What is online arbitrage?
Online arbitrage is the process of buying products from one online marketplace and selling them on another for a higher price. You're looking for discrepancies in pricing between the purchase price and the selling price. That's all online arbitrage is! It's simply a type of e-commerce business model that can be extremely profitable if done correctly. Let's discuss some of the details that go along with this business model and uncover the best websites you can use for online arbitrage (OA).
If you're looking to get into online arbitrage, there are a few things you need to know. While this can be a great way to make some extra money, it's important to do your research and understand the process before getting started.
One of the best ways to get started earning extra income this year is with an Amazon online arbitrage business.
Amazon is the world's largest online retail business
Amazon is the world's largest online retailer and is often thought of as just a website for purchasing products but did you know on average, over 500 new 3rd party sellers joined Amazon EVERY SINGLE DAY in 2020? There's absolutely no reason you can't be one of them!
This is proof that there are a lot of opportunities for those looking to get into online arbitrage. Amazon has a huge number of products available, which means there are plenty of
opportunities to find items that can be bought at a lower price on another marketplace and sold on Amazon for a higher price.
Not only does Amazon have a vast selection of products, but they also have a very user-friendly platform that makes it easy to list and sell items.
Of course, there are a few hurdles you will jump over and I promise you there will be lessons learned while you pay the "Amazon tuition" ???? This is just a common term in the community for the mistakes that cost you money during your journey. But the juice is worth the squeeze!
Tips for Success
There are a few key things you need to do in order to be successful with online arbitrage on Amazon. First, you need to become great at online sourcing. There are a few different ways you can do this, but some of the best include using online tools like and Keepa, Rakuten, and a good calculator. Combining these online arbitrage tools with a crash course like the Online Arbitrage Challenge will work wonders for you right out of the gate.
Keepa is a tool that allows you to track Amazon prices and sales rank over time. This data is crucial when making decisions on what products to source and sell. Becoming a Keepa master will help catapult you to the next level of business.
Rakuten is a cash back website/extension that offers coupons and deals on a variety of items while your online sourcing. Several different Google chrome extensions do this and you'll want a tool like REVroi to help give you the top sites for cashback and gift cards.
The RevROI Chrome extension is one of my favorite online arbitrage tools that allows you to see the potential return on investment for any given website. Simply click the extension while your one a source page and it will show you all the possible cashback and gift card savings sites in order from highest to lowest. Stacking good deals is key to getting your costs down.
Revseller and AZinsight are two different online arbitrage software that display on Amazons product page. They give you tons of features but my favorite is the on page calculator. You can input your buy cost and it will give you the expected profit per product sold. This saves me a ton of time running the numbers for product analysis.
How is online arbitrage different than retail arbitrage?
The main difference between online arbitrage and retail arbitrage is that with online arbitrage, you are buying profitable products from one online marketplace for reselling. With retail arbitrage, you are buying products from brick-and-mortar stores and selling them online. While both can be profitable business models, online arbitrage tends to be easier to scale as you can outsource a vast majority of the work.
As long as there is a big enough price difference you can be successful using either method. Many Amazon sellers start with retail arbitrage because it's easy to go out to your local big box store and scan products. Even sourcing for profitable products at thrift stores is a great starting point because the profit margins are unbeatable. This is where I began my journey.
Eventually most online sellers will gravitate to online arbitrage sourcing over retail stores because scaling the retail arbitrage business becomes a really big mountain to climb.
Why online arbitrage is more scalable
You want your Amazon business to become a well oiled machine that requires little input from you, right? Passive income is the name of the game to becoming wealthy and earning money while you sleep. The only way to do this is by building systems that do your work for you. You can become a successful online arbitrage seller by utilizing systems that others have already built.
Tactical Arbitrage (TA) is the leader in online arbitrage software. This site can scan hundreds and hundreds of online retail websites for you with just a few clicks.
The software does have a steep learning curve but once you've gotten the hang of it you can scale to the moon! OA Hunt readers even get a 10 day free trial by using the link here. Tactical Arbitrage is one of the online arbitrage tools that my team uses every day.
Online arbitrage lead lists
Another great way to scale is by using online arbitrage sourcing lists.
Lead lists find profitable deals for you and put them into a spreadsheet for you to review, purchase, and profit. Most lead lists source from tons of online retailers, giving you a great starting point to fine good deals as a bonus.
The Best Online Arbitrage Websites
All that to get to this, right?! Yes I know it was a lot of reading but making sure you have a good foundation is key in building a successful Amazon FBA online arbitrage business.
In all honesty there are just too many online shopping stores to add to this post. Some of my personal favorites though include:
- Kohls (the Kohls cash sourcing advantage alone deserves it's own article)
- Best Buy
- Ulta (hello Ulta beauty points)
- Barnes & Noble
- Bed Bath & Beyond (beyond crazy profits!)
This is by no means the only stores that Amazon sellers find healthy profit margin at. You can make sure that online arbitrage works for you as an Amazon seller by finding unique online marketplaces to find profitable inventory. Trust me, almost any online store will give you success if you try hard enough.
I must mention the free tool, OA Roulette. With just 1 click it will display a random online retailer where you can go to start online sourcing. The built in database houses over 800 online stores!
Summing it all up
Amazon online arbitrage isn't going anywhere anytime soon. Small Amazon sellers have such a unique ability to pivot and adapt to market changes based on trends. Giant retail stores don't have this ability and that gives arbitrage sellers a leg up that will always be there.
Learn to read the price history charts, look for great coupon codes, use online arbitrage tools, discounted gift cards, cashback sites, and you will be successful. The profit margins are there if you look!
I believe in you!