If you want to make money from Ebay but don’t want the hassle of physically buying, listing and then selling the product, than this article is for your (If not, read my article on 5 tips for selling rodents on Ebay.
Have you ever compared prices online and seen that two exact same products are selling for different prices on Ebay and Amazon. And then you think to yourself, who would buy the higher priced item? But logic will tell you that because the person selling the higher priced item is still in business, they are still selling products and making a profit. And the reason they are making a profit for selling at a higher price is because people are too lazy to search different websites to get the best price.
You can use the above pricing discrepancy to your advantage.A friend of mine told me about this trick and I thought it was genius.
The way you can make money on Ebay without ever seeing the item in person is by using a process called Arbitrage. Arbitrage is the risk free process of taking advantage of a price difference between two or more markets – in this case Ebay and Amazon. People use Arbitrage in financial markets all the time and I have never thought about using it in a situation like this. This is not a get quick rich scheme but it will allow you to build a passive income stream and may even lead to you earning lots of money depending on how much time you put in.
The process is rather simple and can be broken into 4 steps:
1) Find an item on Amazon.
2) Check the price of the same product on Ebay.
3) After all costs, if the sale price is greater on eBay than it is on Amazon, list it.
4) When the item sells on eBay simply go on Amazon, find the item, enter all the buyers shipping information, purchase.
Lets take an example. Right now the product “Oral-B Pro 2000 Electric Rechargeable Toothbrush Powered by Braun” is selling on Amazon for £34.99 including delivery with Amazon Prime (link to this product is below). On Ebay, the exact same product is selling for £39.99. So I would list the product on Ebay for about £39.99. Once the product sells on ebay, I go to Amazon, purchase the item for £34.99 and enter the delivery address of the Ebay buyer. You can make £5 in an instant like this by taking advantage of price discrepancies.
Whilst this may sound easy, you need to actually put some work in. You need to consistently check the price on Amazon as it can fluctuate every couple of days.Also when listing on Ebay, see what other sellers are listing as their price and slightly undercut them.
One of the major stumbling blocks when tacking advantage of price discrepancies like these is the shipping costs. One way you can get around this is by signing up to Amazon Prime . Amazon Prime charges £79 but you can get unlimited free one-day delivery on millions of items. It is worth signing up to as you can cover this costs fairly easily and thus you will have an even greater pricing advantage as you don’t have to consider shipping costs. Amazon Prime also gives you the added benefit of streaming movies and videos online for free. (You can get a free 30 day trial to begin with by clicking on this link.
One way you can make your life easier and track prices fluctuations on Amazon more easily is by using a website called camelcamelcamel .
This website is completely free and allows you to set price tracking on Amazon products and see what goods have dropped heavily in price recently. I usually like to see what items Amazon has dropped in price at any given time and compare that with current sale prices on eBay. You can find some real gems this way. And don’t forget to promote the service you’re selling with things like promotional signs. Happy selling!