- What's going on guys, my name is Chris
and I'm back at it again with another
online arbitrage video.
The goal by the end of this series I'm doing
is to convince you guys that online arbitrage is profitable,
you just gotta know what you're doing.
And just to show you guys my sales for the day, I made $747.
And it's at 10p.m.
So probably going to be done at this point.
But you know, it's a good day.
Let's go ahead and jump into this item.
So we've got four items today on the spreadsheet
that I'm gonna go over.
One, I'm gonna show you how I found it.
And then the other three, we're just gonna run
through the numbers to see if they make sense.
This is actually the second time that I've filmed this,
you know, I'm kind of exhausted,
but I had to refilm it, it got messed up.
So we are going to do this again.
So this first item I found I'll show you how I found it
when I got done, but what we're gonna do is,
we're gonna go to Other Sellers
and the reason why you wanna to go to Other Sellers
is so you can see all of the Prime offers.
So immediately we see that this is $35
but the reason why we go to the Prime offers,
is so we can see if any are backordered,
which in this case there are some backordered.
So we know that the price, wow look at this.
This $43 ones backorders, that means Prime price is $43.
First glance, we would have thought
that it was selling at 35
so we know this sells at 43.
Number of competing offers is going up guys,
this is a Keepa graph, you can install this in your Amazon
FBA to where it will pop up.
It's an extension up here it's not showing
because I have too many extensions.
But basically this will show up on anytime
you look at a listing.
Like I said, this isn't a tutorial on how to read,
Keepa to an extent.
So the first thing I'm gonna look at is
number of competing offers.
Usually when it goes up like this,
that is a bad sign.
However, if you see some that are on backward,
that's usually a good sign.
So that's the first thing I look at.
So, so far everything is looking good $43,
it's selling for $43.
And if you look at the rank, it's ranked 24,000,
which for Health and Nutrition, I already know that
that's a great rank.
But for you guys that don't,
I'm going to show you how to check the rank as well.
Now what we wanna do is, we wanna return
to the product information.
And now what you're going to do,
we wanna see how much profit and this Amazon FBA calculator
up here does two things for us.
One, it's gonna show us how much profit per unit
and then the next it's going to show us
an estimated monthly calculator.
So it's showing us 159 sales estimated per month
and then it's showing us let's see,
now we need to plug in the product price
which it actually sells for 35.
Now we wanna know, what can we get this for?
So now, first glance it says $25 if you think about it,
first glance we saw it was selling for 35,
we see that this is sell for 25.
There's no profit there.
But now we know it sells for 43.
And check this out, so there's a 20% off coupon here.
So that's $5 off, so that's knocks it down to 20.
And then we use Ebates, which Ebates is a cashback coupon
store where basically you type in a store name,
and then it like links you to the site through there
and you get cashback.
You type in the name of the source.
We have Derm store here.
And if you guys can see up here in this top right corner,
I have $309 back.
And if you use my promo in the bottom, you get $10 off.
So now we know that we get 4% cashback that's 4% cashback
right here.
So we're looking at, we're only gonna pay $19
for this item, that normally looks like it's 25.
So guys look at the swing we did, we took 25 and 35
to 19 and 43.
Now let's see what the profit is.
So we're looking at a $14 and 50% profit margin,
and an ROI of 76%.
Now, I usually stick to around a 55% profit margin,
now if it's, if I'm running low on items, and you know
I'm pressed into getting something that's maybe 45 or 50%,
I will, but I try and keep it above 55%.
The reason why I do that is because in online arbitrage
there's lower barriers of entry,
and you risk items getting saturated, okay?
In case the demand decreases and the supply increases,
you wanna make sure you got some wiggle room
to bring the price down.
Now obviously, I don't like doing that.
I don't like bringing the price down, but it happens
and, you know, that's the name of the game.
So second note I'm gonna say before I show you how I found
this item.
Guys, I highly recommend you get it
and I think this is a supplement.
So I don't know, this might be gated for you guys.
Anytime it's gated I look at that as an opportunity
because that is going to be what sets you apart
in online arbitrage.
Those are my best selling items, usually are the ones
that are gated.
So now I'm gonna show you how I found this item.
So if you guys private label, you're probably pretty
familiar with product research methods
for private labeling.
Well, it's kind of the same for this except maybe
a little differently.
So we wanna look up an item that we know
is like a wholesale like online arbitrage item.
So the my I usually go to barbie saddle and ride horse.
I know for a fact that this is a popular online arbitrage
wholesale item.
And what we're gonna do is,
we're going to click on the seller storefronts.
And it doesn't really matter who we click on,
Chewys Toys Chest.
I'm sorry if this you know, if you're watching.
So we're gonna click on his storefront.
And then what we're going to do is,
everything I've shown you guys up to this point is free.
Now I use the Jungle Scout extension up here.
You don't have to do it this way,
but what we're gonna do is you're gonna click on
his storefront right here.
And then what it's gonna do is,
it's going to give all of his items.
So this guy has 626 items for sale.
Already looking at this stuff, I can tell this guy
does online arbitrage.
And so now what we're gonna do is,
if you don't have the Jungle Scout extension,
you can kind of just go through here manually,
and literally just start googling stuff,
just start googling and see.
You wanna look immediately for prices
that are about half off because you're gonna have Amazon
FBA fees in there.
So the more the better, but at least half off
but I don't do that.
What I do is, I go to the Jungle Scout extension app.
I click that, and it runs data over the store.
And what this is going to allow you to do is
you can see all of this data so we can see Product Name,
Brand name, Price, Rank, Sales, et cetera.
Now, Reviews.
Now if you're used to private labeling,
we really focus on Reviews and Sales.
I like to sort by Price for online arbitrage.
Usually, the more expensive the item,
maybe there's a little barrier of entry there,
and more room for profit sometimes.
So I like to sort by Price another good one is Rank
because if you sort by Sales, it doesn't necessarily
correlate to rank, because the bigger the category,
the more the rank is kind of is different.
So for example, I'll source 3 million rank in Books,
but I won't source higher than a 20,000 rank in Baby.
So really rank is king and then it shows you the category.
So this guy strictly is really into toys,
and just kind of go through here
and that's what I did with that last supplement, I found.
That last supplement was definitely a good thing to source.
And I just did that and I found a storefront
literally the second or third item I clicked on.
It was that easy, guys.
Okay, so I'm gonna get into these other three items.
This next item right here is Sephora.
We can get this for $19, links in the description, guys.
Okay, so same thing, what we're gonna do.
We're gonna do the exact same thing.
So let's see if this is a good item to source.
Repetition is king if you guys ever took any math classes,
I remember a math class, they would always do like four
or five examples.
And I would always leave there just feeling really good
about it, you know?
Okay, so first thing we're gonna do is we're gonna go to
Offers and we are going to, so right now it says 34.99
is the best Prime box over here.
But the sales that don't have Prime next to them,
mean absolutely nothing.
The only time you kinda want to use those
is for when there's no FBA offers.
But look at this guys backorderd, backordered,
look at this one backordered.
There are no Prime prices on this item,
I would probably list this at 38.99,
probably could list it for more.
So once again, number of competing offers is kind of high
over here.
But because it's backordered there's no Prime offers,
it could be escalating like this, and I wouldn't care.
And another thing you wanna do is look at the Sales Rank.
So we're looking at Sales Rank right here of about 38,000.
You can confirm the sales rank so, we're gonna go back
to product information.
And now we're gonna do two things.
So we're gonna do the Amazon FBA calculator
and plug this in here.
And we can get this for 19.
And we're looking at a profit an ROI of about 60%.
That's good, that's fine.
The only thing I'm worried about right here
is estimated monthly sales of 62.
Now, the Amazon FBA calculator
tends to be slightly conservative,
but there's nothing wrong with that.
So we're looking at estimated monthly sales of 62.
This is why I love data guys,
I love data because we can check this.
There's so many different ways to check what you're buying
to make sure that you don't get stuck with something.
So what I did was I scrolled all the way down here
to Amazon's Best Seller Rank 37,000.
We don't care about the other rank,
we just care about this rank.
Now what we're gonna do is we're gonna go
to the free Jungle Scout product estimator,
and we're going to go to,
it is in Beauty and Personal Care.
And we're gonna click on that.
And we're gonna plug in, was it 37,000?
Okay, so this says 580, I've said this before,
and I'll say it again, Jungle Scout tends to overestimate
Health and Household and Beauty products.
So 580 is definitely not happening here.
But it probably is selling quite a bit to be honest.
Three on backorder I would definitely say that this
65 a month probably isn't right to be honest.
Okay, so numbers check out.
Just to reiterate, I would definitely source this product
and oh, another thing make sure you're ungated in it guys
don't buy a bunch of something, and then find out
that you can't list it.
And then you're gonna either,
you can always return this stuff usually
but don't deal with that.
So, okay guys, so we're two for two right now.
Now what we're gonna do is we're gonna plug
this ASIN in.
We can get this ASIN at Target for 4.99
from ThinkGeek for 4.99.
So we're gonna do the same exact thing
that we've been doing.
Except I've already done this example
and I want you guys to see this.
I'm already gonna tell you that you do not wanna source this
and I'm gonna show you why.
We wanna to click on the number of offers.
Look guys, you can already see that, 93 new offers.
Okay, this is a bad sign.
Look at this price is 6.97.
When I looked at this a couple of days ago,
this thing was selling,
well I'll tell you what the Keepa graph says.
Okay, look at this horrific site right here.
Boom, it's just a nightmare.
This is an online arbitrage nightmare, supply goes up,
demand goes down, price goes down $4 and 50 cents
we're looking at a rank,
rank really hasn't even changed that much.
So literally, this is an online arbitrage nightmare.
And yeah, none of these are even on backorder.
All of these people are stuck with this.
So yeah, don't source this.
Maybe if you're watching this later, you know,
in a month from when I post this, go back and check it,
maybe there aren't as many competing offers, you know,
you always kinda gotta check the data.
If you want to resource something or just
check back on something, you always gotta just give it
a quick look.
So now we're on to our last one.
So we're two for three right now.
Now this last one is from Target.
You can buy this for $15.
We are just going to plug this ASIN up here.
Hope you guys are learning a lot.
Okay, so we're gonna click on the listing, ah dang it,
I should have clicked on the number of offers.
So yeah, I mean, I guess while I'm on here,
I sometimes go out of order.
Okay, so this is saying one estimated monthly sale
that's concerning.
And we're saying we don't know what it sells for yet
we're saying $15 for cost, $11 profit, 78% ROI.
Now, it doesn't matter how big the ROI is,
if there's no demand, if there are no monthly
sales happening, you know, don't buy it.
But this is why you know, you check more than just
the Amazon FBA calculator.
So we're gonna see if it's really one monthly sale.
So first, what we're going to do is we're gonna go
to the number of competing offers.
Now, let's go ahead and click on the new section over here.
I wanna see what this thing is selling for at Prime,
and there are no Prime offers.
Now, if there are no Prime offers,
that's usually a good sign, because when there's Prime
offers, Prime will lower the rank.
So now, this is what I'm thinking,
this could have been a Prime price up here.
And then anytime you see a green,
the green is the sales rank.
And anytime you see a spike down, that means it's sold.
So if you think about a listing the lower the rank,
the faster something is sold.
When you see that spike, it means it's sold,
you know, the rank lowered when it sold.
So lots of offers.
I mean, I guess, fairly consistent.
And we have a sales rank of 100,000 right now,
which is for Groceries, not good.
But then it spikes down to let's see, what is that 51,000
spiked all the way down to 40,000.
Okay, so now what we're gonna do is we're gonna go
to the Jungle Scout estimator,
we're gonna go to Grocery,
and we're gonna just plug in those different ranks.
So that was just kinda using the Keepa
cause the reason why I like Keepa is because you can see
multiple ranks at multiple times.
If you go to the product page, and you scroll down,
and then you get the rank.
That's just the rank at that given time, which is nice,
but I wanna look at the rank of you know,
maybe just to see what it was doing right?
And that's what the Keepa showed us.
Okay, so right now this does 108,000
in Grocery and Gourmet total.
That's terrible guys, that's absolutely terrible.
I know for a fact I wouldn't source this.
However, I'm gonna show you something.
So, this says 108,000, this is going to be less than
or 20 a month.
Okay, that's not bad, actually.
I mean, for being no Prime offers, it could be worse.
But what we saw is we saw some spikes, right?
So what was this thing selling at?
50,000.
Okay, so when it spiked, we got a little bit
of a better of a sales rank and then 35,000.
That's a good Grocery rank.
Okay, just to summarize for you guys,
since there are no Prime offers,
I would still probably source a few of these.
I'm not sourcing anything I give you guys
but I might buy two or three.
See how they do.
There are no Prime offers.
If they sell, go back and reorder more.
You know, just to kind of see how it goes.
Maybe another idea for you guys,
go back through some of these items I gave you
and just start searching storefronts to find more
online arbitrage items.
I guarantee you these sellers that are selling these
are, have some other items that are at a good deal.
But yeah guys that's pretty much it.
I wanna wrap this up now.
Online arbitrage video three will be up tomorrow
and see you guys there.