A 24-year-old man has revealed the inside scoop on how he made $300,000 on Amazon through arbitrage (the practice of buying and selling products in different markets to make a profit).
Kade Peterson makes hundreds of thousands of dollars by arbitrage and selling merchandise online from stores like Walmart and Target.
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Started selling products on Amazon under the influence of his 26-year-old brother.
“Growing up, Trevor was my role model,” Cade told Business Insider.
“I always wanted to do what he did, the sports he played, the clothes he wore, and the music he listened to.”
Trevor’s success in purchasing products from a Chinese multinational technology supplier called Alibaba and shipping them to Amazon’s warehouse sparked interest in Kade.
However, Kade did not follow in his brother’s exact footsteps, instead attempting a retail arbitrage where he bought discounted merchandise at retail stores and resold it online.
Through the arbitrage process, Kade admitted he was able to sell well-known products instead of creating new items and expecting people to buy them.
When Kade started, he used the Amazon Seller app to go to overstock stores and see what items were selling on Amazon.
For example, a makeup bronzer purchased for $2 in the store was priced up to $24 on Amazon.
Within months, Kade said she had sold a total of 606 bronzers.
And for those looking to start Cayde’s side hustle, the 24-year-old making money offers some tips for beginners.
Here are Kade’s four tips for getting rich in 2023.
- Use an Amazon metric known as Amazon Best Seller Rank (BSR)
- Use Keepa, Amazon’s research and price tracking platform
- Determining whether you have a sales license before purchasing
- Never buy a product with less than 50% return on investment
According to Kade, seller rank helps arbitrageurs determine a product’s popularity based on how well it sells.
Keepa allows merchants to understand historical data on the sales rank of their products.
“There are two ways to do that,” Kade explains. “You can get a written memo from the brand giving them permission to sell their product, but this is a difficult process.
“The easier way is to buy the product from a distributor, get an invoice from the distributor, send the invoice to Amazon, and say, ‘Hey, we have a genuine product.’”
These key arbitrage rules ultimately resulted in Kade making a profit of over $3,000 by June 2021.
However, his success did not come easily.
Kade has taught himself the importance of not buying things you don’t need.
He explained: Say $20. ”
Through Kade’s hard work and dedication to arbitrage (what he calls “low risk”), he has reportedly made more than $309,000 in revenue on Amazon.
He makes a profit by selling products purchased from non-Alibaba manufacturers and having the manufacturers ship them to Amazon’s warehouses.
Kade, on the other hand, advises anyone using arbitrage to be aware of the shipping costs, Amazon fulfillment fees, and storage fees that come with side jobs.
