me save money on shipping costs because they bundle everything together and send it off in one shipment.

While this particular flip was a moon shot, meaning it was an astronomically good flip, you can make a lot of money doing online arbitrage or other similar Amazon arbitrage-based business models. The key is to find the right products and use strategies like the ones I’ve mentioned to save money.

Here are some additional tips for saving money when purchasing inventory online:

  1. Use cashback credit cards Cashback credit cards are a great way to earn rewards when purchasing inventory online. Look for credit cards that specifically offer cash back, and make sure to pay off your balance every month to avoid interest charges.
  2. Use Cashback portals so you can save on COGS

Another way to save money when purchasing inventory online is to use memberships from different online retailers. Many stores have cashback programs and membership programs where you can earn points or cashback. These loyalty systems can help you save money and reduce the cost of goods. For example, Kohl’s has a cashback program, and by signing up, you can earn points and discounts that will help you save money.

Another way to save money when purchasing inventory is to use cashback credit cards. Look for credit cards that offer cashback rewards and use them to make your purchases. Make sure to pay off your balance every month to avoid interest charges. You can also use cashback portals to earn additional discounts. These websites allow you to earn a little kickback by going through them before making your purchase. They receive an affiliate commission from the retailer and share it with you.

Finally, consider using gift cards to save money. Websites like Raise.com allow people to buy and sell gift cards. You can purchase a gift card for less than its value, saving you money on your purchase. While the savings may not be significant, it’s still a good way to reduce costs.

Sales tax is another significant expense to consider when purchasing inventory online. If you’re paying sales tax and your competitors aren’t, you won’t be able to compete effectively in the marketplace. Therefore, it’s essential to register your business with your state to get a seller’s permit and sales tax exemption. Having a sales tax exemption can be a significant advantage as it reduces your costs and allows you to compete on a level playing field with other resellers.

Another way to reduce costs is by using a third-party prep center. A prep center is a service that receives your inventory from your supplier or online retailer and prepares and ships it to Amazon FBA for you. Most prep centers are located in states that do not charge sales tax, which can save you a significant amount of money. The fees for using a prep center are low and typically less than two dollars per unit, making it an affordable way to reduce costs.

Using a prep center can also save you time and effort, allowing you to focus on other aspects of your business. You can efficiently scale your operation by utilizing someone else’s storage space and labor. This is especially useful if you’re a young entrepreneur who doesn’t have much space or resources. By using a prep center, you can efficiently manage your inventory and focus on growing your business.

Online arbitrage is an excellent way to make money by buying low and selling high. However, it’s essential to do your research, find profitable products, and reduce costs to maximize your profits. By using software like Tactical Arbitrage, you can scrape hundreds of websites and compare prices to find profitable products. You can also use leads lists and rabbit trails to find profitable products and turn one profitable find into multiple profitable finds.

When purchasing inventory online, it’s crucial to reduce costs to maximize profits. You can do this by using memberships to different online retailers, cashback credit cards, and cashback portals. Additionally, consider using gift cards and a third-party prep center to reduce costs further.

Remember, online arbitrage is not a get-rich-quick scheme. It takes time, effort, and patience to find profitable products and make money. However, with the right tools, research, and strategies, you can succeed in this business model. I hope this article has provided you with some valuable insights and information on how to succeed in online arbitrage.

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About the author 


Reseller, Family Man, Skateboarder, YouTuber

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