- Hey everyone, welcome to today's video.
My name's Chris, and in this video
I'm gonna show you how I source products
for online arbitrage to sell on Amazon.
In this video, I'm gonna show you exactly how I do that.
I'm going to also give you a couple of example products
on what to source, what not to source.
And then also, every single video from here on out,
whether it's online arbitrage related or not,
I will be giving away a spreadsheet
of 20 different products to someone
in the comments section below,
that will have products ready to source on Amazon.
This sheet will include ROI, rank, ASIN,
where to buy the products, pretty much
everything you need to know.
The reason why I'm giving you so many
is because the spreadsheet may include
some brands or just categories that you're gated in,
maybe some slower moving items,
so that way, you know, there will be one or two
items on here for you guys that will move quickly,
that are gonna be good for you to sell,
and that way I can give back to you guys,
and you can still make money, you know,
several hundred dollars, depending on how many you buy.
I'm using Tactical Arbitrage, I have used Tactical Arbitrage
in the past and done a tutorial on it.
I'm not gonna do a tutorial on that today,
I'm really just focused on the settings,
the backend filters that I use that help me find items.
I get questions all the time like,
Chris, I'm using Tactical Arbitrage,
but it seems like, you know, everything's out of stock,
or there really isn't anything good on there.
And this is how I feel like will
really really help you out.
So let's go ahead and hop on the computer,
and I'm gonna show you how I go ahead and do that.
Okay, so, I went ahead in settings on Tactical Arbitrage,
I went to search filters, and what I'm gonna do is
I'm gonna scroll all the way down here
and click SET VALUES.
Okay, now, here's my strategy with set values.
Any seven or eight figure seller I've talked to,
they really want to move items.
So, they may take an item that only has a 40% ROI
but has a quicker rank, than something
that has 130% ROI with a slower rank.
And, the reason is because cash is
the blood of your business, and even if
an item has 250% ROI, if it's slow-moving,
you know, only 10 sales a month,
then that's not gonna be very beneficial for your business.
So, these filters that I have in here,
my goal per item is at least 80 to 100 sales per month,
and you know, obviously, the more the better.
And the reason, like I said, another reason is
is because if a particular product does become saturated,
there's already a really high demand there,
and that way, you're not gonna get stuck with inventory.
So, maybe make a small order of like 10 to 20 units,
and if it keeps going well, then keep reordering.
I'll give you an example.
I had this particular product from Kohl's,
and it was doing very very well,
so I kept reordering and reordering.
I think one time I ordered 150 units,
and I was selling six to eight a day
with an ROI of like 150%, it was great.
And I'm actually in the process
of contacting wholesalers, so that's something
you can do as well, if you have a particular product
or products that are doing really well,
you know, obviously make note of that,
and then contact the wholesalers about it.
You know, find that distribution line,
and you're gonna need, you know,
there's gonna be some things in place
that you're gonna need in order to do that,
but if you want me to cover that
in a future video, I definitely can.
Let's not get too sidetracked,
and let's focus here on these rank filters in here.
So, if you notice, I have baby products
or 12,500 books and 750,000.
Now, the smaller that the category,
the smaller the rank you're gonna need,
and what I do here, is I go to the JungleScout Estimator,
which is 100% free, and I just start plugging in
random numbers, so let's go ahead and plug in
12,500 for baby and see what comes up.
Okay, so 90 units per month, so that's not bad.
And books is larger, so, you know,
I may take 20 or 30 minutes to fill these out.
But let's go ahead and go to books.
750,000 and it should be right around 100.
Okay, so 122, I can probably increase that a little bit,
but you get the gist of it.
So, just any category that you're sourcing a lot for,
just start plugging in numbers,
Now, some of these categories are really small,
like video games is only 5,000.
But that's kinda what I do,
so like, pet supplies, 25,000.
And you know, I may adjust these from time to time.
This is how I have it right now,
and I just use a BSR estimator, this one's free.
There's a lot more than just JungleScout's,
but that's the one I use.
Now, what I'm gonna do is I'm gonna show you
an example of two products that I would source
that don't necessarily fit these criteria.
Some do and some don't, and I'm gonna show you
why and why not I would source these particular products.
Okay, so the first one I'm gonna give you
is this SodaStream Fruit Drops Lime.
This is a grocery category, and I get messages
from people all the time saying, you know,
I'm not ungated in grocery.
I just recommend biting the bullet and gating in grocery.
And that goes for really any brand
that you come across a lot, like for example,
I was encountering Microsoft, Hasbro, and Disney a lot,
and got to the point where I just was like,
maybe I should gated in these things,
because I just was encountering them all the time.
Same with grocery, if you're not ungated in grocery,
you need to be, it's 2018, do yourself a favor.
Okay, so if you notice here, the lowest price is $11.80,
and I can get this from Target for $2.99,
which comes out to be, like, a $4.50 profit.
That's quite a big ROI, but sales rank
is right around 28,000.
But this is the reason why I'm not going to source this.
So let's go ahead and plug 28,000 into grocery
and see how many of these are selling per month.
87, so this is technically a good product.
However, when I looked at number of competing offers,
I do not like this.
It's up to 21, 21 new offers.
That means that, if there's 80 of these
selling a month, and that comes out to be two per day,
you're going to be sitting on this,
and if the demand goes down for some reason,
you're going to get stuck with some inventory.
You know, if you're feeling ambitious,
and you want it a little risky,
maybe, you know, order two or three of 'em.
Like I said, you can get these on Target
for I believe $2.99, but let's go ahead
and I'm gonna show you, check out the fees for this one.
I'm just gonna plug the ASIN into here.
Okay, so I got this, just gonna click on this listing.
Not very good stars.
So I use this little Amazon FBA Calculator up here,
that helps me, okay so they're saying,
wow, 150 of these a month, interesting.
So, 21 offers may not be bad actually.
I'm gonna plug in $2.99.
So, $4.23, I actually might buy some of these,
because estimated monthly sales is 150.
Now the way this works is,
the Amazon FBA Calculator is usually
slightly higher than the Junglescout Estimator,
so if you take an average of them,
it's usually pretty accurate.
I might go ahead and buy some of these actually.
Anyways, now I gonna give you an example
of an item that I would buy,
that necessarily didn't talk about the criteria
I was mentioning before.
Okay, so, this is called Lanolips,
and I can get this on Ulta for I believe, now,
okay, before I get too far into this,
I wanna say, make sure you can sell the items.
And make sure your account is able to sell it.
Another thing is, just because I'm going over
these graphs now, doesn't mean that they're good
when you're watching this video.
Okay, so this one, I believe when I,
when you add nine, so you get buy two get one free,
it comes out to be $11.95 per one,
when you buy nine of 'em.
So I bought nine, it was $11.95.
Okay, so let's go ahead and plug this in here.
So $11.95, and that's $8.94, that's a 75% ROI.
Okay, so I wanted to say that only 42
of these is selling per month.
But look at this though.
Look at these number of offers.
There's only four offers, and it's not necessarily
increasing, so it's only 42 sales per month,
but the reason why I would definitely buy some,
you know, maybe not a whole lot to start,
maybe five to 10, is because the number
of offers really isn't too great.
If you notice Lanolips, this is the only one on here.
If you go through here, there's more Lanolips items
that aren't listed, and they all have
the same buy two get one free.
So essentially, for all my private labelers out there,
you could create a new listing for Lanolips
and potentially get some sale action
and be the only listing for a while now.
If it's doing well, you're probably gonna
see some people jump on the listing, which
it's not your brand, so what are you gonna do about it.
But I'm just saying, you know this depends
on how ambitious you're feeling.
And then list them similar to this price, so $27.99.
You know, obviously I like the higher ROI,
but you know, sometimes you get 40% to 60% ROI.
This one has a little bit higher.
So I would definitely get these two, for those reasons.
So like I said, that does not necessarily fit
in the criteria I mentioned, but I would still get it.
And maybe some of those other ones,
but you'd have to create your own listing.
You'd have to get a UPC code, etc.
That's pretty much it for this video.
I hope you guys found some value in this.
Leave some questions in the description below.
You know, what'd you get out of this video?
Do you have any questions for me?
And I'll see you in the next video.
Hey everyone, thank you so much for watching.
If you like content like this, definitely
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And I look forward to seeing you next video.