This post is strictly for those who are still learning the arbitrage game.
Do yourself a favor; go wide but dont go too deep on items.
Some may disagree but in my experience it it is risk that never pays out to its full potential.
Meaning, if you go too deep, quite often you may find yourself fighting to sell those last two or three just to break even on.
You know, those two or three extras you were contemplating for 10 mins about getting and did?!
Even if its your own listing you create sometimes people jump on before yours even hit the warehouse.
Just a little info for those interested.
If anyone disagrees its fine, but dont post a disagreement to this post please.
With understanding of your point in mind, there are always exceptions.
In the end, and say what you will, i cannot see arbitrage as anything other than a stepping stone, as you yourself just pointed out with respect to your own goals.
But to be sure, whether or not your business is the excpetion to the rule is based on the starting point.
How much investment capital do you have?
How quickly do you need to turn it?
Can you reinvest all of your profits or do you need to pay some bills with it?
One might consider these things before listening to either one of us.
I’ve been doing this for a few weeks and am still figuring out my niche. I’ve bought a little from every category, and if something sells, I go buy more of it. The only thing I’ve gone deep on have been certain styles of shoes, but that’s only because I was an apparel manager for 7 years and have done eBay for 10. I have some background knowledge of what will/won’t sell. But when it comes to electronics? I don’t know much, so I go very “shallow” lol!
Every situation is different. One time I bought over a thousand dollars in ONE product that was being discontinued at $4 each on 75% off clearance. Of course the market got stuarated and I waited it out and over the next few years I sold them for $25 each. Pretty good roi but just had to be be patient. It’s a game. You have to be patient and willing to do trial and error. But there is not black and white set rule in stone for this game. Going deep may mean you have to be patient and wait out the dips in the market. Going wide means you have more work finding a wide variety of product, more listing, different kinds of prep and so on. I wouldn’t just say one is better than the other. It’s just about finding out what works for the individual.
Well, being that you are posting in a public discussion forum, I’d say it’s a bit unfair to tell people not to post opposing views.
I’ve done the arbitrage game, I don’t anymore because I grew out of it. Could not grow the business at the speed I wanted to just doing arbitrage.
When I did do it, I did go deep on product. And that’s still the practice I employ today….only now instead of buying 10-50 products, I’m buying 500-5000. It worked and continues to work well for us. We were and are disciplined enough not to gamble on risky product.
So while I’d agree that different people have success with different models, saying one way or the other is the correct way is in fact not correct…IMO
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