In this post I’m going to introduce you to SourceMogul, a powerful browser based software tool that enables subscribers to run an online arbitrage business as an Amazon Seller using the FBA process.
That’s quite a mouthful, so let’s break it down into plain English and then I’ll describe several very good reasons why I think you should subscribe to SourceMogul.
What is Online Arbitrage?
First of all, what do we mean by online arbitrage?
In simple terms this is the process whereby goods are bought at their retail price from one retailer and then re-sold at another at a higher price, in this example, on Amazon (either in the USA or the UK).
This is made possible by the fact that some retailers want to shift stock to make way for other new stock, so they discount the price on the existing stock to sell it more quickly. If you can find this stock in time, buy some or all of the surplus, and ship it to Amazon as your own stock, you can sell it at the higher price and pocket the difference.
Is it legal? Is it ethical?
Yes, and yes. It’s perfectly legal and entirely ethical.
Look at this way; twenty years ago I opened an account with Amazon. 20 years is a lifetime ago in internet terms, but like many millions of others I started shopping online with Amazon because the prices were usually low.
Naturally, over the years the prices have changed, some are still bargains while others are higher than elsewhere, but I’ve grown used to the convenience. I know that if I need something for the house or garden it can be on the doorstep within 24 hours.
For me, the convenience, the reliablity of delivery times, and the no-quibble returns is more important than finding the same item elsewhere for $5 less. Time is more important to me so I don’t want to spend 30 minutes browsing and comparing prices.
The same is true for millions of other consumers and that’s one of the reasons why Amazon is so successful. People are willing to pay extra for the reliablity, convenience, and to save time.
This situation produces an opportunity for people like you and me.
What is SourceMogul?
SourceMogul is a browser based software that collects data that Amazon freely provides about its best sellers in each category.
It also searches other online retailers for those same products, and then it compares the prices and other details. When it’s found some matches it presents them to you in your dashboard, along with lots of statistics about prices, sales volumes, and trends.
All you have to do then is to analyse the results and pick those you think will sell for the most profit. Once you’ve selected a few product lines you can then buy them from the retailers who still have stock.
The goods are then delivered to you just like any other online shopping purchase. You then ship the unopened goods to Amazon where they become part of your inventory. All being well the goods will sell and Amazon deposits the funds into your account.
What is Amazon FBA?
This is what is meant by FBA – fulfilled by Amazon. You send them the goods and they take care of all the storage, marketing, transactions, delivery, and processing returns.
From time to time they’ll deduct some fees for this fulfilment process but as long as you buy and sell correctly you’ll make a profit.
SourceMogul will search hundreds of stores in the US or UK, finding products that match your chosen Amazon category. Once set up it will continue to work for you in the background and then present you with the results. You can cherry pick items and add them to a wishlist for deeper analysis. Once your satisfied with the products and the profit percentages you can arrange to purchase the stock.
Low Risk and Scalable
The great advantages of this model is that it’s both low risk and scalable. You can start small with an initial budget of a couple of hundred dollars and reinvest your profits to scale up. You can do as little or as much as you want each week, and even take a break for a while but I think once you get started you’ll want to keep going.
SourceMogul‘s documentation and YouTube videos contain all the instruction you need and together they explain all the fine detail of the data that’s presented in your dashboard. There is also a Facebook user group that contains additonal files with instructions and tips.
For example, one document explains all the ways you can maximise your profits by buying your stock using promo codes and cashback deals, or how to at least gain from the purchase by collecting retailer loyalty points or air miles on your credit card.
I first came across this software three years ago, under its former incarnation when it was known as Profit Sourcery.
X4 Software, the company behind it, won the 2016 Wales Startup Award and have continued to develop the sofware so the product you see today has matured and become hyper efficient for the task for which it is designed.
Getting started with SourceMogul
To get started I recommend you follow these three steps.
- Open an Amazon Pro Seller account.
- Read the SourceMogul guides on their website and watch their videos on their YouTube channel.
- Register for your 7 day free trial and start trading.
Once you see those first sales registered in your Amazon dashboard you’ll be hooked, but in nice way. Each day brings fresh opportunities and you’ll soon get into the habit of running new searches or analysing those you’ve already completed. There’s pleny of help from the SourceMogul team and there’s interaction with other users in the SourceMogul Facebook group.
From time to time I’ll publish new posts here, reporting on progress.
If you’re already using SourceMogul or if you’ve got any questions, feel free to comment below.