Why I Quit Retail Arbitrage - Is Amazon FBA Retail Arbitrage Dying? HD

In this video I explain why I quit retail arbitrage and answer the question: Is Amazon FBA retail arbitrage dying? Free ebook reveals how to make 10k/month with dropshipping: http://wholesaleted.com/4-step Retail arbitrage is a form of product sourcing. Instead of sourcing products from suppliers, you instead source products direct from retail stores - usually popular branded products at discounted prices. Amazon FBA retail arbitrage is very popular, because brand new items sell well on Amazon and the Fulfillment By Amazon (FBA) program makes it very easy to fulfill orders, letting you focus just on sourcing. This sounds good in theory, but unfortunately, Amazon FBA retail arbitrage has an uncertain, shaky future - which is partially why I quit retail arbitrage), that puts it at risk of dying out and being banned on Amazon in the future. Here are two reasons why: Reason #1: Brands are restricting their products on Amazon FBA and this is only going to get worse. More and more, big brands are reaching out to Amazon and are restricting third party sellers from selling their items, or are severely restricting which third party sellers can sell their items. For example, if you want to sell Fitbits on Amazon you need to be an authorized reseller. This puts you at a big risk: If Amazon restricts a brand and you have a bunch of items you’ve sourced for that brand, you can’t sell them on Amazon.com and will have to find some other way of selling them. Big brands are only going to keep doing this because restricting sales usually benefits them. It means they can better control distribution channels, plus it means they get to keep all of their sales on Amazon for themselves and retain the profits. This lack of certainty is part of why I quit retail arbitrage. It is also why some people wonder if Amazon FBA retail arbitrage is dying. Reason #2: When you buy a product at a store, the warranty is no longer valid. When you buy an item brand new from a retail store, it is technically no longer new anymore, because the warranty has started. Obviously for some items that isn’t a problem. If you’re selling tea bags, then the warranty is not relevant because it doesn’t have one. But if you’re selling an electronic item, like again a FitBit, then the warranty is extremely relevant. When you sell the customer the item you picked up in a store it is technically not new because the warranty is USED. Over time, this is going to become a problem for Amazon. A lot of customers don’t understand that their warranties are used, and as they realize, it is going to cause more and more customer service headaches for Amazon and they are going to take action. Retail arbitrage can cause headaches like this, which is partially why I quit retail arbitrage. It’s also another reason why people wonder if Amazon FBA retail arbitrage is dying. So, that begs the question… Is Amazon FBA retail arbitrage dying? And the answer is NO. It isn’t dying. But it is goi