OAXRAY is a Google Chrome extension that was created to assist you in finding profitable items at common and uncommon online retailers in order to resell them on Amazon. This is a process known as Online Arbitrage. You can sell Merchant Fulfilled or FBA since the extension supports calculations for both.
OK, now that's the technical explanation and general overview. But what you really want to know is why I have become such a big advocate of the software and how I've used it in very short time to find some excellent items for resale on Amazon. Well, this blog post (and Youtube video) were created to answer both of those questions. So get ready to take notes, we're about to get into this to every last minute detail.
If the idea of making money from your own home with nothing but an internet connection and a computer sounds too good to be true, read on because not only are you going to find out exactly how possible this is, but I'm going to lay out all of the things you're going to need to know on your journey to making money online with very little risk. All the while you'll be utilizing the huge fulfillment centers Amazon has spent billions of dollars on to pack, ship and fulfill all your orders while you sit at home and collect checks. I should know, I've been doing exactly that for the last 10 months.
There are very few tools I've ever used that have made me significant amounts of money in a short time. This tool made me $2k in profit in mere days with only me using it yet despite this I feel I've only scratched the surface on what I could potentially do with this software. You owe it to yourself to see if it can do the same for you. Just remember, like everything else there is a learning curve. Follow this guide and you will be off to a great start making money with OAXRAY.
All you truly need is a decent computer that runs Google Chrome, an internet connection and an Amazon Seller account. For the computer, the faster the better. It doesn't need to be super recent or anything, but it should be able to handle having multiple tabs open in Chrome without getting too sluggish. You'll see the reason for this later on, but let's just say that the more tabs we're able to open, the more efficiently we're going to be able to work to find deals.
So besides having a decent computer or laptop, what else do you need? Well, there are a few helpful add-ons you are going to need. They are all chrome extensions. The good news is 2 out of 3 of these are completely free. There are paid alternatives for some of the things we need to do, but whenever I can give you a free alternative, I'm going to do it.
Simply sign up for your extended 10 day trial by using this link. Once you have signed up, they will e-mail you instructions on installing the extension and configuring it.
Using OAXRAY is extremely simple. Simply open one of the many websites it supports in your browser, find a category you want to research and hit the OAXRAY button at the top right of your browser. For example:
Unfortunately, just because one particular sales rank in one category is good does not mean that it translates to another Amazon category. The reason is that there are a different number of products in each category. A sales rank of 40,000 in Electronics or Books is very different than a 40k sales rank in Video Games.
There are sales rank charts available on the web that people have created. However, most of these were created long ago and are now inaccurate.
Thankfully, I have decided to take the time to document both the top 1% and the top 5% sales rank numbers for each Amazon category and put it into a convenient PDF for you to download!
With this information at your side, you can rest assured you will be able to source ONLY those products that are fast, consistent sellers on Amazon so you can flip your money fast.
Though there have been tools made that will actually charge monthly for this information, I have chosen to put it into a convenient PDF for you to reference at any time. This will be an enormous advantage for you when sourcing products to sell on Amazon FBA. Use it often, until you have it memorized!
They are always adding new websites to the list, but as of 11/15/16, there are over 367 online retailers OAXRAY currently supports. Just a few months ago that number was literally under 60, so these guys have been SERIOUSLY working hard. Here is a list of just some of the supported sites below. To see the full list, click here.
|Amazon (Work “backwards” on Amazon to find out where to source products; Works on some seller stores; Special tool for Amazon-Amazon flips)|
|Barnes and Noble|
|Bed, Bath, and Beyond|
|eBay (Use eBay’s filters as desired first (e.g., New, Buy It Now); Automated matches only work on items with UPC or ISBN in pre-filled item information)|
|Farm and Fleet|
|Hasbro Toy Shop|
|Joann Fabric and Craft Stores|
|Lego Store (shop.lego.com)|
|Lord and Taylor|
|Sierra Trading Post|
|Walgreens (Must scroll to bottom of page and then scan)|
Now that you have everything you need, let's get into what makes a good flip. Here are my requirements. If any of these things don't look right, I won't make the buy. There are too many deals out there to waste any thought (or money) on something I'm unsure of.
Here are the top 4 things I look for
What an item sold for in the past is the best indicator we have for what it will sell for in the near future.
Your best bet is to watch the YouTube tutorial I made in full. However, I did take some screenshots to put here for you to look at if you prefer reading instead.
I have seen many others use OAXRAY to source and they do so by clicking 'Positive ROI'. This is a good start of course because it filters out all non profitable items from your view. The problem is there will still be a lot of worthless junk left on your screen due to high sales rank, zero sales rank, and low margin items because they are still technically positive ROI.
Though the 'Positive ROI' button filters out all 'negative' ROI items, you still end up left with a bunch of junk as shown above. You can see there are plenty of sales rank 0 and low margin items. These take up real estate on our screen and distract us from the desirable items that deserve our focus..
I spoke with one of OAXRAYs creators Tedric Paulk and told him my concerns. I wanted to filter only items that had a sales rank of under 250k and had a ROI of at least 35-40%. Luckily, there is a way to do exactly this, and once you set it up it will completely change your ability to source effectively.
In order to filter out all the junk, all one must do is simply click both the 'Rank' and 'ROI' checkboxes and then enter a valid value. OAXRAY will filter all items that go ABOVE the number you type into the Rank textbox. Similarly, it will also filter all items that are not AT LEAST the amount you enter into the 'ROI' textbox. Once you have these filled out, all you have to do is click the 'My Buys' button.
After filling out these settings, what you're left with are only desirable products. At least, until you choose to further inspect them. Still, just this simple tip alone can improve your sourcing speed dramatically with OAXRAY. This becomes especially important if you hire VAs since they bill by the hour.
Here is what your screen should look like after filtering down the results by following the steps explained above.
Wow, down to only 4 items. That sucks, right? No, that just saved you several minutes of precious time. Sometimes you will come up with no results at all! When that happens, time to keep moving and check another (website, category, page.) I never get down when the results turn up blank after I filter down to My Buys, because I know that I just saved a ton of time weeding through garbage.
Using these settings has enabled me to source far more efficiently. With that said, here are some do's and don'ts from what I've personally experienced doing Online Arbitrage.
Here is something I've come along throughout my OAXRAY experience. Since the extension can only process what can be shown on one page, this means you will frequently have to open multiple tabs. However, on some websites there is a way around this. Be warned, this tip is so awesome it may cause brain implosion.
First, keep in mind this trick doesn't work on all sites. Only some will allow this to occur. One of these sites is Meijer, just one of 40+ different marketplaces that OAXRAY now supports. Go ahead and go to the link below. It will open in a new tab.
Now, you are now looking at 30 out of 434 different dog food items. The Meijer website will let us change that number to as much as 90 items per page. Pretty cool, but not cool enough. Time is money, and we want to get this done. So lets make a small change and see if we can expand this list a bit. Click on the altered link below.
Suddenly we are now able to see the entire dog food catalog on one page view. To do this, all you must do is change the number at the end of the URL from '30' to '500' (or whatever you choose.) This -should- force the page to reload and display as many items as you've told it to.
Other sites may have a different value than simply 'rows'. It may just be an & symbol with the letter r after it, like '&r=20' or whatever else that websites infrastructure decided to call it. When in doubt, select a number of items per page the website supports and look for that number somewhere in the URL. When you find it, that's the number you want to change.
Remember, many sites know how to prevent this from happening, so it's up to you to figure out which ones out of the 40+ marketplaces lets you do this small 'hack'.
Surely some people who do online arbitrage will already know of this. However, many others will not. This is just one more thing you can do to increase your efficiency and crush your competition.
What would this guide be if I didn't include some real life examples for you to follow? Here I'll go through a few potential flips I found all by using OAXRAY.
So we found a Barbie toy here being sold at multiple vendors, but the only one that is cheap enough to buy at a profit is from Jet.com. OAXRAY shows an ROI of about 35%, and a net profit of $9.59, but let's look a little deeper to make sure those numbers are correct.
You will notice something interesting here. Jet is offering you almost 5% off per item you buy. Even though the price is shown as $27.50, with the discount it actually becomes $26.26. These small discounts make a big difference when you buy in bulk, so don't discredit them.
On the Amazon listing, we can see the price is $50.95, high enough to get a return on our investment. Let's take a look at the Keepa graph, shown on our Amazon window underneath the listing picture. (OAXRAY also displays a Keepa graph when you mouse over the Amazon $ amount which is great for a quick picture, but we want to look a little deeper.)
The first thing to mention is I am looking at the '3 month' view on Keepa. Here we can see that this item has maintained a good sales rank, spiking at about 150k around Feb. 1st but staying around the 25k-50k area overall. This meets our sales rank criteria. Lets move on
Next we can see the 'New' price of the item has remained relatively consistent, staying around $40 and going as high as around $55 for the last few months. One thing to remember is Keepa shows the lowest New Marketplace price, even if it happens to be a merchant offer. Therefore, if it shows a price of $40, it could really be $40 plus $9.95 shipping, effectively making the true price $49.95. This is well within our range for having a stable price history.
Finally, we see no significant orange highlighting in this graph. Amazon is not a seller on the item and has not been in the recent past. There is a small mark where it seemed to be in stock for a day in December, but that was it. This meets our final criteria for a 'good buy'.
Now, let's move on and run the Amazon FBA revenue calculator to make sure there is really profit in this item for us, and that it's not some 30 pound monster that will kill our margin. Click the Calculator icon in the top right of your browser to bring up the screen below. OAXRAY does grab weight information already for you, but it's always good to double check with the Revenue Calculator for Profit Margin.
The FBA Revenue Calculator will tell us how much profit we stand to make on a particular item in Amazons catalog. Though OAXRAY will calculate this for us, sometimes it's always good to double check before you go deep on an item.
The first thing to do is enter an inbound shipping rate. It may be more or less, depending on where it goes but we'll put 50 cents. Next we need to put what we have to pay for the item. So we put '26.26' in the Prep Service field. Finally, hit 'Calculate'.
We can see that we end up with a profit of $10.72 on this item. This is very close to the $9.59 that OAXRAY told us, so we can trust it. The actual profit ended up being more because Jet.com had a small discount that the extension was unaware of when it did it's calculation.
If we bought 10 of these, the profit would be $107.20. Since the sales rank is good, we can be assured this item will sell in short order. That's our OAXRAY subscription paid and then some on one item that took only a couple minutes to find. Hopefully you are seeing the power of this extension and what it can do for your business.
Here we've got a Nerf Combat Creatures Terra-Drone. It has a sales rank of 35k and a selling price of $161.94 FBA. OAXRAY is telling us a few different retailers have this for a price that makes sense. KMART and SEARS have it for $29.99 so let's focus on that.
We can see that unfortunately KMART is out of stock. Many people would simply stop here, but I take this as a golden opportunity to add this item to my 'Local Deals' spreadsheet. Since I started using OAXRAY, any item I found that was out of stock online I added to a tabbed spreadsheet, separated by retailer. All I then had to do was simply call KMARTs or Targets or Whatever it may be in my local area and have them check for the items that I needed.
It's best to wait until you have a good sized list for a particular retailer so you can go down the line and make sure your trip is worth the gas. If some items they don't carry, surely others they will. Having a good list just makes it more likely you'll find a good number of profitable items for your trip.
Some websites like Target will have an 'in stock' box on their site if you put in your zipcode. It tells you supposedly which stores within your local area have that item. This can be a good starting place, but I always recommend actually calling the store before leaving your house because the information can be dated or outright inaccurate.
Once more we are looking at the '3 month' timeframe on Keepa. We can see this item has maintained a very good sales rank despite its high price, never exceeding the 75k area. This is very good news and meets our sales rank criteria.
We can also see that the 'New' price has also remained consistent at around $160 for the last several months. The lowest it went was around $110 in the beginning of December. This is very good and fulfills our stable price criteria.
Finally, we can see that Amazon is not a seller on this item and has not been a seller in at least the last 3 months. This is also very good news. We don't want to compete with Amazon if we don't have to (and we don't.) Now if we wanted, we can now confirm that this item is indeed profitable by using the FBA Revenue Calculator by clicking the calculator icon at the top right of our Chrome window.
First we enter our inbound shipping cost. Again, we aren't sure what it will be so we'll just put $0.50. Next, we enter our fulfillment cost. Enter '$29.99' under 'Prep Service'. Hit 'Calculate'.
We end up with a net profit of $100.95. If we were able to find 5 of these at local KMARTs in our area, that's $504.75 in profit on a single item, 5 times the cost of an OAXRAY subscription. You may not always find deals like these, but when you do it's great and it does happen.
If you haven't checked out raise.com, you definitely should. You can get up to 20% off or more at many of OAXRAYs supported retailers. Basically they buy and sell gift cards. So you can buy a $300 gift card to Macys for $250 for example, depending on what they have on offer.
Typically, the higher the dollar amount, the more you're able to save. So you will generally be able to save more on a $300 gift card than a $100 one.
Normally, OAXRAY wouldn't know about this discount so it would be difficult to know what is really profitable or not just by looking at its results. Thankfully, there is a box called 'Discount' for this exact purpose.
Above would be the normal results of a Macys OAXRAY(ed) page. Nothing much to note here. A pretty abysmal ROI, so we don't care much about these items until...
Simply enter the combined percentage discount you are receiving from using the Raise.com gift card and the Ebates or Fatwallet cash back, which in this example would be 20 + 4 or 24%. Then simply hit 'Positive ROI' or 'My Buys'. We can see the ROI goes up quite a bit here, making these items much more appealing.
Different retailers like Toys R Us and others will often run 'Buy 1 get 1' type of sales. Here are some common sales and what you should enter in OAXRAY so that it knows about the discount and gives you accurate information on ROI and Net Profit.
Buy 1 Get 1 50% off - Put 25 in 'Discount' field. Obviously keep in mind you must buy 2 for the discount.
Buy 1 Get 1 40% off - Put 20 in 'Discount' field. Obviously keep in mind you must buy 2 for the discount.
Buy 1 get 2 free - Put 66 in 'Discount' field
Buy 1 get 1 free - Put 50 in 'Discount' field
Buy 2 get 1 free - Put 33 in 'Discount' field. Obviously keep in mind you must buy 2 for the discount.
One of the coolest things about Online Arbitrage is that you can send all of your items to a prep center. These are companies who will accept your incoming shipments, label, pack, and ship them to the FBA warehouse for you. The typical rate is around $1 per item prepped & shipped.
This makes your entire OA process essentially 100% hands off. It is really quite incredible that places like these exist and at such reasonable rates. Plus, since you are only purchasing brand new items, you don't have to worry about missing pieces, documentation or any of the other issues that come with buying used items.
Learning to use OAXRAY and the online arbitrage process in general is not something that's going to happen overnight. This is something that is going to take time to get a process down and really figure out . For example, you may not want to deal with certain categories like Shoes due to the high rate of returns on such items. You may only learn this a month or two in, having gotten several returns on shoes and deciding it was not for you. (This isn't necessarily the case for me, it's just an example)
Here's one of my latest shipments going out to Amazon. Some books in there but 90% OA finds using OAXRAY. This shipment should net about $2k profit.
I'm a 6 figure online reseller with focus on Amazon FBA. I deal mainly in books and used media and also do some Retail and Online Arbitrage. Though I focus on the FBA model, I've done some heavy merchant fulfilling during Q4.