What is Online Arbitrage?

Online Arbitrage (OA) involves sourcing discounted or clearance products from websites (retailers, marketplaces, overstock sites) and reselling them on Amazon at a markup, usually via FBA for Prime shipping.

Advantages of Online Arbitrage

• Low barrier to entry – no need for suppliers or branding
• Fast to start with small capital
• Access to branded products with existing demand
• Opportunity to find deep discounts and deals
• Scalable with tools and software

Challenges & Risks in OA

• High competition and fast-changing prices
• Need for ungating in restricted categories
• Risk of account suspension if sourcing violates policies
• Time-intensive product research and listing
• Potential for returns due to condition issues

Best Practices for Online Arbitrage Success

• Use deal-finding tools and browser extensions
• Calculate fees, shipping, and profit accurately
• Focus on lightweight, high-margin, non-gated items
• Build account health with excellent metrics
• Diversify sources to avoid dependency