This post is not for fast turn people. If you are one, stop reading now.
Ok, if you are still reading, then I will assume that you understand how real businesses are ran and see a bigger picture than the quick nickel that so many gurus are preaching. With that said, I will show you a plan that can give up 2x, 3x, 4x, 10x that amount of capital to use during Q4.
One of the things it will require is that you do have capital that you can’t put to work during the next 3-4 months. Some will argue that they can turn the capital several times in the next few months and get the same result. Well yes that is totally true….. BUT that requires work and risk and I am lazy. I want to make as much money with as little work as possible. I don’t mind waiting a few months on 200%-500% returns.
Basic Book Arbitrage
I am focusing on textbook arbitrage. That is a special form of book arbitrage. Basically there are a few times each year when you can sell textbooks a crazy high profits. Basically the start of each semester and a few weeks after. Students need books fast for a number of reasons and the Prime prices can be 2, 3, 10 times higher than the Merchant Fulfilled (MF). This happens at a predictable pattern every year.
Also the same textbooks prices and sales ranks totally tank during the rest of the year ( there are random sales, but we are talking in general)
These times ( the rest of the year) is the best time to acquire stock. Even better is the fact that there is a flood of used books hitting the market at the end of the semesters, with summer being the best because most students aren’t in school during the summer sessions.
Starting around the first of May until about the middle of August is the best time to load up on textbooks. Buy them a deep discounts and then sell them at a premium in late August/early September, then start to buy your Q4 products.
Choosing What Textbooks To Buy
There are a few things to look for with textbooks.
First, you have to be able to read the charts and have faith that they will repeat.
Second you have to understand that Prime textbooks sell for a look more than MF textbooks because students need the textbooks fast.
Third, that you can buy penny books and sell them for $30-$50 when they are in demand ( even when there are penny books listed against yours)
Fourth, you can buy books from college students that need quick cash. ( I have a Gumroad course on how to do this, so I won’t be giving away my tricks on this.
Doing AZ to AZ Textbook Flips
I want to show an example of a flip I did in Dec/Jan.
I purchased 12 of these textbooks that were fulfilled via FBA for an average price of $6.67. I ordered over the $35 free shipping price point on my buying account ( free shipping is higher now). I basically bought all the FBA copies under $25. There were several $.01 offers on the listing but I wasn’t worried about them. They weren’t going to be my competition when the students started buying books at the start of the Spring semester.
I received the books, slapped my tag on them and sent them right back into AZ.
The students got back to campus and started order their books. I sold all my copies for just a little over $10 profit on my $6.67 investment.
That is a pretty good return on an AZ to AZ flip ( my other textbook deal from students were at much higher returns)
The whole business model to see what the charts say the textbooks will sell for during the peak sales times and then buy them from other sellers that don’t understand the power of Prime.
If you can find textbook listings that have no or very high priced Prime sellers on them with penny book sellers, you can start to buy up the stock from the penny sellers ( it will be $4 a book from them at the $.01 price)
If you see that you can sell the textbook for $20+, you just need to order the penny book from the MF seller and send it to AZ FBA.
Gift Card Exchange
Here is another way to put money to work with basically no risk. Amazon has a textbook buyback program ( just Google it) and you can basically trade in your textbooks for a gift card.
It is probably easier to understand if you just watch the video because I actually show examples of how to do it. There is also a Chrome Extension that helps you do it.
Instead of trying to flip inventory over and over all summer at 20%-50% returns, you could source textbooks at deep discounts all summer long ( and don’t forget about the peak time to buy from students starting in the first May) and then cash out when the students go back to school in the fall.
Take those profits ( and the free time you had all summer to do research) and invest the profits in Q4 products.
Trust me, the money ( profits) still spend the same, no matter how hard or how little of work you do to make it.