RETAIL ARBITRAGE IN LIKE A PRO:

BLUEPRINT FOR SELLING PRODUCTS ON

AMAZON FBA, E-COMMERCE,
DROPSHIPPING AND OTHER IDEAS TO
GENERATE PASSIVE INCOME AND MAKE
MONEY ONLINE.
Table of Contents
INTRODUCTION.................................................................................................................................................. 3

CHAPTER 1 TAKING STOCK OF YOUR CURRENT SITUATION..................................................................................6

EXERCISE TWO CALCULATING OPPORTUNITY COSTS..............................................................................................9

CHAPTER 2 BEFORE YOU START......................................................................................................................... 12

WHAT YOU NEED......................................................................................................................................................12

EXPECT TO WORK......................................................................................................................................................14
IS THERE A LOCAL MARKET?.......................................................................................................................................15

CHAPTER 3 KEEP ON GROWING......................................................................................................................... 15

CHAPTER 4 BOYS’ TOYS AND OTHER FUN.......................................................................................................... 16

CHAPTER 5 FINDING WEBSITES AND OTHER VENUES TO SELL YOUR GOODS ON.................................................17

CHAPTER 6 LEARNING TO ASK THE APPROPRIATE PRICE....................................................................................18

CHAPTER 7 KNOW WHEN YOU’RE BEING TAKEN ADVANTAGE OF......................................................................20

WHAT TOOLS OF THE TRADE WILL YOU NEED?.................................................................................................................21

DECIDING ON INVENTORY?..........................................................................................................................................22
QUICK ACTION GUIDE – A STEP-BY-STEP PLAN TO GET STARTED.........................................................................................23

CHAPTER 8 KNOWING WHEN TO BUY AND WHEN TO STEP AWAY.....................................................................25

CHAPTER 9 HOW TO MAKE MONEY SELLING ARTS AND CRAFTS ITEMS FROM A THRIFT STORE..........................26

CHAPTER 10 HOW TO BUY SMALL APPLIANCES AT THRIFT STORES AND MAKE MONEY......................................27

CHAPTER 11 GET STARTED WITH RETAIL ARBITRAGE......................................................................................... 28

CHAPTER 12 EBAY ARBITRAGE........................................................................................................................... 32

CHAPTER 13 ALWAYS HAVE A PLAN B................................................................................................................ 33

CHAPTER 14 LOOK FOR THE ODD AND UNUSUAL............................................................................................... 34

CHAPTER 15 ALL THINGS OLD AND OFF THE WALL TREASURES..........................................................................35

PROS & CONS OF RESELLING....................................................................................................................................... 36

STEP TWO: PREPARE FOR THE BUSINESS........................................................................................................................37
CHAPTER 16 HOW TO PREPARE YOUR FINDS FOR RESALE..................................................................................39

CHAPTER 17 SETTING UP AND USING AN EBAY SELLER ACCOUNT......................................................................40

CHAPTER 18 TOP TIPS FOR BECOMING A SUCCESSFUL DROPSHIPPING GENIUS..................................................41

CHAPTER 19 MAKE YOUR FIRST $1,000 ON FBA................................................................................................. 45

STEP 1. GATHER SUPPLIES, SIGN UP, UPGRADE TO PROFESSIONAL PLAN .............................................................................45

STEP 2. CLEAN OUT YOUR CLOSETS..............................................................................................................................45
STEP 3. HIT THE GROUND RUNNING WITH RETAIL ARBITRAGE...........................................................................................45
STEP 4. FACEBOOK, CRAIGSLIST, FREE STUFF..................................................................................................................46
STEP 5. YARD SALES AND FLEA MARKET........................................................................................................................46
STEP 6. LIST AND SHIP TO AMAZON, WAIT FOR PROFITS...................................................................................................46
STEP 7. TAKE NOTES..................................................................................................................................................46

CHAPTER 20 SCALING YOUR FBA BUSINESS....................................................................................................... 47

DON’T BURN OUT ON RETAIL ARBITRAGE......................................................................................................................47

MOVE INTO WHOLESALE.............................................................................................................................................47
MOVE INTO PRIVATE LABEL.........................................................................................................................................48
IMPROVE THE QUALITY OF YOUR LISTINGS......................................................................................................................49
SEEK OUT REVIEWS....................................................................................................................................................49
CREATE BUNDLES.......................................................................................................................................................49
SET GOALS............................................................................................................................................................... 50
KEEP RECORDS..........................................................................................................................................................50
TAKE CALCULATED RISKS, TRY NEW THINGS...................................................................................................................50

CONCLUSION.................................................................................................................................................... 51

CHAPTER 21 HOW TO START WITH A DROPSHIPPING BUSINESS........................................................................52

CHAPTER 22 SELL TO REPEAT IMPULSE BUYERS................................................................................................. 58

DETERMINE TARGET CUSTOMER...................................................................................................................................58

IMPORTANCE OF VALUE..............................................................................................................................................58

CHAPTER 23 GROW BY SELLING LOW................................................................................................................. 59

PRICING STRATEGIES...................................................................................................................................................59
CREATING YOUR OWN BRAND OR LABEL........................................................................................................................59

CHAPTER 24 WHERE AND HOW TO SHIP............................................................................................................ 60

CHAPTER 25 CHAPTER TWELVE.......................................................................................................................... 62

CHAPTER 26 STORING INVENTORY.................................................................................................................... 62

CHAPTER 27 CHAPTER THIRTEEN....................................................................................................................... 62

CHAPTER 28 WHERE TO SOURCE FOR PRODUCTS (PART 2)................................................................................62

CHAPTER 29 SOURCING PRODUCTS................................................................................................................... 65

YOUR STUFF............................................................................................................................................................. 66
CLEARANCE SECTIONS.................................................................................................................................................67
THRIFT STORES..........................................................................................................................................................67
CRAIGSLIST AND FACEBOOK BUY/SELL/TRADE GROUPS.....................................................................................................68
AUCTIONS................................................................................................................................................................ 68
PRIVATE LABEL PRODUCTS...........................................................................................................................................70
STEP 1. RESEARCH PRODUCTS......................................................................................................................................70
STEP 2. FINDING A SUPPLIER........................................................................................................................................72
STEP 3. CREATING BRAND LOGOS.................................................................................................................................72
STEP 4. CREATE KILLER CONTENT.................................................................................................................................73
STEP 5. LIST IT ON AMAZON........................................................................................................................................74
LEARN THE SELLING PROCESS FIRST...............................................................................................................................74

CHAPTER 30 SOURCING PRODUCTS – RETAIL VS. ONLINE...................................................................................74

CHAPTER 31 PURCHASING TAX FREE FOR RESALE.............................................................................................. 77

CHAPTER 32 COUPONS, DISCOUNTS, REBATES, REWARDS & CASHBACK............................................................79

CONCLUSION.................................................................................................................................................... 81
Introduction
The flipping of flea market items can be tougher than at garage sales, yard sales and thrift stores.
Vendors are actually your competition. They often have their own internet auctions or listings.
They are not just "picking opportunities" for you, they are your rival.

I do not tell vendors that I resell items. I find that they are more likely to agree to my offers, if
they think that the item will be not resold. It is not a lie to tell vendors that you are a collector.
You just choose to sell some of the items that you "collect", right?

Flipping at flea markets is tough, but rewarding. Think of it as a challenge to make money off of
these vendors and their items. Anybody can make money from garage sale finds, but it takes
knowledge and work to make good money from flea market items.

Use the knowledge gained from “Fast Cash” and “Almost Free Money” to make money from
imperfect items. You can make good money by parting out broken vintage items for components,
for instance. You can also easily fix many items for resale.

Vendors often price their items by looking at fellow vendors' items or by using old outdated
price guides.  You can make good money buying items that are 'Hot' on eBay and Amazon, or
items that are desirable in other regions of the country or in foreign countries.

Look for college and sports memorabilia that can be sold better online than locally.  The local
sports teams will always be highly priced at nearby flea markets, but you can find good deals on
popular teams from farther away. I have found some excellent deals on football jerseys, sports
cards, pennants, and artwork for teams that the vendors' local customers were not interested in.
The local teams' stuff will usually be too highly priced to make money on.
RESEARCH
If there is one area that a motivated seller will stand out above their competition, it is in their
knowledge base relating to the items they sell. Start with what you are familiar with, and then
expand your knowledge from there.

You do not have to know much to sell usable items, clothing, and other non-collectible items
online. You only have to identify the item in an auction or on the Amazon marketplace, describe
the condition, and then make it available for purchase.

However, other items such as collectibles, high-end electronics, computer equipment, and auto
parts require the seller to have background knowledge before selling the item. In order to be able
to describe the item sufficiently so that a potential buyer is comfortable buying it from you, the
seller has to understand what type of information the buyer needs for them to determine value
and functionality.

Start selling what you know the best. If you grew up collecting sports cards and memorabilia,
and you have boxes of baseball cards in your closet, start by selling your excess cards. You
already know how to describe baseball cards to potential buyers. You can ‘speak the language’ to
card collectors on eBay.

Get yourself a current price guide so that you have an idea of the current market value. Then,
gather a number of cards that you are interested in selling and type the player’s name and year of
the sport card in the search bar on eBay. Click on the checkbox on the left side of the screen that
says ‘Completed Listings’. You get a list of the ended auctions from the last three months with
your search description. The average ending price is what you should expect to sell your card for,
if the condition is also similar.

The same process can be applied to any subject area. When you have an item that you want to
determine value on, take a look at the last three months of sales on eBay. You should be able to
make a quick determination if the item is worth your time. If you are considering selling the item
on Amazon, locate the item in the Amazon marketplace using the search bar, and see what the
average price listed is.

eBay completed listings can also help you in other ways. Let’s say that you found a vintage
Pioneer audio receiver for free at a garage sale. Good for you! Now, how do you make a profit
on it, if you have never dealt with electronics before?

If you plug it in and everything works, you just hit the jackpot. Look on the back of the unit and
find the model number. Type it into the search bar, and see what similar working units have sold
for, and list your receiver starting at the low end of the completed listing’s end prices. You want
to encourage bidders by starting at what feels like a bargain to the bidder.

If you attempt to test the receiver and it doesn’t work at all, don’t worry. You actually may make
more money by disassembling the receiver and selling the parts.

The trick is to determine which components and parts to sell. You should have an idea what parts
are going to be sold BEFORE taking the receiver apart, because some larger components are
more valuable whole then totally disassembled. For instance, if your vintage audio item has a
record player, you will want to keep the entire tone-arm assembly together to sell it.

In order to determine what we are going to sell, we use Completed Listings again. Type in the
model number from the receiver on the main eBay page. Most of the time, the search will return
many whole receivers that were for sale. But, it will also give you a list of parts and components
that other sellers have listed and what the ending prices were.

For instance, with vintage Pioneer receivers, you would probably find that the outer case was
worth listing (and would make you some good money, if it was wood). You would also note that
the knobs, feet, emblem, and face plate were worth money. Usually the tuning mechanism,
display, and some of the internal workings will also be listed.

You may also want to go to the ‘Vintage Electronics’ category and look at the Completed
Listings for the entire category. This will give you a general idea of some of the parts that are
often valuable, regardless of brand. You would probably note that large power transformers are
usually worth money, and since your Pioneer has a similar transformer to the ones that you saw
in Completed Listings, you would want to list your own transformer in the category that you
found the others in.

A good seller is curious. If you are at a garage sale, you should be looking for new sources of
income. If you find something interesting, look it up in Completed Listings when you get home,
and see if it’s worth your time.

I spend a lot of time just browsing Completed Listings in given categories and looking for new
areas to list items in. If I find an interesting listing that did really well for another seller, I look at
the auction page and try to figure out why it did better than others in the same category. Were
there certain words used in the item title? Were the photos showing a certain aspect of the item?
Was the item described in a particular way? If I can pick up anything useful, I use similar
wordings in my titles or descriptions.

You may also find totally new areas to sell items in. I remember one night browsing Completed
Listings to see if any 1980s-era magazines were worth buying at garage sales, because I was
seeing them quite often. I found that 95% of the magazines I was seeing were not going to be
worth the time it took to list them. But, I saw some listings in other categories that were
interesting.

Other sellers were listing just the advertisements from magazines and newspapers for good
money. Often, the magazines the ads came from could be found for $1, but the ads within could
be worth up to $20 apiece. People were looking for ads containing celebrities or certain products
(like vintage autos, or Atari 2600 games) and framing them for décor in their homes and
businesses.
So I picked up a bunch of magazines, and clipped interesting ads out. I scanned the ads with my
scanner, and listed them on eBay. I made several hundred dollars selling magazine ads in a
relatively short time. I looked at a number of sellers’ listings, and it was apparent that they sold
only magazine ads and did quite well.

I sold ads for a while, but I quickly realized that you have to make a lot of listings to make any
real money, and I found it quite monotonous clipping and scanning, so I moved on to more
interesting ventures.  If you are interested in selling ads, there are books available on Amazon for
identifying and pricing print ads to get you started. The startup cost is almost zero, and you will
make some money if you can find some older magazines to pull ads from.
Chapter 1 TAKING STOCK OF YOUR CURRENT SITUATION
Before you embark on your Amazon career, I believe it is important to take stock of your current
situation. There are some individuals who will happily just throw themselves into a project
without any preparation but there are times when that is not always the best option.

If you are shooting for the stars it might be nice to know if you own a push bike or a rocket ship
and if you are about to climb a steep hill it might be nice to know if your back pack is empty or
full.
I. People choose to start an Amazon business at various stages in their life:
 Some straight out of college (or instead of college).
 Some when they have had enough of the corporate rat race.
 Some when they are close to retiring and realize they haven’t got enough money
to survive on.
 Some when they have already retired and realize they haven’t got enough
money to survive on.
II. Where are you currently at financially and emotionally?
It is up to you to take stock of your own situation and decide not just what your situation is but
what you want it to be.
 Are you prepared to invest some of your time in a venture (on top of your
current job)?
 Have you got some funds to invest?
 Are you time rich but money poor?
Whether you are a budding Mark Zuckerberg (just starting out on your financial journey) or a
Colonel Sanders (later on in your life’s journey) it could be the right time to start an Amazon
business.

I have provided three case studies later in the chapter to give more context of the different stages
people find themselves at.
III.      What do you want out of an Amazon business?
As we see above, people starting any business may be at various stages of their life but if you are
contemplating starting an Amazon business I advise you to start with the end in sight.

Although an Amazon business may not need as much work as a traditional (bricks and mortar)
business this may depend on where you see its ultimate destination:
 Do you want an ongoing Amazon business with several product listings that
bring in your sole income?
  Do you want an Amazon business with a couple of products as a supplementary
income?
 Do you want to use Amazon as a stepping stone to starting your own online
business (selling products off your own website, etc.)?
 Do you intend to build an Amazon business and then sell it? There are people
currently buying these business (if they meet their criteria).
IV. The Benefits of starting an Amazon business:
 The flexible hours mean someone with young children can work when the
children have gone to bed or someone who is studying can work the business
outside of their classes.
 You can start an Amazon business with a lot less capital than a traditional bricks
and mortar business.
 You are opening a shop without having to physically hold the stock or distribute
it yourself.
 You can get to learn some cool new skills and have new experiences.
V. The drawbacks of starting an Amazon business:
 If you haven’t ventured into the online world much there could be a steep
learning curve ahead for you.
 The shop doesn’t close so you need to have someone available to check the
platform daily. This means the flexible hours can be less flexible if you are
building the business alone.
 You are very much at the mercy of the Amazon gods (Amazon.com). If they
change their terms or they believe you have breached them, they can stop your
sales dead.
VI. The opportunity costs
Some people have the money to start the business but are short on time (time poor) and others
have the time to start a business but are short on money (money poor).
 If you are “time poor” but have money to invest, the opportunity cost of using
your money to invest in an Amazon business is that you reduce the ability to
invest that money in another venture that could produce a better return on your
investment (R.O.I.)
o You could be looking at this as an alternative to your current busy job and
therefore would be prepared to pay VAs (virtual assistants) to carry out a lot of
the tasks involved in starting up, or to buy an existing Amazon business.
o If you are just looking at this as an investment for your money but do not have
the time for another job on the side there may be better investments out there for
your money. Even though you are outsourcing tasks, you will still have to input
some time into this new venture.
 If you are “money poor” but have the time available to put into building an
Amazon business the opportunity cost of using your time in an Amazon
business is that you reduce the ability to invest that time in another venture.
That other venture could potentially produce a better return on your
 investment (R.O.I.). There may be easier/more certain ways to exchange your
time for income.
o If you are married with children and prefer to work evenings and weekends so
you can attend your children’s sports events, perhaps network marketing could
be for you; if you are single and in your early twenties you may want to turn that
timetable round, so something like network marketing may not be for you.
o You could invest the time in building another form of online business such as
blogging or YouTube videos. More time intensive ventures than money intensive,
and potentially as lucrative.
VII.     Case Study: Simplification of a $10,000 investment

A. If you had $10,000 to invest in a bank account with an annual interest for your
money of 5% (I won’t discuss tax etc. because everyone has different situations)
that’s $500 a year for just putting your money in the bank:
 That’s an R.O.I. of 5%.
 Little risk.
 No training required.
 Little/no time required to maintain the funds.
B. If you had $10,000 to invest in a Managed (Hedge) Fund with an annual interest
for your money of 10% (I won’t discuss tax etc. because everyone has different
situations) that’s $1000 a year for just putting your money into a hedge fund:
 That’s an R.O.I. of 10%
 A little more risk is involved here as Managed Funds can result in losses as well
as profits but being selective about your fund can reduce risk.
 Some education required (although the sellers of these products will advise you
that they are “buy and forget”, I suggest reading Anthony Robbins “Money
Mastery THE Game” book as it shows that there can be some hidden costs in
Managed Funds).
 As above I suggest you should keep an eye on these investments to maintain the
level of your funds.
C. If you had $10,000 to invest in an Amazon business and you could potentially
earn $50,000 with an annual R.O.I for your money of 500% (I won’t discuss tax
etc. because everyone has different situations) that’s $39,500 a year more than
the first option but here you aren’t just putting your money in the bank:
 Some risk (potentially your whole $10,000 stake) although you can reduce the
amount of risk by taking some of the precautions in this book.
 Quite a bit of training may be required. You may be able to get another $10,000
but you will never get back the hours you invest in any investment opportunity
so always think twice before you commit that time.
 Time required to maintain the funds including:
o All the stages of this book from finding a product to marketing.
o Assume 20 hours a week x 52 = 1040 hours.
 The Trade-off for those hours:
 o Assuming our initial rate of $10/hr (x 20 hours a week x 52 weeks) = $ 10,400.
o With your Amazon business you made the estimated $40,000 profit that’s
$40,000/ 52 (weeks)/ 20 (hours) this gives you a new hourly rate of approx.
$38.50 an hour.
Simplistically put, opportunity cost relates to the risk reward returns.
In example ‘A’ you are taking very little risk with your funds but receiving very little return
(and inputting no time) so the opportunity cost of earning more return is offset by less risk.
In example ‘B’ you are taking a little more risk with your funds but receiving a bit more
return (and inputting some time) so the opportunity cost of a little more return is offset by
a little more risk and some of your valuable time.
In example ‘C’ you are taking more risk with your funds but receiving substantially more
return (and inputting substantially more time) so the opportunity cost of using that
valuable time (with less risk) to potentially earn more is offset by the fact that you are
earning substantially more R.O.I.
VIII. The Opportunity Cost Exercise

In order to help you determine if an Amazon business (or any investment) is for you, I have
devised a simple exercise below.
N.B. We all have different risk thresholds:
 Some people are happy to risk all of their savings in an investment.
 Some people are only happy to risk 5% of their savings in an investment.
If you have a very low risk threshold then building an Amazon business may not be for you.

Although this calculation isn’t exact it can hopefully give a snapshot that can help in your
decision making. (As per the other Disclaimers in this book please seek professional advice
before making any financial investment as this book does not take into account individuals’
financial situations).

In order to compare the various costs, certain assumptions are required. If you can get a 10%
return or your hourly rate is $100, feel free to substitute these details into your calculations.
 For the purpose of comparison we will use an hourly rate of $10/hour.
 We will assume an annual return of 5% on your savings account (all R.O.I.s will
be assumed to be annual).
 Although the general estimate for an expert (in any field) is 10,000 hours we
will use 100 hours as an estimate for competence in a skill you haven’t got but
need for your business.
 For the purpose of calculations we will use the following values for risk
o Low Risk (conservative investment)– 2
o Medium Risk (less conservative investment)–4
o High Risk (building a business)–6
 o Very high risk (using an untested investment strategy)–8

EXERCISE TWO CALCULATING OPPORTUNITY COSTS

You are going to input the details into a table so this exercise can be done via spreadsheet, MS
Word table or even drawing a table with pen and paper.
I. For any opportunity we will start by completing column A with the annual
hours we will require to invest in that opportunity
II. Now input the amount of cash required to invest in the opportunity into column
B
III. Multiplying the hours (in column A) times 10 to give us a dollar value and add
this to the funds required to give you the total investment (put this in column C)
IV. Now input your estimated potential yearly revenue for the opportunity in
column D. We are going to use a ball park figure for the potential return on our
investment but before you invest any money in an investment I implore you to
crunch the numbers in more detail.
V. You need to determine how risky you view the investment (based on your
risk tolerance) but input the corresponding number from the values above into column
E
VI. We are now going to calculate the potential to see if the opportunity is worth
pursuing.

a. Take the figure D divide by C divide by E

b. Multiply your answer by 100 and round up to the next whole number.

c. The final multiplication step is purely to give you some whole numbers (as individuals can more easily
visualize whole numbers).

VII.Because you are aiming for a high potential return, if you are receiving a low
return on your investment, it is important to recognise that that is stopping you
from generating a greater potential return on the same investment (therefore a
low return has a higher opportunity cost).
VIII. The higher the potential figure (in column F) the lower the opportunity cost, the
lower the figure the higher the opportunity cost.
I have provided three examples below that will hopefully help clarify the process but feel free to
run this exercise (by putting your own figures in the blank spaces) for any investment
opportunity.
 

Opportunity Hours Funds Total Potentia Risk Potentia

Require Require Investmen l R.O.I. l
d d t ($)  
($10/h) ($) ($)
  A B C D E F
Savings 0 $10,000 $10,000 $500 2 3
Account
Hedge Fund 200 $3,000 $5,000 $10,000 4 50
Online Biz 1000 $5,000 $15,000 $100,00 6 111
0
Your            
Opportunity

 
CASE STUDIES

A. Andrew is a college student who wants the money to pay his way through
college. He has decided to work in his spare time on an Amazon business rather
than getting bar work like a lot of his fellow students. He is computer literate
and with an entrepreneurial spirit he undertakes a lot of the tasks himself.
 Andy uses retail arbitrage to turn a $1000 loan from his parents into $5000.
 Andy uses this $5000 to launch two products and ploughing any profits back
into his business he soon has 6 products listed on Amazon earning a total of
$40,000 a month in profits.
 Andy has repaid the loan from his parents and will continue to build his
business into a full blown e-commerce business and is confident that when he
graduates he will have a growing concern which will negate him having to go for
job interviews.
What are the opportunity costs he has sacrificed here?
 He has sacrificed some time and a small amount of capital.
 As he was money poor he didn’t really have money to work for him and hence
he sacrificed a bit of extra time.
B. Barbara is a housewife who wants to build an Amazon business on the side. She
works part time and (earning $600 a month) she has a goal of quitting her job
within 12 months and eventually building the business so that her husband can
quit the corporate job he hates. Their initial budget is $5000 and that is all of
their savings. They have two young kids and Barbara’s husband earns $4000 a
month after tax.
  Although they are investing all of their savings into this venture they are
determined to get out of the rat race.
 Barbara uses this $5000 to launch 3 products (as her husband is also putting
some hours into the business) and ploughing any profits back into this business
they manage to have 10 products listed on Amazon within the first 12 months.
 Their monthly profits average out at $75,000 a month.
 Barbara has already quit her part time job and her husband has reduced his
working hours.
 It takes another 12 months for them to accrue $150,000 in savings and pay off
50% of their mortgage at which stage Barbara’s husband quits his job for good.
 They could have quit both their jobs a lot sooner but with two young children
and an employee mentality they wanted a big safety cushion before they took
the leap of faith.
What are the opportunity costs they have sacrificed here?
 They have risked all of their savings (this also provided a psychological element
as it took a while to save that $5000).
 With two young children and both parents working they have also had to forgo
some luxuries during this period.
 Very few investments opportunities would have turned the $5000 into a
$75,000 a month income in 12 months so the financial opportunity costs are
minimal
C. Charlie is a single man in his 50s. He is ex-military with a partial pension of
$2,000 a month but that doesn’t cover all of his bills, so after completing his
military service he took a management job. He is sick of working in the
corporate world.
 Charlie is mortgage free and has $100,000 in savings.
 Charlie uses $10,000 of his savings to launch 1 product on Amazon.
 Within 6 months Charlie is earning $5,000 a month from his Amazon listing.
 Charlie chooses to invest very little time to further build the Amazon business
and with competition for his product his profits drop off in the next six months.
 Charlie learns from his mistakes and uses another $10,000 to launch two new
products.
 Over the next 6 months Charlie builds his Amazon business to list 5 products
and is earning $20,000 a month.
 Charlie quits his job and determines to add a further product to his listing each
month.
Chapter 2 Before You Start
Getting started may be one of the most difficult parts of this business model, as it will require
quite a bit of decision making and hard work. There are several tools that everyone getting
involved in retail arbitrage should have on hand

, and there are several attributes you need to be prepared to hone in on as your prepare yourself
mentally for the task at hand.
What You Need
 A reliable computer that doesn’t freeze up! Having a computer will greatly simplify
the process of listing products, printing shipping labels if you decide to ship yourself,
and even looking for online deals that can be bought and resold. I must stress this
point: you want a computer that works well. A computer that regularly freezes up or
crashes is going to cause you to waste time, and wasted time is wasted money. It’s
also just unpleasant to lose your work in the middle of finalizing a listing or
something similar.
 Smart phone. During your trips into “the wild” to find products locally, having a
smart phone is truly important, even essential. There are several apps and
websites that help the process go much smoother and reduce the amount of
potential risk involved in a purchase, and not leveraging these is going to be like
walking into a cave full of deadly drop offs without a flashlight. You might
somehow get lucky and make a profit, but it’s far less likely.
 Printer. You will have to print shipping labels and other things, so having a
reliable printer will greatly reduce your stress. If your printer gives you trouble
often, it is time to upgrade, call tech support, or find someone that can help you
solve any issues you have. To go with the printer, having adhesive shipping
labels or at the very least printer paper is also a huge necessity.
 Shipping supplies. Whether you intend to ship all your items or have a fulfilment
service, such as Amazon’s Fulfilment by Amazon, handle your shipping, you will
have to ship packages off. Having some shipping supplies on hand and buying in
bulk can help reduce costs and headaches. This includes boxes, bubble wrap,
wrapping paper, shipping tape, and sometimes bubble mailers or envelopes.
 Patience. Not every day is going to be running from gold mine to gold mine, and
as you’re building your positive feedback on the multiple platforms you might
sell through, it is important to note that you are still “earning your place” in the
world of ecommerce. Hard work and a lot of patience will pay off if you can ride
it out. Do not allow yourself to give up before you’ve given your new venture a
fair shake. Impatience is the number one killer of work-at-home and no-boss
dreams! Don’t fall victim to it.
 Transportation. While it’s possible that you can use public transit, Uber, or other
methods, it is really ideal to have your own transportation when hunting for
items to resell with your ecommerce business. This allows for more
opportunities to be checked in a day, and it makes transporting any purchases
much easier. If you share a car with your better half or roommate, make sure
they understand that you are going to need it to work.
 Capital. It is going to be difficult to get started without at least some capital.
While a specific amount serves no purpose, as it could literally be as little as
$100 or as much as $100,000, the more you have, the better. When your budget
is low, you’re going to miss out on some opportunities, so don’t quit your day
job until you’re making enough money to justify it. I strongly encourage starting
 out with $1,000, but we’ll discuss some options later in the book for those with
low amounts of startup.
 Basic writing skills. This applies more when you sell through eBay or your own
ecommerce platform than it does with Amazon, but having some basic writing
skills can go a long way when writing out descriptions and communicating with
customers. While you don’t need to be a literary genius, decent grammar is not
lost on certain buyers. Do not write like you would type a text message to your
wife or husband. Be professional, and do your best to keep everything clear and
concise.
 Storage. If you have any intention of selling large numbers of products, you may
very well need some storage space. It may also be prudent to make sure you
organize things in a way that makes it simple to pull out a product when it’s
ready to ship. If you plan to work with a fulfilment service, this becomes less of
a concern, but having a little bit of space on hand between shipments to your
fulfilment center will help you keep the peace at home by keeping your
products out of the living areas.
 Camera. While this isn’t 100% required, having a decent digital camera (DSLR)
is going to help you take images of items you’re selling. This is especially
important if you run into slightly blemished products and decide to sell them.
Having images helps increase sales either way, though, and it’s required for
eBay listings, so it’s highly encourage. A decent smart phone camera will get the
job done well enough if nothing else is available, but plan to update later, and
take the time to learn how to use your camera well enough to take professional
quality images of your products.
 Amazon and eBay accounts. We’ll discuss these in greater detail later, but it is
well advised to sell through both eBay and Amazon, especially if you’re going to
handle any of your own shipments. While many will work through one or the
other, there are certain products that sell better through one of the platforms
better than the other. Considering which one offers the best opportunity for a
specific product can help you increase your profits.
 Dedication. It sounds obvious, but if you’re not willing to put in the time and
effort involved, you will have a hard time getting what you hope to achieve from
retail arbitrage. This is not remotely a get rich quick scheme, and it takes a lot of
work on your part to get things running smoothly enough to make large sums of
money. When things are running smoother down the road, it may become
easier, but retail arbitrage is initially a lot of work.
 Record keeping method. You need to keep track of everything in an Excel
Spreadsheet, Quickens, a smart phone app, or some other method. Having good
records with clear details will make tax time much easier, and it helps you keep
track of just how successful you are and what has worked well in the past. Using
this information, you can better plan for future purchases by planning ahead.
 Flexibility. You need to be able to roll with the punches. You need to seize
opportunities as they arise, and you need to understand what is going on within
several markets at once. If a hot item is about to release at limited quantities, you
should be able to determine if it is worth pre-ordering it. If a product’s price drops
on Amazon, you need to be able to decide if it’s better to sell it on eBay, if the price
might shoot back up and it’s worth holding out, or if it’s time to cut any losses and
go with the going rate instead of the rate you’d hoped to receive when you first
purchased. These things will come naturally to many of us, and as you grow your
retail arbitrage efforts, you’ll find these things are not as daunting as they seem.
Expect To Work
This point cannot be stressed enough, but you really must expect to put in some work when
running a retail arbitrage based ecommerce business. A large portion of retail arbitrage is
scouting local products that sell for less locally than they do through platforms like Amazon or
eBay. This can take time. While you may learn more about what types of items are cheap in your
area, or only available in your area, it will still require you to physically visit several locations.
For many of us, this is a huge perk of the job, as only sitting at the computer all day is boring.
It’s true to say that the hunt is quite often the largest part of the job, and you will have to make
time for this, even if that means you have to spend a couple hours after work every day rather
than unwinding. Other work involves listing products, shipping products, handling customer
support issues, and a myriad of other small tasks. While it may be a lot of new work to handle on
top of your current employment situation, if it’s handled with a strong work ethic, there will
come a point where that 9-to-5 is likely disposable.
Is There A Local Market?
If you live in a very rural area, there may not be a significant local market for you to draw your
products from, and that can be a major downside. However, while that doesn’t mean ecommerce
and arbitrage are completely off the table, it does mean that you may face challenges in finding
great products. On the other hand, for the few stores that are in your area, certain hot-ticket items
may actually remain available for much longer than they would in a larger local area.

Regardless of the small benefits of rural shopping, the ideal situation is to live near a large
number of stores, anything from Target to Walmart to Ross to Fry’s Electronics to groceries
stores. If it is going to take you an hour each way to get to a decent area for shopping, you have
to determine if that amount of effort is worth your while, as you may very well have to make this
drive several times per week in order to find enough products to satisfy your income goals.
There’s nothing wrong with that amount of driving as long as you can work out enough time to
really hunt for the products you want to sell.

Having that local market available will greatly reduce the amount of hunting involved, though. If
you can walk through 15 stores in a single day, that’s going to be a lot more useful than only a
few stores per day. In the end, you have to decide if there are enough local resources, and
sometimes that can only be done by getting started. Keep in mind that retail arbitrage does not
need to be the only method you have for sourcing products, so while you may live in a rural area,
it is still possible to utilize retail arbitrage with several other methods of ecommerce sourcing
and sells.
Chapter 3 Keep On Growing
Retail arbitrage isn’t for everyone, but for those of us that want to get out of the house and don’t
mind taking small risks here and there, it is a great opportunity to free us from the usual
workload of a 9 to 5 or even heavy labor. The great thing is that there’s nobody there to tell you
how you’re messing up. You may make mistakes, but you simply learn from them and move on.

There are a lot of facets to Amazon, eBay, and other ecommerce methods, and while retail
arbitrage can be a viable business model on its own, it is also possible to take advantage of this
model while also exploring other ecommerce solutions, such as a wholesale, private label, and
dropshipping. If there comes a point where retail arbitrage is eating away too much time, it may
be time to explore these options as alternatives or in addition to your retail arbitrage model.
These methods can also help calm the turbulent seas when there just aren’t enough good deals
coming up during your hunts, though that usually won’t be your problem.

So are you ready to take the plunge? You don’t have to quit your job. You don’t need a ton of
money upfront. All you need is some hard work and dedication. You most likely have almost
everything else already! There’s nothing stopping you except yourself, and once you get started,
your confidence will soar once you realize just how capable you are of producing an income
without working under somebody. As your business grows, you will learn new tricks, and as
your skills grow, you will be able to continue expanding your income stream.

Here’s to your success!

Chapter 4 Boys’ Toys and Other Fun
Just like toys that were made to cater to little girls, there is a large amount of toys that are for
boys that are now worth money.  The selection of these toys is a little more diverse for boys, so
you stand a better chance at finding something vintage for a boy.  However, a lot of toys were
never gender specific, so they can fall into any category.  In this chapter, I’m going cover the
main toys that are high in popularity that were made for boys.
Soldier Figurines

If you think about little boys, one of the toys that are commonly associated with them are
soldiers.  Soldier dolls and figurines are highly collectable and popular.  Depending on the type
of material that they are made of, these can bring in varying amounts of cash.
Hot Wheels Cars

Hot Wheels cars, especially the ones that are no longer made, are sought out by collectors.  In
their time, Hot Wheels have come out with many limited edition toys that collectors would love
to get their hands on.  While looking through toys, take note of the year that the car or truck was
made.  It’s often printed on the bottom of the car with the Hot Wheels logo.  Like other popular
toys, Hot Wheels has a lot of knock offs that look similar, but are not worth anything.
Metal Dump Trucks

The old heavy metal dump trucks that little boys used to have are now a vintage toy item.  The
companies have stopped making these out of metal due to the dangers that sharp edges may
cause children.  Even though they have stopped making these toys, people will seek out the old
metal dump trucks because they are durable and will last for a long time.    
Star Wars Figurines and Accessories

Star Wars has been a long time favorite for many generations.  With that being said, it stands to
reason that the toys and figurines that come from the movie are collectible items.  The older the
item, the greater the possibility of it being worth some major cash.  So, keep yourself on the
lookout for Star Wars items!
Super Hero Toys and Accessories

The super heroes from the comic books have been a favorite to adults and children alike.  From
Superman to the Hulk, items that boast super hero logos and likenesses are popular and will sell
for big money.  I know that Batman and Superman were popular during my own childhood and
are still popular with children today.  Use the knowledge of super heroes to find items that you
will be able to make a huge profit off of.
Ventriloquist Dolls

Ventriloquist dolls were an extremely popular toy among young boys in the sixties and
seventies.  The ability to have a doll that you could make talk was very appealing.  Even though
they are not popular with the children today, these dolls are still collected.
GI Joe Dolls and Accessories

GI Joe was a role model for young boys around the time of the Vietnam War.  Having this
fictional role model helped boys achieve creativity and bravery.  The dolls and accessories
remained popular for many years, and now the toys are being sold for nice profits.
Transformers

Based upon a cartoon, these vehicles that turn into action figures were a favorite among young
boys.  By moving their parts around, you could either have a vehicle or a person.  These
characters would fight the bad guys and win.  The show no longer exists, but the toys can still be
found and resold for stacks of cash.
Erector Sets

Erector sets were a project where a child could build structures using metal parts.  This toy
catered to older boys, and it was challenging and fun for them.  They were only marketed for a
short time, but people still seek to collect them.

Toys gain popularity for various reasons.  By knowing what children enjoyed during the past,
you will have a good idea of what will be collected now.  Also, look at what’s popular now. 
Trends tend to repeat themselves, so toys that were popular during your childhood may become
popular once more.  Take this into account when shopping in your local thrift store.
Chapter 5 Finding Websites and Other Venues to Sell Your Goods
on

Once you have found the items in the thrift stores, it’s time to make the next move and sell your
finds to the people who will want them.  However, there are different ways in which you can sell
these items.  Some ways will earn you more money than others, so knowing which ways to sell
certain items will help you to get the most out of the items that you have found.

Where can you sell used items?  How can you find the customers who will pay top dollar for
what you have?  These are the questions that you might be asking yourself at this very moment. 
Don’t worry, you’re not the only one!  Let’s take a look at the different ways you can sell your
thrift store finds for the most money.
eBay

eBay is the top auction website on the internet.  Anyone can buy or sell on this site, and many
people will turn to this site first when looking for items that they are seeking.  However, some
items will sell better in this setting than others.  Collectibles and popular items are huge sellers
on this website.  Think about selling items such as toys, trading cards, and unique figurines when
selling on eBay.  The bidding will work the price up and you may be surprised with how much
your item will sell for in the end.
Amazon

Amazon is another popular site where sellers can offer their wares.  This site is set up with you
choosing how much you would like the buyer to purchase your item for.  In order to do that, you
will need to know what your item is worth and not overpricing it.  Also, you will want to ensure
that you are pricing it with its condition in mind.  Many people will turn to Amazon to look for
used books and music.  You may find that other items that you have found will sell well in this
setting too.
Antique Stores

If you’re dealing with items that are older and may be out of production, an antique store may be
the place to sell your finds in.  Large antique shops operate by renting out areas where people
can set up their own shops.  In order for this to be a possibility, you will want to have a wide
array of items that would be considered antique.  If you don’t then you may want to consider
partnering with another seller and renting a booth together.
Craft Fairs
If you are dealing with items that can be considered crafty, such as wall art or quilts, then a craft
fair could be a great way to get top dollar for your items.  Again, like an antique store, craft fairs
are operated in booths, so you will want to make sure that you have more than a few items to sell
in order to make this worth your while. 
Craigslist

Even though many people are afraid of buying and selling on Craigslist, you can actually make a
decent amount of money on this site if you’re careful and know how to avoid fraud and
dangerous situations.  This is a good site to sell the larger items on, so think about using it if you
find high quality furniture that you know that someone will be looking for. 
Etsy

If you don’t have enough merchandise to sell at a craft fair, Etsy is the craft fair’s online
counterpart.  You can individually list your items on this website and sell as few or as many
items as you wish.  This site operates much like Amazon, except it deals with handmade goods. 
So, if you have a few crafty items you wish to sell and don’t want to go through the hassle of a
craft fair, consider opening an using an Etsy account to sell them!
Social Media

Many social media sites have groups that have come together to buy and sell in certain areas and
certain types of items.  You can easily search these groups and find one that your items would fit
into and ask to join the group.  After admitted, you can post your items and sell it to the people
within the group.

Knowing where you can sell your items and which ways to sell your items will ensure that you
get the best price for what you sell.  Before posting or setting out your items, take a look at what
the store or the site has to offer.  If you see that similar items sell well in one area and not in
another, go with the best way to sell what you have.  You can also use several of the methods to
sell different types of items.  The more you understand about where to sell, the better chance you
have of making a better profit.
Chapter 6 Learning to Ask the Appropriate Price

One of the biggest mistakes that new sellers make is not pricing their goods appropriately.  Some
will severely overprice their items and no one will purchase them, or the seller will underprice
the item and take a small profit or a loss from what they sell.  Knowing how to find the best price
for your items will take some research, but knowing what you can get for what you have will
benefit you in the long run.

How do you price used items?  You might feel awkward pricing something that you just
purchased used.  Why would anyone buy something used from you?  You would be surprised at
how well used items really do sell.  In this chapter, I’m going to give you some tips on how to
price your items just right to make sure you get the best profits from your items.
Search the Web for Similar Items

Since the internet is a great way to find out information, use it to your benefit.  When going onto
the internet to research which method would be best for selling your item, look at the asking
prices of other sellers.  This can give you a general idea of how much the item can sell for.  Also,
you can look and see what similar items have already sold for on some of the sales websites. 
Gather this information and use it when pricing your own item.  You want to ask a fair price
without asking too much or too little.
Use Antique Pricing Catalogs

If you’re dealing with antiques, pricing guides can be a wonderful resource for you when pricing
what you wish to sell.  These guides will tell you how much the item will sell for by year and
condition.  The prices given are the average price that you can buy them for, so if you price what
you’re selling within those limits, you should be able to get a good price for what you’re selling.
Find a Good Pricing Guide

Pricing guides are out there for almost anything that you wish to buy or sell.  Find the
appropriate and most up to date guides and use them as a reference when selling your items. 
These guides are written by the experts, so you know that the advice is reliable and that you
won’t get taken advantage of.
Look for Trends in Pricing

As time goes on, some items will change in popularity and demand, therefore changing how
much you can sell it for.  If the price of what you’re selling takes a dive, you don’t want to keep
asking that high of a price for it.  Lower or raise your price according to what the current pricing
trends are.
Note the Item’s Condition When Pricing

When dealing with used merchandise, there is always the question of the item’s physical
condition.  Your buyers will want to know what that condition is when you sell it.  If it’s not in
factory packaging, you need to give as much detail about the item as you can, and you need to let
the price that you’re asking for the item reflect that item’s condition.
Price Competitively

In order to actually sell your item, you don’t want to ask top dollar for it.  You want to entice the
buyers to purchase what you’re selling.  So, price your item like the other ones of the same
condition, but make buyers come to yours because you can give them the best price.  This is a
good idea, especially if you’re dealing with an auction website or another website that expects
you to sell your item in a certain time frame.
If Auctioning, Start Low

When using sites such as eBay, start your initial bid low and let the buyers work it up for you.  If
you start with a minimum bid that is too high, then people will find similar items to bid on
instead.  People will want to get the cheapest price for what you have to sell, and if they feel if
they can get that elsewhere, your item may not sell at all.

Pricing your items is an incredibly important element of getting the most out of your thrift store
finds.  Finding a good price and having people think that it is reasonable are the best ways to
ensure that you sell what you want for what it is really worth.  Don’t allow the buyers to dictate
the price if you know that it is worth more than they are willing to pay.  It might just mean that
you have to find a different way to sell it.
Chapter 7 Know When You’re Being Taken Advantage of

When these factors come into play, you can easily fall into the buyer’s hand.  However, you can
counteract the problem by knowing what the true value of your item is, and you can know what
you can reasonably sell it for.  There will be people out there who will try to get you to sell it to
them for less.  Some of them can be very convincing.  You can combat these types of people by
knowing how to stand up for yourself in the selling world.

How confident are you that you won’t let people take advantage of you?  If you feel like people
do that in your life, it’s time to look at ways that you can avoid being made a fool of and losing
money instead of taking away a profit.
Know What Your Item is Truly Worth

By doing your research and knowing how to price your items fairly, you shouldn’t have to
haggle the price with a potential buyer.  The price should sell it for what you want to sell it for. 
People will constantly try to get more for less, so stand up for yourself and don’t let them get
away with getting what you have to sell for less than you know you can sell it for.
Be Polite When Discussing Prices

You will get people who will want to discuss buying your item, but they will want to buy it for
what they want to buy it for.  If you know that what they are willing to give you is much less
than what you know you can get for it, be polite and let them know that they can either purchase
it for the asking price or not purchase it at all.
Be Aware of Private Messages on Sales Websites Concerning Pricing

If using an auction website, you might get private messages from bidders asking you to sell it to
them for a certain price.  While other bidders are honestly bidding on your item, someone is
trying to get in and get it without having to deal with the competitive aspect of the site.  More
than likely, your auction price will get you more than this secret buyer is willing to pay.  So, just
be polite and let this buyer know that the item can be purchased by the highest bidder.
Stick to Your Price

If you know that the price that you have given your item is fair, then don’t let anyone try to
haggle it down.  The item will sell for what you want it to if it is in demand and you have set a
fair price on it.  Remember, people are trying to get more for less, so don’t fall victim to their
whims.  Stick to your price and don’t let them tell you what you should sell it for.  You have
done your research and you’re sticking to it!
Know When You Should Give in

Sometimes, no matter how well you price your item, it will not sell for what you wish it to sell
for.  This can be due to a number of reasons, but it is better to get something from your
merchandise than not to be able to sell it at all.  If you have a buyer who is interested and can
give you what you at least paid for it, then give in and let that item go.  It might just be that your
item wasn’t what you thought it was and you shouldn’t waste any more time on it.
Don’t Take Payments Outside of Cash or PayPal

There are a lot of scams out there.  Sadly enough, people will use alternative methods of
payment that are often fraudulent when purchasing items.  Don’t allow that to happen to you. 
When selling your items in person, accept only cash.  You can verify if the cash is real by
looking at its security features.  If selling online, use a reliable third party, such as PayPal.  They
will protect you from cyber fraud.
Knowing a Scammer When You See One

Scammers can be smooth characters.  They might seem like the nicest and most honest people,
but that is a ploy to get what they want.  Look for things that just don’t fit when you’re dealing
with a potential buyer.  Often times, your gut feeling can lead you to make the right decision
regarding your sale.  Listen to your gut and don’t sell it if the buyer seems off in any way.  There
will be other people out there who will buy what you have to sell.
Be Aware When Someone Offers You More Than You Know the Item is Worth

Sometimes, a scammer will try to give you more for what you’re selling than what it is really
worth.  This is a way for them to get what you have to sell and also take advantage of you. 
When you try to tell them that they are offering too much, they will ask for you to send the extra
money back.  In reality, that money was bogus to start with.

Being taken advantage is not fun.  When you’re trying to be honest and make an honest income,
getting scammed can really hurt.  People will take advantage of you if given the chance.  Even if
you like to think the best of people, be careful.  They might just be putting on an act to get what
they want for what they want it for, and you will take the loss in the end.
What tools of the trade will you need?

Selecting the right tools to track down and buying the best products from some of these
good thrift stores is very important. A collection of applications, websites and directories
that contain all information about thrift stores is highly necessary to keep yourself ahead of
the curve. The list of mobile applications that would prove to be your best ally while buying
from thrift stores are:

Thrift Buddy: It is the most comprehensive directory available for the apple device. With
more than 10k stores listed in all over the United States, it provides an easy access to all
information related to thrift shops and also has genuine reviews from the thrift shop users.

Thrift Shop Locator: it is one of the most popular apps for the android device. It lists all
types of thrift shops, consignment shops and flea markets in the whole of US. It has more
than 10k listings and also allows you to add your own local listings to the directory.

Thethriftshopper.com: The site works as a thrift shop directory that has the largest listing of
the best and the worst thrift stores in the US and all over the world. Each of the users
reviews the thrift shops they have visited and the site is full of genuine reviews from
thousands of buyers. These reviews could greatly help you form the right decisions about
you next thrift shop visit, maximizing your time while maximizing your profits.

Profit Bandit: In order to make profits on the items you bought at thrift stores, major
auction sites or on your own site, this app could greatly help you compare the original
prices of the products with what the item is being sold for, it calculates your potential
profit, which will further help you decide how much you should actually pay before buying
a thrift item.

Thrift Town: Another awesome app for the apple devices, it provides clear and precise
information about the Thrift Town chain thrift stores. You can also find new arrivals and
shop online from their collection of goods and inventory.
Deciding on Inventory?

Once you have decided on where you intend to buy your items from and have the tools required
to start selling, you will need to start getting your stock together.

There are several ways of deciding what you want to buy.  Many sellers take the ROI route
whilst others prefer to see if the actual profit is worth their time and effort. For instance, some
would prefer an ROI of 50% on an item worth $300 but would not waste their time over a 100%
ROI on a $2 item.

If you are spending lots of time on research, correspondence, travel etc, buy items where your
ROI will be higher and vice versa.

Another way of deciding what to buy could depend on what you would like to earn for an hour
of work.  Think of the wages you would have earned per hour in a job.  If that is your goal, buy
accordingly.  Work out what will be the handling time of selling the item, including travel,
cleaning, shooting pictures, posting on the e-commerce site (title, description, deciding the price
take time), packaging and shipping/delivery.  If for example, it takes you 3 hours to do all this,
and you want at least $20 per hour, see if this item will earn you a profit of $60.

Also remember that you are going to have to pay the web platform from where you sell, the
payment gateway that you will use and shipping and packaging.  Will the item you buy earn you
enough to cover all these costs?

How long is this item going to sit on your shelf? Think bank interest – if the item sells
immediately, your money returns to you as soon as you invest it.  But if you feel that there may
not be too many takers for it, should you be buying it?

Sometimes, volume items are worth the effort.  Nobody buys just one plate.  So if you are getting
the entire set, you may get a better price.

Where you are going to sell the item may decide whether to buy or not.  If it a flea market, a $5
profit may be lucrative, but if you plan to sell it on a website such as eBay, $5 would mean
negative earning, thanks to overheads. Also, items that can be easily and more inexpensively
shipped may be a better deal if you are working online.
Once you have zeroed in on that particular item in the thrift shop that you hope to flip, examine
the product thoroughly. See if the item meets the following criteria:
Clothes:

All seams, buttons and zippers are intact.

 The cloth is not ripped and has not been darned or mended.

  The cloth is not worn or faded.

Toys and games:

All pieces are intact.

 No missing pieces in jigsaw puzzles or Scrabble.

The soft toys are not torn or oozing cotton.

Computer games:

 Make sure the cds/dvds work.

 If sealed, check for system requirements. For instance, DOS based games may not run in newer
machines.
Glassware/Crockery/Flatware/Silverware:

Chipped tableware will be difficult to sell.

Try to get complete sets unless you feel that the piece you are looking at is an antique.

If the set of spoons is not shiny, do not worry.  It most probably is sterling silver. Usually, silver
articles have a stamp that will help you figure out whether they are really silver.
Antiques/Paintings/Frames/Jewelry:

You may not be able to date them or prove their authenticity at that moment. Buy them! In case
you do not find that they are of very great value, you can always re-donate.

If you are focusing entirely on these items, it would be useful to visit museums and libraries and
read up on what is authentic.
A visit to various e stores will also give you an idea what people will pay for such stuff and
whether the asking price is worth the effort.

 If the items are packed, try and make sure that the box contains what the label reads.  If there is
a scannable barcode, see product description as per the bar code.  Any app similar to Profit
Bandit will be helpful. And remember to shop in nicer neighborhoods. They have better salaries
and hence more disposable income.
What not to spend your money on

A designer handbag with a ‘Made in China’ label.

Stuff that is too damaged or torn

Clothes with missing buttons, damaged zippers and worn our collars

Chipped tableware

 Used bed linen, bath linen, innerwear, bath suits, mattresses and pillows and wigs would most
probably never sell.  Don’t waste your money and time!
Quick Action Guide – A step-by-step plan to get started

So now you have decided that flipping thrift store items is for you. This step-by–step guide will
help you navigate the DOs and DONTs of starting a flipping business.

The first thing is to get you a Smartphone if you don’t already have one and start doing research.
See what items are being sold on sites like eBay, Amazon, craigslist, etc.  See what is popular
with the buyers and what they are willing to pay for it.  Check their terms and conditions and
find out how much they charge towards shipping.  Once you have done that, draw out a list for
yourself that will help you focus on things that you are interested in selling.  After all, each
product that you upload on these sites must have a nice title and a well written description.  If
you are not excited about an article you are trying to sell, it shows!

Visit museums and libraries and learn about antiques and paintings.  You never know when you
will walk on to a great buy and ignore it just because you did not recognize its value.

Research thrift stores, garage sales and flea markets in your area. Check what they sell. Compare
prices and quality and decide which ones fit your budget since all inventory must be value for
money.  Every dollar you spend must reflect on the product.

Register yourself on web platforms such as eBay and Amazon.  They have several forms to be
filled and ask questions regarding your citizenship status and bank details so as to ensure that
your taxes are reflected properly.

Register for a PayPal account or its alternatives such as Google Wallet, Wepay, 2Checkout,
Authorize.Net, Skrill and many others out there.  Make sure you enter all your details correctly. 
You do not want all your earnings disappearing due to wrong bank account details.

Now for the capital investment – You have already got your Smartphone. There are several apps
that you need to download. All ecommerce sites now have a mobile app. These apps allow you
to buy and sell without having to be in front of your desktop or laptop.  So you can click pictures
of your product and upload them directly using the mobile apps. Then apps such as the Profit
Bandit and Scanpower will help to figure out how much the item you have your eye on will sell
for on, say Amazon.

The next thing you need to get yourself is a shipping scale that will help you calculate how
much you will be spending on shipping.  An average scale costs between $12 to $18.
To help you with your listing, USB barcode scanner is ideal and will allow you to get through
the process really fast.  This will cost $10-15 on eBay or Amazon.

Buy packaging material such as bubble wraps and brown paper. Save any old boxes and
thermocol fillers. A printer will be helpful too.  Saves you the time of having to write out all
the addresses!

A space to operate from, even if it the garage will be good.  Make sure it is only yours!

Open your telephone directory and find a logistics company close to your place of work. Make
time to call them and find out the rates for delivery.  See if you can get them to pick up the
package from your place.  That way, you will not be wasting time driving down to their office
every time.  As your business picks up, so will theirs.  So they will be happy to support you and
maybe also offer you credit and/or discounts at a later date.  These guys are crucial to your
venture.  So play nice!

Now, that you are ready to take off, it is the time to start building your inventory.  Using all
the information you have got so far, start buying stuff.  Remember all the DOs and DONTs. 
Remember what sells and what does not. 

Once you have bought it, see if needs any attention – does it need some polishing, or maybe
some buttons need to be reaffixed, or does that designer bag need the zip fixed.  Get that
sorted before you take pictures.

Ensure that you photograph the product at its most flattering.  So a decent table cloth and
ample lighting is essential.

Think of an enticing title.  The secret is to make a potential buyer curious about your product
and you need him to click to open the next page. Once the title is ready, start on the
description. Be honest without being off putting.  A ‘Made in China’ Gucci is only a rip-off.  So
be sure you don’t mislead your buyer.  He will never buy from you again and most probably
destroy your ratings with a disastrous review. An example:

Well preserved bone china dinner set for 4 places

Beautiful bone china dinner set with a delicate floral design in white and blue for sale at an
unbelievable price.  Includes 4 quarter places, 4 half plates, 4 dinner plates, 2 medium sized
serving bowls and a large platter.
Your picture must bear out whatever you write. So make sure all the pieces of the set are
there in the picture.  In case you are describing clothes, include exact measurements.  Study
other listings for similar products and try to use the keywords which will help the buyer reach
your listing.

Done! You are ready to upload your product for sale. But have you decided the price?  Using
the methods we spoke about in previous chapters, price your product.  For instance, how long
did it take you to reach this stage for this product? If it took you 5 hours, and you want $10
for an hour of your time, price it accordingly.  Factor in the website’s commission, the
payment gateway’s cut and shipping.  Decide shipping on the basis of weight and location. So
once the buyer enters a pincode, the website can automatically decide shipping costs. Also
check out the competition.  If someone is selling something similar for even a few cents lesser,
your seller may be swayed.  If you are sure your product is better, you may want to stick to
your guns.

Once you have got the price worked out, list your product! And wait!

When you receive your first sale, do curb your exuberance! You need to ship it within 24
hours.  So start packing your product.  Get the address right.  Make sure you have added the
telephone number of the buyer right so your courier/logistics company can make sure they
are at home when they deliver. Get the courier company to pick up the package or drop it off
at their office yourself.

And now you can breathe! You have officially completed your first sale!
Chapter 8 Knowing When to Buy and When to Step Away
People often struggle when it comes to knowing when the sale is going foul.  A bidding war
isn’t something that you want to carry out for too long.  There is a time to know when to
step away and move on.  Unless you know the item is absolutely valuable, it’s okay to step
away and continue on your route.  In this chapter, I’m going to give you some tips on
knowing when to stay and when to go.

The Item is Valuable

You know that the item that you hold in your hands can be resold at a great profit. 
However, the seller knows it as well.  He wants to get rid of it, but he won’t let it go for
under a certain price.  This is when you really need to think about your profit margin.  If
you cannot get much more out of it than what you’re buying it for, then it’s okay to walk
away.  On the other hand, if you know that you can make a lot of money off of it, it might be
good to just give in to the seller and pay a little more than you planned for it.

The Item is Damaged

You could potentially make a good profit from the item.  However, there is a damaged spot
that will decrease its resale value.  This is where you need to evaluate whether or not you
can repair and resell the item, sell it as is, or leave it for someone else.  Sometimes, you can
fix the damages on used items and resell them for a good profit.  Really think about this as
you haggle the price.  Since it is being sold damaged, you might be able to get a better price
for it when this detail is presented to the seller.

The Seller is Asking Too Much

Let’s face it.  People have grand ideas in their heads about what they think they should be
able to sell a certain item for.  The item might be purchased for just as much new.  Take this
into account when shopping at garage sales.  Even if it’s in near new condition, it’s not new
and you shouldn’t be required to pay a new price for it.  If the seller isn’t willing to bargain,
walk away. 

Knowing when the bargaining isn’t working is a good way to gauge whether or not you
need to keep trying or walk away.  Once you’ve haggled a few times, you will know when a
seller is going to give in or if the whole thing is a waste of time.  Just remember to not pay
more than you believe is reasonable for the item.  You both want to make money, but you
want to be in a position where you can maximize your profit.
Chapter 9 How to Make Money Selling Arts and Crafts Items From
a Thrift Store
Most thrift stores have an arts and crafts section and this can be utilized to make a ton of
money. In this chapter we are going to go over the many different ways you can make
money by using the arts and crafts section in your thrift store.

One great thing about thrift stores is that you can purchase crafting supplies super cheap.
You have a few options when it comes to these supplies. You can gather them and use them
to create your own crafts which we will discuss plenty of ideas in this chapter. You can also
create lots of these supplies and sell them quickly. If you want to make the most profit you
will want to use these supplies yourself.

22. Yarn is in abundance at thrift stores and the great thing about this yarn is that it is high
quality yarn. You will pay less than half of what you would normally pay for it and in your
spare time while you are sitting in front of the television you can crochet a blanket and sell
it for $50!

23. Hair bows for little girls are selling like crazy and these only take a few minutes to
make. You can purchase the ribbon at a resale shop, spend five minutes making a bow and
sell it for $5 with no problems.

24. A really great thing I like to purchase is baby dolls in the arts and craft section. These
usually sell for about a quarter each and you can use the material, ribbons and such that you
find in the craft section to really dress them up. Doll collectors go crazy for this stuff
because it is one of a kind.

25. You can use a lot of the items you find in the arts in the crafts area to embellish other
items such as shoes and sell them for even more. Remember the more you can save at a
thrift store, the higher your profit will be, so that means taking advantage of all that the
thrift store has to offer.

26. Use the fabric to wrap around old or cheap picture frames to make them look amazing.
You can also create a peg board out of these fabric wrapped picture frames. You can also
make a chalkboard out of them. Remember creativity counts here!

27. Fake flowers are something thrift stores never seem to run out of and you can use these
in a variety of ways. For example, you can add a flower to your hair bows and charge a little
more. You can make barrettes that are several different flowers in a short amount of time
and sell them or add the flowers to head bands. You can also add these flowers to the
picture frames and give them a bit of personality.
 28. Use a picture frame and a few of the supplies from the arts and crafts section and create
some amazing 3D art work to sell. You will find that this type of item is going to sell
quickly, again because it will be unique to your store. Buyers cannot go looking for a
cheaper price and this is what you want. Of course you want to have items in your store that
cannot be found other places. You also want to make sure your customers can find items at
your store that they can find nowhere else. So, use your imagination and start making
money!
It will really depend on the different types of arts and craft supplies that your store carries,
as well as the amount of work you are willing to put into a project. You do want to make
sure that you are not putting more work into a project than you will be paid for. For
example if it is going to take you 3 days to complete a project and the value is only going to
be $30, that is not a project you should really concern yourself with.

Most of the tips in this book can be done in your spare time. It is understandable that you
are not going to take your normal 40 hours each week that you normally spend on
purchasing thrift store items and selling them to work on this type of thing. These items are
either for your spare time or for when it is hard for you to find items to resell.

Sometimes thrift stores go through dry periods where they just don’t have any treasures to
be found. That is when you should start selling these items. I suggest that while you are
able to find treasures at your thrift stores that you still work on a few projects in your spare
time. That way if the time comes where you have found nothing to sell, you can fall back on
these items and still continue to earn money.
Chapter 10 How to Buy Small Appliances at Thrift Stores and
Make Money
It is a little more difficult for you to get creative with small appliances and electronics.
However, I want to include this chapter because I want you to understand that you really
can make money with every section in your thrift store!

29. Watch for items that sell well but are not often found at thrift stores. One example being
that I can go into any local thrift store and find bread makers. I can also go on eBay, look up
bread maker and find the same one listed for $13 ending in 3 hours and no one has bid on it.
The same thing goes for a George Foreman grill. You can purchase these for almost nothing
any day of the week from a thrift store, list them on eBay for $2 and you will not be able to
sell it for much profit at all. So make sure you are looking for rare items.

30. Food processors are one of the top five small appliances selling on eBay right now. You
have to be very careful when you are looking for one to flip, because you want to get a
multi-purpose food processor. A normal food processor may sell at some point, but what
people are looking for right now is a way to save counter space and save themselves from
having to purchase two different appliances when they can find one to do the work. Watch
for multi-purpose small appliances, these will bring you the highest profits.

31. Rice cookers are another one of those multi-purpose items that you can sell for a profit.
Rice cookers not only cook rice but the high end rice cookers can be used for stews, soups
as well as a variety of other foods. This makes buyers willing to pay top dollar for them.

32. Anything vintage will sell as well, even small vintage appliances. You need to make
sure that these have all of their cords and it is best if you can find them still in their original
boxes with any books that came with them. It does not matter what the appliance is when it
comes to vintage, as long as it is in good condition.

33. Meat grinders are another item that you will be able to purchase from a thrift store and
make a huge profit from but you need to make sure all the pieces are included. If you have a
customer who is expecting an entire meat grinder and even one piece is missing, you will
end up having to refund the money and you will have one upset customer.

34. Finally you should keep your eye out for flour grinders. Many people have gotten into
grinding their own flour. Some of these people have decided it was too much of a hassle and
are selling or donating their grinders to thrift stores. You can pick these up for $15-$20 and
sell them for a huge profit, often up to $200.
Those are all of the tips I am going to give you when it comes to selling small appliances
that you find at thrift stores. One of the reasons for this is because you have to consider
shipping when it comes to large heavy items and many people do not want to deal with that
hassle. The other reason is that selling different small appliances is very easy, all you have
to do is ensure it is a brand name, it is in good working condition, and is something that you
cannot find every day at a thrift store.

When it comes to electronics the same rules apply. For smaller electronics such as CD
players or Walkmans, you need to carry some batteries around with you as well as a tape
and CD that you know works and a set of headphones. This way you can test the device and
make sure they actually do work. Often times just because something says it works at a
thrift store does not really mean it works.
Chapter 11 Get Started with Retail Arbitrage
Retail arbitrage is going to translate a whole new type of selling experience in the world of the
consumer. This world of selling is going to establish deep connections between companies
everywhere and put the sale on the front lines of the audiences on the internet. These sales are
going to change the way that we view products and what products are going to be trending when
the rest is left over. This ever-changing market of commerce is going to show us that the trending
products aren’t always going to rule over the fiscal market. Products are going to be able to come
and go, but it is at the responsibility of the company owner to find a way to diversify old and
new products alike. Old products are not necessarily sold out because we must remember that
there are customers out there that are looking for good quality products that are also marked
down for a better cost. These customers are going to find our product listings and see the value
that we have, keeping a strong market value of the products we do choose. There may be
thousands of vendors that could possibly have the same products in your inventory right now, but
there needs to be a strategy implemented to shine above all of the rest so that companies
approach you to supply their demand. Adjusting price points every quarter is going to be a
positive trending routine as it will always be a constant matching point for any other companies
that are offering the same types of products or services. This is the perfect time to step in with
new goals that separate the company’s values from the rest. The company has to run a simple
and efficient plan for all of their customers and it doesn’t necessarily need to be this new wave
that sweeps the nation. The customers are looking for simple and reliable shipping with their
good products and that is going to ultimately make the customer happy.

Selling OA is going to be a journey that one is going to have to experience on their own to learn
the ins and outs, but there are consultants that one can hire to get a more in-depth dive on how to
fully sell to the fullest potential. There is going to be great profits if the company can stay aware
of the prices and rates that surround them in their current times, because as long as they can stay
ahead with other companies making these sales, they will be able to rack up great customer
traffic that helps them establish a great name of the business while ramping up. There are going
to be possibilities for some of the clients of the consumer going to approach the company in new
lights. Maybe there will be another company that wants to join the partnership in some way or
form, and this is going to be the moment when there are thoughts about the future and where the
company sees itself in the years to come. Do not fear these new endeavors because some of them
are going to be time-sensitive and you should definitely jump on future profits if the numbers
have been ran that it is going to be a positive gain. There are going to be companies that want to
step in for partnership that also might ask you to sell their white-labeled products or vice versa,
where you will purchase white-labeled products and distribute them exclusively to other vendors.
White product labeling is going to be a great starting point to selling really good quality at
affordable rates and being able to market to these audiences is going to be crucial for the price
points that the company sets each quarter. The company is going to pull in great margins with
selling white label products because they are not going to come with an expensive brand name to
weight down the customer. The customer is going to have to trust in the product that the
company provides by seeing that it has a strong presence on selling sites or other providers that
can include social media. These broadcasts are going to be good for the company to get a
spotlight somewhere in the community. The individual company may just be flipping wholesale,
but it will still be good to have a strong presence for anyone that is looking to use your services,
or if there are customers that want to refer others to you. It is not always necessary but we
recommend that if the company can make a website for the shop and can do so by downloading
WordPress and the proper plugins, they will be able to utilize their selling space online to drive
the customers to the right areas and to make the right sales. This is going to be good for anyone
who needs to contact for location or emergency shipment contact because information can be left
on a specific page for the customer to find and be directed.

This is going to play directly into using a tool like Google Adwords and with this tool, there is
going to be an optimization of the company site and links all across the internet. Adwords will be
able to allow the consumer to track all of the important and frequently searched words on the
Google database, and help decipher which ones are being currently looked at and how much
traffic they are going to drive in on a regular basis. Making sure that your keywords are going to
shine is important when the customer is opening up a browser to search the name. If it is not a
well-known name, the company is going to suffer by having customers miss their page or
indirectly landing on another page that is not similar in any way. The optimized keywords are
going to give a better idea of what the customer sees when they first search for something like
your company. These keywords are important to also think about when you are going to post
listings for the products in the inventory. Posting really good listings is going to take more than
just the simple product knowledge. The customer is going to be satisfied with this information
but they are also going to need some personalization to go with it so it ensures them that when
they finally purchase the product, they are really doing something for them and that is the great
feeling to have. Keywords are going to bring the customer that much closer to you when they
search your name in the search bar. Good keywords are also going to make sure that your ads are
going to pop up correctly for the right customers. Creating better listings now that you know
about the power in Adwords, there can be a custom listing made that is designed to make it
easier and more relevant when the customer may see an ad that was their last week’s inquiry. Be
open to change if you can accept that it is going to optimize the assets of the company for the
better. It is a changing online world and we are always going to change our ads and our listings
for the better. There are going to be customers that are already used to our listings and we are
going to need to go that extra mile to make a posting that is going to keep even our veteran
customers still engaged.

Products are going to be the main value of the shop so we must remember to have a good
selection and of great quality, if we want our customers to come back or to refer some of their
friends. When selling OA, you get a lot of chances to choose the types of products that you do
want. Although there are a ton of markets that are going to have the products that you need, it is
going to be essential that a proper product search is going to be conducted to find the right fit for
the market you are opening. Products come from far around the world to source the proper
distributors, and it is going to be one of the main steps to be able to pick a product out to buy in.
These products can be anything and the only other factor that needs to be thought of is the
quantity. The company is going to need to get the best bang for their buck if they are looking to
resell the goods and make out with any profit in the end. There needs to be budgeting and selling
strategy made up with an FBA account and there can be profits calculated using the tools in
FBA. Think logistically about the purchase move that is going to be made because the company
might end up sitting on the products for quite some time before selling them all and this is going
to be important. Pick a product that has a great turn around rate so that there are no dull moments
in quarterly income. Products that sell year-round are going to be good for the common
customer, but we need to make sure that we sell a product that has the proper weight and price
distributions. We need to sell the right product because we need to remember that we pay fees
for using these types of services. There are going to be listing fees and even transactional fees for
the products that are going to be sold on these accounts. It is important to have a plan in order
once the product is being purchased so that the company can keep the account and still be able to
hold onto further inventory if they are not making any sales during a dry period. Have a plan
together for the profits the company does make and consider reinventing this money back into
the business to ramp up production to be doubled. If this process can be done correctly, there is
going to be a changeup in the budgeting system as well in the marketing systems. There is going
to be more inventories in the warehouse and this is going to mean that extra orders can be made
to gain that marginal income. Extra products on the shelves are going to be a perfect time to
make another shipment that can be large to take away excess inventory that can make room for
new products. These new deals can be discounted for new customers if you are dealing with new
leads, and these products could be sold at newly prorated amounts. Once the company has been
selling a product strong, it will be the next step to add more products into the inventory. The
inventory is going to grow, especially if the company makes personal relationships with their
clients. They are going to get to know more and more of the customer concern or urges and this
is going to make it easier to list products and order things that the customer has spoken of. There
are even going to be customers that come to the shop and they are going to ask for custom orders
on shipping rates or product options that they are curious of, and it is your job to optimize their
experience in the best way possible. Custom orders from clients are going to be some of the most
well-paid in the business considering that it is custom made fit for them and the fact that it is
going to be so hands-on for the company delivering. Purchase more products for the product line
and make great listings about them that are going to relate to each other to tell a story of quality
about the company.

The products that you represent on FBA are either going to be picked from Amazon’s
warehouses or they are going to be of the company’s choice. These products are going through
Amazon, regardless through FBA and this means that there needs to be complete compliance and
the utmost representation when selling through the platform. Amazon will give percentage points
to the companies that are selling their products because they like to market directly through
affiliation when things can be purchased through third-party dropshippers. This is the perfect
time to step in and represent them with the best quality and show the customers how your
products are just an extension of Amazon and you are also a strong shop that is looking for more
traffic. You may not want to advertise the company on a third-party hosting program like FBA,
but there are plenty of ways that you can include the message of the company by creating a solid
connection with the community that purchases your product. Creating messages to the customer
and reaching out to them when they least expect it is going to build some of the stronger traits a
company will have with customer interaction. Customer interaction time is going to be important
for the consumer to finally tap into the “wants and needs” of the customer. Not every customer is
going to blatantly tell you exactly how they come to expect a product arrival or a processing fee
to drop and affect their bank account. In turn, these customers can be informed and educated
about the processes the company will have, and they can make great interactions with the
customers that are going to teach them how to fish rather than give them a free paper of fish and
chips. Get to know the customer by reaching out and getting some of their personal information.
If they are a frequent shopper or becoming one, then get some information and enroll them into a
rewards program that allows them to earn rewards on the purchases made with the company. Cut
better deals for the clients that turn long-term and make sure they know how much they mean
and how you are going to give back to their loyalty. Sending welcoming messages and
welcoming the customer to join forums about products or mission development within the
company is going to connect a certain type of viewer to the company, and these viewers are
going to be interested in the news that comes about. These viewers are the ones that we will
invite to the press conference when we launch our first accolades. Engage every type of viewer
simply by optimizing their communication with the site. If you are shipping out three thousand
units yesterday, then be sure to send a message the night before to the receiver and inform them
that they will be receiving their shipment soon. Make sure the customer knows that you care and
they will always come back for more even if you are troubleshooting their package failure. Just
create helpful hints and easy-to-navigate pages on the sites or Seller Central so that the customer
has the easiest time coming in and out to grab exactly what they were looking for. Create a
support center or page that the customers are going to come to for any concerns and this is going
to be a place to receive even further opportunities that can include partnerships that can be made
with other founders or creators. Having a healthy communication factor for the company is going
to be an essential key to having a fully revolutionized shop. Most customers are just looking for a
place to feel comfortable and to have all of their questions answered when they are purchasing
things that they will use every day.
Chapter 12 eBay Arbitrage
If you are interested in a form of retail arbitrage which doesn’t involve actually going to
physical locations than a process known as eBay/Amazon arbitrage may be for you. In this
scenario you research what products traditional go for in eBay auctions and compare that to
the price you can buy the item for on Amazon. You then make money by taking advantage of
the disparity either by buying the item and shipping it as a gift to the auction winner (which
is frowned upon by Amazon) or by purchasing the item and shipping it to the seller yourself.
When charting item prices on eBay the first thing you should do is determine what type of
items you are looking for. Start for looking for moderately priced items but avoid electronics
as beating Asian wholesalers is a lose/lose game. Instead it is best to choose a product type
and search for completed listings until you have a general idea of what the averages are for
that category. When choosing a category, it is important to try and choose a niche that is not
overloaded with sellers already, the fewer sellers you are competing with the higher success
rate your auctions will have. From there it is as simple as watching Amazon for a profitable
product to appear at a good price.
When listing items on eBay using this method it is important to never list more than one copy
of an item available at a time. Listing multiple copies mitigates the item’s scarcity which in
turn will negatively affect how much the bidders are willing to spend. This also protects you
from scenarios where an item rises in cost on Amazon after the winning bid has been
accepted, cutting into your profits or potentially even costing you money.
As you list items on eBay you will want to always be browsing eBay, comparing prices you
find to the current Amazon price and using those Amazon URLs to determine the average
price compared to the current price. While doing this it is important to not get so caught up in
research that you don’t actually list any items. At first it will be difficult to determine if an
item is likely to sell or not, but it gets easier with practice. This is also why it is important to
find a niche you like and stick with it. The more time you spend researching a single type of
products the sooner you will be able to spot good deals without all of the extra research.
Remember to take the time to completely fill out each listing when you post new items. A well
written listing will sell over a poorly written one every time, ensure you write catchy titles and
never include SKUs or model numbers as these will only make it easier for the bidders to find
better offers elsewhere. Fill out descriptions using your own words and describe the listing as
fully as possible. Use the Amazon description as a guide but rewrite it in your own words, you
don’t want to provide the bidder with any info that will cut you out of the loop.
Chapter 13 Always Have a Plan B
If you purchase an item and it doesn’t sell, what are you going to do with it? Do you have an
area to store items while they sit on your store shelf or do you want to hold a garage sale
and try to get rid of them that way? One thing that you don’t want to do is donate them
back to the store you bought them from. Even if you paid a quarter for it, do whatever you
can to at least earn that quarter back. Allowing yourself to lose money no matter how small
is not a habit you want to get into.

16. Hand held games are the next item. There are games like Yahtzee, Bridge and Nintendo
Crystal Balloon Fight that sell anywhere between $40 and $300 depending on the rarity of
the game. These were very popular in the 90’s and even though they can be hard to find,
they are worth the few bucks you will pay for them. Always be on the lookout for vintage
Nintendo game and watch handheld systems. These were popular in the early 80’s and
always fetch a pretty penny on eBay.  

17. Old electronics sell for just a few dollars at thrift stores and if you find brands like Sony
or Panasonic, you can make quite a bit of money off of them. You need to make sure they
are in fairly good condition and ensure they have all of the cords with them. If they do not
have the cords find out how much it is going to cost to get replacement cords before
purchasing the item.

18. Children’s clothes sell great as well but you need to watch for brand names. Gymboree
and Hanna Anderson are some of the best selling brands of children’s clothing and of
course you need to make sure it is not stained or snagged. You also shouldn’t pay more than
$3 for these items if you want to make any type of profit.

19. Raggedy Ann and Andy dolls are an item I see a lot of at thrift stores but even though
you can sell these for up to $100, you need to be very careful and only purchase the
originals. Spending $30 on a set of 1990 Raggedy Anne and Andy dolls is not going to get
you any money, as a matter of fact that is about all they are worth.

20. Large plush toys sell for upwards of $100 as well. You want to watch for plush toys
such as Wily Coyote or Scooby Doo. The bigger they are, the more money they will go for.
This is one item many people overlook.

21. Any World War 2 toys will pull in a huge profit as well. Always make sure they are
authentic and in good condition before purchasing.
22. Pokémon! Anything Pokémon will sell. There are Pikachu plush toys, key chains and
even Nintendo games. If you can find Pokémon items still in their package, you are going to
be able to make a lot of money. Many of the Nintendo DS Pokémon games still have a high
resale value.

23. I want to end this chapter by talking about Star Wars items and Barbie Dolls. If the Star
Wars items are still in their original package you should invest in them. If they are not, go
ahead and pass them up because you will not see much profit, unless the Stars Wars toys are
early 80’s and authentic. Barbie is something that so many people think is going to make
them a lot of money, but unless you find the original Barbie in her box, you are not going to
make much of a profit. eBay and Amazon are saturated with Barbie sellers, so right now it
is best to avoid them.
Chapter 14 Look For the Odd and Unusual
You need to watch for things that are not often found when it comes to thrift shopping. You
need to look for anything that is odd or rare. When I saw a 1911 cathedral radio at a thrift
store, it did not catch my eye because I knew what I was looking at. Instead it caught my
eye because it was odd and I had never seen it before. You can purchase items like a bread
maker at thrift stores all day long. This means they have very little resale value. However,
finding something that you don’t normally see like a 1911 radio is where you will make the
most money.

24. That brings us to radios. You don’t want to purchase just any radio when you are
shopping. Keep your eye out for Philco radios. These are old antique radios that contain
tubes. I purchased one for $25 because I liked the way it looked. I was going to keep it for
myself until I found out I could sell it for $450.

25. Original Nintendo Systems will sell for a ton of money as well. The more games you
can sell with the system the more money you will get. You also want to watch for extra
remote controllers as well as the gun for Duck Hunt. If you ever see original NES Nintendo
games sealed, always pick them up. You can make a ton of money selling sealed vintage
games. When researching NES Nintendo games, always check the completed listings on
eBay. If you find a game in the thrift shop and you are unsure of its resale value, take a
quick look at the completed listings on eBay. This will give you all the information you
need to decide whether or not it will be a profitable item for you. Remember, if the game
comes with the original box and instructions, that is a sure sign that you have struck gold.
Any NES Nintendo game that you can find complete, should bring in a very nice profit.
Especially if you can get these games under $5.

26. Vintage posters also sell very well. If you can find Sonic the Hedgehog posters or a
New Kids on the Block poster from the eighties you can sell them pretty quickly for about
$10. I have regularly found music posters from 1980’s new wave bands that have sold
upwards of $50. Keep your eye out music posters from obscure bands from the 1980’s.

27. Sony handheld camcorders are a great find. I have found several of these at thrift stores
for $5 and they go from $50-$75 dollars each. They sell for more if they come with the
original case. Check to make sure all of the components are there and that it works. You
should also check for an instruction manual which will bring in even more money.

28. Keep an eye out for old sports Jerseys. You can easily find a Michael Jordan Chicago
Bulls basketball jersey and purchase it for $7 then list it for $60 and sell it quickly. Make
sure it is in good condition and doesn’t smell musty. If the clothes you are selling smell
musty and moldy, people will expect a refund. If you do find a great item that smells bad,
simply washing it and using vinegar in the washing machine can work wonders. Always
pay attention to the washing instructions on the care tag before washing.

29. Art is great to buy at thrift stores as well, if they get a lot of estate donations. If you are
going to purchase art you need to know what you are looking for. For example you can find
a Picasso print for $30 at a resale shop and list it for a good profit, but if you don’t know it
is a Picasso print you could just pass it up.

30. To finish up this chapter I want to talk about one more item that many people overlook,
coffee mugs. Certain coffee mugs are very collectable and you can sell them for $5-$25
dollars each depending on the brand. What you want to watch for is anything Disney and
Starbucks. Also, coffee mugs with a very unique theme also do quite well and can net a nice
profit.
Chapter 15 All Things Old and Off the Wall Treasures
Of course you can sell many old items for a profit but many people believe that the items
you will be looking for are only well known items such as tube radios but that is not true at
all.  There is a much wider pool of items to buy from when considering selling to the
vintage collector.

15. Old photographs always sell well but watch for old photographs that are a bit strange of
creepy. Remember there are always those paranormal buffs out there who are looking for
items like this. When you look for these photographs make sure that what you are getting is
an actual photograph and not a reprint. Of course you can sell reprints, but at $4 each it is
going to take a long time for you to make any type of income.

16. Speaking of paranormal buffs if you come across anything that has to do with the world
of paranormal while you are out thrift shopping make sure to pick it up. This could be
something as simple as an old Ouija board to something as rare as a dybbuk box. Anything
will a spiritually dark look to it consider buying. The spookier the better. Many people also
list a lot of haunted items but if you want to sell something like that you would have to have
some sort of proof, or personal experience with the item being haunted, since there are so
many fakes out there and you wouldn’t want to mislead someone buying something that’s
not authentic.

17. Vintage medical instruments are an item that many people will overlook when they are
considering which items to list but many of these items will sell very quickly. You need to
watch for items that are in good condition as well as in their original box.

18. Clothing is an item that many people do not take the time to even look at when they are
in a thrift store, but you should keep your eye out for unusual or rare clothing items. One
unusual item that sold on eBay was a loom dress, it actually sold for over $2,000. Keep an
eye out for one of a kind items that people have made, these are the items that go for the
most money. And when looking at thrift store clothing remember to check the pockets!
Even the ones inside the coats! You’d be surprised what people leave inside their pockets
and forget to check when donating clothes to the thrift store.  Many times the thrift store
workers are too busy to check each and every pocket and so some tend to get overlooked!
And all it takes it one pocket to hold a hidden treasure.   

19. Vintage tools with wooden handles are great items to sell, but you don’t want to list just
one item at a time. You will want to keep your eye out for these items when you are
shopping and then when you have collected several you can sell them as a lot. Just like the
 medical tools, there are plenty of people out there who collect these or restore them and are
willing to pay a lot of money for such items.

20. Vintage 1980’s Hypercolor t-shirts sell for good money on eBay. These are usual multi
colored tye dye looking shirts. The special thing about these shirts that make them unique is
when the shirt touches heat, it changes colors. These are very popular in the rave culture
today. In good condition they usually bring in over $50.

21. Gag gifts are also very popular items and the vintage ones are even more popular. Of
course the better the condition of the gag gift, the more money you will get for it. Even
simple items such as itching powder and fake poop still bring in money! One item that I
find very often is a gag gift called rattlesnake eggs. This item has been around for a long
time and I remember playing with it when I was a kid, back then you could get these for
about $1 each, today you can sell them online for $20 each and you can sell them all day
long!
Keep in mind when you are looking for oddities to sell, you will need to think outside the
box. You can actually train your eye to spot these weird kinds of items while you’re
shopping.  Don’t think about what the average person would want because you are not
selling items to the average person. It is really good if you can find a niche and work on it
for a while before venturing out to other areas. For example gag gifts would be a great place
to start or start with paranormal items. Choose a niche that you find interesting and then
expand from there.
Pros & Cons of Reselling

The reselling business may be a lucrative business. It has many advantages but it is by no means
a perfect business. It will also have its disadvantages. However, instead of looking them in a
negative way, look at them as challenges that you can anticipate. When you know these
constraints in advance, you can better prepare for them.

Pros

Demand

There is a huge demand for thrifted products coming from three major sources: the economic
crisis that made buyers more budget conscious, the collectors in search of the item that can
satisfy their hobbies and the trend and popularity of thrifted products. This means that there will
always be customers in your reselling business. However, it will be up to you maintain your
relationship with your customers to make them come back for you.

Passion

If you happen to have the passion for the thrifting and reselling business then this is the ideal
business environment for you. This is because you can get to live out your passion while earning
money at the same time. Most resellers started as dedicated thrifters and the reselling business is
a natural step to the next level. Aside from using the profit for other expenses or investing back
to the business, you can use it for your personal thrifting.

Margin

Depending on your choice of inventory , your ability to sell and effective business processes and
of course, sheer luck of finding a valuable item, the reselling business can truly be lucrative.
Doubling the investment represents the lowest profit margin in the business, this means that you
can triple, quadruple and multiply your profit to even greater percentages.

Training

Since the thrifting business requires a relatively smaller investment and less risk compared to
other business start ups, this business can be a safe training ground for you. This will provide
you with hands-on training on business processes such as sourcing, selling, negotiation,
budgeting, customer service and other business related process. Later on, you can apply these
same skills to future endeavors.

Cons

Growing pains

Starting a thrifting business is hard but once you set up and open store, you may expect that
customers will come flocking to your store. Expect people to visit only out of curiosity on the
newest opened store in town. Few or maybe no one may even purchase an item at all in the first
day. You need to make yourself known, prove your credibility and create a loyal customer base
before you can reach the success of your thrifting business. For some, it may take a short or long
time but with sound business decisions, you will get there.

Competition

Of course with all the benefits and relatively few challenges of the reselling business,
there are already people out there who are considering the same business. Some may
already have started. This means that aside from the well known thrifting stores, there
are also competitions from people who are opening their businesses like you. However
with the right business skills, you can make yourself and your reselling business stand
out among the rest.
Step Two: Prepare for the Business

Tools, Materials & Requirements

Now that you have inventory the next thing you need to do is sell. There are two ways that you
can prepare for the first days of the business and the choice is dependent on the kind of store that
you want. You can either open a traditional brick and mortar thrift store or an online thrift store.

Both types require these things:

1.      Business plan, this will help you determine everything from the merchandise you need
to look for and resell, the target customers you are preparing the business for, the promotions
and networking activities you need, type of store and other business concerns.

2.      Pricing scheme, this will give you the range of the price you need to buy an item from a
thrift shop to the amount you will resell it. You also need to make a tolerable allowance for
negotiation.

3.      Shopping supplies, this is your thrift store shopping kit; this can include tape
measurement for clothes, measuring tape for furniture, disposable gloves and masks for
handling merchandise and other personal items.

4.      Adequate inventory, your inventory must be complete and satisfy the demands of your
buyers. Aside from the quality and quantity, you also need to make replenishing your
inventory as efficient as possible.

5.      Cleaning supplies, everything from simple cleaning materials such as soaps, wipes and
dusters to the heavy duty items such as disinfectants, polishers and other specialized tools are
needed depending on your inventory.

6.      Packing supplies, if you plan to ship your items, you will need bubble wraps, boxes,
packaging tape and a partner courier.

7.      Storage space, you need enough space to house your items while you are waiting for the
in store items to sell. You need plastic or textile sheets to cover them, shelves or cabinets to
organize them for easy location, access and security.
8.      Mobile apps, you need to take advantage of the developments in technology to increase
efficiency and therefore the performance of your business. This goes beyond simple Excel files
of your inventory or an email account for your communication. Consider installing mobile
apps on your smartphone to keep yourself updated and in the loop wherever you go. For
example, download apps of the popular thrift stores platform like eBay and Etsy. You can
browse them anywhere you go. A recent development in the productivity app industry is the
IFTTT. This is a very nifty tool that can automate simple tasks that will give you the extra
minute you need for more important tasks. For example, you can set IFTTT to automatically
notify you via text message that a specific item you are looking for in eBay has just been
posted.

Brick and mortar stores require these:

1.      License to resell, visit your town hall for this permit

2.      Tax ID number, again visit your local government office

3.      Insurance, consult your broker for this protection

4.      Location, ask your real estate agent or the listings

5.      Perfect balance of location and rent, the better the location, the higher the rent

6.      Sketch or a floor plan of how to arrange your merchandise and store fixtures.

7.      Parking for your customers and area to receive your shipment, especially for large sized
merchandise such as furniture

8.      Shelves, cabinets and other tools to display your merchandise. Clothes need hanger,
racks and sometime mannequins. Plates need display stands. Electronics need to have testers.

9.      Personnel, such as a cashier or a salesperson, unless you plan to handle the store
yourself.

Online stores require these:

1.       A functional computer and dependable connection.

2.      An online platform that is friendly for resellers.

An established logistical system that involves storing, retrieving and shipping
merchandise once sold.
Chapter 16 How to Prepare Your Finds for Resale
Once you have your selection of clothing that you wish to resell, it’s time to prepare them for
resale on your eBay seller’s page.  If you don’t have a seller account with eBay, it’s free and
easy to enroll.  Take some time to fill out all of the information and you’ll be ready to list items. 
I will cover how to set up your account in the next chapter.  When selling your clothing items on
eBay, there are several factors that you need to take into account in order to fetch the price
desired for them.  In this chapter, I’m going to give you some tips on what to do to make your
clothing items shine on the resale website!
Wash it

Even though the items have the telltale thrift store smell to them, you will want to wash the
clothing as suggested on the label.  When companies manufacture clothing, they will give you
instructions on how to wash and dry your items to make sure it stays in impeccable condition. 
Take the time to wash and dry your finds as designated.  It will take away the thrift store smell
and make the item look fresh and new.
Display it for Sale

As you are well aware, clothing is typically shapeless unless it’s worn.  However, you probably
don’t want to model your thrift store clothes for the camera to show them off.  First of all, they
are not going to be your size.  Since you have found items that could be considered rare, it is
more than likely they are not going to fit you well enough to look flattering in a picture.  Second
of all, you’re not going to be able to take your own pictures to ensure that they reflect the item
the way you want to.  So, why not invest in a mannequin?  A simple bust of a mannequin can
add the shape and show the details of the fabric just as well as using a live model.

People really like to see what the clothing is going to look like on a person.  If you’re just
picturing it laying on a flat surface, you’re not giving the buyer a good idea of what it’s going to
look like on someone.  Remember, you want to sell your item for the maximum value.  Make it
look good enough that the buyer will want it!
Pictures

How you photograph the clothing is another way to make sure you get the price you desire for
your find.  When taking the pictures, make sure that you’re photographing the item to make it
look wonderful.  This means having a good background, proper lighting, and a good exposure on
your camera.  No one wants to see your other junk lying in the background.  Think about your
pictures being I a product catalogue.  How do store clothing catalogues picture their items?  Try
to duplicate these features in your listing photos.
Positioning of Clothing

Another factor to look for when taking your pictures is to make them look nice.  This means
pressing them, steaming them, and placing them on the mannequin so that it gives your buyer a
better idea of what the item really looks like.  Take pictures at multiple angles, giving the seeker
all the details.  Take a picture of the tag as well.
Providing a Detailed Description

Take the time to write a detailed description of the piece.  Be sure to mention the fine qualities of
the fabric, if there is any damage to the item, and any other information that would be pertinent
to the buyer.  Remember, buyers hate when they receive an item that isn’t the way it was
described to them!  Be honest.  Let them know that the item has been used.  If you would want to
know it yourself, tell the buyer!
Having an eye catching and descriptive product heading

Don’t be afraid to make your listing stand out by giving it a catchy and bold title.  You want to
catch the browser’s attention, so make your listings stand apart from all of the others on the site. 
This means labeling your items differently than all the others.  While they have their clothing
listed with generalized descriptions, add even more description for the browser that might just
keep scrolling.  Another good way to make your items stand out is by making your heading in all
capital letters.  This grabs the attention right away and keeps the browser from missing it. 

Once you have a listing that meets your satisfaction, post the item to the site.  Make sure that
you’re available to answer questions from prospective buyers.  Keeping track of your listings is
important so that you can get top dollar for the clothing that you’re posting.

Still feeling intimidated?  If you’re unfamiliar with the eBay process, I’ll go over how to set up
an account and list items in the next chapter.  The tips in this chapter are good no matter how
much experience you have selling on eBay.  Don’t be afraid to make your items look great to the
customer.  The more they know, the better you will look as a seller!
Chapter 17 Setting up and Using an eBay Seller Account
If you don’t have an eBay seller’s account, don’t worry!  Just because you don’t have an account
at this moment doesn’t mean that you can’t create on and be on your way to making huge money
reselling used clothing!  It’s easy and it will be beneficial to have even if you don’t continue to
sell clothing!

The first step to getting the account is by going to the website and signing up for it.  Answer all
of the questions to the best of your knowledge.  eBay keeps your information private, so don’t be
afraid to list your address and phone number.  In the years since I’ve had my account, I don’t
think that they have contacted me once via telephone.  They tend to do most of their
communication through email.  When listing your email, make sure you put one that you don’t
mind seeing advertisements through.  They want to make you a huge part of their business, and
you are often buried with ads about what they offer. 

Once you have all of your information inserted, take the time to look around the website at
similar items to the ones you plan to sell.  Take notice of how they’re displayed, the pricing, and
the seller reviews.  You want to take the examples of the sellers who have the highest ratings. 
Whatever they’re doing is working!

Look through your seller’s dashboard and take in all of the features of the website.  The
dashboard gives you an idea of your past selling history, how much you have made in the last
twelve months, and specials on listing fees and selling fees.  Yes, eBay does charge fees for
listing and selling your items.  They are a business, after all.  Be prepared to have these fees
pulled out of your earnings.  The website is very upfront and forward about their fees, so take
some time to get familiar with their policies.

Enter your listings on the website.  Put up your pictures, give the thorough description, and give
the buyer a price.  You need to decide how you want to list the item.  eBay offers you the choice
to sell it for a set price, or you can put your item on an auction setting.  Many sellers find that
selling their items in lots sells the clothing much better.  This depends on whether or not you
believe your item is better sold alone or with similar items.

Make sure that you’re checking you seller’s dashboard on a daily basis.  This will give you a
good idea of how your items are performing in the auction, if the buyers have any questions, and
when you can expect payment from items that are already sold.  By making it a regular habit and
knowing what is going on in your seller’s store, you will know whether or not there is room for
change or if what you’re doing is successful.  Good communication and quick shipping once the
items sell is a huge part in making your buyers happy.

Don’t be afraid to look at the examples of other sellers on eBay.  Look at what sells and how
they sell.  Know as much about eBay as possible so that you can get the maximum benefit from
the sale.  Selling on eBay is meant to be a rewarding and easy experience.
Chapter 18 Top Tips for Becoming a Successful Dropshipping
Genius
Planning and knowing the pitfalls are excellent steps towards becoming a successful
dropshipper; they will certainly reduce your chances of failure in what is a very competitive
market.  However, to really make the most of this business opportunity you need to go a stage
further and proactively focus on developing and building your business.  The following tips will
help to ensure you become a dropshipping genius:
Seasonal Products

You should be aware, well in advance of the seasonal variations.  As a wholesaler you should be
stocking Ester products as soon as Christmas is finished; or summer products as soon as Easter is
done.  Seasonal products are extremely popular and can be very lucrative; providing you plan
ahead and are ready for the demand.  One particular benefit of a seasonal product is that they are
generally bought every year; people will buy the same thing as the year before because they have
chucked it at the end of the season or lost it.

You will also find that much of the seasonal items are not available in your average retail store. 
They simply cannot afford to take the risk that they will be stuck with a range of seasonal
products that cannot be sold and must be stored or thrown.  This reduces the level of competition
and makes it easier for you to capitalize on the demand.

You may find it easier to set up a calendar which reminds you which stock you should be buying
when; so that you are never caught out.
Product Bundles

This is an excellent way to sell additional products.  Instead of one customer buying one item,
they will buy three, knowing that the third item is free or heavily reduced.  The result for you is
additional turnover and profit, provided you pay attention when you set the price.  You will also
receive good feedback from the customer as they tell their friends about the offer; your business
should increase!

Another advantage of bundling products is that you can reduce the associated shipping charge
and you can add a higher profit margin item to a lower profit margin item which sells
exceptionally well.  This will improve your profit margin on the low margin item whilst giving
the customer a good deal; this will also ensure they return and become a repeat customer.
Sell Products you Know
It is especially important when you are first starting out to sell only products you know.  For
your social media postings and your website content you need to be able to write informative
content; something which will establish that you know your market and your product and allow
others to respect you.  This respect and trust will lead to them buying from you, even if you are
not the cheapest.  If you wish to add products in to your range in the future which you do not
know so much about it is advisable to do a little research; ideally purchase one which can be
used yourself to ensure you fully understand its uses and functionality.

It is particularly important that you never promote a product that you do not know and fully
endorse.  If you something is good and that you would use it to encourage sells people who
respect you are likely to buy it.  If the product then turns out to be rubbish, your credibility and
reputation will be gone in moments; it can be very difficult to regain a reputation when you have
destroyed it.
Niche Products

The best products to attempt to find are those which are in a niche.  The market is much less
likely to be saturated with these types of products and you will be able to enjoy higher profit
margins and probably a smaller range of products.  Your marketing will also be easier as you
will know exactly what kind of people buy the product.   Yu can then set your campaign to deal
directly with them and appeal to them.

It is very important to know your product inside out if you are dealing with a niche market. 
Reputation is doubly important in this type of scenario and you will probably be dealing with
people who know a significant amount about a certain product.  Knowing your product means
you can provide excellent customer service and build your customer base through satisfied
customers, with minimal effort.

However, it is important to remember that the potential customer base is smaller for a niche
market and your reputation can be destroyed quicker than with a more mainstream product.  As
such you should encourage communication with your customers and experts in the field; the
knowledge shared can benefit everyone in the community.
Different Markets

It can be very tempting to start out by targeting EBay or Amazon; however, there are lots of
different market places and it is important to be present in as many of them as possible.  The
more markets you are active in the easier it will be to find customers; this is simply a numbers
game!
Not only will selling in different markets enable you to reach customers that you might not
otherwise see, it will also enable you to play with the prices of the products and establish what to
charge where.  You may found that people on certain marketplaces are willing to pay more than
those in others; this is simply a case of expectations.  A good business person will happily cater
for these needs and charge a higher price where appropriate; you can always offer to price match
if this helps to get the sale!

It is important to look at each type of market to establish the type of customer who tends to shop
their; this may affect the way you market the product.  Never be afraid to try different
approaches until you find the one that works!
Shipping rates

Research indicates that people are more likely to purchase from you if you offer free shipping. 
This does not mean that you cannot charge shipping!  The best approach to shipping costs is to
add them into the sales price; your customer will believe they are getting free shipping when in
fact they are paying for it.  If you can get free shipping from your dropshipper then you will be
able to improve your profit margins. 

It is also worth looking at what effect the shipping costs can have on a bundle.  Again, build the
cost of the shipping into your sales figure; but be sure to emphasis to your customer that they
will get free shipping if they buy three products or more.  You will be surprised at how often
people will go for the deal as they perceive they are getting something for nothing.  In fact
studies show that if someone is offered free shipping they are more likely to purchase multiple
products from a supplier.
Customer Service – Reputation

This is an essential part of becoming a successful business and in the modern age is something
that must be worked on constantly.  A reputation can take a long time to establish and build; it
can be destroyed in a matter of moments with a bad reaction which is blown out of proportion on
a social media site.

To ensure this is not an issue you need to seize every opportunity to interact with your
customers.  A query should be responded to quickly and a complaint dealt with fairly.  The faster
your response the more trust you will establish with your customers and this will ensure you gain
repeat business and personal recommendations.  This is the best way to grow your business! 
There may be times when it seems impossible to reach an agreement with a customer; the best
approach in this situation is usually to refund them and allow them to keep the product or to
replace it free of charge with a better one.  There will be a cost involved which must be absorbed
by you.  However, this can be compensated for by turning potentially damaging publicity into an
acknowledgment of how good your customer service is.
Ready For Change

No matter how good your plan or your strategy there will be opportunities that arise and issues
that have not been foreseen.  You must be ready for these and able to evaluate them according to
the information you have on the current market and your customers.  It is natural for any
business to evolve and change; in fact it is essential for a business to survive.  Knowing your
product, your market and even the larger economy will allow you to react, develop and expand
according to the opportunities that present themselves to you.

There will be issues and even bad decisions along the way; it is impossible to build a business
without making some mistakes.  The real trick is to learn from the mistakes and be prepared to
change direction as soon as you realise that a specific strategy is not working.
Expansion

To become a successful dropshipping business you will need to expand.  You can choose to
expand by increasing your range of products or by expanded into a different market sector.  It is
even possible to do both options!  When expanding you will need to evaluate the market you are
expanding into and ensure that there is both demand for your new product and that the market is
not already saturated.  Dropshipping makes it very easy for you to test new products on your
existing customer base as you do not have a cash outlay; you can simply add the product and see
what happens.  It is easy to stop selling a product and try something different if it is not
favourably received.

The process you go through will actually help your dropship supplier as well as they can see
which products are selling and which are not.  The key to successful expansion is to take the
process slowly, introduce a small number of new products at a time; evaluate and correct your
choices if necessary before brining in the next new batch.
Staffing

Starting in dropshipping is relatively easy and certainly affordable.  However, as your business
grows you will eventually need someone else to assist you in running the business.  Social media
and customer service, in particular, can consume a huge amount of your energy and time.  This
time and energy could be better spent improving your product and expanding your business.

When you need to look at the bigger picture and focus on where your business is going, you will
need to take on a reliable assistant; ideally they should have a good manner, as much of what
they will be doing is dealing with customers to promote the business profile.  Choose your
assistant carefully, even if this means upsetting family members; the right person will help to
build your company, the wrong one can quickly ruin your hard work.
Campaigns & Social Media Tracking

To expand your business you will need to ensure your existing customer base is aware of your
new product range and that you can attract a new group of customers.  This can be achieved by
email marketing, blogs and weekly newsletters to your customer base.  You can also make posts
on your website and social media accounts which will build the excitement of a new product and
get people interested in what you are offering.

Once you have a campaign running you will need to use one of the many software apps available
to track the visitor numbers to your website, the number of ‘bounces’ (people who arrive at your
site and leave again), and the number of people who convert to customers once they have visited
your site.  This information is essential for understanding the effect and response of any
campaign.  Once you know which campaigns and approaches work you will be able to build on
these and drop the other methods.  This will enable your customer base to grow steadily as you
expand your stock and market share.
Real Stock

Dropshipping does not need to be the end result; it can become part of a business.  Although
holding stock means incurring storage costs and having the risk of capital outlay which cannot be
released; it can also offer the opportunity to increase your profit dramatically.  Wholesalers will
be happy to offer a discounted rate if you are buying a product from them in bulk; this is not
something they can afford to do of you are buying one product at a time via dropshipping. 
Buying the product in bulk at a cheaper price gives you the option of selling at the same price
and making additional money or selling at your current profit margin and increasing your appeal
in the marketplace as one of the cheapest suppliers.  You can even use a very popular product as
a loss leader; sell it for a loss as it will bring customers in and they will purchase other items.

There are logistical issues and more risk associated with holding your own stock and you may
need to physically post items.  However, it also has the potential to increase your profit; only you
can decide which approach you prefer to take!
Chapter 19 Make Your First $1,000 on FBA
Following my story with getting my toes wet in FBA and making a huge amount of mistakes, it
seems wise to give you a plan of action to make your first $1,000-2,000 on FBA. Hindsight is
always 20/20, and this is how I wish I had started things off because it would have taught me all
the lessons I learned the hard way.

Step 1. Gather Supplies, Sign Up, Upgrade to Professional Plan

We’ve went over all the items you’ll need to get started, so begin there, and while you’re waiting
for items to ship or once you’re ready to move forward, sign up for your seller account and
download the Amazon Seller app. Upgrade to the professional plan on Seller Central. It will cost
you $40, but for this plan to work, we really want to sell more than 40 items anyway.

Step 2. Clean Out Your Closets

For your first $1,000, at least part of this should simply be items around your house that you
don’t really need. This includes DVDs, CDs, records, video games, books, electronics, anything
you got for Christmas but never used, etc. This should make up at least a roughly estimated $250
of your first $1,000. Use the Amazon Seller app to scan these items, and use the revenue
calculator to estimate your earnings. If you can’t make it to roughly $250, you’ll need to
overcompensate a bit on the next steps.

Go ahead and list these items for sale. If there are enough to bother with a shipment, ship them
for fulfillment, and the earning will begin while you continue.

Step 3. Hit the Ground Running with Retail Arbitrage

While I think most successful FBA sellers eventually move away from going into every store
and scanning anything that seems to be on sale, this really is the best way to start out. The
risk/reward is lower than trying to jump headfirst into wholesale.

Where I live, this would mean going to the SPCA thrift shop, Goodwill, Walmart, Target,
Lowes, Home Depot, Big Lots, Ross, TJ Maxx, Kohls, and many others. If there is a shopping
center around, starting here is great since so many stores are located together and don’t require a
ton of gas or time simply traveling around. Outlet malls are even better.

Do not buy anything that cannot be sold at a price of three times the amount you’ve paid for it.
You won’t always have time to calculate actual profits while you’re shopping, so this rule of
thumb is your best bet to avoid losing any money on products that aren’t worth selling.
This process could take a few days, but you should be able to calculate another opportunity for
earnings of at least $250, if not significantly more.

Step 4. Facebook, Craigslist, Free Stuff

You should be shopping Craigslist pretty religiously. Not only can you sometimes find great
deals, but you can also post ads for certain items that you believe will sell. Additionally, there are
a lot of free listings on Craigslists, and while many of the items may not be worth a ton of
money, they are free, so if they’re viable to sell, the cost of shipping isn’t really a huge concern.
Try to take advantage of these while remembering that light items are better to sell than heavy
items.

Unless you live in the middle of nowhere (and sometimes even if you do), you likely have a
handful of Facebook groups that service people buying, selling, and trading in your area. Take
advantage of these as well. Much like Craigslist, you can post ads for the types of things you’d
like to buy and resell.

This method should easily be able to bring in an additional $250 worth of profit in products.

Step 5. Yard Sales and Flea Market

On the weekend, get up early and make your way to any yard sales and flea markets you can.
The generally low prices at these sales are going to make for a lot of easy profit if you find
anything decent. If you find a box or pile of items you might be able to sell, try to buy the entire
thing for a deeply discounted rate.

For example, if someone has a nice selection of roughly 50 DVDs priced for $1 a piece, offer
them $25 to take them all off their hands at once. This particular example works well at yard
sales. The worst they can do is tell you, “No thanks,” and if you’re lucky they’ll meet you
somewhere in the middle.

If there are any multi-family yard sales or church rummage sales, you absolutely should be
attending them. These tend to have lower prices and great amount of variety.

Again, you should fairly easily be able to net the remaining $250 worth of profit from products
through this method. In fact, if you’ve done all four of these methods for sourcing products over
a two-week period, I’d be surprised if you didn’t end up with more than $1,000 worth of profits
should everything sell.
Step 6. List and Ship to Amazon, Wait for Profits.
Anything that hasn’t been listed and shipped to Amazon, go ahead and do that now. If you
haven’t reached an estimated worth of $1,000, just repeat the steps above throughout the next
week, and you should be able to make up the difference.

Step 7. Take Notes

This is really the importance of the “your first $1,000” exercise. Your first $1,000 is just a small
milestone in a long list of success stories you will have. What you learn from non-discriminately
shopping pretty much every local resource available is that what seems to work for you may not
be what works for others. Which of the items that caught your eye were actually extremely
viable? Which ones sold immediately after the listing went live, and which sat around (or remain
in storage still)? All of this is important because for your next $1,000, you will now know what
to ask for when you post ads on Craigslist to buy stuff. You will also know what to stop and look
at when you’re browsing through a yard sale, which stores seem to produce well for you, and
you’re beginning to learn how to interact with people through social media in a laid back but
semi-professional manner. Ultimately, you may have worked pretty hard for that first $1,000,
especially in regards to time, but the information you learned along the way is the real payout.
Chapter 20 Scaling Your FBA Business
Some minor success should fuel the fire, but that means a lot of hard work is ahead if your FBA
business is going to be more than a mild success. There is no get-rich-quick method. You may
have a wildly successful month, but you are still going to have to work hard to make sure the
next month is also wildly successful, at least until you’re established. Here are some of the
secrets to helping you work ON your business instead of working FOR your business.

Don’t Burn Out on Retail Arbitrage

The major problem most entrepreneurs face when trying to scale up their Amazon FBA business
is the deadly burnout that makes them not want to ever step foot in a store or list another item on
Amazon again. This happens when we hit the ground running too hard and sell too many one-off
products.

If you love shopping, you may never burn out on that particular process. If you don’t mind
typing up condition notes while you watch TV, then you are a true warrior. However, that only
goes so far. There are only so many days in a week, so many hours in a day, and at some point
you simply aren’t going to be able to scale any further if everything you sell is sold in quantities
of one. If you keep trying to go this route, you almost inevitably burn out without seeing a huge
increase in profits. Even if you don’t quit, that’s called “maintaining,” and that’s probably not
your goal.

At this stage, you’re almost your own employee instead of being your own boss. There are a ton
of perks to retail arbitrage, but it isn’t the end-all be-all for everyone making a living on Amazon
FBA. Of course, some people stick to this method and do well.

Move Into Wholesale

One of the huge perks of starting off with retail arbitrage is that you have the opportunity to learn
about a lot of different categories and products. If you take the time to review your sales and
understand what seems to sell easily and what doesn’t, what is easy to find cheap but sells high,
then it goes to reason that you can take that knowledge and extend it into wholesale.

The perks of wholesale are plentiful. Not only are you getting the best possible deal for the
products you’re going to sell, but you also eliminate the constant pricing and scanning of new
products. Instead of writing condition notes for 100-500 separate items—burn out imminent!—
you can buy in bulk, write a single condition note for the product, set a single price, and ship
them with identical labels. This cuts down on the workload and frees you up to continue scaling
your business.

Finding that great wholesale product (and then the next great wholesale product) is hard work,
but the payoff becomes an inventory that doesn’t require a huge amount of time cleaning,
prepping, and preparing several items from different categories.

Move Into Private Label

While you will have to develop content, you can outsource some of the work involved in making
sales copy convincing and powerful, utilizing great minds to help sell your product. The
workload becomes marketing and branding centric instead of hitting the pavement.

The great thing about private label is that you can truly focus on what you love. You can create a
community and brand around a hobby or interest you have, and in doing so, the work becomes
more enjoyable than trying to sell every single thing under the sun. This one seems very obvious,
but it is often overlooked by those tackling the beginner’s mentality of going out and finding
products to sell. The more you love a product, or the lifestyle around it, the better you will be
able to connect with your potential customer in your marketing efforts through your website,
blog, social media, etc.

Scaling private label once you have a few successful products becomes easier. As a brand gains
recognition for quality and good customer support, putting out new products that reach your
market base is going to be the easiest method to continue scaling. There’s no reason a successful
brand couldn’t put out new products several times a year. There’s a lot of work involved for each
one, but as you grow, affording the help from freelancers becomes less and less of a burden.

ADVERTISE

This works best with private label sales, but it also moves into wholesale and larger distribution
models. In the event that you have chosen to specialize in a certain category, it is time to build
your platform with that blog, website, social media, and… paid ads!

While this method may not be practical for every solution, paid advertisements through
Facebook, Adsense, and Bing Ads are proven to drive large amounts of traffic. With a private
label item, some forms of advertising are essential to your success.

The trick about advertising is that it requires testing. Lots of testing. Always create at least two
ads for every product you intend to advertise. Test these ads against each other, scrap the one
that doesn’t work as well, and build a new one to pit against the other. Dig deep for keywords
that are under-utilized by sellers in the same category, and test some more.

If marketing really isn’t for you, this process can be outsourced to some extent, but keep in mind
that more people touching your business, the more costs involved. In an ideal scenario the rise in
profits will justify this, but there is some risk involved.

Learning how to advertise is a huge job unto itself, but taking advantage of the information you
have from your reports will help targeting your market a little bit easier.

Improve the Quality of Your Listings

It cannot be stressed that a high-quality listing, especially for private label items or any items
where you’ve created the product page, is going to have a huge impact on the amount of sales
you are able to make. If your content is not professional, buyers will write your products off
more often than not. By improving the quality of your listings with better condition notes,
including images, and writing descriptions for those products you’re branding yourself or created
a listing for, you’re putting professionalism first, and that is not lost on the customer (even if
they don’t realize it).

Seek Out Reviews

Again, this applies mostly to those with private label products or those that have created product
listings for items that are otherwise not available on Amazon. With positive customer reviews
comes more customers. It’s a proven fact that people respect the word of actual purchasers.

To facilitate an increase in reviews, you will need a method of contacting people that are likely
within the market your products land in. If you are private label selling, then you should be
developing an online presence, and through this you can offer an item for free in exchange for a
review on Amazon. Note that you cannot ask for a positive review; you can simply ask them to
give their honest opinion. For this reason, and so many others, you need to make sure that you
only sell durable and useful goods.

This method has done a lot for me. Through one of my email lists, I invited people to claim free
gifts in exchange for a review on Amazon, a video unboxing, or some other form of honest
feedback (and promotion) for the item. All they had to do was send me some proof of their
contribution, and they were guaranteed first dibs on the next round of freebies as well. This
garnered roughly 20 reviews on Amazon and a few video unboxings on somewhat popular
YouTuber channels, and the result was a small rise in sales that helped to increase the reviews
more. That item was a success.

Create Bundles
If you’re purchasing in wholesale, there’s a good chance you’re buying products that are similar
or even work together quite well. In this event, you are given the ability to create a “bundle”
product, create the listing for it, and probably offer a pretty decent deal when considering the
prices of the items individually. For example, if you’re selling cameras, you can bundle a camera
with a carrying case. You could also create an even better bundle that comes with a camera,
carrying case, extra lens, and a cleaning kit. If that wasn’t enough, you can offer a third bundle
option for the same products that also includes a tri-pod. By bundling items, you’re offering
convenience and a slight discount on the price of items that would often be purchased at the
same time anyway.

Bundle listings come with another added benefit. Because you’ll have to create the product
listing yourself, there won’t be other sellers offering the same exact bundle (at least not at first, it
is possible someone would try to copy your bundle and use your product listing to sell it). At the
same time, this is going to include additional work. Not only will you need to produce the
listing’s description, you’ll need to do so in a way that helps sell the items as a package.
Additionally, you’ll have to produce the product images, and if you want to be fancy, you may
need to produce a demonstration video as well. There are a lot of perks to having this much
control over a product that’s being sold, but it does incur the extra work.

In the event that you’re handling private label items, this process should actually be rather
simple. Because you’ll already have listing copy written for each item, you can use some of the
content that is already created to put together your new product listing. Additionally, you will
have total control over the price differences between buying the items separately and buying
them together. The great thing is that you can create as many bundle variations as you want
without actually buying any new products.

While bundling may not seem like a huge scaling effort, the fact of the matter is that it helps to
advertise all of the items, offers obvious value (if priced accordingly), and creates another point
of contact with potential customers. If it offers good value, receives good reviews, and typically
remains available for sale (not running out of stock often), a bundle can easily become one of
your bestselling listings.
Set Goals
One of the most important steps in scaling any business is to set goals and work hard until you
reach them. Having a goal leads to the development of a plan, and a plan leads to execution. A
realistic goal starting out creates a celebration-worthy milestone in your business. If your goal is
to make $1,000 in a month, how many of X products must you buy, and how many must you
sell, to reach that goal? As you learn what sells, and thus what to buy, these goals become easier
to meet and expand upon.

Keep Records
On a similar train of thought, how can you really plan and expand if you aren’t taking the time to
keep records of your expenses, earnings, items that sell well, items that sit around too long, etc.?
Not only does keeping good records make tax time a heck of a lot easier, but it gives you a full
picture of what is working and what isn’t. Understanding your business from a mathematical
standpoint is a must if you have any expectations of growing it to a sizable income stream. If
keeping records is difficult for you, seek out help on accounting.

Take Calculated Risks, Try New Things

This is probably the hardest thing for people looking to scale their Amazon FBA-based
businesses, but sometimes if an opportunity arises, it is time to take a chance on it. You should
definitely still do your research, but sometimes the window of opportunity is short and hesitating
too long means you may have missed out on a golden chance. Not every risk is so huge that it
will bankrupt you, even if you do ultimately lose money, and not taking risks means you can
expect your profits to taper off. Perhaps $1,000-$2,000 per month is enough for you and the risk
seems unnecessary, but very few people have made it big without risking their time, money, and
occasionally their peace of mind.
Conclusion
While drop shipping can give you the perfect opportunity to start up a business, especially if you
have little in the way of finances and experience, it should not be seen as a get-rich-quick
scheme. To be successful, you have to approach it as you would any business opportunity – with
professionalism. Yom must have a solid plan, and you must definitely decide on achievable
goals. Often, if you have one main goal, it can be helpful to split it into a series of smaller goals
that you can achieve on a weekly or monthly basis. This is vital if you are to see whether the
business is going to be a success or not. Alternatively, if you find that you are not reaching the
place you want to be in, you can revise your position and all your options in comparison with
your plan and how the business is progressing. You can also make changes to your plan as and
when necessary.

Drop shipping is perhaps one of the most competitive of all the business models and it can be
very hard to pick the right niche and the right products without coming up against stiff
competition from businesses that are already well-established. If you find yourself in this
position but do not want to make changes to your niche or product lines, you need to consider the
best way to approach this. There may be things that you can offer that your leading competitors
can’t provide to customers.

You can learn a lot from your competitors by looking at the sites they is active on, where they
get the most results from, and what marketing tactics they use. Study your competition hard and
learn what they do right and what they do wrong – this will tell you how you can offer more or
something different from what they do, something that gives your customers value. If a person
believes that they are getting more value from you, they will make their purchase from you and,
in this way, you can actually poach customers quite easily.

Drop shipping can offer a great way to start up a business at a low cost, but it can come at a price
– lower profit margins. If you are looking to be successful with just a drop shipping business,
you will need to have a very large number of buying customers or a large line of products with
customers buying each product. You can use social media to generate interest, and you can use
it, as well as their marketing method, to promote your products. Traditional marketing also
works very well with a drop shipping business.

With this book, I have tried to help you gain a better understanding of drop shipping, what it
involves, and how anyone can start a drop shipping business. The real key to success lies in how
you deal with people and the level of customer service you offer. This is what will set you apart
from all the others in your niche.
One important thing you must note is to be aware of fake suppliers and scams. New entrants to
the drop shipping business can easily fall prey to scammers and will soon and often lose money
if they don’t do the right research. If a drop shipping supplier asks for money up front or on a
monthly basis, walk away, as they are most likely fake and after nothing more than your money.

For every real business out there, there will be several scammers but, as you should know by
now, the actual costs of starting up your business are low. All you pay for are the costs of setting
up your website and hosting it. All of your stock is paid for when it is ordered, not before, and
that is when the customer places an order with you.

The very best way to ensure that your drop shipping business is successful are to maintain open
lines of communication, keep in contact with your customers, and build up good relationships.
They have to trust you if they are to come back and if they are to tell others about you. Make
sure that your contact with your customers reminds them of what you can do for them, what you
can offer in terms of value, as this will make sure that your name stays firmly in their minds.

You must also maintain communication with your suppliers – if you have a good relationship
with them, you will find it easier to deal with any issues, such as missing or incorrect orders.
You may also be given access to special price promotions and good discounts, or be given the
first call on the stock when supply is limited.

I would like to thank you for downloading my book. I hope that it has given you the inspiration
you need to see that you can start a business with little money, and you can become a successful
drop shipper. In spite of the stiff competition you will face, there are still profitable niches
available to you, and there are still products that will give you a good return. Be sure to study
your niche well and know your market. While drop shipping doesn’t open you up to many of the
risks of traditional ecommerce businesses, it can still fall apart and end up costing you money.

With a bit of hard work and plenty of wits, you can come up with a successful business and use it
as a stepping stone for the future.
Chapter 21 How to Start With a Dropshipping Business
Choose The Right Niche

The business is going to need to jump in the right niche that supports the full mission of the
business. It must be something that the company owner is invested or interested in and they
should be able to display these interests through the product shop and this will, in turn, bring
more buyer traffic. Focus on the specific goal you have for the shop and the buyers alike so that
there will be returning buyers that can share the same experience with someone else that you
have given them through your e-commerce site.

There needs to be some type of passion for the dropshipping business you are going into because
considering you are going to putting a lot of your time into it. You will not want to get burnt out
on your product. If you feel like you are becoming discouraged about the products that are in
your shop, you will lose energy for the direction you have been trying to go with your shop. Find
your audience because you cannot just expect your audience to find you. Marketing is going to
be one of the mainstays of having an e-commerce shop.

Since you don't have a physical storefront that buyers can see with their own eyes while they are
driving on the street you are going to need to bring a presence right to them if it means
electronically or putting flyers up all around town with your shop’s name on it. Once you are
creating a better scope for your fan base it is going to be necessary to see who your audience is.
The business must see who is purchasing their products and what possible demographic do they
fall in. Find an optimization tool for your business and track all data that is incoming and
outgoing from the business.

Customers make conversions on your shop’s site and this means that their clicks and even the
amount of time spent on the website is tracked. This could tell you further details about what
might intrigue your future buyer. The software will be able to show you a path of the customer’s
wandering until it finally got them to the shopping cart which has given you a new purchase in
your inbox. This is going to create a friendlier customer experience when they come to your site
now that you know the things you may also have to work on ensuring that the customer will
leave and come back happy again.
Find A Market Supplier

Finding a market supplier isn’t going to be an easy one and done. There is going to be some
suppliers that you choose to work with at first but they may not intend to stay your supplier
forever. It's okay to lose some suppliers along the way, but businesses must be aware of the
pitfalls of some supplier’s courses that can send the businesses shipments and products into that
might not be fit for your customer demands. A good market supplier is going to be one hundred
percent transparent with you and they are going to have a contractual agreement.

Every step must be agreed upon by both parties and there will be consistent help and guidance
during any rough parts of the first dropshipping orders the business has with the company.
Reimbursements will be made if the company fails to perform the duties promised to the
dropshipping company and they should generally have the better idea of the business’s customer
in mind. There must be complete cooperation for the whole process to work and for the
dropshipping business to make a comfortable place in their online presence.

Good suppliers with prioritizing every dropshipper they have so that they can also maintain a
positive reputation to other routes that they will also make with future business. We must address
to not feel personal about letting a supplier go as a business partner to partner it is okay to go a
separate way and disconnect. Do not wait until it is too late to disengage from the sour
relationship tainting your shipments because it is going to save the business money and time
before it is wasted spent on making up for the supplier’s faults.

Do not be willing to lose any revenue for a bad market supplier because they are only a second
party for your business and they are going to generate revenue for nothing in return. This can be
why e-commerce shops that deal with global markets are choosing to deal with more than one
supplier and this can be beneficial to their inventory. Dropshipping opens doors to engage
exclusively with only certain companies and if there is a conflict of interest it can all be avoided
by choosing the right suppliers and service software to help along the way.

Business can fully customize how their shop is run from the ground up and this can ensure that
the most money is being made from the shop site. There are great partners formed through this
kind of company communication and there must be an open mind to new approaches for this to
happen. Become engaged with greater communities that are also in the same line of product.
Welcome other parties or establish meetings and/or conferences with other individuals that share
these gains with you because they will also be able to tell you more from a supplier’s
perspective.

The better you get to know the supplier that you deal with daily the faster you will begin to make
more efficient revenue for the greater of the business. Knowing every piece of the puzzle truly
helps here because it paints a greater picture for the storefront to see how their product is moving
from the shopping cart to the doorstep and how. It is going to open up new ways to also optimize
the customer experience. Automation software can edit supplier availability and choose which
supplier fulfills your company’s product. If that supplier sells out of an item, the order will be
automatically resent as a manifested document or form of through-action to the next supplier
you’ve prioritized.

You can avoid overselling and any back ordering issues that are occurring in the shop. Choosing
to automate the process of prioritizing suppliers makes Dropshipping with multiple suppliers a
more user-friendly experience for the business owner. The business may not be able to only go to
the one supplier for all of its needs so there needs to be optimization somewhere along the line.
There must be every avenue covered and the business cannot expect just one supplier to help
with unless you are just looking for that one perfect company that is going to fulfill every single
need that the business has.
Get Your Sales Tax ID

To receive an EIN for a business is free and fairly simple. The IRS accepts applications for EINs
in ways be means of fax, online, by letters in the mail and by calling the main office. The
business EIN is very unique just as the social security number is unique for a single individual.
Any operating business will be required by the IRS to obtain an EIN which is also referred to as
the business tax ID number. You can provide this tax number now on documents for many
different services and opportunities that are going to come for the business.

Trusts, estates and non-profit organizations can receive an EIN and some regulations can be used
without even having employees working for the shop or not. This creates a whole new playing
field for the businesses that may be employing individuals or businesses that own high assets
they are looking to handle on their tax books to make a couple of personal tax cuts out of the
personal accounts.

Apply for the business EIN and practically receive it immediately by going to the IRS website,
or you can also complete it by fax, phone or mail. The business asks a few questions and the
owner of the business will list if they are applying as a sole proprietorship, corporation, LLC,
partnership or estate. The business is going to need to describe why they are applying for the
EIN. Typical reasons for filing this request usually are for starting a new business or for banking
purposes.

You are going need to provide personal information and this is going to finalize some of the
steps to getting the EIN. After the steps are complete and they are generating your new EIN the
IRS will also send the document with your authentic EIN and you are going to save this
document for future reference. When they send you the document it will be confirmed that the
new EIN has been entered into the database and that the business can begin using it at the will of
the company. Getting a state tax ID number will change the way the business does exchanges
with other parties and how they will file their taxes at the end of every fiscal year.
Pick Out Your Products

Remember that just because you are going to open up an e-commerce global shop that you are
not trying to completely change the world to make this end-all-be-all of shops. Remember, there
is competition everywhere you turn and it's going to be important to hold a strong place in the
marketplace you reside and don't do anything that's outside of the business territories. Don't risk
any assets of the business to make a new leap into dark territories that can harm the business like
making new business agreements that can sign assets away or release partial ownership or stocks
to third parties that are going to change the product line you set out.

It’s important for the product line because this is what revolves around the general focus and
mission point of any business. Do not try to change the game by selling products that are unheard
of or are in truth unlikely to sell because this will confuse the market the business projects
toward. Focus in on the crowd that you are interested in engaging in and follow trends to what
they are interested in. This is going to bring more diversity to the shop and it will secure the
product line. Create a constant flow of buyer traffic by similar products in your product line that
relates to the products that are already flying out of the warehouse daily.

Once you hone in on the products that you know are going to sell you know that you have found
your niche and that you can see constant revenue coming in to balance out the other services you
maintain. There are affiliate programs that an individual can become part of just by selling
products on their business sites. You may be selling something on your website right now that is
possible to receive interest and affiliate pay for and this is something we recommend. This will
also create a more solid foundation of the product line that is on the shop site because you will
know that recurring traffic will come back to buy and buy again knowing that you represent
popular products on your page that have the potential to sell out.

Find products that you know your customers are going to buy and make it relatable. Customers
are going to come when they see something in the shop they may have seen in another shop with
a high market value. The e-commerce business at play here could be offering that same item at a
marked down price and this is going to be what brings in this new customer. The e-commerce
site may just be the very first place the customer sees this product and this is why these choose
out of product diversity to buy.

Trustworthy products from great suppliers are also going to keep a high buyer rate because this
will mean that you represent a trusted product. Be constructive with your supplier if there is a
need that you feel needs to be met and if you know the supplier can help you with a product-
specific request then there needs to be one hundred percent cooperation on achieving the
variations that can be made. Every change that you can make for the product line and shop itself
is going to be going that extra mile for the customers that come to the shop.

Creating atmosphere is going to be important for the buyer because there isn't another way to tell
a bad review from the buyer about how your site is doing and how it's treating them. You are
going to need to optimize everything to the product line especially to create this type of
environment for the buyer so they can buy and leave from the business page knowing exactly
what they came for and exactly what the site represents satisfaction for.
Choose Your Selling Platform

There are going to be plenty of selling platforms to choose to do business with and picking one
that can handle the workload is very important. The business will have to pick a proper platform
to match their online presence. Before the business goes into purchasing the first, it is going to be
necessary to track down all possible candidates and to calculate the costs of every single option
on the web. The platform will have an attached fee to every service and this is necessary to
ensure that every service performed is right for business.

If you already have revenue flowing into the business then you can justify jumping into a new
selling platform but these fees can be costly if there is not a proper budget set in motion for a
business in the beginning phases. Do not play catch up just trying to pay the fees as a new
business because you will need to dedicate time and energy to the current objectives.

The platform the business will choose is one thing that should not be a cheap optional. It'll
become an important investment for the business and even though that this step can come with
expensive fees it must be noted that it's for a good reason to have the best for the business's sake.
The platform will be standing with the business on the front lines and bringing a great experience
to the next new customer that comes to visit the e-commerce shop.

Some platforms are going to charge you by different processing rates and these should be made
aware of. All of the options for platformers are going to be paying a flat monthly rate which will
correlate higher fees to transactions, bandwidth, server storage, and other application and
application accessories. Every fee will need to fit with the business model to have a proper and
organized budget structure. This is going to become an important decision especially when
production ramps up and you are starting to see a new coming of different buying groups.
A great business is going to need a lot of powerful servers and bandwidth to use for all its
customers. Web hosting is going to become another important necessity the business will
undergo because you are going to be selling to customers all around the world. The business will
also bring in countless numbers of traffic that will use a lot of data and need a lot of room for
data to be stored as well. Poor web hosting for good platforms can downgrade the businesses
search rankings and cause site loading times to be slowed; even causing sites to shut down
bringing downtime to the buyer and owner.

There may be another host that is taking up more bandwidth around and that the current data
provider is not able to perform under these conditions. We must make sure that all of the
companies the business is going to trust will share the same common goals and that there will be
no contingency. There must not be any interruptions from provider to provider and it is important
that no lines are crossed within companies. For any service provider, the business will go
through it will be a smart decision to always make sure they have 27 hours 7-day weeks support.

This is going to be vital to the livelihood of the e-commerce shop having to deal with late
returns, misinformation gathering or general help about the products that are on the shelf for the
customer that has questions to ask the distributor. If the hosting site crashes the business is also
going to go down and in most cases, there will need to be a web developer’s help to gain proper
control again.

It's so important for that all-day contact access because if the site goes down we can surely say
that the business will lose money every second that the site is down. Imagine that the day the site
crashed was on a major holiday that everyone on the block is maximizing their sales on. This is
not the day to lose these sales all from a cheap web hosting partner that cannot promise you the
workload efficient for your site.

The business will need a strong manager to run the account once you choose the platform that is
ready for the business requirements. It may do everything that you need it to do and the rest is up
to whether it is user-friendly or not. A good software interface is necessary to create a
comfortable experience for the business owner. The business will not want any technical
problems associated with accounts linked to the dropshipping business. This is going to create
inefficiency and possible customer confusion and anger.

The business needs to maintain a high priority of this user experience because the customer is
going to expect a pedigree experience when it comes to handling their money and shipping
information. Hire an adequate manager that is very experienced with electronic processing and
things should go well from there. It's just important to understand that the platform must have
standards to uphold for your company and by all means. The dropshipping business should
deliver nothing but the best service for every customer that's in their order list.
Setting Up Strategy to Bring Customer In

Whether you are going to appeal to your buying audience by creating great rates for your
products or creating a friendly user experience to drive high-end customers to high-end make
purchases there must be a strategy in place. The business needs to have a customized strategy
with the service providers that they choose to work with to all contribute to the same goal to
achieve maximum profit all the way around. Appealing to your audience may not always be easy
if you are in the beginning phases of the business but eventually, the owner will have to hunker
down.

Creating a consistent flow to their e-commerce site is going to ensure that they make their
quarterly goals and that they can keep the services for their dropshipping success in rotation.
Strategies should be outgoing even if it involves adding all current customers to a newsletter that
can affect their earnings on the next year they choose to spend money on the site. These
strategies for marketing should reach out to the buyers current and new to engage them into
opportunities on the site that may not have been there when they first joined. Lead new site
visitors to feel welcomed looking at a certain section of the hosted page and create a feeling of
joy and relationship as they scroll down the business product line.

Create interactive marketing strategies that bring in more customers and this could include flash
sales where the prices on the product line are modified for a short amount of time to increase
sales at a specific time. Create opportunities for your buyers to receive a shopping card for
loyalty reward points that can be redeemed upon other purchases. Give incentives to your
audience to buy and to also consider buying gifts for others if it is the gift-giving season.

Even these few examples will give the business site an edge for new and current customers alike
to keep coming back to the site to see something new and special. This is going to set the
business apart from other Dropshipping sites that may want to also increase their sales points for
the quarter, but having our strategy in line before things come. it's going to make sure the
customers visit us and not them.

A welcoming and engaging e-commerce site will allow the customer to feel free to optimize their
wants in the business site. The more freedom that the customer has the more likely they will be
willing to spend more money on a site. With these incentives in place, the buyer will become
more and more attached to the company and they will begin to feel that the business is
personalized for them and that it's going to be a trusted source to hopefully all of their needs.
Pick The Right Price

There is going to be a price zone that is right for the customer and the distributor. Pick a defined
price that is going to be good for customers alike everywhere in the globe. You are going to be
buying individually or buying in bulk and that is going to determine most of the price point.
Develop this point so that you can make ends meet and pocket the profits that are going to come
with every product that flies out. There needs to be a clever middle point met to welcome every
class of customer that is going to come to spend money on your products. There need to be
options for everyone if you are selling commodities, but if they are luxury items you are most
likely going to have a high price point that competes with other luxury items for major profits.

 
Chapter 22 Sell to Repeat Impulse Buyers
After determining the products which will have the greatest demand to bring your dropshipping
business into the spotlight it is time to target customers and transform impulse buyers into a
business’s greatest asset, loyal repeat buyers.

Determine Target Customer

It is very important not to make the mistake of throwing some products up on a website and
expect anyone and everyone to start pumping money into your account. In order to effectively
sell and see success particularly in ecommerce, you need to have a very specific target customer.

In order to do this you need to be able to effectively describe what your target customer looks
like. Start by defining their age, their location, gender all the way down to what they do for work
as well as in their freetime. The more specific you can be the better as it gives you a good idea of
how to streamline your services to appeal to these kind of people rather than just working to
please everybody, something that can easily get lost in the ecommerce jungle.

By targeting hobbyists you are able to target a very specific niche who take an interest in what
you are offering. This kind of target market are often impulse buyers meaning they get excited
by the products you are offering and will make a purchase with very little push. Another great
aspect of hobbyists is the fact that once engaged, they have a huge potential to become repeat
customers which is inner crust of your business and will be instrumental in future success.
Always aim for repeat, hobbyist customers.

Importance of Value
Another mistake many newcomers to dropshipping make is providing very little value through
their business. By providing value to each and everyone of your customers you will start to see
the results unfold in front of you. This is where it is important to understand your niche as well
as having a well defined target customer. You can build immense value knowing exactly who
you are providing for and what their needs/wants are.

By adding value to everything you do from the initial web page to customer interaction
customers will appreciate the extra effort which makes for a far more memorable experience.
Remember, you can have the world’s best product and not have any sales if your customer does
not see the value that you are offering. Perceived value is way more important than actual value
when it comes to sales. However, actual value of your product to the customer is way more
important than the initial perceived value of the product when it comes to customer loyalty and
satisfaction. We want to build a long lasting relationship with our customers. Hence it is key to
always overprovide value. Long term foresight triumphs short term profits.

You must be sincere to your dropshipping customers as well. We are in this for the long run,
your dropshipping business will still be around a decade from now. It is the loyal and happy
customers that will keep you going. Just a side track as I feel I should say this. One very
interesting fact about loyal and happy customers is that they are an active salesforce for your
business. Your happy customers will automatically promote and recommend your products to
their friends and families. The best part about this is that they are long term sales reps and they
do not even get paid a commission! He is the CEO of Berkshire Hathaway.
Chapter 23 Grow by Selling Low

Pricing Strategies
In the initial stages of growth, you will need to break into the market and grab the attention of
your target market. To do this most businesses aim for low, cut throat prices which drive the
initial traffic to start generating traction. This is where the advantage of a dropshipping model
becomes even more apparent with clearly defined profit margins and an easily scalable ordering
system.

This strategy is not just used within ecommerce, everyday retailers around the world operate on
the penetration pricing strategy. The advantages of this strategy is not increase both sales and
market share. It is an effective strategy for breaking into a new market, particularly those which
are highly competitive and have lower barriers to entry - the very essence of e commerce.

By selling low and focusing on building a consumer base it can provide you with the necessary
skills to manage your orders effectively as you progress through each milestone. While the
profits at this stage won’t make you rich anytime soon the fundamentals will be extremely
valuable as you start to see your business take on a life of its own.

It is important to determine when to change pricing strategies and at what stage. As growth
builds you will start to notice time constraints, again the advantage of drop shipping is that you
aren’t physically packing the orders yourself. However you will notice when you start to reach
capacity of how many orders can be filled this is when it is time to either raise prices or even
more highly recommended, start building a brand.

Creating Your Own Brand or Label

While you can continue to focus on low priced goods selling at large volumes, many
entrepreneurs find greater value in creating their own brand or label. This takes advantage of
perceived value as your customers will start to recognise your label and, if marketed effectively,
they will see that it takes care of their particular needs.

The value of brand creation leaves the floor open to scale your business to virtually unlimited
heights and if successful you will start to see a lower volume of orders at a premium price
meaning you are essentially processing the same or more levels of revenue while processing less
orders, a very enviable position to be in. Of course if growth is your main strategy, which in the
beginning is most likely, processing large numbers of orders will open up further opportunities in
both marketing, public relations and for scaling your business.
Another advantage of creating your own brand and label is the ability to change from a
penetration pricing method to a premium pricing strategy. That is one which is set higher for the
perceived notion of exclusivity. Given an effective marketing and consumer target strategy,
customers will be attracted to the brand as it satisfies their needs and are willing to pay the
premium price demonstrated by the brand.

The creation of your own brand or label should be the ultimate goal to drive your business
towards. Many ecommerce entrepreneurs can get caught up in the scaling of their dropshipping
business and may find that it plateaus. This is generally when you want to expand on the other
elements of the business aside from sales by continuing to add value.
Chapter 24 WHERE AND HOW TO SHIP
So you've just sold your first item. Before you start celebrating, you need to process the
order and get that sucker shipped! This is usually not very difficult, unless you've just sold
a giraffe, so don't panic.

First, you will need to make sure you've got everything you need.
Everything you need: 

The item, a shipping scale, a tape measure, shipping tape, filler/padding, the box or envelope
it will be packed in, and one can-do attitude!

The shipping process can be broken down into a few simple steps. After shipping many
items of different sizes, shapes, etc., you will likely adjust these steps into a method that is more
efficient for your particular situation. For now, start with these basics. Also, it's a good idea to
have all of these things gathered within an arm's reach so you are not running around too much.
Step 1 - Packaging

Give the item you've sold a thorough look-over to make sure everything is alright. This is
important if the particular item was purchased from a thrift store or garage sale. If it is a second
hand item, you should have done this before listing, but it never hurts to double check.

After confirming that the item's condition is exactly as it was listed, place it inside the box,
but do not seal or tape it up just yet. Make sure it fits nicely. This means it's a snug fit. If there's
extra room, add filler or padding. Be mindful of the item's delicacy, too. If it's a fragile item then
be sure to use the appropriate amount of bubble wrap, padding, or whatever you have to ensure a
safe delivery. Some employees in these shipping companies couldn't care less about the safety of
the precious snow globe you've just packed and shipped. This happens often and slapping a
"FRAGILE" sticker on the package won't do any better either, sadly. With this in mind, wrap the
hell out of anything you suspect to actually be fragile. The small amount of extra weight the
padding may add is worth paying for if it ensures a safer journey from your hands to the
customer. Refunds are zero fun and can leave negative marks on your accounts.

Remember, do not seal or tape the box up yet. Just make sure is prepared properly and that it
fits nice and snug inside the box.
Step 2 - Size & Weight
 Now that you've got your item nicely situated inside its vessel, it's time to get the size and
weight. Again, you can find them on eBay or Amazon for relatively cheap–$20-$40. Make sure
the scale reads 0.0 before placing anything on top. 

Place your still-open box containing your sold item and any other contents on top of the
scale. This bit of information, the size and weight, is needed whether you are shipping through
eBay or Amazon. Really, this is needed if you plan on purchasing shipping of any kind online.

If you get a reading of 5.7 pounds, for example, it may be wise to round up to 6.0. Keep in
mind, you will be including a packing slip (a piece of paper that provides a summary of the
order), the shipping label, and tape, even though they shouldn't add much additional weight. By
rounding up, you are playing it safe and avoiding the chances of extra charges when your
package ends up weighing a bit more than you originally estimated.

There will be times when the cost of shipping really makes a dent in your end profit. This is
the reason why you don't tape the box up before weighing it. You may have the chance to
reevaluate your packaging technique in order to reduce the weight as well as the cost. If this
happens, make some adjustments. Perhaps use lighter filler or padding, or maybe try a different
box size. You will have to get creative here. Over time, this skill will develop.

After settling on your packaging and its weight, you need to get the dimensions of the
package. Using a tape measure, simply measure the box's length, width and height. Wham-bam–
you did it. Now you have the weight and size of your package.
Step 3.A - Printing shipping label with eBay

eBay does a nice job of making things super simple for you when it comes to shipping.
Simply follow their steps and fill out some required fields and you are set. You can begin this
process by following the link they send to you in an email after your item has sold, or you can
just go to the My eBay section on your eBay account.

Before you get started, be sure to print the "packing slip"–this is different from the shipping
label. The packing slip should be included inside your package with the item you've sold. 

Toss the packing slip in, seal the box up and apply the shipping label (Do not cover the
shipping labels barcode with any tape). Be sure to tape the package well enough that it will not
come undone during shipping and handling.

Now it is ready to be dropped of at the appropriate carrier's shipping facility.

 Tip: Before tossing the packing slip in, try writing a simple Thank You note on the slip.
When a customer opens their package and sees a handwritten note, they feel a sense of personal
connection with the seller. In addition to writing a thank you, also ask the buyer to leave
feedback and or a rating if they are happy with their order. A simple handwritten note can go a
long way.
Step 3.B - Printing shipping label with Amazon

Shipping with Amazon is actually pretty great. When you sell an item and you do the
shipping through Amazon, tracking and shipping confirmation is automatically done for you.

Start by logging in to your account. At the top of the page you will see the tab, "Orders." In
here, you will see your order. You will also see a highlighter and clickable order number. Click
the order number and you will be taken to a details page. On this page, you will see a "Buy
shipping" button. Click here. 

Now, you will be asked to fill in some shipping information.

Next, after continuing, you should be prompted to choose your shipping options. If you are
in the United States and UPS is available in your area, then you should probably choose this
option. Amazon has a partnership with UPS which offers huge discounts. Seriously. Huge
discounts. Compare prices for yourself and see.

There may be several options for each carrier. Be sure to choose the appropriate one for your
particular situation. Choose, and click continue.

You should be presented with a review of all the shipping details. If it all looks good, then
confirm. You should now be able to print your label and packing slip.

Toss the packing slip inside, seal the package up, and apply the shipping label. Be sure the
barcode on the shipping label is flat and easy to scan. Do not cover it with tape. 

Remember, Amazon takes care of shipment tracking and updates your buyer with shipping
status. It's now ready to be dropped off with the selected carrier.
Chapter 25 Chapter Twelve 
Chapter 26 STORING INVENTORY
You may not think it's very important at first, but the way in which you organize and store
your inventory can actually have a profound effect on your business's backend
functionality. The way you take care of your inventory will have a strong influence on how
smoothly your business functions behind the scenes.

It is common for people, especially when starting out, to just clump their inventory together,
maybe in one spare room or in the garage. You might be able to get away with this in the
beginning, but eventually you will need to optimize your storage area into something more
organized. This will allow for easier access individual items that need to be pulled for shipping.
Trust me, it's much better than rummaging through unsorted piles. It's best to start this practice of
organization sooner, rather than later.

The first step in setting up your inventory storage system is to decide its' location. If you are
living in a home, apartment, or other residential location, you may consider converting a spare
closet into your storage area. Eventually, if your inventory count grows exponentially due to the
awesome success you are having, you may decide that dedicating an entire spare room or part of
the garage to a storage area is best. Further down the road, when business is booming, renting a
storage unit or office space nearby could possibly be a more ideal option for you. Plan
accordingly as your business grows.

Additionally, you will want to get ahold of several containers, preferably containers of
different sizes for different sized item types. Stackable containers would also be a plus. Another
possible storage vessel could be plastic drawer contains. These are cheap and easy to find. This
makes organizing smaller items super easy and efficient. After deciding what goes where, labels
are also a nice addition to your organization system. From here it's up to you how you sort and
label your inventory. It really depends on what you are selling and the space you have.
Chapter 27 Chapter Thirteen 
Chapter 28 WHERE TO SOURCE FOR PRODUCTS (PART 2)
In you learned to source for products at cheaper, more affordable, and less risky places.
While thrift stores, yard/garage sales, or flea markets can be great places to find you
products, they may pose some challenges eventually. What will you do if one of these places
closes? What do you do when it's not yard/garage sale season? What if you go several days
without finding anything worth flipping from the thrift stores?

Don't dismiss these means of sourcing completely. Keep hitting them, and hit the ones you
have become familiar with and have had good experiences with even harder and more
efficiently. But, eventually you may need to broaden you sourcing horizons.
Where to Source: Retail/Discount Stores

This section is basically touching on "Retail Arbitrage." Many people make their living
doing exactly this.
After you develop some confidence in your ability to source profitable items from thrift
stores or yard sales, an appropriate next step would be for you to start checking out more well-
known, big-box stores as well. This could include any type of retail store.

Most retail or discount stores have pretty consistent inventory as opposed to the ever-
changing products that pass through thrift stores. There is an important difference to understand
here. When you source from retail stores, you are, in most cases, no longer taking that little leap
of faith or gamble on whether or not a certain item will be available. You don't know exactly
what a thrift store will be selling that day. Eventually, you will come to know–if you don't
already–the products that each retail or discount store typically carries. You can go into the
stores of your choosing and know, for the most part, that they are carrying that particular item
you have seen or purchased from them before. 

Obviously, making the stretch into sourcing retail stores generally requires a bit more skill
and knowledge. There are factors that can make sourcing at these stores more risky too, but at
the same time it can also provide greater opportunities for more profit return. The idea is to find
a product in the store that has a price gap compared to Amazon, or even eBay. If you can
successfully resell that item at a relatively consistent rate, and are able to keep purchasing more
of that item, then you are basically doing retail arbitrage. There's great money in this, but a lot of
competition in some cases.

Some good examples of retail/discount stores can include, but are also not limited to,
Walmart, Big Lots, Home Depot, Target, Bed Bath & Beyond, Staples, Meijer, Dollar Tree,
Kmart, etc. 
 When you have found a product in a store that you think you could make a nice profit on,
you will be faced with the decision of how much or how many to buy. The decision you make
should be based on a series of different factors. How much money can you afford to invest? Can
you afford to sit on this inventory for weeks if need be? Do you have the space to store them
without your girlfriend yelling at you? How confident are you that it will sell online? Is the profit
you will make worth the effort required?

There are still other factors we will touch on later as well.

A good precautionary strategy when starting out with retail stores would be to restrict your
purchases to one or a few units, depending on the cost and size of the products, then list them.
Wait to see what works and what doesn't work. Worst case scenario: they don't sell, so you go
back and return them for a refund, if possible. However, some may argue that it's morally wrong.
But, do you think these big-box stores, like Wal-Mart, do the same?

At first, you would be very lucky to find a flippable product right off the bat. It's typical to
spend hours–sometimes even days–of searching and scanning before coming across something
worthy of taking a chance on. That's not to say it'll always be the case. It is possible to find a nice
product shortly after beginning your search. Don't just go into a store and blindly start scanning
though. Begin with scanning things that apply to a niche you are most familiar with and move
from there. The more you scan for other products though, the more you will begin to develop a
knack for what to actually go for. The most important thing to remember is to not allow yourself
to be discouraged when starting out and having little, if no luck. Many are, and many give up.
Power through it and you will surely reap the rewards.
"Never, never, never give up."
-Winston Churchill
Tip: Before going into the physical store, you can browse the store's website to see if they
display their products and their current prices. You can narrow down your search this way and
save yourself a lot of time and energy. On the website, check up the "Discount", or "Sale"
category. You can likely find something that's temporarily on sale to be resold for more.
Memberships, Sales, and Coupons

In addition, you should most certainly look into the store's discount or membership cards or
other offerings. Certain stores will offer these. If you wind up returning to a store time and time
again, it may make sense for you to have a membership. The small savings you will be making
may not seem that noticeable but they add up over time.
 Coupons and limited time sales can also save you bits of money here and there. Keep an eye
out for flyers when walking into a store. Even asking a cashier for coupons could work, as some
stores are known to stash them away behind the counter. Also, subscribe online to receive
coupons or sales info from the stores. Making a separate email account might be a good strategy
here. That way you won't have them scattered throughout your primary email account. You will
be pleasantly surprised in the savings you can make by applying these techniques. This will only
help increase your profit margins.
A general example of buying and selling in a retail store: 

You are in a retail store browsing the clearance section and scan a product's barcode using
the Amazon Seller app. You will then have product information from Amazon.com displayed on
your device. This product is on sale for two more days for $4 in the physical store, yet
Amazon.com has the same product selling for $15. The price gap here makes this product worth
considering. Also, you have a coupon for 20% off, making the product only $3.20. Essentially,
this is retail arbitrage.

The price difference is not the only factor you should consider, however. This is only the
general concept of retail arbitrage. You should also evaluate shipping costs, the ranking of the
product on Amazon–which indicates the rate in which the product sells, the fragility of the
product, the weight, etc. These are things you will constantly have to keep in mind when
sourcing for products. Just like anything else, it takes practice. After some trial and error you will
begin to develop the skills needed to properly analyze these factors.

A checklist of these factors may be good for you to carry around when you are first learning
to source from retail stores.

Get out there and give it a whirl.

Where To Source: Online

Another potential sourcing option can be found on the Interwebz. There are many great deals
that can be found online. The best thing is, you can do this from your own home, in your
underwear. You can search for specific products, sold by specific retailers, at any time.

If you have the spare time, it really doesn't hurt to just hop online and start browsing around.
Remember, stick to things you are familiar with at first. Choose a retailer or company that you
shop at regularly. Most online stores will have a "Discount" or "Sale" section. Browse here first.
 Sourcing online can be a bit more risky, though. Obviously, you will have the additional
shipping fee on some orders, unless you're making large orders–sometimes. This is a factor you
must include in your evaluation of online products. Other than that, sourcing online is nearly the
same as sourcing brick and mortar stores.

Instead of blindly surfing the internet for products, here are a couple places you may want to
try first that might sound a bit familiar to you already. Try some of these out and build some
knowledge and experience, then you will likely have better luck looking at other online stores.
Overstock, Amazon, eBay, etc.

Have you ever stopped to think about sourcing where you sell? Overstock, Amazon, and
eBay are no doubt some of the top online marketplaces. You can buy so many different things
here at a variety of prices. The idea of buying and selling on the same marketplace isn't too crazy
an idea. Many people do this successfully already and you could too.

Tip: Spending the time to search for someone selling products at a bargain can be well worth
it. In some instances, you might find someone who sells in bulk. Do some research and
calculations to determine its profitability if you split them, and sell individually elsewhere. 
Facebook Groups

You could say this is similar to sourcing through Craigslist. Use your personal account, or
one you've created specifically for your business, and just start looking up some groups. There
are tons of "buy, sell, trade" type groups on Facebook. Join them and keep an eye out. Many
great deals can be found in these groups. Many people have to suddenly move and need to sell
their stuff fast, and usually at a great discount.

This is why having the Facebook app on your phone can be handy. You can monitor the
groups and their posts while you're stuck at Johnny's karate practice.

If you find yourself with time to kill, if you're waiting on something, or if you are unable to
source at your typical locations, take some time to browse online. You may be surprised and
snag some quality goodies and level up your online sourcing skill.
Chapter 29 Sourcing Products
This is a key step in the process. Finding products for a price that allows room for profit is likely
going to become the bulk of your workload as an Amazon FBA seller. There are many outlets for
product sourcing or creation, and there are many names for this process, including retail
arbitrage, junking, thrifting, scouting, picking, and reselling.

When looking for items to buy, it’s important to remember the “buy low, sell high” rule. With
Fulfillment by Amazon, a decent rule of thumb is that you should try to buy items that will sell
for almost three times as much as you are paying for them. Because of fees, shipping, and other
costs involved, going much lower than this may often be a waste of time and energy.

If you haven’t yet, download the Amazon Seller app on your smartphone. This tool will greatly
help in certain situations, and going without it is almost downright hurting yourself. While
sourcing items, using this app to scan the barcode will show you the prices and product details on
Amazon. You can also pay attention to the other people selling the product. If there aren’t other
FBA sellers with the product listed, it’s a good bet you’ll have no trouble selling it at a higher
price since you’ll have the benefits of Amazon’s shipping policies, especially for Prime
members. You can actually charge more than a manufacturer selling on Amazon since their
Prime members are often willing to pay extra for quickly receiving the item. Additionally, that
coveted “Buy Box” is going to be much easier to obtain if there aren’t other FBA sellers.

Pay attention to the sales ranking of the item. This figure is displayed on the product page, and it
gives a clear idea of how often the item sells compared to everything else on Amazon or within
the category the ranking is for. Unless you have a rare item that isn’t often available for sale,
which is likely better sold elsewhere anyway, then it is best to stick to products with a ranking
above 100,000 when possible. Items below this may simply sit around in the Amazon
warehouses for ages and be a total waste of time and energy. If they sit there too long, you’ll be
forced to start paying long-term storage fees, and those can eat away at your profits fast.

There are plenty of places to source the products you will ultimately sell in your Amazon store,
and thinking outside the box will often give you excellent results. Some common resources
include:
Your Stuff
Using the scanning tool of the Amazon Seller app, make the rounds throughout your home,
scanning items you may (or may not) want to sell. Anything with a barcode can simply be
scanned. This is a great first step for your FBA business because it doesn’t add to the startup
costs, it helps to declutter your home a bit, and it helps you learn the process.

Good items to scan include:

 DVDs
 CDs
 Records
 Books
 Anything in packaging
 Anything with a barcode

You may also find some items without a barcode that are worth the effort of selling, but you’ll
have to manually search for these items on Amazon to determine the value and if it seems worth
the costs and time involved. In general, finding barcodes makes life a lot easier.

You may be surprised how much stuff you have to sell that’s just been sitting around. You will
very likely be able to fill your first box with stuff you have sitting around the house. Make sure
to check with your husband or wife before selling their stuff, though! This method is obviously
not sustainable, but as a beginner, it’s really what you should be doing. Let’s move on to other
options that are more sustainable.
Clearance Sections
Anytime you’re at a retail store for any reason, take a few minutes to run through the clearance
aisles and see if there is anything worth buying to resell. You may be surprised how often you
find a decent item or two. Having the Amazon Seller app at the ready makes this a lot easier, as
typing in each item’s barcode while you’re in the store can be a pain. It may seem a little weird
walking around a store with a phone and scanning items, but don’t let yourself feel
uncomfortable. Everyone else is looking at their phones too, and they probably won’t even notice
you.

Items that are already listed on Amazon will be the easiest to grab and sell since it won’t require
you to create a new product page. Keep in mind that only professional seller accounts allow for
new product page creation as well. We’ll discuss in a moment how clearance aisles work within
the concept of retail arbitrage.
Thrift Stores
There are plenty of items you can find at thrift stores, from books, CDs, DVDs, and records, to
everything under the sun. The great thing about many thrift stores, especially chains like
Salvation Army and Goodwill, is that they are constantly restocking their shelves, meaning you
can literally go into them almost every day and find something new. Even with less popular thrift
stores, they will likely be restocking fairly often. Go into these places and ask when they restock,
when they have sales, etc. Many thrift stores provide a calendar for sales dates, so be sure to grab
one if it is available.

When items like CDs and DVDs are new and unwrapped, these can be a great item to snag.
Bring along the trusty Amazon Seller app to scan products and evaluate if they are viable options
for selling through FBA. Used items can still be good, too, but new items tend to cause the least
problems with returns and refund requestse. Media items are great to sell because the shipping
costs involved in having a large amount of them sent to an Amazon fulfillment center is fairly
lower than heavier, larger items. Again, don’t let that stop you from scanning used items with a
barcode, or if your knowledge about used and vintage items is good enough, feel free to research
products that may not have a barcode as well, just keep in mind that the time involvement is
increased.

The great thing about thrift stores is that some items will bring in far more than you’re going to
pay, and they’re great learning spaces. With items like books and DVDs, you’ll begin to notice
certain patterns. Some items are far too common and not worth selling, and as you scan (with
your eyes) through a bookshelf or DVD rack, you won’t really need to scan (with your Amazon
Seller app) to know that some items are just too common and aren’t going to sell. Likewise, with
books, you’ll start to notice that text books and other nonfiction books tend to sell better than
trade paperback fiction books. However, if you manage to get your hands on certain fiction
novels, especially if they’re new releases, first edition, or rare printings, they can be worth your
while.
YARD SALES

Yard sales are like thrift stores, except the prices are often better and there’s only one or two
days in which you can claim the items appropriate for selling online. Much like thrift stores,
searching for items in their retail packaging and media like CDs and DVDs is an easy place to
start.

To get the most out of yard sales, it’s best to have a plan of action. Map out the yard sales going
on around you and try to hit the ones that seem like the best fit first thing in the morning. Other
people are out there looking for great deals, and you may even be competing with other resellers,
so an early start can be the difference between a great day and an okay day. Just be respectful
when people ask that no early birds show up, or you may find yourself arguing with someone
instead of finding a great deal.

All of the perks of thrift stores apply to yard sales too, but the limited availability and non-static
nature of pop-up sales means that you have one shot. These can be a lot of fun and a great source
of income, though, so don’t write them off just because the location isn’t going to offer repeat
opportunities in the future.

As an added tip, if you know what kind of items you want to sell, you can always ask the sellers
if they have anything else inside the house like those items and if they would be willing to let
them go.
Craigslist and Facebook Buy/Sell/Trade Groups
Much like yard sales, the best way to score with Craigslist or Facebook sales group listings is to
be one of the first responders. The quicker you get in, the more likely to receive the item you’ll
be. This takes patience, and some days will go much better than others. If you live in a remote
area, these methods may not be the most fruitful, but if you live near a large city, your local
pages are likely teeming with items ripe for the picking. On the other hand, there are probably a
lot more resellers around too.

Auctions
Auctions can be hit or miss. Some auctions are going to have too many bidders, and the prices
will extend beyond the three times rule quickly. Others may be cheap but not provide as much to
choose from, and often they’ll focus on antiques, furniture, and larger items that aren’t worth
selling through the FBA program. This isn’t always the case, though.

On the other hand, there are storage locker and other types of mostly-blind auctions where you
will only get a glimpse at everything you’re bidding on. With these, a large amount of potential
products can be bought for a low price. Not all of these items are going to be ideal for sales
through Fulfillment by Amazon, but if your hustling includes selling locally as well, it may be
worthwhile. Likewise, if the price is low enough, you can take what you want to sell and always
simply donate the rest to thrift stores as a tax write off.

Online and Retail Arbitrage

Online arbitrage is finding retail items online, buying them, and then reselling them. This can be
done through wholesalers, retail websites, eBay, and even Amazon sometimes. While finding
brand new products online that meet the criteria of being able to sell for three times the amount
they are purchased for may not always be easy, once you find some good resources, there’s a
fairly decent shot that they will continue to produce.

Going the route of wholesale is great, but the investment can be a bit daunting. Likely, you’ll be
purchasing large lots of a single product, so it needs to be an item that sells well. Nobody wants
to sit on a pile of iPhone 4 cell phone cases while the iPhone 8 is about to be released. This is
just bad for business and ultimately you’ll lose money. For most, it is better to hold off on
wholesale deals until the capital produced otherwise warrants it and your skills in determining
products worth selling have improved.
Retail arbitrage involves getting off of your couch sometimes, but it can be a great source of
income and new products to sell. We’ve basically already talked about this, but it can be
expanded upon quite a bit. The obvious places to start are Walmarts, CVS’, Targets, etc. The
obvious places have the benefit of online shopping, ordering, and local pickup rather than
walking around stores all day and scanning items. However, a mom and pop store can be a great
source of items as well, and always exploring new potential options is key to success with this
method. Closeout stores, outlets, and other off-the-beaten path options should never be
overlooked.

To give you a better idea of how retail arbitrage works, let’s look at an example. Browsing the
Walmart clearance aisle, I’ve picked up an item that is listed as “LEGO BATMAN MOVIE The
Batmobile 70905 Building Kit (581 Piece)” on Amazon. When I use the Amazon Seller app to
scan the item and get some information on it, I can see that it’s a popular selling item in the Toys
category. Awesome, I should have no problem moving it. The going price is around $42.00
shipped with other Fulfillment by Amazon sellers, and since I paid around $15 for it, it comes
very close to being able to sell for three times the amount. Not bad. There were two of them, so I
grabbed them both.

The proceeds from my sale will be $42.00.

The referral fee charged is going to be $6.30 (15% of $42).

Taking away the cost ($15) and the referral fee leaves a profit of $20.70.

This is a return of 97.18%, with a profit margin of 49.29%.

Of course I bought both of them that were available, so I make this amount twice! Keep in mind
that along the way, you will have also spent money to ship an entire box to Amazon, storage
fees, etc. However, this gives you an idea of why retail arbitrage works so well. You literally can
find these types of items online and pick them up or while walking through a store and handling
other shopping needs. In ideal situations, you may be able to pick up more than just a couple of
the same item. As you continue to work your way through stores and this process, it starts to
become easier to notice which products are worth scanning and which are not.

Because these are likely to be brand name products, there is very little required in the way of
marketing or content creation, making it easier for those that prefer not to become writers,
photographers, and brand creators. However, it is totally possible to find yourself in a dry spell at
times when using local resources, which makes for less-than-predictable income at times.
Private Label Products
Private label products are an excellent source of income when done correctly. In theory, the
process is simple, but the execution is not for the lazy or those scared of risks. Rather than
purchasing brand name items from a store (retail arbitrage), auctions, or other resources to resell
through Amazon Seller Central, you create a product without actually putting in the research and
development involved in creating the product. Instead, you find a product already available via
wholesalers that are willing to put your brand name on the items and packaging, and you build a
brand around these products.

There are many cons to this method, especially for a beginner. The most obvious con is the high
cost of purchasing products in bulk and taking the risk that they may not sell. Unlike popular
brand name items, people are not actively searching out the particular product name that you
have. Instead, it becomes your job to market this product better than several of your competitors.
It adds a whole new layer to your Amazon FBA-based business, and while many people might
shy away from the content creation, logo designing, and constant marketing involved, the
opportunity for significantly higher profits is there. This isn’t a quick method for earning some
money, but it is scalable in the best ways.

Don’t let the cons completely deter you, though. It may not be the best method starting out, but
as your business begins growing and you have better funds and understanding of the different
markets and trends involved, private label branding and selling has many benefits. Not only is
the product typically going to have a cheap cost per unit, but once a few items with your brand
are well-reviewed and sell, it becomes easier to introduce new products in similar categories.
Additionally, it takes the guess work out of trying to find products to sell, freeing up time for
those other tasks involved in private label selling. Having this consistent resource for products is
a god send for serial entrepreneurs that want to branch off into other areas as well. Spending all
your time shopping isn’t for everyone.

Because this method is a little more involved than others, I’ll walk you through it step by step.

Step 1. Research Products

The first step is to consider what products you will brand. The good news is that there are
methods to help determine if a product is going to be viable. Consider the following:
1. Is there a national brand product that almost completely controls the market? As
a prime example, trying to sell unknown branded tablet computers is probably
never going to work. Between Kindle (with budget tablets) and Apple (with
 high-quality and high-performance tablets), the tablet market doesn’t leave a lot
of elbow room for new brands. Likewise, something like DSLR cameras aren’t
viable because of huge brand names like Nikon. This doesn’t mean it’s
impossible, but digging deeper into less dominated markets is ideal.
2. Consider the sales rank on Amazon for the most popular products comparable
to the product you want to distribute. If the top three items are below 10,000,
that means that demand is high. Otherwise, sales may be slow.
3. How many reviews do those top three products have? As a rule of thumb, it’s
difficult to compete with products that have 300+ reviews. It’s not impossible, but
it’s going to take some serious marketing skills (and probably money).
4. What can you sell the item for? With private label, as with any venture where
you’re marketing a product, it’s important to remember that every product is
going to require large commitments in terms of marketing costs and time. As such,
if a product cannot sell for more than $25, it is probably not going to be worth
your time unless you’re selling in huge amounts daily. While you may not want to
sell very expensive products (less sales in general), you don’t want to sell items
that aren’t going to bring a return on investment if they aren’t sold in high
volume.
5. Who is your competition? Especially in regards to other private label sellers, just
how well are they actually doing their job? If you scout out some of the other
sellers and see that their product listing copy is shoddy, their customer feedback
scores are low, or other signs of doing a less-than-ideal job, then that means
someone with the right gusto, skills, and motivation can surpass their products by
creating a better brand (even if it’s essentially the same item). Take time to read
the reviews as well, and if there’s something that sticks out as negative about the
product that you believe you can remedy (such as: poor instructions or not
including a small screwdriver to open the item for batteries), then that may be a
golden opportunity to provide added value.
6. How available is this type of product? Can you easily buy it at Walmart or Target?
It is probably not worth your time to sell a product traditionally purchased while
grocery shopping or at very popular big box stores. While they may have similar
items, yours should be less of a commodity.
7. How much does it weigh? Lighter items mean cheaper shipping costs, less
packaging, lower handling fees from Amazon. Don’t waste time on large products
unless you’re feeling extremely confident in your abilities.
8. Is the product going to ship well? As a private label seller, you’re likely going to be
purchasing products from China, then shipping them to Amazon, and then
Amazon will ship them to the buyer. So, it goes to reason that any products you
bother with private label branding needs to be something that’s durable. Steer
clear of anything glass!
9. Could one person potentially buy the same product again? The main reason for
this would be that it’s a great gift item or somehow consumable. While it is not a
make or break consideration, it does help to consider if the same product would
sell to the same person more than once.
 10. How many do you have to order at once? Before even branding a product, does
the wholesale provider allow you to buy a few at a time just to evaluate them?
Not taking the time to check out a product before branding it is a HUGE mistake,
so when a wholesaler refuses to send a small order, you may need to find
another source. At the same time, just how many do you need to purchase once
you’re ready to commit to the product? Is it going to be financially viable for
your business and home to fund a huge order?

While it may be impossible to meet all of these criteria, getting as close as possible will help to
alleviate the guesswork and amp up the likelihood of success! It’s imperative that you spend time
researching the products that will sell and ensuring the quality is up to par.

Step 2. Finding a Supplier

The most obvious source for a decent supplier is going to be sites like http://alibaba.com. These
sellers are going to be in Asian countries, often China, and as such, shipping time will not always
be quick. (Surprisingly, shipping is usually priced pretty fairly, though.) While you might source
products in the United States, the cost effectiveness of that approach is likely to drown you in
debt before you can even make a profit. Because you want to be able to mark up the product as
much as three times the cost you’re originally paying for it, Chinese-made goods are often your
best bet.

You may be groaning at that thought, but just because it’s made in China doesn’t mean it’s
worthless. Search for your product and pull up a handful of suppliers for it. Research the supplier
as much as possible to make sure they’re trustworthy. Alibaba is extremely safe to use, but not
all sellers are going to give you great service and products.

Once you’ve narrowed it down to a few potential suppliers, talk to them about branding the
items. Many suppliers will gladly offer these services for packaging and item branding, and it
can be a huge money-saving and time-saving benefit from working with Alibaba sellers.

Do not be afraid to negotiate. They want your business, and they may be willing to cut a deal.
Remember that you want to TRY the item before buying it in bulk, so finding a supplier willing
to sell you a few of them is going to go a long way. Not only does it mean you can test the items
(you want to test more than one to check for consistency), but it also means that they are going to
be flexible and easy to work with.
Step 3. Creating Brand Logos
If the product you purchased checks out, and you believe it is going to work well for your private
label goals, then it’s time to consider branding. Ideally, you’ll have worked on this prior to
receiving the first shipment of the product you’ve tested.

So before placing a large order with your branding on it, you’ll need to have a logo and
packaging design completed. Unless you’re an excellent graphic designer already, you’ll
probably want to hire some help from a freelance designer on Upwork.com or Fiverr.com

With Upwork, you’ll be able to post a job and have people bid on it, giving you access to their
profiles and often a portfolio of their previous work. Fiverr is a cheaper option, but just
remember that you’re likely going to be buying hundreds of the same product with the same
logo, so it really needs to shine, and “you get what you pay for” is often the case with freelance
work.

I’m going to sound mean for a second, but please do not hire your niece or nephew just because
they’re art students. A huge mistake many entrepreneurs make is working with friends and
family that aren’t quite ready for this level of design. If they are, that’s amazing, but don’t let
personal connections cloud your judgment when you’ll be spending large sums of money. Your
business counts on you to make logical decisions.

Once the product design and logo are prepared, send them off to the supplier, and they’ll begin
the process of branding the item for you.

Step 4. Create Killer Content

It’s disgustingly repeated over and over, but content is truly king when it comes to sales. Taking
the time to produce high-quality, engaging sales copy is going to have a LOT to do with the
success of a private label product designed to be sold through Amazon.
Because your supplier is both branding your product and shipping it from overseas, you may
have at least a week or as long as a month to start working on your listing content. Take
advantage of this time and try to produce some immaculate sales copy that’s eye-catching,
comprehensive, and clean. Include high quality images, describe the functions of the product,
and make sure to point out why it’s better than other similar products without specifically saying,
“It’s better than the Waddayacallit D3200!” If you’re unfamiliar with the HTML that Amazon
allows for listing, then hire someone to help you dress the listing content up after it is finished or
take time to learn this coding (it’s fairly limited, so it doesn’t require a lot of effort to learn).

They’re creating rushed, unedited content with no call to action, not enough details, and poor
images. Even if a half-hearted job is enough to be better than your most obvious competitors,
you need to absolutely SLAY this if you want to see sales that are worth all the time and effort
you put into this product. This is not the place to skimp.

Step 5. List it on Amazon

Now that you’ve produce a great brand with a reliable product, received the shipment, and
completely dominated the competition with solid listing content, it’s finally time to actually list
the product and send them off to Amazon for fulfillment. We’ll discuss this process in detail in
another chapter.

You’ll likely put in additional time and money for marketing, but unlike retail or online arbitrage
where you need to constantly source new items, your time should free up to begin working on
your next private label product while this one generates you some passive income in the
meantime.

Private label isn’t the easiest method or choice, but when things start rolling, the passive income
and safety of having an easy-to-source product becomes a huge benefit to your FBA-based
business.

Learn the Selling Process First

Just because it seems like a good deal, that doesn’t mean it is worth your time. Consider weight,
popularity of the product, and the actual amount of profit you are likely to make. Always be
asking yourself if the item is worth your time, money, and energy. Do not try to stock every
single thing you come across, or you’ll find yourself wasting a lot of hard work on nothing.

Always keep your eyes open. Once you get in the habit of looking for profits in items wherever
you go, it will become easier to spot things that are profitable, and you will begin learning about
the many categories and markets available through Amazon. Keeping your eyes open and an ear
to the ground are keys to your success.

To help yourself understand the ins and outs of listing and selling products, if they are truly
worth the time, and if they are going to be profitable, it’s really best to start out by selling your
own stuff. Not only is the financial investment much smaller, but it can give you an idea of what
items you may want to keep an eye out for in the future.

Once you have a nice pile of items to sell, it is time to finally begin the process of listing,
shipping to Amazon for fulfillment, and then starting the process over while finally raking in
some earnings. However, before we jump into that, let’s take a moment to consider how fees
work.
Chapter 30 Sourcing Products – Retail vs. Online
Sourcing products is probably the number one topic that people want to talk about and it is
obviously very important. There are many places to source inventory. In the previous chapter, we
talked about what makes a product a good deal to sell online and how there is not just a list of
products that are good to sell online. We’ll take that a step further and discuss different sources
of products and the advantages and disadvantages of both.

First thing that I want to mention is that there are big differences between retail stores and their
online counterparts. Knowing these differences will allow you to properly evaluate the market
dynamics at play. Knowledge is power and knowing the differences here can give you the
information to find deals that your competition overlooks.
Home Depot vs. HomeDepot.com

I am very familiar with this relationship for reasons that you can probably guess from reading the
beginning of this book. It may surprise you to know that Home Depot and HomeDepot.com are
run completely separately. You cannot buy from HomeDepot.com and then return the product to
your local Home Depot (at least not at the time of this writing). Products available at your local
Home Depot may or may not be available on HomeDepot.com. Same thing for HomeDepot.com;
they will carry products that are not available at your local Home Depot store.

How does knowing the differences help you as a reseller? Let me explain.

First, let’s consider demand for certain products. You will undoubtedly see large-scale
advertising campaigns on TV, on the radio and in print. These advertisements create demand for
those products. Those products are only available in a limited supply for limited sales channels,
namely Home Depot Stores or HomeDepot.com.

You now have demand for a product with limited distribution channels. Sure, HomeDepot.com
can ship anywhere in the country and most of the population lives in close proximity to a Home
Depot store, but consider these possibilities:

Customers who have never ordered a product online (and don’t plan to start).

Customers who do not live near a Home Depot store.

Customers who are unaware of the house brand relationship so they look elsewhere for the
product.
Neither HomeDepot.com nor Home Depot stores have unlimited supply of the product so when
they sell out, supply is gone but demand remains. If you have some of that supply, you can now
meet that demand and you are not bound by any pricing agreements. Your price is set by the
simple market forces of supply and demand. Thanks to the Internet, you can offer your supply on
several sites such as Amazon or eBay (shipping eBay orders through FBA is covered later in this
book in Chapter 32).

Here’s an example that surely plays out somewhere in the country:

A husband and wife are watching TV. The husband sees the Home Depot commercial and says
to his wife that he would like that product for a Christmas gift. She makes a mental note and the
next day goes on Amazon.com and purchases the product from an FBA seller. Done.

Why not go to Home Depot? Maybe she doesn’t live near one. Maybe she didn’t even realize it
was a Home Depot commercial and she just remembered the product. Maybe Amazon is the first
place that she considers for purchases. When she finds it on Amazon, she buys it and her
shopping is done. Maybe going out shopping is the last thing that she wants to do.

Maybe she did note that it was from Home Depot but when she went to the store, she found out
that they were sold out. Maybe she doesn’t realize that HomeDepot.com even exists. Even if she
did, HomeDepot.com may be sold out they may not even offer the product (some products are
only sold in retail stores).

Once she finds it on Amazon for a price at which she values the item, she makes the purchase
and the transaction takes place. She got what she wanted and the seller got what they wanted.

She may be paying more than retail in order to get her hands on a popular product that is not in
stock at the regular MSRP. If she wants the item at this point in time, she has to pay the premium
price on the secondary market. She may be paying this premium price knowingly or
unknowingly. The facts of the matter are that price is set by supply and demand and a transaction
only takes place when the buyer values the item more than the price and the seller values the
price more than the item.
House Brands

House brands are brands that have partnerships in place with retailers. Some brands are even
owned by the retailer. One of the most famous house brands is Craftsman tools. They are sold
exclusively at Sears. I’m sure you are familiar with many brands that are called house brands, but
you just didn’t know that they were house brands. Ryobi tools at Home Depot is another house
brand.
What happens is that these retailers like Sears and Home Depot put on their national advertising
campaigns and create nationwide demand for their products. The supply is limited to certain
channels such as the local stores and the company’s website. There will be many reasons why
the demand will not be able to reach the supply. Not everyone lives near a Sears and Sears.com
may be sold out or not even carrying the product at all.

This goes for all kinds of products, not just power tools. It even works on grocery items. Have
you heard of Trader Joe’s? I use this example because it is easier to understand. If you haven’t
heard of Trader Joe’s, I’ll tell you this: People are crazy for Trader Joe’s! It has very loyal
shoppers who prefer their Trader Joe’s branded products like salsa or olive oil. It is not
unreasonable to assume that there are people out there who have a special preference for certain
Trader Joe’s products. Some of those people who at one time lived within shopping distance of a
Trader Joe’s have since relocated to another part of the country where there are no Trader Joe’s.
Now when they cook dinner, the only thing that they can think about is how they wish they had
their special Trader Joe’s olive oil. This is the DEMAND. They decide to go online and see if it’s
available from Amazon.com. THERE IT IS! You understood that this demand existed and you
met that demand with your supply (if you live near a Trader Joe’s) and you sent some supply to
FBA. They are happy and purchase the olive oil, and you are happy and put the profit in your
pocket.

This example doesn’t work because it’s Trader Joe’s olive oil, it works because of the brand
association, the dynamics of personal preference, and real world factors such as moving across
the country. If you find other items that have these same characteristics, then you’ll find more
items that are good for Retail Arbitrage.

This strategy works for all kinds of products including Canadian exclusives. There are the same
types of products available in Canada that Canadian buyers prefer. There are many Canadian ex-
patriots living in the USA who shop on Amazon and prefer FBA sellers. If the products were
made available on Amazon.com, they would purchase them. This is the DEMAND.

Examples of this type of supply and demand abound. Here is another one with a double twist;
consider ‘snowbirds’ who live in the northern states during the summer and then travel to the
southern states during the cold, harsh winters. They surely have favorite items that are only local
to them during certain parts of the year. If you can provide the supply of those ‘southern’ items
that they cannot get while they are up north or the ‘northern’ items that they cannot get while
they are down south, then you are able to match up supply and demand with a profitable
transaction. Supply and demand do not have to be very big when you have the power of the
Internet bringing them together.
Retail Exclusives

There will be some products that are not sold online and are only sold as retail exclusives. There
will be buyers (demand) who want these products (supply) who do not live near a store that sells
them. These buyers may be more than happy to buy online if there was a seller selling the items.
Out of all of the potential buyers who make up the total demand, some of them will value the
item at a higher level than the others. Don’t think that you have to sell to all of them; you just
have to sell to the buyers who value the item the highest as long as this price that they are willing
to pay is high enough to hit your target margins.

Retail deals are my favorite deals because you can find deals with sky-high margins and you are
truly able to capitalize on knowledge being power. YOU know about the deal because YOU
went out and found it. You’ll have less competition on deals like this, at least until someone else
finds the same deal.

Online deals can be more risky because they are public and anyone can get in on them while the
website still has supply to sell. This can lead to increased supply on the secondary market, which
of course will drive prices down (at least temporarily).
Retail Advantages

Deals are only accessible to those who make the trip to the store.

Not everyone will be aware of the deals.

Low lead times; you can buy and list as merchant fulfilled the same day as well as buy and send
to FBA in the same day.

Items can easily be returned if warranted.

Retail Disadvantages

Quantities can be limited.

Requires time and effort.

Online Advantage

Quantities can be higher than at retail (purchase 200 units instead of just 20 units).

You can purchase items and have them delivered to your door.
Online Disadvantages
Increased lead times (shipping time in transit) can lead to changed market dynamics by the time
your products are available for sale.

Deals are ‘public’ meaning that anyone can find the deals and get in on them. This can increase
the secondary market supply and drive down price.

The online returns process can be more difficult and cost money (return shipping).

There is much more information about retail deals and online deals found later in and Chapter
26.
Chapter 31 Purchasing TAX FREE for Resale
Quick question: Who is responsible for paying sales tax on retail items?

The buyer? Well, sort of. The correct answer is the END USER. The end user is the buyer who
buys the item to use. There may be other buyers along the way, but it is only that last buyer, the
end user, who pays the sales tax. As you are likely well aware, end users who buy online only
pay sales tax on in-state purchases or on online purchases where the website has an in-state
presence, or ‘nexus’. This is one reason that Amazon was able to become so powerful. By not
having to collect sales tax on interstate purchases, their prices have been lower than if buyers
purchased the same items in-state and had to pay sales tax.

When you buy items at retail or even at book sales and thrift stores that you intend to resell, then
you are not the end user. You are a reseller. Resellers do not pay sales tax on items that are
destined for resale.

Resellers who resell to in-state buyers are required to collect and remit sales tax on those in-state
purchases. In a simplified example where you sell to all 50 states equally, you would only be
collecting taxes on 2% of your sales, or from one out of fifty states. The other 49 states, or 98%
of your sales, are sales on which you are not required to collect or remit sales tax.

This is not cheating or tax evasion; this is knowing and following the law. Knowing the law and
the rules of resale will allow those who know the law and the rules to work smarter than their
competition. Remember, knowledge is power? It applies here as well. People who buy and sell
retail products who don’t follow this one simple rule will have product costs that are much
higher than yours. This means your margins are higher and you make more money. Over the
long run, your business will thrive and they will be working too hard.
Here’s how it works:

Every state will be a little different, but they will all be very similar. Search for your local
comptroller’s office. They likely have their own website. You can call or email and explain what
you want to do. Tell them you are a reseller and you want to know what is required in your state
to purchase tax free for resale. They will know exactly what you are talking about and will be
able to help you. You may be able to do the entire thing online. When I first started, I had to
actually go to the comptroller’s office to fill out paperwork. Now the process in Texas is
completely online.

Once you have your state tax ID number, you have to know how to use it. Some states will have
a form that you can print out and present to the retailer. Some stores will just want the number
for their records. Some stores will want to see the actual tax ID certificate so you may have to
carry it with you. Some stores, like Home Depot, require you to set up a tax-free account in their
computer system. This can be more difficult to initially set up, but it is actually the easiest to use.
Once your account is set up, you just have to tell them the purchase is tax exempt and give them
your phone number and they can pull up your account.

You may be asking if purchasing tax-free is only for local retailer purchases or can online deals
be purchased tax-free? The answer is that anything that you buy online for resale can also be
purchased tax-free. It can be a little more complex, but here’s how to do it:

Many websites that you can buy from will already be tax-free so don’t worry about those. Let’s
use an example of a site that has a local presence in every state, HomeDepot.com. There is no
way to checkout at HomeDepot.com without paying sales tax (they may change this at some
point, which would be awesome, but currently you have to pay the sales tax on all online orders).
After you purchase, you contact HomeDepot.com and explain that you are a reseller and that the
items that you purchased are for resale. They will send you the paperwork to file for a refund of
the sales tax. You fill it all out and include copies of all relevant documents such as your tax ID
form and they will refund the sales tax that they charged back to your credit card. Not as easy as
just not paying it at checkout, but still very worthwhile to process.

Another option is to claim sales tax credit when filing and remitting your sales tax records. Each
state may vary, but when you file your sales tax records each month, there should be an option
for entering an amount for purchases on which you were claiming sales tax credits. So even if
you pay tax at checkout because you didn’t have your sales tax ID or just checked out and paid
sales tax in the interest of expediency, you can still claim the sales tax credit so that your
purchases net out as tax free.

In my experience, it is a much better idea to not pay the sales tax when you purchase than to pay
it and then try to get it back. Keep your business as simple as possible!

This is all a method of lowering your costs. The lower your costs are, the higher your margins
will be. Simply knowing the rules allows you to have lower costs than your competitors. It’s
awesome.

If you live in an area where you will be purchasing tax free for resale from several different
states, be sure to talk to your accountant or tax professional to be sure that you are following the
rules for each state and filing any required reports properly.
As with all laws, they can change. This information is accurate at the time of this writing. Laws
may change so be sure to check online for the current rules to be sure that you are following
them.
Chapter 32 Coupons, Discounts, Rebates, Rewards & Cashback
When you are buying items for resale, your margin is dependent on your product costs. The
lower you are able to get your costs, the higher your margins (and profits) will be. There are
many ways to lower your costs and even though some of these methods may only be 1-2%, when
you do them all, the discounts add up and become significant. When your costs are significantly
lower than your competitors, then you are in a much more powerful position as well as in a lower
risk position in the event that prices decline.

Some strategies outlined in this chapter work better for retail deals and some work better for
online deals. Use as many as you can on each and every purchase regardless of where you are
purchasing your inventory for resale.
Coupons

There is no shame in using coupons! Coupons are easy to get and easy to use. I recommend
getting on the mailing lists and email lists for the retailers that you are purchasing from so that
you will be updated and alerted for their current discounts and available coupons. Home Depot
and Lowe’s will periodically simply mail you 10% off coupons for being on their lists.
Discounts

There are many ways to get additional discounts at retail stores. Some stores give 5-10%
discounts for senior citizens or military personnel on certain days of the week or month. All you
have to do is ask at the store if they have any special days. If they do and you qualify, be sure to
shop more on those days to lower your costs.

You’d be surprised how many times you can get an additional discount by just asking. This will
have more likelihood of success if you are making a large purchase or offer to make a large
purchase. You might as well try this on every large purchase if the products are already good for
resale. Since you are buying them anyway, any additional discount would just be icing on the
cake. And if they don’t give you a discount, it’s no big deal. It never hurts to ask.
Rebates

You’ll find many products with all kinds of different rebates. Some rebates will be for cash and
some may be for products. Some may be on the spot rebates and some may require a form to be
mailed in.
Instant rebates are the best kind because they often have no restrictions and there is nothing else
to do later. Nothing to pay for now and wait for later, and no waiting for any products that you
intend to sell.

A typical restriction of rebates is a limit on the number of rebates that can be submitted per
person, or per address or household. Is there any way around this? You bet there is, and it’s not
anything tricky. When we would find a product with an attractive rebate for resale, we would
read all of the fine print. If there was no limit listed but it was still a mail-in rebate, we would
contact the company issuing the rebate to be sure that there was no limit. We prefer email for this
type of communication so that you have something in writing.

If a rebate has a redemption limitation, we would simply ask if they would waive the limit if we
purchase a large number of items. Sometimes they will say no, but you’ll be surprised how many
times they will say yes. It never hurts to ask and you’d be surprised how many people would
never consider asking for an exemption to their rules. So if you think outside of the box and
pursue ways to do deals that other resellers do not, you’ll be the one reaping the rewards. Less
competition will mean that you’ll be able to maintain higher prices and margins.

Another bonus of rebates is that they are only available for a limited time. This means that only
the resellers who are able to capitalize on the deal within the limited window of time for which
the rebate is valid will be your potential competition. Ideally a rebate may come and go without
other resellers even noticing the opportunity.
Credit Card Points & Rewards

The odds are that you’ll be making most of your purchases on credit cards for convenience. You
might as well get and use cards that give you points, miles or other rewards. Different cards will
cater to different types of rewards programs so find one that matches your personal preferences.
We use the Southwest VISA to rack up free Southwest flights and the Amazon VISA to get
Amazon gift cards. Our American Express gives us Home Depot gift cards that we use to buy
even more products to resell. We have a card that has great rewards for restaurants gift
certificates as well as cards that help us maximize our discounts at the gas pump. My favorite
card (no longer available) was the Home Depot Rewards MasterCard. It gave us 3% back in the
form of gift cards. When spending big bucks at Home Depot, getting 3% of all of those dollars
spent back in gift cards each month was just icing on the cake. I would get strange looks
sometimes when checking out at Home Depot with a huge flat-cart loaded up with power tools
and handing them gift card after gift card after gift card. Once I told them that we buy a lot on
the Home Depot Rewards MasterCard, they knew exactly what was going on. I miss those gift
cards .
Stack & Exploit

When I say exploit, I mean it in a good way. I mean it in a way that follows all of the rules but all
of those rules are in MY favor. You’ll find times when the retailer will have a promotion that
coincides with a manufacturer’s rebate. Deals like this can be incredibly lucrative but you do
have to do your homework and make sure that there are no exceptions such as ‘This offer cannot
be combined with any other offer’ type of stuff. The good news is that you can do all of your
homework before ever spending one penny so you always know what you are getting into. Find
these types of deals, validate exactly how it will ring up at the register, and if it’s a deal, pull the
trigger. The more complex or creative the deal, the less of a chance that another reseller will
figure it out and get in on it. This means that you’ll have less competition, which will keep your
margins (and profits) healthy.
Cashback Sites

If you are already buying products online, you might as well get the best price in order to lower
your costs and maximize your margins. A great site to squeeze every last drop out of discounts is
FatWallet.com. They have an entire section about cashback from online retailers that you may
already be purchasing from. You might as well go through the cashback process to get every
dollar that you can.

Details about their cashback program can be found here:

http://www.fatwallet.com/cash-back-shopping/
Conclusion
A good company is going to start with a great business model and this is going to revolve around
the customers that are in front. Mission statements are going to be remembered by the customer,
whether they read it or not, and this is true for all of the sellers that have personal interactions
with their customers. Having a good ethic to put the customer first at all times is going to make
the customer feel special every time they come and visit the shop. This can be done by simple
means of acknowledgment and even addressing customers with their names is going to drive
good responses back to the site if it is genuine. When the products are being purchased for the
shop shelves, remember that there are more than a few sources out there to obtain fulfillment.
There are going to be plenty of products to choose from, and one of the easier options will be
able to participate in Amazon FBA, which will allow the consumer to choose from an even
bigger variety of products. There is going to be a lot of diversity for these products, but buying
and selling are not going to be that easy. The company is going to need to enroll through FBA to
sell on the platform and with this, will come a few fees, which will include shipping fees and
listing fees. Purchase products through wholesale distributors to make bigger profits on these
platforms so that you can stay ahead with a great profit routine.

2019 is going to bring a lot of promise to any company that is flipping OA with its resources
today. This year will show all of us how to make an easier sale and that it can be through
companies like Amazon that represent our products with the utmost reputation. When it comes to
Multi-Channel Fulfillment, the selling will be the same but there won’t be the same support
systems that are offered to the customer by FBA. This is going to be a decision a company
makes when they decide to sell through these sites but keep their listed products off lists. This is
okay too, but we always need to consider that with every sale that is going to be made, there will
be follow up and communication to practically all of the customers that are supporting us. Keep
a great communicative relationship open to the customers that are coming to purchase, because
this is going to be a great factor that brings these customers back knowing they have a healthy
and comfortable experience when they do come. Sales are becoming different to make in the
states as well as the surrounding territories for the platforms to operate. Companies are going to
be able to make new decisions for their selling shops rather than having to own retail shops that
have physical address for customers to come into. Instead of paying tax and fees on the
warehouse that is going to store the products, the company can rely on Fulfillment centers like
that with Amazon. These centers are going to house the products in the online inventory and they
are going to pack, label, and ship the products that the owner picks and lists. This is going to
provide less responsibility for the company and it will free up a lot of time and effort that the
company can use to calculate their future steps. If someone has extra time on their hands, then
they should start the accounts and check out the fees of the providers to see if it is going to be a
profitable change to the routine the profits are flowing in. It is recommended to make the first
order and try shipping the first one out to see how it feels for the first time. These products are
going to need to get out there for the customers and they are waiting to see. Customers are not
going to find out that you are around their corner if you do not post that great listing. Take your
chance with retail arbitrage and find your niche because it may just become the new norm.