Online Arbitrage is an exciting new frontier for Amazon sellers in Europe. It has numerous advantages as compared with traditional Amazon business models such as Private Label, however, many people do not have the best experience with online arbitrage due to making mistakes that could have been easily avoided. In this article, we will examine 5 common mistakes to avoid when starting out with online arbitrage.
Mistake 1: Limiting Yourself to One Marketplace
The first mistake that many people make when starting out with online arbitrage is limiting themselves to one marketplace. Thanks to the One-Stop Shop (OSS), there is no need to obtain a VAT number in each marketplace where you are selling products. Don’t miss out on the potential of using existing listings to sell your product Europe-wide.
Mistake 2: Selecting a Specific Category
When it comes to online arbitrage, it is important to cast your net as wide as possible. Don’t be tempted to specialize in one niche or category as you may be leaving potential profits on the table. This doesn’t mean you should go diving into categories like hazardous materials or anything with too many variants, measurements, and complexities, but you should aim to be as open-minded as possible.
Mistake 3: Doing Searches Too Broadly
Those are just starting out often make the mistake of doing overly broad searches on their providers. While it is okay to do this if you have already limited the filters, you are likely to end up with uninteresting results if you don’t.
Mistake 4: Not Checking for Restricted or Hazmat Materials
This is an important step to take when starting out with online arbitrage. Make sure to install the Actorio plugin that will alert you in the Actorio interface if you are restricted for a specific category. It would be very inconvenient to spend time and money on buying products that you can’t sell.
Mistake 5: Using Profit or ROI that Are Too High
This is a mistake that many people make if they are starting out with online arbitrage and are gated in many categories. It is important to remember to set realistic expectations with your ROI and profit targets, particularly early on. As a guideline, you should aim for a profit per product of no more than 3-4 euros, and ROI of no more than 20-25%.
Conclusion
Online arbitrage is an incredible business model that can provide great profits if used correctly. However, there are some common mistakes that people make when starting out. To ensure success with online arbitrage, it is important to remember to cast your net as wide as possible, install the Actorio plugin, do searches selectively, and set realistic targets for profits and ROI.
