Why She Stopped Amazon Retail Arbitrage and Switched to Amazon Online Arbitrage

Discover Why Marina Opted Out of Amazon Retail Arbitrage and Embraced Online Arbitrage

Are you curious about why some Amazon sellers are making the switch from retail arbitrage to online arbitrage?

Wondering what might prompt someone to abandon the traditional in-store approach and embrace the digital marketplace?

Well, you're in luck!

In a recent conversation on my YouTube channel, a creative Amazon seller duo, Eli and Marina, delved into the nitty-gritty of Amazon selling, sharing their experiences and insights.

Today, we're focusing on Marina's journey, exploring why she decided to bid farewell to retail arbitrage and dive headfirst into the world of online arbitrage.

Join us as we uncover the reasons behind Marina's decision, discuss the advantages and disadvantages of each method, and discover how to navigate the dynamic landscape of Amazon selling.

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Vova: Marina, can you tell us why you decided to stop doing retail arbitrage?

Eli mentioned that you were handling quite a substantial volume, but it sounds like it was taking a toll on you physically.

Marina: You know, Vova, I've never been a fan of the whole in-store shopping scene.

I prefer the ease of ordering everything online, including clothes.

Where I live, there's a scarcity of stores, hardly any outlets nearby.

So whenever I did venture out, it meant a long drive, typically 60 to 70 miles.

And naturally, that meant shelling out for gas and tolls.

It was a full-day affair, sometimes stretching to 12 hours.

The constant need to restock from these distant stores added to the strain.

For instance, starting the week with a 70-mile trek on Mondays became the norm.

As the week progressed, it followed a repetitive pattern.

Packing on Tuesdays, then heading 70 miles up north on Wednesdays, and so forth.

It started taking its toll on me.

While I aimed to expand my business, it started feeling more like a tedious job.

I realized I was juggling every aspect of it alone.

That's when the idea of streamlining the process hit me.

I envisioned creating a structured system, perhaps hiring some help, setting up a prep center, and so on.

So, I made the shift to online sourcing.

It wasn't just because I was tired of the constant trips; I also resonated with others who preferred the convenience of online retail arbitrage.

Despite my own experience, I still believe starting with retail arbitrage is beneficial.

Even if you only do it for a short period, like a week or a month, the learning curve is much steeper.

Online arbitrage, on the other hand, involves a multitude of tasks.

You have to scout for promotions, discounts, and clearance items.

Knowing where and what to source is crucial. 

Additionally, mastering the art of combining cashbacks from various platforms and credit cards adds another layer of complexity.

It's like navigating through a maze with countless options and strategies.

Understanding these intricacies takes time, especially grasping the nuances of using gift cards effectively.

But once you piece everything together, that's when you start seeing profits.

Many folks mistakenly believe they can snag an item for, let's say, three dollars and flip it for thirty, raking in a 100 or 200 percent profit.

Sadly, those days of easy gains on Amazon are behind us.

Finding such lucrative deals is rare nowadays.

And even if you do stumble upon one, it's often a one-time thing, like snagging a clearance item that won't restock.

It's not a consistent opportunity.

To succeed in this scenario, you must learn the art of blending gift cards, cashbacks, and discounts.

This cocktail of savings can help trim your costs by around twenty or thirty percent, making your business more profitable.

So, that's the secret to turning a profit.

But it's not a quick fix; it takes time to master.

And if you're new to the Amazon scene, there's even more to learn.

Figuring out the ins and outs of Amazon itself is a whole other challenge.

Then there's the logistics of prepping and shipping your products, which can feel overwhelming at first.

It's a lot to take in all at once.

That's why I suggest giving retail arbitrage a shot, even if just for a short while.

You'll pick up valuable lessons much faster this way.

Eli: Exactly. Retail arbitrage can be exhausting but it's a good way to start earning on Amazon with minimal upfront investment.

It offers hands-on experience and helps you learn the ins and outs of the marketplace.

Online arbitrage presents a different set of challenges, but it offers its own rewards too.

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Conclusion

So, after our chat with Marina and Eli, it's clear that both retail arbitrage and online arbitrage have their pros and cons.

Marina shared her journey, highlighting the challenges she faced with retail arbitrage and why she eventually switched to online arbitrage.

We learned about the physical toll of constant store visits and the complexities of managing everything solo.

Online arbitrage, while more intricate, offers convenience and flexibility.

Marina emphasized the importance of understanding the nuances of sourcing, discounts, and cashbacks to turn a profit.

And for newcomers, starting with Retail Arbitrage can provide invaluable lessons in a shorter time frame.

So, whether you're hitting the stores or scouring the web, remember to stay adaptable and keep learning.

That's the key to success in the world of Amazon selling.

Best,

Vova :)