Successful Amazon FBA online arbitrage requires transitioning from retail arbitrage to online arbitrage, implementing proper Keepa chart analysis to avoid bad buys, going wide on product selection to build a catalog ecosystem, and eventually hiring a virtual assistant to handle sourcing and admin tasks, which enables scaling from losing money to generating $15K+ monthly profit while working only 3 hours daily.
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How He Sells $98,942 a Month With Online Arbitrage So You Can Just Copy Him | Amazon FBAAdded:
So yesterday I had one of my students on our group call and he pretty much ran us through his very first year selling products on Amazon. And the reason I want to make this video is because I want to give full transparency on what that first year looked like. So if you are new or you are in the trenches in these steps, you can kind of see what it took to get through that step and inevitably come out on top. Now spoiler alert, this guy now does over $100,000 a month in revenue. He does about 15 to 16K profit from the business and he works about three hours a day on it. So, we're going to go through all the systems he's implemented, everything from the beginning of when he was struggling to what it looks like today.
And I made one of these videos about a year ago from my journey where I pretty much documented that whole thing. Now, this is going to be a much more upto-date type video because when I started, it's about four years ago. This was within about the last year and a half. So, it's much more today's struggles, you know, struggles that you'll run into today and you can kind of see exactly how he got through it and inevitably what led him to the business today. All right? It's going to be super raw, unedited, straight to the point, and trying to give you guys as much value as I possibly can inside of this video. Okay? If you guys have any questions on these specifically, my Instagram is linked below. Shoot me over a DM on there. I'm very responsive. And let's dig into this road map. So, everything started here in the month of August 2024. Okay, this is when um he ended up stumbling across retail arbitrage videos. I'm sure everyone has seen them. How to make $1,000 an hour from TJ Maxx, Marshalls, etc. Now, obviously, this is very does not just like this isn't real, right? People clickbait these. No one's actually going in making $1,000. Maybe like once in a while you find like a really good product that you can clear out, sure.
But on average, it's not like you just spend an hour, you make a,000 bucks.
Obviously, he knew that realistic expectations going in, but nonetheless, he was able to find his very first win by doing this and finding an RA product that was able to give him some kind of profit. Okay. He found one product that he touched on, and this is big for new sellers, that was a break even product, but it allowed him to start building some sales on his store and seeing more ungate. So, if you're not familiar, ungating has really changed. We've made a lot of videos on this on the channel.
Um, but ungating now is all about getting sales. So, he literally would just rinse this product. It was it was a break even, and just send a bunch of units in, build sales, and he started to notice more ungating happen early in that September mark. Okay. So, um, while he wasn't really making much money, he's losing money, he was able to build some sales and he did have one winning product that he found that kept his journey alive because this was that one profitable, uh, beauty product that worked for him. So, it kind of kept that going, some proof of concept. Um, but yeah, like a lot of it was still a loss because of this break even product that he was doing just to build some sales.
Okay, so this is important for you and good takeaway if you're new, you're in this phase, you got to build sales to get some auto approvals even if you break even. And you know, RA is a fine way to go out there and source. But just keep in mind, treat it as like something for a temporary win just to kind of give you that push that you need. Okay? Get your proof of concept, make some sales.
You're going to see that products on Amazon sell very fast and it's going to allow you to commit to the business a lot more. Proof of concept is super important when you're getting into this business because obviously it's easy to quit when you don't know if it works or not. This will show you that it does.
Okay, this fast forwards now to the month of October to November 2024. This is when he transitioned fully to online arbitrage during this time frame right here. And uh you know he was pretty transparent with the fact that he was losing money this whole entire time. So every month he was losing about $1,500 and it was because of his keepa analysis skills. He was guessing his buys. He was analyzing listings on a small time frame and any profitable as that he did find were just drained by bad buys. Okay. And the main takeaways he mentioned was he was just not treating it like a business. And to give you guys value here watching this video, you need to have a really good grasp of Keepa. Uh you need to be analyzing the charts not just on a small time frame, but on a large time frame. Like I'm talking looking at the last year at the bare minimum to see what happens when the offers go up. Okay? And really he's just guessing here, which a lot of people do in the beginning. They don't really know how to read them. They guess these buys.
And one thing you could do to practice is if anything, go backlog some products. So, go look at a listing and go back like six months ago and like zoom into that time frame and then just kind of look at and and kind of guess what would happen in the next month, right? If you see the offers are going up and then you zoom back out, you see that the offers tanked, well, now you know that you need to be careful when you're buying listings because if you're buying them with the offers going up, you know the listing is going to tank.
Okay? And I talk about this all the time. We have so many in-depth analysis videos on this page you guys can binge through to help you get really good with this. But analysis is big in the beginning. If you're not analyzing, you're making bad buys. you're losing money and it's like what are you doing the business for? Obviously, in the beginning, you know, when you're just doing this on your own, there's going to be some issues and you're going to lose some money like, you know, he did right here. Now, fast forward to January to 2025. This is when he stumbled across my YouTube channel and he kind of pivoted away from listening to everyone else, going deep on everything and just buying a bunch of units to actually um treating this more like a business and started to do a lot smaller buys. So, he was only spending about $4,500 at this point. Um, but he was spending that across so many different products. He was allocating about 50 200 bucks per item. So, I'm talking, you know, spending 4,500 bucks on like 50 to 70 different products.
Okay? This allowed him to go super super wide instead of deep, which a lot of people will do, and then they lose money like he was doing up here because he's just going way too deep on products he's not confident. And this allows him to test and get more data, but also sell through this this product so fast. So, he's getting this $4,500 back as fast as possible to keep reinvesting with the profits. Okay, smaller buys, super wide.
We stress this and he still does test buys to this day, even spending over $45,000 a month on product. Now, biggest thing here is he started treating it like a real business, right? It's not just a little side anymore. Another piece of advice for anyone on this section is you need to be going super wide on your product selection. Don't go deep on anything until you test it and you see truly it's making you money. Um, and again, this was his first real month here where he actually made profit and he had the proof of concept. So, right, let's let's rewind a little bit. He started in about August, lost money, did a little bit of sales to get proof of concept, but lost money overall. And it wasn't until January he actually started to make money. So, nearly 5 months later, he started to figure it out. And this is all him doing it completely on his own. His first real profit month was when he went wide after watching one of my videos where I discussed how important it was to go very wide. Okay?
Okay, so don't just take it from myself, take it from him. Again, he stressed this like crazy on the call yesterday was go wide on your product because this is what's going to allow you to get that proof of concept and profit and allow you to build out your catalog for later because this is going to compound as you guys are going to see here shortly. So, after getting this proof of concept and seeing profit just from watching my videos alone in April of 2025 is when he joined my coaching. Okay, he took a lot of value from the YouTube videos like I'm sure a lot of you do and he decided that the next step there to get to the next level was to join some one-on-one coaching. And this is when things really started to lock in for him. So first thing we did and first thing he did after that was instead of doing some reverse sourcing like you know a lot of people do which is what he was primarily doing. He understood that everyone did this. So there's a high chance of price tanking. So even though he was making sales and making some profit the margins weren't that great. What we did was we implemented some keep a product finder strategies. I have some on my YouTube page here as well. Uh not nearly as in-depth as what we do with with students. Again, a lot of these things I share a lot online, but when it comes to sourcing these low competition listings or the, you know, the listings that not everyone is seeing, obviously, if I share that publicly, keep in mind it is no longer going to work. So, I try and give you guys, you know, insights on how to think about using Keepa, and I do have some strategies on here that do work pretty well. But, as far as the listings that are going to give us the highest margin with, you know, lower competition, which again, the reason that the listings work is because they're low in competition. And if everyone's finding those listings, then they're no longer going to work. So, um, you know, those are things that I will never share online specifically when it comes to the methods. Um, but what we did essentially was we dug deep into keep a product finder. The reason why this works also is because it is a lot more confusing. So, if you've ever tried it, you know that it's very confusing.
But that's good because that means less people are doing it, which means there's more profit with less time sourcing. So he quite literally went from sourcing 5 to six hours a day with reverse sourcing to now doing about 2 to three hours a day doing the same amount of volume but actually even finding more in about half the time because the methods of Keepa allowed him to come across these listings quicker. So instead of reverse sourcing, you know, 100 leads a day or 200 leads and then finding like two in there that work, he can look through 50 leads and find, you know, a good 10 to 15 that work or that show potential to add to his catalog sheet that he can then buy later or buy today. But either way, it's a better use of his time.
Okay? So, better use of time for sourcing only high opportunity listings versus when you're doing reverse sourcing, you're literally just looking at random products other people sell, but that doesn't mean they're good products. That means that these listings could be saturated. They could be not rotating. They could have a suppressed buy box. Like, there's so many things that could go wrong here. So, if you're spending your time reverse sourcing only, it's fine. It's good to learn the market, but realize there's a better way. And Keepa is that better way because it allows us to only spend our time looking at high quality products which is going to drastically help your sourcing. So take away here is you want to start learning new methods of sourcing. You want to start using Keepa, get better with it, understand it. Um and then just spend a lot of time sourcing and getting really good at that skill. Okay. Now, another big thing that happened here during April was naturally as his sales climbed, ungating started to become easier and easier because auto approval started to roll in. And I want to kind of just show this. Um this is his post he posted in about about two weeks after joining the group. So you can kind of see how it exploded here really as he started to jump in. So he joined the group about two weeks ago.
New here already learned so much from everyone. Found Dave back on YouTube in January. Started seeing results immediately led me here again because of the the free game on YouTube. One big thing I want to highlight here is also I just want to add that I have not manually ungated a single brand except for the first item I ever sold on my account. If you're worried about ungating or the recent regates, don't be. you can get pretty far on auto approvals. Okay. And this holds true to this day as well. This was back last year about exactly almost a year ago when he joined. Um, yes. Right. No auto appro ungates required. This is when a lot of auto approvals rolled in, which is important for everyone to know. You sell a lot of units, you send in inventory to Amazon. As you build sales, more and more listings will be approved.
And this whole business gets so much easier when you have access to better products. Naturally, those listings that you find later are going to be better than the ones you find right now because they're listings that other people can't sell yet because they're still new. So, you kind of refrain from seeing a bunch of new sellers on your listings. And inevitably, you can make more money from that because less competition and less bad competition of bad new sellers that tank listings.
May through June 2025 is when he really started to scale. Okay, this is when he started to outgrow his current workspace. So this meant he was spending money consistently at this point, a lot more on repeat with the systems, consistent prep, a lot of work. So at this time he was living in an apartment.
He would move his boxes from the package room um in his truck to his apartment, mountains of boxes. And this ended up allowing him to move into a house for the sake of the business. So instead of going the warehouse route, I remember having this conversation with him, he decided to go the house route because he could live there, you know, so rent, but he also had a a garage that he could do all his prep out of versus having to carry everything over. So there's no right answer to this. You can go prep center, you can go uh warehouse, you can go get a bigger house and have more room for prep, whatever you really want to do. But this allowed him to have much more efficient workload. So this time that he was spending a lot in the beginning with you know sourcing that got cut down but then prepping was still a big portion having to carry everything to from the package room to the apartment down to the uh UPS that's really consolidated now and now he's spending half the time prepping because he's just he's made his workspace more efficient right so and again prep center versus prep uh yourself this is completely up to you what kind of products you sell how much time you have this is not the solution for everyone when you have a full-time job but if this is your full-time thing which it was for him. Um, you know, that's the decision that you can make for yourself.
July through August 2025 is really the compounding moment and this is when he said he had his like someone asked him the question of what was the most surprising thing as you scaled and his thing that he mentioned was the compounding of the business. This is when he started to really step out of the business and now it was an actual business form that just consistently cash flowed. So, uh, in the month of July he spent about 40k nearly doubling the sales of August. So you can see right here in July uh he did about you know 40 50-ishk. He spent that amount in revenue again and then he was able to produce 80k right because look revenue is just a byproduct of your spend. How much you spend is how much you're going to do in revenue. So he understood that now. He understood his product sold. So he just allocated more capital for inventory through business credit whatever means he had to do and he was able to grow his revenue which did grow his profit. Now again, August was a month he said that everything clicked when he like really scaled up his store here. He's like, "Okay, this is starting to work." But he wasn't necessarily relying on leads anymore that he was now sourcing. It wasn't just new leads. The first eight months, it was all new leads. Now that the business has compounded, he really highlighted on his tracked leads, his old leads, and then he was spending essentially zero time sourcing now because of the compounding effect, which is the thing he mentioned was the most surprising thing that he realized throughout this process. Okay.
Okay, so instead of having to go and find new leads, he would look at his catalog ecosystem. He would look at his keep a track product feature. He would look at uh the emails that were being triggered for it. He would look at any old leads he used to sell, right? And this is now allowing him to spend less time sourcing and just buying these products he sold before, but these are not only making it easier for him to spend money to produce the revenue and profit, but it is now allowing him to sell even better products because these listings are always going to be better than any new type of product you find.
Because old listings have gone through phases of saturation. Now they're not saturated. They're much better. They're more profitable. Less competition.
Whereas, when you find a new lead, you don't really know, right? People could have found it at the same time you did and then it gets saturated. So, you want to kind of avoid those if possible long term. Obviously, in the beginning, you can't, but long term, we just want to prioritize old listings as much as we possibly can. All right. Now, this takes us to September to October when everything really started to click. This is when he hired his first VA. He's paying his VA 600 bucks a month in pay.
And this was the last time he sourced for himself. Someone asked him how much he sourced a day. He says he hasn't sourced since October. So he literally it's been about six, seven months now about and he's not sourced for himself.
And this is because he relies solely on his repans. And I'm going to go through his daily schedule now towards the end.
He sources all his replans. He tracks all his old leads. So he's buying these and then he only looks at the VA leads when he's needed, right? So like when he can't hit his spend here or here. So this should right here should be enough to cover the spend for the week. But if you can't hit it, then that next layer is hitting this VA spend right here, the VA list. Now the VA sources, but the VA also does admin work. Okay? So it's not just a sourcing VA. The VA does source ad products to his catalog sheet that can be tracked. Um you can name it an old tracked leads or whatever you want to call it. It's just a bunch of collection of leads that um at one point in time were good. If they're not good today, then they will be again later. So we pay attention to them for later. Um, so they feed this, but they also do a lot of the admin work for him. And this is when he really stepped out as the, you know, the runner of the business to, hey, I have someone that I pay 600 bucks a month for. And they pretty much run 60% of my business and I can buy back my time and do different things. I can enjoy my day. I can start a new business. Whatever you really want to do. And he actually told me he's starting a new business right now while this thing runs. He's letting this thing run and cash flow him. And he has the time to go out there and start a new business, which is awesome, right?
That's obviously what any business owner wants to do is keep building businesses and just growing their cash flow. Now, what does it look like today for him?
Today, he spends about 3 hours a day of work. This is what he said for transparency. He does about 100K a month in revenue. He nets about 15%, which means he's profiting about 15K a month.
Now, this is after subscriptions. This is after, you know, uh, shipping to Amazon, Amazon fees, after paying his VA. Okay, so this is how much he's actually taking home at the end of the day, which is really healthy margins with this much overhead considering he's literally outsourced majority of his work at this point, minus like his prep that he does um and minus like the buying that he still does. Okay, so at this scale, that's a lot of cash flow essentially. Think about it like this.
This this is better versus looking at just the revenue number. He's essentially able to spend $45,000 a month. So he spends about 45k a month and he turns that 45k into about 60k.
Okay. So then he takes this 15k, pays himself to the bank and he takes that 45k and repeats that process to make about 60k again from that 40k pays himself and this is where that cash flow is coming from. He's no longer reinvesting profits. He's paying himself. And I made videos on this as well, right? You don't pay yourself until you get to that point where you're happy with your margins and your revenue and you're like, "Hey, this is good. I can maintain this." you know, it takes me three hours a day. I can spend 45k a month. I can do the prep. This is a good work life balance that I have with what I want to do with life and I can just pay myself now. And you kind of keep that. Sure, if he wants to scale to the next level, he can, but he's going to have to allocate more time, more resources, more money for another VA most likely. And that's not what everyone wants to do, okay? It's completely up to you what you want to do. If you want to hover around this price range or if you want to scale up or if you want to scale down depending on how much time you have for it. And that's the thing with Amazon. you are not forced to do anything. It is all dependent on how much you want to spend a day and you find the happy balance and you continue to do that month over month. Okay. So his daily routine at this point is essentially in the morning he does admin work to start the day.
This consists of repricing and uploading the docs to his VA so he can get the reimbursements he's needed. Very important when you're scaling up to get your reimbursements. He preps about one hour a day on average. And his sourcing time is not really meant for sourcing.
It's meant for purchasing. So I shouldn't name this purchasing. Uh Monday through Wednesday he's looking through his replans. That's what he's spending money on. Wednesday through Friday he's looking through his keepo alerts, anything tracked um and anything that his VA sent him if he needs to spend some more money. And then weekends he said he spends catching up on spend if needed. And it's usually sk scraping through anything that may have slipped, you know, through his old catalog or anything else like that. All right, but that is what his daily routine looks like now. Now, if we look at the what's actually changed from the beginning, the only thing that's really changed is a couple things. So, he went from working 5 to six hours a day to losing $1,500 a month to now working two to three hours a day and profiting 15K a month. The only thing that changed was number one implementing a much better sourcing method with Keep a Product Finder versus what he was doing before right here to lose money. He understands much better how to read charts. He's not forcing bad buys anymore because he has a big catalog of products. If you have endless products to choose to buy, you're not going to buy the bad ones. You're only going to buy the good ones. But if you have no products to buy, you're going to panic and just buy whatever because that's all you really have and that's what leads to bad margins. He went really wide in his catalog early on to test. So again, I stress this, testing leads, very important. He really protect his account health for longevity. He said he doesn't buy from anywhere but big retailers, the brand's website or big retailers. No random wholesaler, no random sketchy website that's from overseas. No random website that doesn't have a physical presence. Literally, he said he prioritizes big retailers like your Home Depot, like your Lowe's, like just big retailers that are easily verifiable. Okay? And he's had lots of IPs in the past. Actually, he mentioned he's only had two, which is actually crazy doing this kind of scale because he protects his account. But even with those two IP complaints, he beat them with a Walmart order confirmation. Okay.
So, we have SOPs inside of that as well that he actually was able to make for us. Um, that helps with beating IP complaints first try with order confirmation. So again, when you buy from legit sources, you don't have to worry about you losing your account. The people that lose their account are doing something they shouldn't be doing and they're not being transparent. If they lose your account randomly, it's because you sold on a listing you shouldn't have because the brand was there or one of their massive sellers or you bought it from a place that you shouldn't have bought it from. The other thing that was huge here was systemizing his business and by building out his catalog ecosystem and tracking his leads. Again, this is why he's able to go wide and he's able to not force buys and he reads charts properly because he has a lot of products to buy. And lastly, was training his VA to run his system for him. So, he didn't go out there and hire a VA the first month. He's not losing 15K a month and hiring a VA. No, he's making 6K, 7K, 8K profit. And then he hires the virtual assistant to now step in. He can train the sourcing method to them and then he can also train them how to do the reimbursements and pretty much do the admin stuff for his business. So, I hope you guys take some value from this. I just wanted to be transparent here and run you through what this process looks like and the things he implemented himself. Josh is not the only one, right? We have at this point I have I don't even know how many student wins. We have well over probably 200 wins u of just different people that have now scaled up and actually make money from Amazon recently. Nalu right here, he doing about 50k a month. He's actually from Hawaii and he does this now full-time. So he was doing it from overseas with a prep center. Well, I shouldn't say overseas, in Hawaii from a prep center. And he actually moved to the States for the business. So, he's doing this full-time right now, doing 50K a month with some insane margins. I think he's doing about 18 to 19% net margins, which is just insane. Um, Jessica literally, she joined like three weeks ago. She was always stuck at a very like about this kind of range right here with his with her sales. And I think she had one good month over 10K, which was during Q4. Has been super low ever since. in right away just by implementing some better sourcing methods, some shipping templates uh and SOPs on how to get better shipping times and quicker check-ins, she's been able to now do $8,000. And she's definitely going to hit 10K for this month because she's just sourcing way better listings now with less competition, more profit.
Not to mention good revenue, but also she's doing some very, very nice margins right now, which is awesome. Um, Rocco, you can see margins right here, just absurd. Good inventory, not forcing bad buys. Um, really, really good. Again, he's also just getting rolling here.
He's going to be a huge win. I guarantee you. I'll probably make a video with him in the future when he's really scaled up because I know this guy's going to absolutely crush it. And then Corey, he's also overseas. Well, he's in Hawaii as well. 10K in the third last 30 days, which is awesome to see. Um, again, it's a little bit more tricky when you're overseas in a prep center, but it's still doable. Um, and again, these are just a couple from like recently. We have endless wins. If you go to my Instagram, you go through our wins chat right there. I mean, there there's over a thousand screenshots in there. I've been coaching now for over two years and our systems have really refined to be the best ones now. I don't just give any cookie cutter things. It's all custom and everyone has a different approach.
And all of this is just been thousands of hours of sourcing with students to really refine our methods to make them the best so that students are, you know, are able to use the methods to the to the best of their abilities, but also find better listings that are different from what most people will see. So, um, you know, there's a couple wins in the group. Again, Josh was in my coaching.
He really scaled up once we got going here. Um, but yeah, this is essentially how you can go to 100K a month, the systems in involved, what it really took, the time frame, um, the workload, all that kind of stuff. All right, if you guys have any questions on this stuff specifically, please DM me over on my Instagram. It is linked below. Um, if you guys are looking for some sort of criteria checklist to help you with analysis, DM me criteria on my Instagram. I will send that over to you as well. And I think you will really enjoy this video right here. Okay, this is James. James also at this point does Amazon part-time but profits about 6 to 8K a month um from this business doing this exact same system, the sustainable arbitrage model. So, you can see exactly what he had to say about it. And if you guys have any questions, let me know.
I'll see you all next week. Take care.
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