11 Techniques for Manual Sourcing in Online Arbitrage for Amazon FBA!

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Manual sourcing in online arbitrage for Amazon FBA involves finding profitable products by directly searching online retail websites rather than relying on automated software or leads lists. While it can be time-consuming, it often uncovers unique and highly profitable deals.

Here are 11 techniques for manual sourcing in online arbitrage for Amazon FBA:

Clearance and Sale Sections: This is often the first stop for manual sourcers. Regularly check the clearance, sale, and "deal of the day" sections of major online retailers like Walmart, Target, Best Buy, Kohl's, Macy's, etc. Look for deep discounts that create a significant profit margin on Amazon.

Deal Website Sourcing: Explore dedicated deal websites that aggregate discounts and promotions from various retailers. Examples include Slickdeals, RetailMeNot, or even specific coupon sites. These sites can alert you to sales that you might otherwise miss.

Store/Supplier List Sourcing: Once you find profitable products from a specific retailer, create a list of those stores. Regularly revisit these stores to check for new deals, seasonal sales, or replenished inventory of profitable items. You can also build a list of brands that consistently offer good arbitrage opportunities.

Voucher/Coupon Code Sourcing: Actively search for and utilize voucher or coupon codes. Many retailers offer codes for a percentage off, specific product discounts, or free shipping. Stacking these with existing sales can significantly increase your profit margin.

Newsletter Sourcing: Sign up for email newsletters from your favorite online retailers. They often send out exclusive deals, early access to sales, or special promotions to their subscribers.

Special Group Discount Sourcing: Some retailers offer special discounts to certain groups (e.g., students, military, first responders). If you qualify, leverage these for additional savings. This can also include loyalty programs or credit card rewards that offer cashback or discounts.

Cashback Sourcing: Use cashback websites (like Rakuten, TopCashback, etc.) when making purchases from online retailers. The cashback you earn adds to your overall profit, effectively lowering your cost of goods.

Amazon Flips Sourcing (Amazon to Amazon): This involves finding products on Amazon itself that are temporarily mispriced or have an opportunity to be resold for a profit on Amazon. This might happen due to seller errors, price glitches, or rapid price fluctuations. While less common for significant profit, it's a technique to be aware of.

Storefront Stalking / Competitor Research:

Identify Successful Sellers: On Amazon, find other FBA sellers who appear to be doing online arbitrage. Look at their storefronts (by clicking on their seller name on a product listing).

Analyze Their Inventory: Browse through the products they are selling. If a product is profitable for them, it might be profitable for you too.

Reverse Source: Take these product ideas and search for them on other online retail websites to find a lower price. This is a very effective way to find new leads.

Reverse Sourcing (Amazon to Supplier): Instead of starting at a retail website, you start on Amazon. Find products that are selling well (low BSR, consistent sales) and then search for those exact products on various online retail websites to find a lower price. This method focuses on finding products that are already proven to sell on Amazon.

Deep Diving into Categories: Instead of just looking at sales sections, go deep into specific categories on retail websites. Explore subcategories and filters. Sometimes the best deals are hidden within less obvious product groupings.

Key Considerations for Manual Sourcing:

Tools are Still Helpful: While manual, tools like Keepa (for historical price and sales data), SellerAmp (for quick profitability analysis and restrictions), and the Amazon Seller App (for fee calculation) are invaluable for analyzing potential deals.

Profitability Analysis: Always calculate your potential profit after all Amazon FBA fees, shipping costs, and your buy cost. Aim for a healthy ROI (Return on Investment).

Competition: Assess the competition on Amazon. Avoid listings with too many sellers, especially if Amazon itself is selling the product, as it can be difficult to compete.

Sales Rank (BSR): Look for products with a good Best Seller Rank, indicating consistent sales velocity.

Restrictions: Before buying, always check if you are eligible to sell the product or if it's a restricted brand/category on Amazon.

Replenishables: As you source, keep an eye out for products that are consistently profitable and can be reordered (replenishables). These save a lot of time in future sourcing efforts.

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