E-commerce by Insparkly

Eid Mubarak everyone!

Diving into Online Arbitrage Chapter 3

To learn about, "How to do product hunting and sourcing", refer back to our previous post.

Chapter 3: Product Analysis
THIS IS INDEED THE MOST IMPORTANT STEP IN YOUR OA JOURNEY.

How to do analysis:
1) Check for the IP complaints, Private label, and meltable alerts on the Selleramp SAS extension.
2) Secondly, check the number of sellers from the listing itself or from the OS addon and also check the current BSR through which you will get an estimate of the monthly sales. Put that BSR into fbatoolkit(dot)com and it will give you estimated sales. Divide that by the number of sellers + 1 and you will get your estimated equity. Make sure that your equity is greater than 10.
3) Now, go to keepa graph and check the sales rank for the last 3 months. There should not be a sudden increase in the sales rank because if that's the case, the product might be facing low demand issues. Always check the graph for the whole year as well and check in which months, the graph goes up. Never order the product in those months.
4) Then check price fluctuations. There can be slight fluctuations but if there are frequent and sudden fluctuations then try to avoid that product as there are high risks and also high chances of amazon suppressing the BB. From the graph, also check the lowest price (you will use this for profit calculations).
5) Now go to Data > buy box statistics and check the % won by the sellers. % won of any of the sellers must not be greater than 50%. This will help you avoid seller-dominant products. Please make sure that the brand itself is not selling the product.
6) Then check the reviews of all the sellers. At least 70% of the sellers must have lower reviews.

Profit calculations:
1) You can either use the Amazon fba fee calculator or selleramp SAS extension for calculations. If you are using selleramp SAS, make sure that you add all your fixed costs to selleramp SAS.
2) Before calculations, you must know the prep center and shipping cost. The prep and shipping cost I face in the US is $1.5 per unit.
3) Also keep in mind any taxes that you will face while purchasing the inventory.
4) There are 3 types of amazon fees which you can see on the amazon fba fee calculator. Always make calculations using all 3 as your expense.

Tips:
1) While sourcing the product, make sure that the product is exactly the same. Compare the product, check the quantity, and also check the weight & dimensions of the product. If UPC is given on retailers and on amazon then must compare that.
2) While sourcing always use cashbacks to increase your margins.
3) Before finalizing the product, first add to the cart your desired units and check if the retailer allows you to our purchase that many products
4) Add to cart products, add your address in the checkout and check if the retailer charges any shipping fee or if is there any tax. Do this and then finalize your sourcing cost.
5) Before you finalize everything, make sure that you check the authenticity of the retailer on Trustpilot(dot)com to avoid any scams.

That's all for today. Please ask your questions in the comment section.

THE NEXT CHAPTER WILL COVER THE TOPIC OF "HOW TO MAKE SHIPMENT PLANS".

Diving into Online arbitrage Chapter 2

To learn about what is Online arbitrage and how to start it check my previous post.

Chapter 2: How to do product hunting and sourcing

Hunting:
You can do product research manually or using tools (automated process).
1) Manually:

There are 3 ways for it.
i) Using keepa:
Go to keepa product finder tab and add filters.
It's totally up to you, the more you play with filters the more results you get. But just for an overview, I will mention the criteria.
Sales rank (30/90 days average): 10000 to 80000
New 3rd party fba price: 25 to120
New offer count: 8 to 50
Select a category
BB seller: 3rd party
Uncheck digital products
Item weight: max 2000g
Adult products uncheck
Trade-in eligible uncheck
Now keepa will show you different products. Simply open products and after analysis, copy the title and check other retailers on google.
Once you find a good product then shift all your focus on seller sniping.
ii) Storefront sniping:
Once you find a product according to your criteria, then open different sellers selling that product and look for their products.
Always open and hunt from those stores whose,
Rating is above 85
Reviews are below 1000
Must be fba seller
Open their storefronts and hunt products from there, simply open each product and after analysis, do the same as you did previously for searching the retailers.
iii) Reverse sourcing:
In this method, open different retailers and go to their deals/clearance/sale section. There you will find different products with heavy discounts. Simply copy the title and search on amazon and if you find the product, then do your analysis. This is time-consuming but a great method to find good deals because the main problem in OA is finding the source (retailer). But in this method, you already have the retailer with a great price.

2) Automated Hunting:
There are 3 tools for it:
i) Tactical arbitrage
ii) Sourcemogul
iii) hero reverse arbitrage (selleramp)
All the tools scan retailers, stores, and amazon categories for you. They basically show you the retailers as well as the products on amazon with profitability depending on your criteria which you will add before scanning. Remember, whenever you find a good winning product from tools, always search for other retailers as well. It's possible that you might find a retailer offering a better price than that shown by the tool.
I don't recommend this because tools mostly give you OOS products and second, a lot of people are using tools and picking up the same products.
The third tool is provided by selleramp and it gets integrated with sellerampSAS.

Sourcing:
For this, you can either use google or the tools mentioned above.
Remember, whenever you find a profitable product, always check the retailer's reviews on Trustpilot. There are a lot of scam retailers, especially in the US.
Before calculations, always add the products to your cart, go to checkout and then calculate your sourcing price. Because most retailers, add tax during checkout. So for accurate calculations, please consider adding tax as well.
These were just the methods through which you can do hunting and sourcing.
We know this post does not includes how to do analysis because it's a very big topic and these both can't be covered in a single post.

Tips:
1) Always use VPN/VPS before finding retailers.
2) While using keepa, don't just add these filters and play with them to get more and more unique products.
3) Keepa product finder is used just to hunt a single product, after which convert your hunting technique to seller sniping because 1 product gives you an unlimited number of stores that are potentially doing OA.
4) blidz is a scam retailer in the US.
The next chapter will cover the most important and extensive part, product analysis. Stay tuned!

HERE WE GO! 🔥

So a Few months back, we posted that we will grow a new account with a very minimal budget just to remove this misconception that "New accounts can't be scaled during Q4"

Here is the Case study!

We scaled this account only using Online Arbitrage! I know it's not big numbers and that's not the exact representation of scaling but we only invested a few 1000 Dollars in this just to make a case study for new sellers.

1) Invest in products in which BB rotates frequently.

2) Always do complete research on Keepa. Don't rely on 30 days graph especially during Q4 because in Q4 Amazon takes a lot of time to live your products so forecasting must be done on basis of 90 days or 180 days history.

3) Don't ship only 1 or 2 SKUS to amazon. At least ship 6 to 8 SKUS together. This way, you will save shipping costs plus all the SKUS will go live collectively.

4) Invest in high ROI products like 30 to 50% because once the product goes live, the ROI will fall to 15 to 25% due to delay.

5) Don't hold your products in Q4, keep on investing in products with low BSR in order to maintain the Cash flows.

Diving into Online Arbitrage Chapter 1
Chapter 1: What is online arbitrage and how to start it?
What is arbitrage?
Arbitrage means that the same product of the exact same quality is sold on two different platforms at a different price. In this, the market is not in equilibrium which gives investors an opportunity to earn the spread the market is providing.
How to start?
1) You can start online arbitrage with a very minimal budget but the best is to at least start from $2000. Invest 70% of it and keep 30% as a reserve for purchasing more inventory. Do not invest 100% of your budget because in the end you won't be having any cash in hand for purchasing and all will be with amazon.
2) You can start with an individual account as well unlike Wholesale where the company is a must. This is because we don't take brand approvals and don't purchase inventory from wholesalers.
What should be done?
Daily hunting should be done for more and more profitability just like drop shipping.
Per product, margin can be high or low but accumulated profit from a single product will be low as we only order 8-15 units of a single product. So for overcoming this issue, you daily need to hunt and launch more products.
Why online arbitrage is better than drop shipping?
We purchase our own inventory and ship that to the amazon warehouse for fba. We don't do fbm in this. Secondly, there won't be any packaging as we deliver our inventory to the prep centre where packaging is changed by the agents. So no issue with packaging. This eliminates the chances of negative reviews (due to packaging complaints) and reduces the chances of Account suspension.
The next step?
If you think, a product is generating a good amount of money for you and you think that this product can be a good fit for Wholesale, then go ahead and take brand approvals for it and convert that product into a Wholesale model. This further improves your position as this totally eliminates any chances of IP and invoice issues. Also, you will get more of the BB as you will have more inventory (one of the factors of BB rotation).
Tips:
1) Always go for ungated categories at the start and slowly ungate the gated categories and launch those products as well.
2) Whenever you find a source, directly purchase the product and don't wait. Mostly, the retailers offering the lowest price goes OOS.
The next chapter will cover the topic of product hunting and sourcing. Stay tuned!

FREE AMAZON ONLINE ARBITRAGE AND EBAY STOCK MODEL & GEMSTONES KNOWLEDGE FOR EVERYONE!
It's your right to gain knowledge and implement that for enhancing your future. Insparkly considers this a fact due to which we are ready to provide free up-to-date knowledge to everyone.
We will post some interesting stuff and will be sharing practical knowledge with all of you for free. This will help you understand the fundamentals of Amazon and eBay and will help you kickstart your Journey.
Our aim is to build an army of students learning from us for free and start their journey in January 2023.
Let's Begin!

Introducing eBay Marketplace!

eBay is the Second Largest Marketplace after Amazon.
If opportunities are there, we must capitalize on them by diversifying and launching the products on eBay along with Amazon. This increases the revenue by at least 50%.

There are 4 different working models on eBay:
1) Stock Model
2) Online Arbitrage/Wholesale
3) Dropshipping
4) Liquidation

Don't worry! We will discuss everything related to the eBay marketplace starting from "how to make an account" to "How to scale your business on eBay" and much more!
Stay tuned!

Do you love Diversification❓
That's not even a question❗
Stay Tuned, and soon you will get to know what steps you should take to horizontally grow your business.

The ungating guide!

What is gated/ungated?

Amazon does not allow you to sell whatever you want at the start when a new account is created. Most of the categories and brands are gated, which means we can't sell in that specific category.

How to ungate?
There are 3 ways to ungate a category or brand:
1) Soft approvals
2) Manual ungating
3) Automatic ungating

1) Soft approvals:
This means that before selling a product when you request approval, amazon approves the application and ungates the brand. This way, you directly get permission from amazon to sell that specific brand.
For taking soft approval, follow these steps.
i) Open seller central
ii) Product catalog
iii) Add a product
iv) Paste the ASIN
v) Condition: New
vi) Apply to sell
vii) Request approval
Amazon will then reload the screen, and if it says that your selling application is approved, then congratulations. YOU GOT THE SOFT APPROVAL! If not, don't worry, you can still get ungated by following some more steps described below.

2) Manual Ungating:
If Amazon does not give you soft approval, then you need to buy at least 10 units of the exact same product from the wholesaler/distributor/brand and then show that invoice to Amazon.
Invoice must include:
i) Your billing address (which you gave to Amazon)
ii) The address of the Wholesaler/distributor/brand
iii) The quantity column must show a minimum of 10 units (This is the Policy of Amazon)
iv) Must clearly show the name of the Wholesaler/distributor/brand

Amazon might ask you to submit some pictures of the product along with the purchase invoice.
There must be at least 5 to 6 pictures showing all sides of the product along with the product name and brand name. For further clarification, consolidate all the units and take a picture of them as well.

3) Automated Ungating:
This type of Ungating is done by Amazon when you reach a certain level of sales on your account. As your account grows in terms of revenue, amazon keeps on ungating subcategories and categories for you.

Tips:
1) You can use Pet-stash, frontier coop, and pricemaster for ungating purposes Amazon accepts their invoices.
2) Amazon Does not accept the invoice of retailers except Kohls ( Not all the time).
3) Never edit your invoice, because Amazon algorithms are so strong that they will detect that if not at the moment but in the future they might. This can result in, Account suspension. Also, amazon, most of the time calls the wholesaler for verification.

We hope that most of your questions are cleared now. Still, if you have any questions, feel free to ask.

Myths😕😕
1) You can't build a new account in Q4
2) You can't scale a new account during Q4 due to disrupting sales and high competition
3) You can't find a viable product during Q4 due to fluctuations in Sales rank, prices, etc

Guess what❓❓
We took it as a challenge and just created a new account on Amazon

Aim🎯🎯
Our aim is to create a case study for those who think that it's not possible to scale a new account during Q4. We think this case study will not only help the new upcoming sellers but will also influence the current sellers who think that they will get stuck in the loop of Q4.
We hope this representation will have a positive influence on the current sellers and service providers and will help them in understanding the art of scaling a new account during Q4.
Everything that we encounter, will be shared as a case study for everyone.

Tip:
You can't create a new account in Q4 because amazon does not accept new account applications during Q4. So if you want to be a part of this journey or want to scale your business during Q4 so today is the right time to create a new account.

Stay tuned!

Job opportunity!
2 VAs needed for Online Arbitrage US marketplace!

Qualities:
1) An expert who have past experience and already handling some Accounts. (Someone who can genuinely show his work)
2) An expert who can daily find 4 or more products
3) An expert who can work strictly according to my criteria. (My criteria is simple and not that much difficult)
4) Must have tools.
5) Must do all the calculations according to me.

Monthly salary will be decided according to your expertise. I will py you twice a week.

I won't talk to those who will directly come to my inbox. Please comment and I'll get back to you.

Introducing Founder and Co-Founder of Ecommerce by Insparkly.
Founder: Sanan Ahmad is An Amazon FBA expert specifically working on Wholesale and Online arbitrage.

Co-Founder: Malik Umar is A former Bootcamp student of Extreme Commerce and already working with top Investors.

Co-Founder: Tayyab Khan is an Amazon Wholesale expert working for the past 1 year.

Co-Founder: Basaam Aziz is an eBay expert and company creation, consultant.

Co-Founder: Muhammad Maaz Khan is an eBay expert and successfully selling Pakistani products, including Gemstones on eBay, from Pakistan

It's considered a duty of all of them, that they will share insights
about how you can build a career in E-commerce and sustain yourself either as a service provider or as an investor.

Why investors should do Online Arbitrage before Wholesale?

Nowadays, it's getting very difficult to find a profitable product and take brand approvals. This problem is immense and has increased the time for the product launch, hence stopping your cash to circulate. While we do our research for wholesale products, it's better to opt for Online arbitrage in the meantime just for circulating the cash flow by flipping the products and earning the spread the market provides.

How Online Arbitrage will help you?

Online arbitrage will not only help you to circulate the cash but will also open new opportunities, as it helps in finding more and more products of which you can take brand approvals afterwards if the product is meeting your wholesale criteria.
Secondly, you wait for months and months just for the approvals after which you purchase the test inventory just to check the viability & sustainability of the product, and if after the test order, you drop the product, all your efforts of taking brand approvals go meaningless. So it's better to first test the product by doing Online arbitrage and then if the product is viable, then go towards the brand approvals. This way you can test the product even before taking the brand approvals and can earn profit as well.

E-commerce by Insparkly updated their phone number.

The wait is finally over! 🤩
Introducing Amazon Online Arbitrage model for investors having a budget of less than $2000.
Who can do Online Arbitrage?
1) Investors who quickly want to circulate their cash with the motive of earning quick money
2) Investors who want to do wholesale using completely new and different tactics
3) Service providers who are low on investment.

Stay Tuned as daily more and more information about Online Arbitrage will be posted here.

For any query related to Amazon Online Arbitrage, please get in touch for a free consultation
📞 03125923919
📧 [email protected]

Buckle up, Fellas!
Something very big and unique coming your way
Stay tuned! 🤩