The key to making money with eBay arbitrage is to find profitable items to sell. You may be wondering how to find them? Read on, and I’ll show you how.
When you’re first starting out it may be difficult to find any item on Amazon that you could sell for a profit on eBay. One way to solve this is to follow the following steps:
- Open up Amazon
- Choose a niche to start with.
- Find a product.
- Search for that product on eBay and check the sold price.
- Compare both prices, calculate eBay charges and work out if it’s a profitable item to sell.
See, there’s nothing much to it! The main problem you’ll find at this stage is that it take a good deal of time to identify profitable items. You could spend hours and not find anything. Don’t worry about this, as later on I’ll show you how you can speed this process up.
When you’re starting out it’s important to understand how this business model works, so please try and find a product now.
Go on, load Amazon & eBay and get hunting!
If you’re stuck, then I’d suggest having a look at Lego products, I don’t necessarily recommend selling them on eBay. However, it’s a popular product ,and you’ll be able to easily match them up between eBay and Amazon.
Amazon to eBay arbitrage example.
Using Lego as an example, I’ll now show you how I search for an arbitrage opportunity.
Here, I’ve opened up Amazon in my browser and searched for lego star wars.
One option I recommend you try is to look for items that have been reduced in price. You’ll also need to ensure that delivery is free and sold/dispatched by Amazon.
It only took a couple of seconds and I’ve identified the following product that I think is worth investigating:
This is currently selling for a 33% discount. It’s now time to open eBay and search for this product.
Before you do copy the product title. In this example, it’s: “LEGO Star Wars 75155 Rebel U-Wing Fighter Building Set”.
On the eBay home page, click on the text ‘Advanced’.
Clicking this will bring up the advanced search page:
Enter the item description you copied from Amazon, tick the Sold Listings box and press Search.
This looks promising. Three items sold yesterday (today is the 10th November) for a price between £61.55 and £57.85. An average price of £59.49
We can buy this product on Amazon for £46.97. This is a positive difference of £12.52
Sadly, that’s not £12.52 profit, as we now have to calculate eBay and Paypal charges.
eBay & Paypal charges
There are various charges you need to pay to list, sell and process a sale on eBay (and Paypal). Using the Lego product above as an example, I’ll show you what these charges are and how to calculate your potential profit.
Listing on eBay – Generally, eBay will give you a number of free listings a month. After that, they will charge you a small fee for each item you list.
eBay.com users can read more about these charges here, eBay.co.uk users here.
In this example, I’m going to assume it is a first listing, so the listing cost is free.
When you sell an item eBay will charge 10% of the sold price (There are some exceptions to this, but for most items, it’s 10%).
So if we sold our version of the U-Wing fighter for the average price of £59.49 we’d owe eBay £5.95
As we will use Paypal as our payment method, we have to account for Paypal’s charges. These fees vary depending on the number of transactions you make. I’ll assume you’ve made none and will use the standard charge, which is:
3.4% plus 20p per transaction.
So £59.49 * 3.4% = £2.02 + 20p = £2.22
This is the full breakdown and final profit.
eBay sold price: £59.49
Amazon price: (£46.97)
eBay fees: (£5.95)
Paypal fees: (£2.22)
After charges, this is a profit of £4.35. Not too bad considering all we would’ve done is list the item on eBay and then get Amazon to ship it to the buyer. Potentially, you could’ve had 3 sales in one day, making a total profit for £13.05 for a few minutes work!
In my next lesson, I’ll show you how you can easily find hundreds of profitable products.