What is Online Arbitrage?
Online arbitrage is a business model where you buy products from one online retailer and sell them on another (or the same) platform for a profit. The key is to find items priced lower on one site, such as Walmart, and resell them at a higher price on a platform like Amazon.
This strategy takes advantage of price discrepancies and varying demand across different marketplaces. By identifying and purchasing discounted products, sellers can make a profit through resale. For more detailed information about online arbitrage, you can check out our comprehensive guide on the topic.
How Can You Find Profitable Products on Walmart?
Once you have a solid understanding of online arbitrage and the legalities involved in both Walmart and Amazon, the next step is to identify and buy products from Walmart to sell on Amazon. Here are a few factors to consider when choosing products:
1) Demand
Research popular and trending products on Amazon to gauge their demand. Look for products with consistent sales and positive customer reviews.
For example, if you notice that a certain brand of wireless headphones consistently ranks high in sales and has positive customer feedback, it may indicate a strong demand for that product. This could be a potential profitable product to consider at Walmart.
2) Competition
Before you buy products from Walmart to sell on Amazon, analyze the competition for each product you are considering. If a particular product has too many sellers or a low profit margin, it may not be worth your time and effort.
Consider researching the number of sellers offering the same product on Amazon. If there is a high saturation of sellers, it might be challenging to compete and make a significant profit. On the other hand, if you find a product with limited competition, it could present a lucrative opportunity. Evaluate not only the number of competitors but also their stock levels. Knowing how much stock your competitors have helps you estimate how long it will take for your product to sell. Focus on competitors in your price range.
3) Profit Margin
Calculate the potential profit margin by considering the difference between the purchase price at Walmart and the selling price on Amazon. Aim for products with higher profit margins.
For instance, if you find a product at Walmart that you can resell on Amazon at a significantly higher price, it could indicate a favorable profit margin. However, it’s important to consider other factors such as fees, shipping costs, and potential price fluctuations.
4) Seasonality
Take into account any seasonal factors that may affect the demand for the product before you buy products from Walmart to sell on Amazon. Some products may have a higher demand during specific times of the year.
For example, if you are considering selling outdoor grills, it’s crucial to recognize that the demand for these products tends to be higher during the summer months. Understanding the seasonality of products can help you make informed decisions and optimize your profit potential.
Other Important Factors
- ROI (Return on Investment): ROI measures the profitability of your investment. Aim for a balanced approach, with a higher ROI for riskier leads and a moderate ROI for more stable products. Aiming for at least a 20% ROI after accounting for fees and expenses is generally advisable.
- BSR (Best Sellers Rank): This Amazon metric indicates how well a product is selling in its category. Products within the top 1% of their category typically sell faster, making them more desirable for online arbitrage. However, consider other demand estimation methods as well.
- Estimated Monthly Sales: Tools like Seller App or AZ Insight can help estimate how many units of a product sell each month on Amazon. Setting a threshold, such as a minimum of 20 monthly sales, can help ensure the product has sufficient demand.
- Price History: Use tools like Keepa to monitor a product’s price history and avoid items with sudden price drops, which can erode your profit margin by the time your product reaches Amazon’s fulfillment center.
- Buy Box Eligibility: Although not critical, products eligible for the Buy Box can sell faster. Consider this factor if other criteria are met and you need a tiebreaker.
- Number of Reviews and Trends: Products with a high number of positive reviews and an upward trend in reviews are likely in demand and performing well in terms of customer satisfaction.
- IP Complaints: Avoid products with frequent Intellectual Property complaints to prevent account suspensions or legal issues. Use tools to check for IP risks before you buy products from Walmart to sell on Amazon.
Best Tools to Find Profitable Products from Walmart
To find and buy products from Walmart to sell on Amazon, you require efficient tools that help streamline your research and decision-making process. Here are five of the best tools to aid in identifying profitable products:
1. Keepa
Keepa is a comprehensive tool for tracking the price history of products on Amazon. While it primarily focuses on Amazon data, it can be incredibly useful for understanding price trends and ensuring that the products you source from Walmart can be sold at a profitable margin. Keepa provides detailed charts showing price fluctuations, helping you avoid items that might have recently experienced a temporary price spike. You can check out our Keepa reviews to find out more about this tool.
2. Tactical Arbitrage
Tactical Arbitrage is designed specifically for online arbitrage, making it a powerful tool for finding profitable products on Walmart and other retail sites. It allows you to scan multiple websites, compare prices, and evaluate potential profits after accounting for fees and other expenses. Tactical Arbitrage offers advanced filters to help you find products that meet your specific criteria, such as minimum ROI, profit margins, and sales rank. Make sure you read our Tactical Arbitrage reviews to get more familiar with this tool.
3. OAXray
OAXray is another excellent tool for online arbitrage that simplifies the product research process. By integrating with numerous retail sites, including Walmart, OAXray quickly scans product listings and provides detailed information on profitability, including Amazon fees, potential profit, and ROI. It also includes features like estimated monthly sales and competitor analysis, helping you make informed decisions.
4. AZ Insight
AZ Insight offers a suite of tools for Amazon sellers, including features for online arbitrage. With its product research capabilities, you can analyze Walmart listings to determine their profitability on Amazon. AZ Insight provides data on sales estimates, profit calculations, and fees, giving you a clear picture of potential returns. It also includes a stock checker to see how much inventory competitors have, aiding in your competition analysis.
5. SellerApp
SellerApp provides a comprehensive platform for Amazon sellers, including tools for online arbitrage. It helps you identify profitable products from Walmart by offering insights into sales estimates, profit margins, and ROI. SellerApp also includes features like competitor analysis, which can further refine your product selection strategy. The platform’s user-friendly interface and detailed analytics make it easier to find and evaluate potential arbitrage opportunities. Our SellerApp reviews provides more details about this useful tool.
Things to Consider When Buying Products from Walmart
When you want to buy products from Walmart to sell on Amazon, there are important considerations to ensure you make the most of your efforts. Here are some best practices for both in-store and online purchases:
Plan Ahead
Creating a list of products you intend to purchase, along with their locations within the store, helps you navigate through the aisles more efficiently. This preparation saves you time and ensures you don’t miss any items you need.
Arrive Early
Visiting Walmart during non-peak hours, such as early mornings or weekdays, allows you to avoid crowds and increase your chances of finding the products you need in stock. This also makes for a more relaxed shopping experience.
Check Clearance Sections
Explore clearance sections where you can often find discounted products with high profit potential to buy products from Walmart to sell on Amazon. These sections can be a treasure trove for finding hidden gems that boost your business’s profitability.
Use Smartphone Apps
Utilize smartphone apps, such as Walmart’s own app or price-checking apps, to compare prices and ensure you are getting the best deal. These apps can also provide additional information about the products, such as customer reviews and ratings.
Set Up Accounts
Create an account on the Walmart website and sign up for newsletters to stay informed about upcoming sales and deals. This can also streamline the checkout process by saving your shipping and payment information.
Read Product Descriptions
Thoroughly read the product descriptions, including dimensions and specifications, to avoid any surprises when the products arrive. Being well-informed ensures the products meet your expectations and reduces the risk of returns.
Check Shipping Options
Review the available shipping options and select the one that best suits your needs, considering factors such as speed, cost, and additional services like package tracking or insurance. This ensures your products arrive in a timely manner and in good condition.
Product Condition
Before you buy products from Walmart to sell on Amazon, ensure the products you purchase are in new condition to avoid customer dissatisfaction and returns. Selling used or damaged items can harm your seller rating.
Receipt and Proof of Purchase
Keep all receipts and proof of purchase after you buy products from Walmart to sell on Amazon. Amazon may require these documents to verify the authenticity of your products and handle any disputes or claims.
Brand Restrictions and Gated Categories
Check if the product you intend to sell is restricted or in a gated category on Amazon. Some brands and categories require approval before you can list them, so verify this to avoid tying up your capital in unsellable inventory.
Return Policy and Warranty
Understand Walmart’s return policy and any warranties that apply to the products you buy. This knowledge helps you handle returns more effectively and ensures you can return unsellable items if needed.
Price Fluctuations
Monitor price fluctuations of the products on both Walmart and Amazon. Prices can change frequently due to sales, promotions, or market demand. Tools like Keepa can help track historical prices, ensuring that the product remains profitable by the time it reaches Amazon’s marketplace.
Sales Tax
Consider the sales tax applicable to your Walmart purchases. Understanding these taxes helps in accurately calculating your ROI and overall costs.
Bulk Buying and Inventory Management
Evaluate the benefits and risks of buying in bulk when you buy products from Walmart to sell on Amazon. While purchasing larger quantities can lower the per-unit cost, it also increases your upfront investment and storage needs. Effective inventory management ensures you don’t overextend financially or end up with excess stock.
Step by Step Guide to Sell Walmart Products on Amazon
Once you’ve decided to buy products from Walmart to sell on Amazon, follow this step-by-step guide to ensure a smooth and profitable process. If you don’t know which platform offers a better marketplace for online arbitrage, you can check out our guide about selling on Amazon vs. Walmart.
1. Setting Up Your Amazon Seller Account
- Go to Amazon Seller Central and sign up for a seller account.
- Provide the necessary information, including your name, business details, and contact information.
- Verify your identity by submitting required documents, such as a government-issued ID and a bank statement.
- Decide between an Individual selling plan (ideal for those selling fewer than 40 items per month) and a Professional selling plan (suitable for higher volumes). The Individual plan has no monthly fee but incurs a per-item selling fee, while the Professional plan charges a monthly subscription fee but offers lower per-item fees.
- Connect your bank account or credit card to your Amazon seller account. This ensures that you can receive payments for your sales and cover any associated fees seamlessly.
2. Finding and Buying Profitable Products from Walmart
- Create a list of products you want to purchase, including their locations within the store (if you want to purchase in-store products). Use tools like Tactical Arbitrage or Keepa to identify profitable items to buy products from Walmart to sell on Amazon.
- Explore clearance sections for discounted products with high profit potential. Use the Walmart app or price-checking apps to compare prices and ensure you’re getting the best deals.
- Buy the products and keep all receipts for proof of purchase and potential returns.
3. Listing Your Products on Amazon
- After you buy products from Walmart to sell on Amazon, use Amazon’s seller dashboard to create detailed and accurate listings for each product.
- Research competitors’ prices and set your prices competitively while maintaining a healthy profit margin. Consider using repricing tools such as BQool or Repricer Express to automatically adjust prices based on market conditions.
- Regularly monitor your inventory levels to ensure you have enough stock. Use inventory management software to keep track of your products and avoid stockouts.
- When orders come in, promptly package and ship the products to customers. Consider using Fulfillment by Amazon (FBA) for streamlined logistics and faster shipping.
Sourcing Products from Walmart with OABeans
Considering everything we talked about in this article, it’s safe to say Walmart is a great place for sourcing products to sell on Amazon. If sourcing is too much of a hassle for you, purchasing OABeans’ leads lists can be a big help in automating this time-consuming task. OABeans’ leads are sourced from various marketplaces, with one of the most prominent being Walmart. Additionally, the leads are curated and handpicked by experts using sourcing software, so all you have to do is purchase the leads, order the Walmart products, and start making profits on Amazon!
OABeans’ services have a 3-day money back guarantee, so you can test the leads to see if they work for you before committing to them.
Final Thoughts
Buying products from Walmart to sell on Amazon can be a great way to make money if you plan carefully. Walmart offers a wide range of products at good prices, and Amazon has a lot of customers, so it’s a good match.
To succeed, you need to research products well, manage your inventory smartly, and use the right selling strategies. Whether you buy in-store or online, following best practices and using tools can make the process smoother. Amazon’s seller platform, especially services like Fulfillment by Amazon (FBA), can make shipping and handling easier. Overall, success depends on being flexible, creative, and focused on giving customers what they want.
FAQs
Yes, it is legal to buy and resell products on Amazon. When you purchase products from sources like retail stores, wholesalers, or manufacturers, you acquire the right to resell those items. However, it’s essential to ensure that you’re not infringing on any intellectual property rights, such as trademarks or copyrights, and that you accurately represent the condition and authenticity of the products you’re selling.
The best marketplace for buying products to sell on Amazon will vary depending on your unique circumstances and preferences. Walmart can be a valuable source for sourcing products, but you can also check out other sources, such as wholesale distributors, liquidation auctions, or overseas suppliers.
11 replies on “How to Buy Products from Walmart to Sell on Amazon?”
Reselling on Amazon provides a fantastic opportunity to turn unused or unwanted items into a profitable business venture.
Reselling on Amazon allows sellers to experiment with different product categories and niches to find what works best for them.
Reselling on Amazon gives you access to a wide range of product categories, allowing you to explore different niches and find what resonates best with your audience.
By strategically pricing their products and monitoring market trends, retail arbitrage sellers can optimize their profit margins and stay competitive in the marketplace.
Reselling on Amazon provides a secure and trusted platform for both sellers and buyers, ensuring safe transactions and protecting against fraud.
By staying informed about market trends and leveraging Amazon’s data, resellers can make informed decisions and source profitable products.
Retail arbitrage on Amazon allows you to capitalize on seasonal sales, promotions, and clearance events in physical stores, maximizing your profit potential.
Amazon FBA allows sellers to focus on sourcing and growing their product selection, as the fulfillment and shipping logistics are taken care of by Amazon.
The customer-centric approach of Amazon ensures a positive buying experience, which can lead to repeat purchases and loyal customers.
Amazon FBA’s integration with other Amazon services, such as Sponsored Products and Enhanced Brand Content, helps boost visibility and drive more sales.
Amazon’s automated repricing tools can assist you in optimizing your pricing strategy in retail arbitrage, ensuring competitiveness in the marketplace.