Last updated on November 3rd, 2015 at 11:32 am
Hey guys I’m Ofir from 99Bitcoins and welcome to another video in our “How to Make Money with Bitcoin” mini course.
In today’s video I want to show you a different angle for making money with Bitcoin.
Before I begin I just want to thank David Smith from BitcoinBulls for exposing me to this method. I call it the “Item flipping with Bitcoin” method. If you want to read his full article just click this link.
The basic idea of the method is very simple, you buy an item on Amazon at a discounted price and sell it for a premium on Ebay or on any other website you can find. If you’ve been dealing with selling online you probably already know that a lot of people are already doing this – so what does Bitcoin have to do with all of this ?
Well, there’s a specific site called purse.io which allows people to buy Amazon items at a discount if they pay with Bitcoin. Just to explain how it works, you basically put an order to buy something on Amazon, someone else buys this item for you with Amazon credits they have lying around and you then pay them in bitcoins.
Now you may be asking yourself why would people want to waste their Amazon credit for getting Bitcoins? Well there could be many reasons for that, but you’ll be amazed at how many people have Amazon credit lying around that they have no use for. For example, Mechanical Turk workers outside of the U.S. and India are required to transfer their earnings to an Amazon.com gift card. Basically they are stuck with a lot of Amazon credit they can’t spend and converting it to Bitcoin is the perfect solution for them.
So by using purse.io you can get any Amazon item for a 5, 10 or even 20 percent discount. Once you get the discounted item you can resell it at a premium on Ebay, your own website or anywhere else for that matter.
Here’s an example of a Microphone that is sold for $12 on Amazon and for $20 on Ebay – meaning almost a 100% premium. Now imagine you can do the same thing but get this item at $9 instead of 12. Using Purse.io you can also specify that the item will be delivered directly to the seller and save on shipping costs.
So once you find an item that sells and creates a profit just rinse and repeat the whole process.
Now another question people ask is why would anyone look for an item on Ebay if they can find it for a cheaper price on Amazon. Again, there are many reason for this but here are some things to consider:
- First, Amazon doesn’t accept Paypal and many people prefer the added protection Paypal gives them in order to buy online.
- Second, many people aren’t even aware that Amazon isn’t only about buying books and that you can find virtually anything there.
- Last but not least, people are lazy, and they just don’t do their due diligence when it comes to online price comparison.
Before we wrap up, here are some things to keep in mind when using this method:
- This method is only relevant if you have an initial amount of Bitcoins to invest in it since you’re going to have to pay in Bitcoins for the items.
- When reloading the Purse.io wallet use Coinbase transfers to avoid confirmation time delays. If you use a different wallet you can end up waiting up to 1 hour in some cases for your payment to be confirmed.
- And finally, it’s better to go for cheaper items with this method since their order on purse.io tends to get fulfilled easier than expensive items. Also, don’t be too greedy and try to request a reasonable discount – anywhere around 10% will probably be fine.
So that’s it for today, I hope you enjoyed your lesson of “how to make money with Bitcoin” and I’ll see you in the next one.