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The Amazon Files, hosted by Kristin Ostrander, Amazon business strategist and one of the founders of Mommy Income, hits the airwaves every Tuesday with the real truth about selling on Amazon. This show isn’t about sugar-coated reality. It’s real truth - the good, the bad and the ugly - shared with practical action steps and strategies to help both new and experienced sellers tackle the world’s largest retail sales platform.

Apr 6, 2020

There’s a lot of hype about retail arbitrage on Amazon. Blog posts, ads, and websites are out there talking about retail arbitrage to people who want to start an Amazon business. It’s viable for you if you want to set up an online store as a side hustle to fund your Disneyland adventure. What the hype isn’t telling you is that retail arbitrage comes with risks that you need to be mindful of. And if you want a legitimate online business that will get you out of your 9 to 5, you wouldn’t want to invest everything that you have in something as risky.


In today’s episode, we discuss the risks involved in doing retail arbitrage on Amazon and how they can get your seller account suspended. We share the story of an Amazon seller whose merchant account was suspended and illustrate what happens when Amazon suspends your account. We define what an Amazon Plan of Action is and why wholesaling on Amazon is a better alternative. We also reveal some of the reasons Amazon business owners avoid wholesaling and bundling as well as underscore the value of building multiple income streams.


“Retail arbitrage is not sustainable if you want to grow - it’s scary and risky, and it’s not worth it to risk your business.” - Kristen Ostrander


This week on the Amazon Files:

  • The risks of doing retail arbitrage on Amazon
  • How an Amazon seller who did retail arbitrage got suspended
  • What a proof of authenticity is and what happens when Amazon suspends your account
  • What an Amazon Plan of Action is and what to do when your account gets suspended
  • Other platforms where you can do retail arbitrage and resell items
  • Why Amazon wholesaling and bundling are better alternatives to retail arbitrage
  • The difference between manufacturers and liquidators
  • The reasons Amazon sellers shy away from wholesaling
  • The importance of building multiple streams of income and not putting all your eggs in one basket


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Grow Your Amazon Business!

Thanks for tuning into this week’s episode of The Amazon Files, the show to help Amazon seller along their business journey one step at a time with your hosts and Amazon experts, Amy Feierman and Kristin Ostrander. If you enjoyed this episode, head over to Apple Podcasts, subscribe to the show and leave us your honest review. Don’t forget to share your favorite episodes with your friends on social media! Use the codeword RiskyBusiness to join us on Facebook. Each week we host a live discussion on how to grow your Amazon business. Don’t forget to check out our website and subscribe to our mailing list for even more resources.