5 Simple Yet Powerful Online Arbitrage Rapid Growth Strategies

online arbitrage Feb 14, 2022

So you are looking to take your online arbitrage business to the next level? This blog post is going to reveal to you 5 rapid growth strategies which you can implement within your online arbitrage business. 

Each of these strategies i am going to share with you, are a fantastic opportunity for you to take a step back from your business, potentially get a whiteboard out or a pen and paper, or even just go on your laptop and really brainstorm and mind map every single one of these strategies on what actions you are going to take, and where you need to focus your attention in your online business. 

More Inventory - Expanding Products Available For Sale 

Make the library of your inventory bigger. Think about it, if you are going to grow your online arbitrage business, you need to find more products. So, when you are doing this mind map, in the centre of it, "have more products". If you can go from having 10 different  products in stock, to having 100 different products in stock, to 500 different products in stock, to 2000 different products in stock, and so on, then that is going to grow. 

if you currently only have 100 products in stock, if you were able to rapidly scale to 1000 different products in stock, you are going to grow in your business. 

Think about this: If you put more products in the centre of the mind map, how can you find more products? And it really allows you to brainstorm and think about different strategies of sourcing. If you can think of as many different strategies from a sourcing point of view, everything from manually sourcing yourself, have a sourcing list in your business, expand and hire a sourcing assistant for the first time, or hire more. If you think about getting involved in resource pooling, being able to share your leads with others, or testing different tools out there which can help you source.

There are many different ways that you can achieve the outcome of more products, expanding the amount of products which you have within your library. 

If you really start to dig down deeper, you can really think about all these different strategies, and you can source everything from trying to find a wholesale, trying to find a potential gap within the market or bundling - whatever the case may be. 

If you would like to learn more about sourcing strategies, watch the video below:

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Decrease Turnover Time

Have better quality and faster selling products. Mind map turnover time. The best way to do this is by thinking about the history of all the products you have, look at every product you have sourced for the last several months, or maybe even years. If you have all that history within your Google Sheets, in your inventory management - you are recording everything that you are purchasing. You are starting to do some analysis on all of those products. Start to think about what the average sales rank for all of your products. What is the average ROI or margin of all your products now? Then that starts to give you a target on how you can improve going forward.

So, if right now for example, you are finding different products which are maybe 50,000 in rank 100,000 in rank, or maybe the average products you are selling right now are 35% ROI or 45% ROI, whatever the case is within your business, have a moment in time where you think and review the current performance of your business, and start to analysis what has gone before you, to start getting an idea of what the overall performance is of the products which you have. How fast have you been selling your products? What's the return on investment on all of your products? Then, that starts to give you a goal and some actual targets which you can set for yourself, your sourcing team, or your purchasing team - wherever you are currently at, but this is another way of how you can rapidly grow.

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Decrease Inventory Lead Time

The moment and time of sale, all the way to it being live on Amazon. Really try and optimise that process. For an example, if you are purchasing today, then it will take 3-5 working days to maybe a week for it to get delivered - you are going to process all of those products, ship all of those products, then ups come and collect. Then, at what point is it ready for sale? Have you got your repricing set up? And are the products you have optimised for sale as soon as it lands on Amazon. Really start to understand and analyse the your current performance, from a perspective of your lead time. 

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Reduce Inventory Issues 

You are making purchases, and you have possibly purchased the wrong goods, it has been the wrong delivery, or the store has broken a product - whatever the situation may be - just inventory issues. Discrepancies within stores, delays, just any sort of issues you have within your products and you have got within your products and within your catalogue of products and all the products which you are sourcing and purchasing, by being able to quantify how many discrepancies you are having or issues you have had with products being delivered or being delayed. 

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Streamline Replenishing System 

This comes from the point of purchase. This comes from the point of sale for your supplier and purchase for you.

At the time of you purchasing from the store, at that moment, you have got the potential to really start to streamline your replenishing systems, and you can do this through the process of deciding the quantities that you are purchasing and trying to optimise and get in the right quantities as much as you possibly can at the start. 

The reason why this is important, is because, if you for example, only purchasing 1-2 of this product, and you go through the entire process, the sourcing, purchasing, creating baskets, the documentation, the receiving of the goods, the creating of the shipment, printing out the labels, boxing - you are going through the entire process, just for it to then potentially sell out within 1-2 days. 

What you have essentially done, is you have gone through that entire process for an unoptimised return. If you were able to optimise your replenishing system from a point where you make the purchase and the sale for the supplier you are purchasing from, then you go through the entire process once and it is optimised. Therefore, what you can also do, is you can start to see at which point your rate of replenishing - at what times you are trigger to replenish on the lead time that you can get that replenish back into the purchase and get it shipped before you actually sell out.

Further reading:


Is Amazon FBA (eCommerce) Success Possible Part Time?

7 Things Successful Amazon Sellers Do


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