Welcome to the first instalment in my ‘Make Money Online’ series.
Product flipping is something I have been doing for about two weeks now. And man, is it powerful!
So, what is it, you ask?
What is ‘Flipping’
Flipping, or retail arbitrage is exactly as it sounds.
You’ve heard of people who flip houses, right?
This is the same thing but with every day products that you or I would buy.
These items could be anything, from toys to garden furniture, tools to baby products. Your job is to find an in demand product, source it for the lowest price possible, and then flip it for a profit.
And one of the best parts of product flipping…
Because much of what you source is from stores and retailers, if you don’t manage to sell in 30 days, you can simply return the item for a full refund!
So there’s literally no risk with some of these items.
Some people I have met in the Products for Profit group do this full-time! And they make an absolute killing!
However, flipping is just as viable as a side-hustle, too!
And that’s exactly what it is for me.
I have a wife, a 1-year-old daughter, my own, growing online business and a 9-5, and I have found time on the side to flip a few products per week for an ROI that I’m still struggling to believe is real!
How am I managing to do this?
Namely, Products for Profit (PFP). Created by Joe Hart (@CoachJoeHart).
Products for Profit takes all the hard work out of it for me.
I highly recommend you do this, too if flipping sounds like something you’d like to explore.
These groups are run by people with vast experienced in the retail arbitrage world, who spend hours scouring through the depths of the internet to find in-demand products at bargain prices and find the most profitable outlet to sell them through, normally Amazon, Ebay or Facebook Market Place.
They literally tell you:
- What to buy ✅
- Where to buy it from ✅
- Where to list it, and ✅
- How much to list it for ✅
Your only job is to buy the product, sell it according to their advice and count your profits!
Now, of course, these people don’t work for free! Nor should they!
I pay a monthly membership of $99 (£73-ish/month) for access to the PFP group, for which there is a dedicated group of UK-based experts to guide you and do all of the research work for you.
Of course, I can cancel this membership at any time, too. Should I absolutely need to.
How long will it take to make your money back?
For a lot of people, £75/month might seem like a big up-front commitment.
I felt this way, too. Until I decided that I could either save myself £75 and do nothing, or spend £75 and make potentially £100’s in extra income every month…
I quickly worked out the better option. And I wasn’t disappointed.
So, the question you probably really want to know is, how long will it take to make that upfront cost back?
Answer: Not as long as you might think!
To give you some idea of how long it will take, here’s what I made in one morning, and how I did it:
- Cost: £228
- Sold for: £300
- ROI = 31%
Comments: I didn’t even need to leave the house for this one. I ordered the item online, listed it the same day on Facebook Marketplace, sold it the same day and had the customer come collect from my door 🤷♂️. Easy money.
- Cost: £11.99 each (2 of)
- Sold for: £30 each
- ROI = 810% 🤯
Comments: I ordered this item through Argos and used a cashback website which gave me 10% cashback & a sign-up bonus of £15, totalling £17.39 cashback!
That means I only really paid £6.59 for the items, hence the HUGE ROI!
- Cost: £4.99 each (2 of)
- Sold for: £20 each
- ROI = 300%
Total day’s profit = £155.43
And, because I dropped these locally, I spent nothing on shipping AND picked up 2 more hot items at a store on the way home which were posted in the group whilst I was out.
So I made back twice what I spent on my membership in one morning…
That means the profit from the other 30 days of this month is alllll mine 🤗
It’s not just about selling stuff locally, or on Ebay.
Many of the group source profitable items which they sell on Amazon, via their FBA (Fulfilled by Amazon) service.
This is where amazon essentially uses you as a supplier. You pack up your sourced items and Amazon then collects them from your house, stores, picks, packs, ships them to customers, and manages returns and customer service for you.
Within the group I am in, there are webinars that teach you how to do this from both the USA and UK.
They take you through how to get set up and all the do’s and do not’s!
There’s also around-the-clock support in the group chat where the admins and anyone else with the answers will help you with your issues.
I’m only 2 weeks in and I’m sitting on a few thousand pounds worth of inventory which should turn me a profit over well over £2,000 when all is sold.
Of course, not everyone has the available capital to go in like I have, and that’s fine. You can easily get on on the items like those I mentioned in my case study.
Items you buy for £5 each which sell for £20!
You then build up your cash flow, reinvesting your profits into more valuable items, until you’ve built a stock of goods turning over regular profit of £1000’s each month.
Its that simple.
My ROI So Far…
This is a snapshot of my tracker showing you total costs of my items (including shipping, platform fee’s for ebay/amazon, my profit/loss and ROI.
Average ROI: 164%.
Profit (2 weeks): £203
But, I have a large amount of inventory that is listed (on ebay waiting to be sold) and £100’s more not yet listed whilst I wait for my amazon FBA set-up to complete so I can send in my first shipment.
This, without doubt, a viable, quick-to-start, relatively straight-forwar method of making quite a lot of money from your phone.
Here’s a summary of my Pro’s and Con’s of flipping in general:
- Fast! – Fast to get started, fast to make money. Almost instant results!
- Simple – You’re buying from one place and selling somewhere else. It’s certainly not rocket science.
- VERY profitable – The ROI potential for many of these items is amazing. If you follow my blog, you’ll know I invest in the stock market. If I’m lucky, I’ll get a 100%+ return over the course of a few months, normally longer though. With flipping, I can achieve that in less than a day.
- Scalable – Like I mentioned, some in the PFP group do this full-time. The more time you put in, the more money you can make.
- Can feel a bit daunting – For a beginner, buying £100’s of stock can seem really scary. But it doesn’t have to be. You can mitigate your risks by starting small, and increasing your stock value as your confidence increases. You can also stick to the items that are purchased from stores to take advantage of your 30-day returns. Do this, and there’s no risk to your capital.
- Reseller group lingo – The groups can be busy! And are full of experienced resellers using acronyms and nicknames for certain things you won’t understand at first. Just ask! Remember, they’re there to help. You’re paying for a support network, so use it. After a few days, you’ll learn to see through all the noise & chat and get more confident asking questions.
- Under-cutters – This is where other resellers think they’re being smart by dropping their prices to get a quick profit. I’ve noticed this tends to be the beginners. What these people don’t realise, is by keeping your prices consistent with other resellers, everyone makes more profit and it benefits the whole community. Driving prices lower doesn’t help anyone.
I’ve just started on this journey and plan to stick at it as a side-hustle to help my wife and I increase our savings rate.
Long-term, we plan to save £10K to start our own Amazon business. Something we were inspired to do by one of the many Webinars available to us in the PFP App.
I will aim to write a monthly update on our flipping adventures to help inspire others to take their earning potential into their own hands and build something greater for themselves.
So, make sure you subscribe below to get notified when these updates go live!
If you’d like to try out PFP, click the image below and sign up. It’s a monthly subscription and you can cancel anytime if it doesn’t work out for you.
My advice – If you do what the moderators of the group tell you to do, you will make money.
If you’re unsure, reach out to me on twitter and I’ll be happy to answer any questions about the group. Use the social links at the top of this page to get in touch.
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Disclosure: I sometimes recommend products in my posts which I have personally used and have benefited me. If you follow these links and make a purchase, I will make a small commission at no extra cost to you.