Mark, one of my readers, wrote about how he did on those Amazon Fire HD tablets on MTM 3 months ago. I had also bought 32 (16 of the HD7 and 16 of the HD8.) Instead of flipping immediately, I knew the market would be flooded, so I waited until holiday time to list them on Ebay. It was a gamble because if Amazon had come out with a newer version, I would have lost a lot of money. Luckily, nothing changed.
I listed the Fire7 for $50 and the Fire8 for $60. They actually sold fairly quickly and I probably underpriced them. I have an Ebay store, so my fees are lower than Mark’s. My Ebay fee is 4% for tablets and 3% for Paypal ($3.50 fee total.) I also realized the Fire 7 is about 16 oz, so I paid for first class shipping which was $4.16, so total fees were $7.66.
- Gross – $50
- Fees – $3.50
- Shipping – $4.16
- Net – $42.34
- Tablet cost – $16.50
- Profit = ~$26 (157% ROI)
The Fire8 numbers were a bit similar. Shipping was in a padded flat rate envelope, so the profit was only ~$22 for each of them (80% ROI).
All 32 tablets netted me a profit of $768.
One person wanted to return because they needed more memory. Sorry, no returns! One wanted to return a Fire 7 because they wanted the bigger Fire 8 instead. Sorry, no returns! I had one Paypal chargeback, which it still pending, but I should win since I proved I shipped it out.
I took a gamble by waiting for Christmas versus unloading them immediately. If you are presented with a similar opportunity, you should Google product release timelines. For instance, if Best Buy has an iPad sale and it’s been a year since the last iPad launch, you should Google if it’s near a launch event. If it is, you should pass. If it has only been 6 months or so since the launch, then it’d be a good flip opportunity.