ESYB2 144 - Introduction to Amazon Dropshipping and Arbitrage
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[00:00:00] With this video, I want to begin a new section of the course, which is going to focus on Amazon dropshipping through online arbitrage. And what I'm going to do in this section is I'm going to solve the issue of people getting into Amazon, buying products in wholesale perhaps, and just wasting a lot of money or just risking a lot of money.

So before filming this section, I consulted with Valentin Delkov, who is the founder and CEO of Reprice Hub and actually also a well known tool TrackerBot. me. Which is a popular tool for eBay and Amazon dropshippers. So, he's been in this space for a long time, he's an expert. And later in this section, I'm going to show you that tool, which is RepriceHub, which helps you monitor prices on Amazon and other sellers, and do arbitrage automatically, and make a profit from selling on Amazon with dropshipping.

So that's coming in a later video. But for now, I want to give you the strategies [00:01:00] that Valentin shared with me. That prevent you from the risk that's associated with many of the other Amazon strategies where you have to buy inventory. So let's talk about it because it's a real challenge on Amazon, you see.

It's difficult to create your products. Not everybody can do that. And when people buy inventory, like from China, it takes too long to arrive and it often sits unsold. Like you have to buy in bulk to get it cheap. But then you don't know if you're going to be able to sell it. Sometimes you can sell it, sometimes you can't sell it.

And when you can't sell it, it just ends up wasting space in your garage or you have to spend money on warehousing and you sometimes just lose money this way. These are the real risks and the real challenges that students in this course have been facing for a long time, which is why I'm adding this section about strategies that carry no risk or next to no risk.

And those strategies are under the umbrella [00:02:00] of dropshipping. Let's talk a little bit more about dropshipping. There are many benefits, but before I get into it, I want to explain it. Dropshipping is essentially when You make a sale, but instead of having that item personally in your own home or your own warehouse, all you do is go and buy that item from whichever company already sells and ships it, and just basically have it shipped.

to whoever bought it. That way you never touch the product, that way you never buy the inventory. That's drop shipping in a nutshell. Because of that, you never risk money because you don't have to buy the inventory and you don't have to make a financial commitment because, let's say if your product don't really sell.

No problem. You can just sell other products. You didn't risk your money. You didn't buy anything up front. This also obviously allows you to test out a lot of products to see what sells. And [00:03:00] also, of course, you don't have to pay for storage. And whereas if people, let's say, buy inventory from China or like Alibaba, AliExpress, you know, a lot of that inventory you kind of buy low quality trinkets, low quality items.

Well, price items here, this can be opposite because you see, you can sell highly priced, high margin, profitable items from high quality brands. This is really important. From high quality brands. That means it will be easier to sell. And many of these brands you can't get on Alibaba or AliExpress, which is associated with buying wholesale and having them shipped to you.

You storing it in your warehouse, and even if you drop ship directly from China, like from Alibaba and AliExpress, it still takes a long time to arrive, so drop shipping directly by avoiding sites like Alibaba and AliExpress actually allows you to sell better and more profitable items. So now let me give you a real [00:04:00] example of how such drop shipping arbitrage may work.

So, first of all, let's say you find a laptop that sells for 799 at some store, doesn't matter which store, as long as it's any reputable store. And then, let's say you post a listing on Amazon for that same exact laptop for 899. After you make a sale on Amazon, you go to StoreX website and you buy that item for 799 and have it shipped to that person who bought it from you on Amazon for 899.

Meaning that you keep the 100 profit. The challenge with this is, of course, that it's really hard to monitor prices because prices go up and down on Amazon, prices go up and down in StoreX. There are various sales. You might want to try to sell many items, and so it becomes a management nightmare if you do it manually.

That is why there are tools that help you do this and [00:05:00] help you track and monitor many, many, many items. And keep in mind, if you were to buy inventory, you could not. Sell many items, but with dropshipping, you can sell many, many, many, many items, 10 items, 20, 30, 50. Because the only thing you have to do is create a listing and an automatic tool will help you manage your pricing.

So your sales, each sale is always profitable and you never hold that inventory and you can sell as many products as you ever want. Meaning that this can be extremely profitable for you overall and it can be a pretty Passive income strategy that's low maintenance because again, you don't make the products, you don't update the products, you don't test the products, you don't store the products, you don't ship the products, you don't even actually create the Amazon listings because these tools do it for you.

That's that tool, Reprice Hub. So in the next video, I'm going to introduce you to a more complex [00:06:00] dropshipping strategy. And then we're going to look at this Reprice tool to see how you can accomplish all this with that tool. You can of course do it manually, but as I mentioned, it's not easy to do it manually if you have many items, that's why you need a tool.

So with that, in the next video, let's look into that slightly more complex dropshipping strategy.

