There we were: all set to become an Amazon reseller company. We would buy products from a site like Aliexpress, and then sell it on Amazon for a sizeable markup. Great deal, right? We could even give out special offers for our products and get people to buy from our company. Risk-free, right?
Well, no. The Aliexpress supplier disappeared overnight, and we ended up having to buy the products from a domestic distributor at a sizeable loss. We lived to fight another day, but we learned very quickly that Amazon reselling wasn’t for us. The next stop? The one that made us millionaires over the past two years? Shopify.
Opening an Online Store With Shopify:
Making money from retail arbitrage has made many people interested in opening an online store. Amazon and eBay are two of the most popular online selling platforms. What are people selling? Everything from novelty t-shirts to handmade jewellery to electronics like the most popular earbuds. However, both of those sites are challenging for sellers (countless rules to follow, high fees and unfair penalties). There is another selling platform available. Building an online store with Shopify is a viable alternative to Amazon and eBay.
Amazon and eBay sellers often must deal with unexpected hassles. Some of the biggest hassles have to do with staying compliant with lots of rules (both existing and new). For example, Amazon regularly updates its policies, so sellers are often taken by surprise when they get hit with a violation. Some sellers on Amazon complain about having their accounts suspended after several years of being in good standing. This is because Amazon’s policy is to suspend seller accounts that are under investigations for potential policy violations. Merchants on eBay also complain about strict selling guidelines that change often. A familiar complaint from eBay merchants is that the company will always take the side of the buyer over the seller. This has made some sellers feel like they can get taken advantage of by dishonest buyers. Therefore, people interested in opening an online store need to consider Shopify, so they can avoid the confusing rules on other platforms.
Shopify merchants have greater control over their online stores. This is because Shopify is selling you an online store. Merchants on Amazon and eBay don’t actually own their own stores so they have less freedom. However, if you buy your own store from Shopify, you have greater freedom to do whatever you want (within reason). You never have to worry about getting penalized for violating some obscure policy or worse yet, having your selling privileges suspended, because you own your store.
Merchant fees on Amazon and eBay can add up to a lot. This takes a big bite out of your profit. The seller fees on eBay are fairly standard; however, Amazon’s fees are more complicated. Depending on your account type, commissions vary widely. The commissions also vary with different product categories. Shopify store owners pay a monthly fee based on their membership plan and a smaller sales commission. Depending on your sales volume, you could save money with a Shopify store.
Amazon places selling restrictions on a lot of product categories. Many people don’t realize how many categories are unavailable to individual sellers. This is because certain brands have exclusive contracts with Amazon that bar their products from being sold by third parties. There are certain restricted brands on eBay as well. Luckily, with a Shopify store, you can sell anything you want (as long as it’s legal to sell). This means that when you are looking for inventory, you don’t have to worry about certain products being banned.
Shopify offers an innovative seller platform. You can choose from several store designs. Each store can then be customized. Also, the Shopify mobile app lets you check your store activity from your smartphone. There are SEO tools available to promote your store as well.
In short, if you are interested in retail arbitrage and thinking about opening an online store, consider using Shopify. Current Amazon and eBay sellers might want to consider Shopify as well. One of the challenges of selling on Amazon or eBay is the fact that you don’t actually own your store. This means that you must follow their rules. If you break a rule, expect a penalty or even an account suspension. Also, Shopify charges lower sales commissions (because you pay a monthly premium), so it might be more cost-effective, leaving you more profit. Finally, you can sell whatever you want without having to worry about certain products being restricted.