The year is about to come to an end. With the last couple of months left in 2020, you have the chance to end the year with a bang on your income through this business model. Whether you just started selling, or already an experienced seller, anyone can benefit from arbitrage.

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As e-commerce continues to grow and be a competitive business model, new ways of online entrepreneurship come into view and offer sellers different opportunities to take advantage of the Internet to earn.

The basic principle involved in retail arbitrage is reselling discounted products from retailers. Sellers purchase products from other retailers that are on sale and then sell them on Amazon’s platform with a mark-up price.

For the holiday rush, we revert towards a more concentrated and specific form of retail arbitrage where sellers do not need to roam retail stores and browse aimlessly for products to sell, which is the typical way of doing retail arbitrage. Sellers can now go to physical and online retail stores already knowing what to get. The products that will be focused on for the Q4 are mostly seasonal items that have high demand during the last months of the year.

In this article, I will be guiding you through the strategic ways of navigating through the holiday rush and taking advantage of the in-demand products this time of year so you can make big sales as the years draws to a close.

Holiday products on your retail arbitrage business

There are certain products whose demand varies on the season. These seasonal products or niches only experience high sales during that peak time. Swimming gear, bathing suits, water sports equipment, usually only sell during the summer time. Whereas the cozy fur coats, boots, mittens, meet high demand during the fall and winter seasons.

Some entrepreneurs begin selling their products even before peak season begins. Other people may frown upon the idea of endorsing a seasonal product way too soon, but avid fans of the product are excited with that. They probably will even thank you for selling the product early when demand is not hectic and supply is still high.

What I’m trying to tell you is that you should determine seasonal products and get ahead of the hype as early as you can. These products can be bought at extremely low prices when it’s not their season. Stock up on them early on and then start selling them at a competitive price when the time is right.

Ever noticed how retailers start posting up products months before they become relevant and people actually start buying them? In some cultures, the beginning of the -Ber months, is actually the start of the holiday season. By that time, holiday decorations and items start showing up on the shelves. Yes, even if Halloween comes first.

Here are some of the items that are seasonal in the United States:

  • January & February – Superbowl Merchandise, Valentine’s Day Gifts (flowers, pillows, stuffed animals)
  • March – Spring items, St. Patrick’s Day products
  • April – Easter holiday items (eggs, bunnies, flowers, Christian items)
  • May – Mother’s Day gifts, decorations for Memorial Day
  • June – gifts for Father’s Day, decorations for the Fourth of July
  • July – summer items like pool toys, swimwear, sunglasses, beach toys
  • August – educational supplies
  • September – clothes for cold season
  • October – Halloween costumes, trick-or-treat baskets,
  • November – Thanksgiving
  • December – Christmas presents (wide array of product choices)

There are many more items that have surprisingly increased in demand for certain seasons. Familiarize and master these seasonal trends and you’ll be a pro at retail arbitrage, bringing in large sales all throughout the year!

The Buy and Resell Journey during the Holidays

At this time of year, people are on the hunt for gifts to give to their loved ones. Furthermore, the Christmas season is usually associated with children. The highlight of the holiday is mainly to give joy to children, and bond with family. You can take advantage of that by concentrating on those products to sell on your store. If your store is approved under the toy category, great. You are free to do so. However, if you aren’t, you can use eBay as an alternative platform.

How do you know what to look for?

Just like every query you have, Google it. The number one search engine is every inquisitive mind’s friend. With the right keywords, you can find exactly what you need. Links after links to answers will undoubtedly appear after you hit that search button. Read through some of those and note the common answers to gain ideas on what to sell.

Determining whether products are profitable

Keepa, Amazon’s price tracker, is one tool you can use to gain some insight on products that sell well and perform well through reselling. You can base from previous pricing records which Keepa can show you. “Historical sales,” as in the past data of its price activity can predict how it will do in the future.

I conducted my research and one of the results that came up was the Baby Yoda Plush, on ode to The Mandalorian, a spinoff of the famous Star Wars franchise. This is one example of a children’s toy that is already selling a lot and will most likely sell more as this year’s Christmas approaches. Looking at the product listing, there are 56 other sellers who are also selling this, which is a good sign.

But don’t stop there. There are a lot more products that can be given as Christmas presents. Not only to kids, but to teens and adults as well. I suggest you start as early as possible to go bargain hunting for great ideas for gifts and begin stock up on them. November is coming to an end, and before we know it, it’ll be the 25th of December. To be a tough player in this business model, you need to be a fast and smart thinker. You are not the only retailer who deals with arbitrage in Amazon.

Other Ways of Getting Leads

Social media has a lot of power as well when it comes to searching for product trends. There are groups within social networks with forums and discussions focused on emerging trends and hypes.

Hashtags give you numbers on how many people are talking about a particular topic. On Instagram there are a lot of small-time business owners who use the platform for reselling. You can find several accounts dedicated to different types of product niches.

Whatever information you can get your hands on, is always something you can use to further your business. Most especially if you’ve only just started building your store and getting into the reselling model.

Amazon FBM for faster transactions

Because of the holiday rush and large population of people doing their shopping online, the Amazon FBA warehouses are busy and packed. The bigger the outflow of shipments, the longer it would take for the parcels to arrive. And customers do not want that.

So as an alternative, you can have your products on FBM (Fulfilled by Merchant) where you can take care of the orders and shipments on your own. Adding on the load of the FBA orders will only jeopardize the shipping time of your parcels to your clients and you don’t want to risk getting bad reviews over that.

As an FBM seller, your listings can be live in just minutes, not weeks.

As long as your products are high in demand, an FBM is a great choice.