As the seller, you are taking advantage of the price difference between two markets, and making a profit. An example of this would be purchasing a discounted toy from Walmart for $5 and reselling it at full price on Amazon for $20. This is called Online Arbitrage.
This business model is an easy, low-cost way to begin your journey as an ecommerce entrepreneur
Online arbitrage (OA) is the process of buying products from online retailers with the sole intention of reselling those products at a higher price for a profit on another online marketplaces like Amazon.
This business model allows you to source profitable products from thousands of websites
How does online arbitrage work?
The concept of online arbitrage is simple.
1. Search for discounted or clearance products on an online retail store such as Target or Walmart.
2. Look up the same products on Amazon.
4. Purchase the products that sell for a higher price on Amazon.
5. Wait for the products to arrive at your home.
6. List them for sale on Amazon immediately via FBM or repackage and ship your inventory to FBA.
7. Start making money from home with online arbitrage.
Whether you are a complete beginner or have been selling on Amazon for years, online arbitrage is a fantastic way to make some money online. Now, don’t just limit yourself to sourcing products online. You can still find great resale opportunities in-store.
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