Retail arbitrage (RA) and online arbitrage (OA) remain two of the easiest ways for beginners to start selling on Amazon without creating their own brand.
In simple terms, arbitrage means purchasing products at a lower price and reselling them on Amazon for a profit.
Retail arbitrage involves visiting physical stores to find discounted items, while online arbitrage focuses on sourcing deals from websites and online retailers.
How Arbitrage Typically Works
Most sellers follow a straightforward process:
• Find a product : Look for items that are significantly cheaper at retail stores or online marketplaces compared to their selling price on Amazon.
• Calculate the fees : Always account for Amazon referral fees, FBA fulfillment costs, shipping, and taxes before buying inventory.
• Buy and list the product : Purchase the product and list it on Amazon at a competitive price.
• Fulfill the order : You can either ship the product yourself (FBM) or send it to Amazon warehouses for FBA fulfillment.
• Earn profit : Your profit is the difference between your total cost and the selling price after fees.
However, many sellers today debate whether arbitrage is still profitable due to increasing competition and thinner margins.
We’d love to hear from sellers who are currently using retail or online arbitrage, is it still working for you?