095: Tim Jensen Explains Amazon Retail Arbitrage
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Tim Jensen is one of our favorite Dropship CEO students. He and his wife in Onalaska, Wisconsin sell $1,000 of inventory through Amazon from retail arbitrage (scanning in items at discount stores and mailing them in) with no employees, from their living room and one-stall garage:
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Part 1: Big Picture (long term with Amazon)
- invest in inventory
- scale: invest the profits that come back in
- inventory turnover: sell frequently (30-90 days after purchase, or dump what's not selling)
- outsource some tasks: receipts, taxes, payroll
Part 2: Flexibility
- sell evergreen items
- Use CamelCamelCamel.com to see if Amazon is selling the item you want to sell (so you can avoid it)
Part 3: Pay Attention to Detail
- make sure your UPC code matches the listing
- follow the rules, there is no flying under the radar
- supply and demand: people pay higher prices for convenience
Terms Tim Uses
- inventory: the items you're selling
- supplies: tape, boxes, etc.
- sourcing: where your items are coming from
- UPC: barcode
- SKU: stock keeping unit
- FBA: Fulfilled By Amazon
- MF: Merchant Fulfilled
- prep: bubble wrap, packing, labeling, etc.
- RA: retail arbitrage
- OA: online arbitrage
- wholesale: purchase items in bulk
- PL: private label (your own brand name)
Podcast: Play in new window | Download (Duration: 49:29 — 45.3MB) | Embed
Subscribe: Google Podcasts | RSS
Filed in: Amazon • Archive 1: 2012-2016 • Interview • Podcast