Hope you’re all doing well! I’m looking for some advice and suggestions from the community.
I’ve had an Amazon UK account since 2021, and I’m not VAT registered. I used to focus on wholesale and handled all the product and brand research myself. But with VAT and rising FBA fees, continuing with wholesale has become nearly impossible.
Now, I’m planning to shift to online arbitrage and wanted to know if there are any risks I should be aware of with Amazon for making this change. Also, if anyone here is working with a great VA, I’d appreciate any recommendations.
Online arbitrage is strictly forbidden. It’s not recommended by Amazon and is currently under Amazon’s scrutiny. I would suggest you consider the private label business model in the UK market, as it’s a safer, long-lasting, and sustainable business model with high profit margins, even with VAT charges included.
Can you share your experience regarding why online arbitrage may not be successful? Many say that it works well if done correctly, and I’ve seen several people follow the right rules without issues. However, if you share your experience, everyone will understand the challenges better.
There’s no difference between OA and wholesale when it comes to protection from IP issues. Buying from wholesalers doesn’t shield you from those risks. The fact that you’re not finding profitable products from wholesalers has nothing to do with the business model itself, as thousands of people in the UK are succeeding with wholesale. You just need to find better wholesalers, better products, and better prices. Don’t give up! When it comes to OA, make sure you’re buying from retailers who can provide proper invoices or solid order confirmations.
I completely understand what you’re saying, sir, but the issue is that it’s hard to find brands and profitable products nowadays. And if I do find a product, competitors are offering it at such low prices that even when I get the product directly from the brand, I end up with negative profits. If you could suggest a way forward or recommend a good VA who can source both OA and WS products, it would be really helpful.
I took some good advice a few months ago and dipped my hands into OA. I was initially reluctant and concerned about account health because of some of the nonsense I read online, but this rubbish came from so-called gurus who aren’t legitimate sellers. The best margins I’ve seen are in OA. It may not be replenishable, but there’s a lot of potential. Buy a leads list and subscribe for a month or longer; this will give you an idea of retailers. You might think you know the retailers, but there are so many lesser-known ones you probably haven’t heard of, and this will give you a kickstart into the world of OA. There’s no shortcut in this business—you really have to dig deep and invest a lot of time to learn and source the right deals.
Amazon arbitrage can be a good model if you work with proper invoices and ensure your account has pure US/UK details. If your account isn’t set up correctly or lacks proper invoices, it can be risky, leading to potential suspensions. It’s better to start online arbitrage with the right precautions. And nowadays it’s running smoothly in Australia and UAE market so it’s advisable to start in these marketplaces.
Let me know what is your budget plan? Do you have presence on any other eCommerce platforms?
Who said it’s easy? Nothing is easy. Focusing on the VA is the wrong approach. You’re supposed to know exactly what to do, and the VA will just follow your lead. But if you don’t know how to find suppliers, brands, or products, then don’t rely on the VA. Anyway, feel free to start with OA and see how it works.