An online arbitrage sourcing list is simply a list of profitable product leads for you to explore, research, and purchase in the pursuit of creating a successful online arbitrage business.
There are several online arbitrage sourcing list options available today and each of them will have their own set of criteria, type of leads, number of leads, and maximum subscribers.
Online arbitrage sourcing lists aren’t the same as BOLO (be on the lookout) groups which often have no limit to the number of people accepted into them. Additionally many BOLO groups will ask members to provide a certain number of leads to the group each month. These types of groups can be great but are probably best suited for a more experienced seller.
If you’re not familiar with what exactly online arbitrage is please first read the article we wrote last year https://oahunt.com/what-is-online-arbitrage
Lets discuss 4 things that you will typically want to know before signing up for an online arbitrage sourcing list
4 Main Factors
1. Criteria- Every list will have its own set of criteria they will follow and this criteria should be public knowledge to everyone prior to signing up. Criteria may include
- Minimum Profit - Typical minimum profit is usually around $3 per lead and may or may not include shipping estimates, taxes, prep fees, and other fees that aren’t easily estimated for a large number of sellers. The sourcing list should however, display estimated profit for each lead after Amazon takes their cut with pick and pack fees and FBA fees.
- Minimum ROI- Similar to minimum profit, each online arbitrage sourcing list should have a minimum standard criteria for return on investment (ROI). Again this calculation may or may not take into account additional fees but should include Amazons fees.
- Minimum estimated sales per month - Most online arbitrage sourcing lists will indicate a minimum estimated sales per month for each lead. I often see this range from 10 - 30. This number doesn’t mean if you are a seller you will sell an estimated 10-30 per month but the product itself sells about that much per month. *It’s important to note that since Amazon does not share this data with us openly the estimated sales per month is just an estimate.
2. Type of leads- The type of leads is very important because a new seller wouldn’t want to sign up for an online arbitrage sourcing list that is only beauty products because that category isn't approved for brand new accounts. They would be getting a ton of leads that they literally cannot do anything with. Typical types of sourcing list options include
- Mixed Leads- This is the most common type of list because it can contain a little bit of leads from many different categories. Typically mixed leads lists please the most amount of clients.
- Category Specific leads- Category specific online arbitrage sourcing lists are becoming more popular recently as many sellers tend to find themselves naturally drawn to a specific category such as beauty, grocery, toys, etc…
- Location leads- Another up and coming type of online arbitrage sourcing list is international lists. I’ve seen more lists designed specifically for sellers in Mexico, Canada, Europe, and other countries recently as the online arbitrage business model continues to grow.
3. Number of leads and lists- Online arbitrage sourcing list providers will tell you how many leads per list you are guaranteed to see. Additionally they should let you know how many lists per week or month you are going to be receiving. At OA Hunt all of our lists are sent 5x per week but each list has varying numbers of leads. Some common numbers in the space are
- 5 leads per weekday
- 10 leads per weekday
- 40 leads per week on Monday/Wednesday/Friday
4. Maximum Subscribers- The smaller the number of eyes seeing the same leads as you, the better off you are. When list providers allow 55 or more people to see the same leads it often leads to saturation and “price tanking”. Price tanking is when the price of an item steadily decreases in price and thus profitability.
- OA Hunt offers several variations of subscribers on our lists including: 35 Subscribers, 25 Subscribers, 20 Subscribers, 15 Subscribers, and even as low as 10 Subscribers.
Other information- Online arbitrage sourcing list providers will often give more information to help you make a decision whether or not to join their list. Some of the information we give includes:
- Product sourcing method- This can be important to many clients because they either like or dislike leads sourced by software. Although leads sourced by software such as Tactical Arbitrage can be just as lucrative if sourced and sold correctly. To learn more about Tactical Arbitrage check out this blog article we wrote: https://oahunt.com/TA-beginners-guide The alternative to software sourced leads is manually sourced. Manually sourced leads can oftentimes give better results because of the smaller chance that other sellers are finding the same leads themselves.
- Who the list is made for- Some lists (like OA Hunt’s GREEN list) are unrestricted leads that all seller accounts should be able to sell. If the sourcing list is all clothing then that should clearly be displayed as well.
- IP Checked- With the rise of IP claims towards online arbitrageurs many online arbitrage sourcing list providers are sending out leads on their lists that aren’t known to file IP complaints. To learn more about what IP complaints are, check out the video below where I interviewed Chris Grant, creator of IP Alert chrome extension and the related article we wrote on the topic. https://oahunt.com/ip-claims
Product Analysis: Let's be honest- not all online arbitrage sourcing lists are created the same. Often times us OA sourcing list providers get a bad name because of how many rotten eggs there are in the chicken coop. With that said, its so important to do your own research and not assume that every lead on every list will be a homerun and you’re just going to sit back and watch the money roll it. I suggest taking a look at this article my friend Tim wrote regarding product analysis so when you do sign up with OA Hunt, you’ll be prepared and ready to roll! https://oahunt.com/online-arbitrage-lists-product-analysis-101
Bonus nugget: I love an honest review from a well known name in the community so I have to share this video that Josh from EverydayFBA made reviewing a list that he was sent. Should I send him one of OA Hunts lists so he can compare?