- Today I'm gonna be going over my five least
favorite websites for online arbitrage, in 2019.
Let's get into it.
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Hey everyone, my name is Kris.
And today I'm not only gonna be sharing with you,
my five least favorite websites for online arbitrage,
but I'm gonna be giving you my reasons why.
And oftentimes, I see people covering
their favorite websites.
But I wanna do something different.
I wanna tell you what websites I tell people
to stay away from.
And I think sourcing from these websites,
will resort in lost time and/or money in the long term.
But before I get into the sites.
I wanna lay down some rules and ground works,
so we can all be on the same page.
And rule number one is: This is just online arbitrage,
this is not retail arbitrage.
So, this is not saying that,
if these websites actually have stores,
that going in there for retail arbitrage, would be bad.
I'm not saying that.
Rule number two is:
This is assuming we're reselling these items on Amazon,
in the United States.
So, if you wanna resale these items on eBay
or maybe Walmart.com
or maybe on Amazon, just in a different country.
I'm not saying that's bad but I'm not saying
it's good either.
You just need to do your own research.
And rule number three is:
This is under the assumption that you are
a fairly new seller,
that does not have access to more limited brands
and categories to sell.
So, now that I laid the ground work down.
Let's go ahead and get right into it.
Number one; which is more so a collection
of stores not just one,
and that is deal sites, that are associated with Amazon.
Now I'm gonna get a lot of flag
from the online arbitrage community on this one.
But just hear me out.
These sites I'm talking about includes
sites like Zandeos, Jump Send, Vipon
and there is a ton of other ones.
And what's happening here is, other Amazon sellers
known as private label sellers,
or people trying to start their own brand,
are giving away their products at very high discounts
to increase their BSR or best seller rank.
To increase their listing in the Amazon algorithm,
so it get seen and more people buy it.
Now, whether that works or not.
I'm not here to discuss that.
But what I am here to discuss is,
why it's a terrible idea for resellers such
as me, you or anyone else, to buy.
Now can you make money doing this?
Absolutely, is it against Amazon's terms of service
to do this?
Absolutely not, as long as you're buying
from a non-prime account to resell
you're not breaking the rules.
But just because you can do something,
doesn't mean you should do something.
And I always like to analyze the risk verse the reward.
So, what ends up happening here, is
and I've seen this happened a lot,
and it's gonna become more prevalent in the future.
Let's say I'm a new Amazon seller.
I buy from one of these deal sites,
and I get on that person's listing.
You're only going up against the actual Amazon seller.
So, you're bringing a lot of unwanted attention
to your store.
So, they can wave you bad seller feedback which,
if they're knowing what they're doing,
they can make to were it won't get removed.
Which if you're a new store, that extremely detrimental.
But the worse thing that can happen is,
they can buy from your Amazon store.
Say the item's inauthentic, which it may not be.
Then they can get someone else that isn't linked to them
to buy from your Amazon store.
Do the same thing before you know it,
you have two inauthentic claims against you
and your store is temporarily suspended.
This can happen to anyone.
This can happen to wholesalers,
people who're buying directly from distributors.
This can happen to people buying
from Target, Walmart wherever.
But what doesn't happen here is,
Amazon will ask for invoices or receipts.
And yes, receipts will help you authenticate your items.
But I just don't know if a receipt
from Jump Send is going to work as good.
Or maybe, a receipt from Amazon.com is going to work
as authentic as possibly an invoice.
Or maybe a receipt from Target.com or Wallmart.com.
An established retailer.
So all I'm saying is, is proceed at your own risk.
I think we're going to see Amazon start tracking down
on this in the future, I'm not saying so now.
But just keep that in mind.
Now we're gonna get into less controversial sites.
And site number two is, Walmart.com.
My biggest problem with Walmart.com is
the fact that you can find an item to sell on there
and it become saturated so quickly on Amazon.
So there's a deal on Walmart, everyone buys it.
Since it's in the Amazon, simple economics.
Supplies go up the price goes down.
And before you know it,
you're selling the item well below break even.
And I've seen this happen time and time again.
Even in more graded categories, okay.
Site number two is Target.com.
Target.com has similar characteristics
to that of Walmart's.
Everyone buys the same deal and sends it into Amazon.
I referenced the YouTuber Reezy Resells.
You can even see this happening in his nerve gun video.
Where he buy a bunch of nerve guns
to resell on Amazon.
The price actually ended up decreasing
before all his units sold and he talks about that.
In the video or somewhere in the comments.
But not only do you have to worry about that with Target.
But they're not very reseller friendly.
So I've been getting messages from people
saying that their prep services are getting
flagged by Target.com,
because Target is very strict on resellers.
For online arbitrages definitely one I would stay away from.
Site number three is a smaller website, Chewy.com.
And Chewy.com is this pet store, amazing site.
Has some awesome deals if you're buying
for your personal use.
But the problem with this site is,
often times, orders will get flagged,
even over a smaller amount, such as ten units.
So, I'm telling you this so you don't spend hours
going through this website trying to find deals to sell
and you get your order all set up, you place your order.
And then your account gets flagged and suspended.
You just wasted three, four maybe even five hours.
And that's the reason why I chose those guys.
The last site that I'm going to highlight is,
there are actually two, but they have the same reasons.
And that is Hot Topic and Think Geek.
These guys definitely know
what they are doing against resellers.
So not only do they limit you on quantity amounts,
so I know Hot Topic, they usually limit you
at ten per amount,
but, they also flag your prep services.
I've even put in a small low prep service
and they wouldn't even ship there
because there was flagged in their system.
And I really do think that this is going to be something
we see moving forward.
But once again, maybe if you're starting off small
and you're very new.
Maybe it's worth to you sourcing from those two sites.
But if you wanna scale up and buy more than 10 units,
which is extremely common,
I think you're just going to waste you're time
and it probably isn't going to be worth it.
So that's it guys.
What do you think?
Do you guys agree with my sites that I chose?
Is there something that I missed?
Let me know in the subscription below.
And last thing I wanna say is,
I always do give out a one hour free call to someone
who likes in comments, on every single video.
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Thanks again and I'll see you next time.
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