madguy2

I'm looking to buy and sell some products and take advantage of arbitrage from US to South East Asia. I already routinely travel from the US to south east asia and have extra luggage space. (Usually Singapore/Malaysia)

Does anyone know how I would go about generating spending for this reason? From what I've noticed, Apple products tend to sell like hot cakes in Asia so that might be a good route to go.

I'm only looking at modest amounts of spending per trip and not large amounts that would get me in trouble with customs.

Anyone have any comments or suggestions with regard to this endeavor? Is it too risky, doesn't generate enough money, doesn't generate enough spending etc.

I think there was also a website that paid people to transport products... but then you get into the issue of possibly transporting illegal materials and that's probably risky as hell.

Typhoonpilot

There usually isn't a big enough price differential on iPhones between the USA and Asia to make that worthwhile. Especially in regards to Singapore, prices on electronics there tend to be very competitive. It might be difficult to find buyers. I wouldn't do it.

luv2ctheworld

You'd be hard pressed to make sufficient profit or return on your investment, considering the risks. Should you get into a situation with customs, your future travel there will be subject to great scrutiny every time. Not to mention the duties you may be required to pay should they decide your new phone or item is taxable. More importantly, you'd have to have sufficient volume to even make it worthwhile, which in all likelihood will put you in the danger zone as far as being considered a tourist vs a duty dodging importer.

Then there's the consideration of the transaction once you get into the country and what if there is an issue with the product(s). Lots of hassle at the end of the day.

Read up on what each country considers a legal amount to bring into the country. You should at the very least understand what the basics are before even thinking of the next step.

Those that have done so in the past are taking chances. And while luck may be with them, it's not guaranteed with you or anyone else.

privateuly

Once upon a time you can make $50-75 for each iphone/ipad you, but price difference has narrowed as far back as a couple years ago. Now with the strength of usd it might even be cheaper to buy them in sg than in the US.

HouFly

this happens all the time, both illegally and legally.

the legal form of this arbitrage method is called Diverting. there are big businesses set up all around this model. so make sure you know who your real competition is. cause these guys make millions not just a few bucks from an iPhone resell. even the organized resellers (on eBay etc) will crush you. example read: http://archive.fortune.com/2009/07/3...tune/index.htm

also considering the US is a much higher priced market, you should aim to get cheap goods from Asia to sell here (which is precisely what Walmart does) - not the other way around.

Hbax

You beat me to it. The OP would be better off concentrating on the other direction.

I've never been impressed with Apple hardware, but a lot of iPhone people seem to complain that Apple is consistently a generation behind Android in screen size.

Bringing back MUCH cheaper iPhone clones with larger screens that you can simply swap sims and go with would seem like a nitch market, just as one example.

donuteric

I couldn't agree more with the previous 2 posters. I think it's worth more effort the other direction around. I've seen the exact phone cases sold in Amazon for $15 when you could get them for RM5 at Holiday Plaza in Johor Bahru. And I bet you could get discounts when you buy in bulk. And the currency now is in your favor.

If you still think to bring stuffs to that region, think American Ginseng or those little Coach purses or Polo shirts you can buy at outlet price. It amazes me people there would spend RM500, plus GST, for a Polo shirt at their Premium Outlet.

madguy2

Hmmm. Thanks for the input everyone! I didn't expect to get such a good response. Kudos to all you flyertalkers.

Diversion sounds about right. I think there was a website set up for precisely this purpose too but I can't seem to find it.

That's true. I purposely left my question open so that I could do it either direction or both directions depending on which is safer and worth the effort.

Sounds like apple products are a no go. Hmmm.
As far as from Asia to USA, fabrics tend to be cheap in Asia. Electronics could sometimes be cheaper too.

gsxsilver

Being a guy who travel to various part of asia somewhat often... i'll give my 2 cents. The price of apple products (read iphone) can actually be up to 200 dollars cheaper in the US when buying from proper channels after release week/month supply shortage has been worked out. Can it be done... yes. are people doing it... yes. have i personally done it... yes. every product release i have always been talked in to sending a few phone back to friends at cost.

That being said, i would not do it on any sort of scale. There is a difference in shipping half a dozen phones individually to asia once a year vs actively bringing group of phones over to sell for profit. Just one seizure would set you back thousands and be flagged for life.

windowandaisleseatonly

I always see folks from China/TW/SG coming here to buy vitamins and bringing it back home. They'll clear the shelves from costco and such. Never understood why, but if you can capitalize on it - great!

luv2ctheworld

Couple of reasons:
The cost of quality vitamins is 50% or more expensive in those parts of the world. For whatever reason, it costs a lot more.
Another reason is assurance of quality. There is a lot more confidence buying vitamins in the US, with the belief the quality assurance/controls are in place compared to vitamins there that could be fake or have low quality (i.e. 200MG is not really 200MG of a specific vitamin).

Car Jack

So someone in Asia would rather buy vitamins from some random person on the street saying they bought them in the US than from a real store? Interesting.

TheChallenge

The store down the street from my office in HKG sells imported Kirkland brand products for 100-200% markup. A box of nuts that goes for sub $10USD in the states at Costco, is the equivalent of $25 USD here.

gameover98

I'm based in KUL and and in general this arbitrage opportunity particularly in Apple products is very much in the past. I stopped doing it back in 2011 when there were way too many people jumping in and driving prices down. Amazon shipping to Malaysia and Singapore is also relatively cheap so there's not much a savvy buyer in those countries can't get directly either.

I've seen vitamins being a huge seller, but I can't get enough volume personally.

luv2ctheworld

Realistically those people stocking up from Costco are either reselling them to people they know, or giving them as gifts.

You aren't going to see some guy hawking US purchased vitamins or products on the street corner. It just isn't economically feasible to do it at a scale needed for public distribution if you are some small time person.

I can imagine a retailer setting up a network of suppliers, which would be much different than some guy on the street. A shop owner has to maintain their reputation and would be in it's own best interest to keep the imported stuff genuine to justify the mark up.