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I did $10,000 in sales ($5,000 profit) in my first 20 days of retail arbitrage with no prior experience while working a full time job. Here is how....
Amazon is the game, but takes a bit to start up. Use Ebay as a crutch while you're getting Amazon set up and running. Initiate the Amazon Seller account process first, you have to do some waiting. It's ok if this is under your personal name.
To make it easier down the road, you'll want to set up an LLC, this is insanely simple, and will save you time down the road.
You can do this yourself or hire an agent to register for you, google LLC for your state and you'll find one. It will cost you up to $100, and takes 5 minutes.
Get a federal EIN. Takes 5 minutes. Google it.
Get a state sales tax ID for your state. Google it. Takes 5 minutes.
Get starter shipping supplies from anywhere you want. I personally have a Uline distributor in my area that I can get everything dirt cheap at, but you can go to Walmart as well. Though not required, you might want to re invest your intiial profits into label printer, etc.
Create your ebay & paypal account, takes 5 minutes. Unfortunately they are going to hang on to your funds for a bit when you start out, so be prepared to wait on your initial profits.
In part with above, get a good cashback credit card. PAY IT OFF ENTIRELY EVERY MONTH. I recommend Walmart, as you get 5% back...nice little bonus return.
Go into your local walmart with your state sales tax ID and register for a tax exempt "resale" account. You will not pay taxes on products you purchase to flip. Amazon and Ebay automatically send tax collected in for you.
(Optional) I use Intuit Quickbooks Self Employed app to track mileage, purchases, receipts, income, etc. You can link all bank accounts and it's super easy. This will create your Schedule C for tax time as well.
Get your ass into walmart and start scanning toys. On ebay you can sort by "sold" and see recent sales for comparables. Unfortunately your first trips are going to be inefficient, not as profitable, and a bit frustrating. Don't worry, you'll be flying through in no time
Here is where I recommend a subscription for sourcing ideas. I personally have used @CoachJoeHart 's Products for Profit (link below) and this has been INSTRUMENTAL in learning the game and the success I have had. https://gumroad.com/a/797176947
Before you know it, with PFP you will recognize 15+ toys per aisle and know exactly what to scan. I can't recommend it enough. I also recommend @toyfolio book, and mentorship group, once you get going. This is more of a buy & hold strategy, with flipping as well.
Other tools I have used:
Brickseek (Inventory alerts)
Keepa (Amazon statistics)
Inventory Lab (Amazon listing & accounting)
Tactical Arbitrage (online arbitrage - from your couch)
Brickseek (Inventory alerts)
Keepa (Amazon statistics)
Inventory Lab (Amazon listing & accounting)
Tactical Arbitrage (online arbitrage - from your couch)
Now. When you are all cleared to sell on Amazon, you will be "gated" in categories such as Grocery, Toys, specific Brands, etc. This is not a complicated process, you just need patience.
Essentially you will create an account with a wholesaler or distributor, and buy a minimum of 10 products in the category you want to be ungated in, then provide your invoice to Amazon.
I have been ungated in: toys, grocery, Lego, Disney, Mattel, Nerf, Play-Doh, Starbucks, Transformers, Heinz, and many others. I honestly think it's been super easy. Let me know if you are struggling here.
That's it! The biggest thing I recommend is just to get started. Join PFP, you'll find products, make a few sales and you'll be addicted from there. I am looking forward to 2021 and my goal is $100k + sales this year. Happy flipping!
