Welcome to lesson 2 in the 14-Day eFLIP Challenge. In this lesson we talk specifically about how online arbitrage works compared to retail arbitrage. In addition, we'll dive into the eFLIP software to see how it works and how the various features can be used.

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Video Transcript (unedited):

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Alright, welcome to part two of the intro to the 14 day flip challenge. And this video, we're going to be going over the flip the software itself and I'm talking a little bit more about what online arbitrage is. To get started a very basic version of what online arbitrage is that still a new term to you. Retail arbitrage and start with that, because a lot of you probably more familiar with that retail arbitrage is going to be when you go to a retail store or a thrift store or something like that, you're going to be buying a product from a store and then selling it online. Technically, retail arbitrage you could be selling into another store as well. But most the time when people talk about retail arbitrage, they're buying something at a discounted rate from a store and then selling that product online.

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Online arbitrage, on the other hand, is when you're buying something from an online marketplace, and then reselling that for a higher amount, or hopefully for higher amount and another online marketplace. The really cool thing about Amazon is Amazon is so large, they really have two different marketplaces going on at the exact same time, they have a merchant fulfilled market, which is third party sellers, actually sending you the items themselves is going to take longer for shipping. If you've ever purchased a book on Amazon, you know, if you click one of those used offers, that doesn't show the prime logo next to it, it's going to be a lot less money, but it's doing take five 710 days to get to you.

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So you're willing to pay less to wait a little more time. And then on the other hand, they have the Prime membership, the prime benefits, which is fulfilled by Amazon, where sellers like myself can send all their inventory to Amazon. And you're willing to pay a little bit of a premium to get that shipped to you in two days directly from Amazon's warehouse. So since there's these two different markets, there's the opportunity to buy and sell between them. So as a very basic example, if someone's selling book for $40 prime, and they're selling the lowest merchant offer at $10, it might seem like a big jump. And it is a pretty big difference. But that's not unheard of. That's exactly what we're going to be looking for with E flip. You as the seller can buy that $10 book, you wait the 10 days for to show up at your house but takes it along, you collect all them together, send those back to Amazon's warehouse, still an Amazon Prime for $40. And you make that difference. So that's how you can do online arbitrage, Amazon to Amazon. And that's what he flipped is going to do. There are something like 60 plus million is beings that have that are on Amazon, technically only 20 something million of those have ever sold a single copy.

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So a lot of those are useless. So forget about that very large number. Let's take just a simple 20 million number and say 20 million books have sold at least once. That's a lot of books. If you were to go to Amazon, click the best sellers list and click on the first option there. And you will look at the prime versus merchant fulfilled offers, chances are they're not going to be much different. Because not every single book fits this criteria. That's why he flipped exists if you were to try and go to Amazon and just pick and choose which ones you wanted based on type in a keyword like science book, you're going to be looking through a lot of books to try and figure out the ones that are good to flip, buying merchantability selling prime. So with ease let you have the option to search the entire database for the things that fit your exact criteria all at once.

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We're going to dive into using the software in a second. But Eclipse can let you say I want to find books that are $10 or below merchant fulfilled that are currently set at $30 or above for the lowest prime offer, you can see all those results. And then you can buy those books from there. So that's how online arbitrage work, specifically Amazon to Amazon. And that's how he flipped is your big advantage. You don't want to be trying to scroll through 20 million books to see which ones happened to fit your exact criteria, you need to use a software like this to be able to scan it all at once and find the exact books you're looking for. So let's dive into the software. You can find it at E flip dot CEO, if you're just joining this challenge, and you're still part of the 14 days, so from July 1 to July 14 of 2019, you have the opportunity to do three months up front for $159, which is a significant discount. Normally that would be around 200 14. So if you're wanting to jump in, I recommend going for that three month offer.

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If you're not ready to jump in, you're still just kind of experimenting, feel free to do the 21 day trial Eclipse has you can sign up on the flip co website. And you can follow along with the challenge doing that as well either way is up to you. But if you want that discount, do that by July 14 to get those three months. All right, let's dive into the software now. All right, one more quick thing to note in the video you're about to see, I filmed this video when we were originally going to be calling this the eight week he flipped challenge. It's currently the 14 day eat the challenge eight week challenge does not exist. So if you hear me say that don't be confused. It's the 14 Day Challenge, not the eight week challenge. Sorry about that. But this video was filmed right before I switched it. So onto video.

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All right. Once you've logged in, you should see this page right here. Now let's start off with a couple things. The very top first he says little search icon right here all this is drop down with the same items you see on these tabs right here. But there is this FAQ button. If you click on this FAQ button, you're going to get a lot of information, kind of that we're talking about right now all bundled down. So if you have specific questions you want to know where you hear something that's video and sparks your interest, go to this FAQ page, it's probably answered here. Why would I source online? How many books in the database that's fairly recent number January 2018. The database has grown since then. But still anything under 3 million rank is was displayed over is not displayed. So that information is right there.

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How many books can I purchase, blah, blah, blah, blah, filtering, how he works. analyzing all of that good stuff can be found on the FAQ page. Hopefully, we'll get your basic questions answered in this video, but if not, check out the FAQ page. The blog button right here will take you to Caleb's blog, the book flipper calm, which has a lot of articles as well, somebody flipped some not so you can find some information there. Or I recommend this equally University button especially if you're going through a week challenge. Caleb ism a great job breaking down the ways you can use the flip and how to be successful with it. So go through binge watch these videos, we have some time it'll significantly help you finding quality books. And you'll definitely check out these videos, if you're going to be doing a week challenge kind of go through here and check those out.

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But let's go back to the search button. And we'll start with this all textbook tab right here I'll explain to you what these different tabs are what they mean. And which one will be focusing on for the eight week challenge. So the old Books tab is what you think it is. It's all books in the database, again, that of 3 million sales rank or under. Now the textbook tab up here, if you clicked it, it'll show the textbook tab. Everything else pretty much looks the same on here. I actually use the exact same, but these are going to be books that shows and seasonality. So they have spikes during textbook season, which is August, September and then January. I'm a tiny bit sometimes and main June for the summer school season. Those books that I've seasonality will be in this textbook column. CDs will be CDs, if you're hungry and CDs, you can use the flip of that as well.

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Same with DVDs and vinyl those tabs up there. If you're on good. But this eight week challenge, we're going to be focusing on books which will be found in these first three tabs except there's a tab right here. The third one is called outliers. Now, outliers, can basically be thought of as he flipped 2.0. So when he first came out, it was the textbooks all books, CDs, DVDs, and vinyl. And then A while later outliers came now here's how outliers kind of a game changer for E flip. And is really the only tab you need to be using for you. But these other tabs are there because people liked them. They were using them. And they weren't showing us outliers at first. So those tabs are kept for all books and textbooks. But really the thing you need to be using is outliers. And I'll show you why. If you will look at textbooks, you'll notice the outliers right here looks a little different than if we go back to this textbook one page will adjust here in a second. There we go. So you can see us price max new price, Amazon price match trading value, and that is good.

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But it doesn't see the FBA slots versus the merchant fulfilled slots. And that as you know from our example, in the past video, is one of the main ways you can use he flipped buying low merchant fulfilled selling high prime, and this is going to show you the lowest new offer. And then or not the lowest the max us price whenever you put in that slot and the max new price, Amazon's price, etc. Wherever we go to outliers, we'll see something a little bit different here.

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Now we got outliers pulled up, you're going to see max price number one minimum and maximum price this little slider right here. And then we have this drop down compare price. So let me show you how we can use this. First of all on the left hand side here, account type, you want to put your camera timelines personal, you can use amazon smile to donate more, or you can use show rentals if you want to see rentals and search results or you don't want to see rentals. But we're going to go to this first little slider right here. And I'm going to say used one. So what this is, is the very first the lowest use slot, Amazon delivers. Alright, so we're going to say the lowest used one has the max price, let's say of $10. So a minimum price of one cent all the way to $10. So the books going to be displayed in this first column are going to be the lowest used offer is $10 or less.

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All right, then a second slider right here. I'm going to say FBA one. So this is the lowest FBA price, I want to say the lowest FBA price is a minimum of let's say, $30. And then there's no link at the top of that. So when we hit Search, we're going to be finding books for the lowest merchant fulfilled, alpha is $10 or less, and the lowest prime offer is $30 or more, so we're getting that bump, whatever that is right there, $20 in there, so we can search, just buy books that fit that criteria, except we're going to take it a step further. And I'm going to go over here to East score, and I'm going to change the score to a max actually know what a minimum, a minimum East score of let's do 12. So he score, if you're not familiar with it is days of sales the past hundred 90 days. So if a book has sold once a day, or has a sale recorded each day for the past 190 days of having a score of 180.

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Technically East score shows 151. Plus, if it's sold more than that, because it's almost selling every single day, if it's sold once a month for the past six months would have been a score of six, so twice a month a score of 12, because based on the last hundred and 80 days, so by putting a minimum he scored 12, we're going to share the any books that come up in this result, have sold a minimum of about two copies base each month for the past six months. So there's sales volume coming, we don't want to find books that don't have any sales, max rank and minimum rank, we can put that all the way up no limit no limit, because he scores and be taken care of that. The max us offer doesn't matter to us right here. I do want to change. This is an example. Again, there's different ways you can do these searches. And we'll go over that in the following video.

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But just as an example, Max new by box friends in the minimum new buy box is $40. We want the new buy box and Minaj. Amazon Price Is $40 we want to make sure Amazon is selling for more over here can set up a higher prime price, and Amazon's undercutting it you don't want that. So let's hit Search and see what comes up with these results. Now, if you've used the book before, you will know outliers takes a second longer to search because the criteria is a little more advanced. But it's still pretty fast, as you can see is already there. And then we have all of these books served up that fit that criteria. So we can see this very first one right here. The ISP on the left title, we can use this analyze tool right here for hover hover right here we can see the keep a sales rank chart pop up. So we can see the sales rank going between it drops pretty low, sometimes will drop almost looks like below 100,000 sometimes and it goes up almost 2 million, and then it drops down. So it's selling pretty consistently as an eScore of 28.

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The lowest us price right now is $9 and 26 cents, and the lowest FBA Price Is $44 and 91 cents, the new by box $40 is right around the same used by box 44. Amazon's price 40. And sales ranks 61,000 at the moment. So we see this book, and then we can get an idea of what the ROI would be if we bought it. So if we bought this $9 book, and we wanted to see if we sold this book for $44. What would the ROI be would this be a good purchase, we can click on this calculator tool instead of you having to the math yourself, everything is done here. So automatically inserts this lowest use price $9 and 62 cents is the price you would pay, which includes shipping, as the landed price of shipping is included in that. And then you can see right here for profit of $2 and 40 cents, which would be 25%.

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You know, lyst, this book for $22 and 16 cents, I'm going to breaks it down as you go up. So you can see here, I want to shoot for 100% ROI, which was my goal for a week challenge. And I want to make a profit $9 and 62 cents, which is exactly what would be purchasing it for I needed to list this book for a minimum of $30 and 65 cents. It buys listed for around 44. So let's take this $41 offer right here. If I list this book for $41, which is less than the current lowest use price, or lowest prime price, I'll make a profit of $19 should be 200% ROI. So I could pretty confidently buy this book, send it in and know that even if I don't get this $41 price, let's say the market goes down and I end up having to sell it for $30 instead. So the market takes a $14 drop for prime, I'm still getting 100% return on my money, it could even worse, I could have to sell it for 2499, which is well below with the current Prime and Amazon price are I'd still make 50% return on my money. So this is a pretty good bet for a book to sell. So that's how you kind of use these tools right here.

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You can mess around with these and see a different results that come up. Of course, the more extreme you get, the more bizarre cases you'll find and also the fewer results. So if I were to put a minimum maximum use price of $10, and then a minimum prime price of $150 and probably not going to get very many results. If I do it's probably some odd anomaly. So let's see here hundred $50 minimum FBA price under $10. For merchant fulfilled I probably won't even get any results. But let's see what happens.

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Yeah, no results balance. So that's extreme, no one's going to pay $150 or very few people whatever pay $150 Prime when they get the same book for $10. They would however, as we saw in that last taste, pay $40 to get it in two days versus $10 for the lowest merchantability price for them to wait longer. Okay, so that in a nutshell is how to use the flip. That's how the software works, the different tabs there. Remember that all texts are the all Books tab is going to be every book that's in the database for E flip textbook to Africans getting the books that have seasonality. We'll talk a little bit more about this. In the next video we talked about the exact search criteria you can use for this challenge.

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And the outliers titled The big benefit there's you can pick the lowest prime offer the lowest marginal fill offer etc. and go back and forth between those two. So mess around with the plug do some searches. Have some fun there, check out the FAQ page, like I said and the training videos. Let's dive into video three, click the link that's about to pop up for video three for the intro to the 14 day Eclipse. Thanks, guys.