Is Online Arbitrage Worth It?




Did you know there is a way to earn money on Amazon without leaving the comfort of your home? This is made possible by doing online arbitrage, a profitable business model closely related to retail arbitrage and suits all Amazon sellers, from those who just need an additional income to those who aspire to have a large-scale business. 


Thanks to new technologies, online arbitrage is now easier than ever. Even programs are designed to help you source products even when asleep. Since eCommerce is growing increasingly every day, now is the best time to start your online arbitrage business. If you still have doubts about the profitability of this business model, continue reading this article to find out why it is still profitable in 2022.


What is Online Arbitrage? 


Sellers who do online arbitrage look for products from online retailers to resell them at a higher price on another marketplace such as Amazon, eBay, or Facebook marketplace to gain a profit. 


We’ll give you some examples of how you can do it:




  • You can buy a product on eBay for $8 and sell it for $15 on Amazon.

  • You can buy something for $12 with shipping on Walmart and sell it for $20 on Amazon.

  • You can buy something in an outlet for $15 and sell it for $50 on Amazon.




Using this business model, you can source your products from hundreds of thousands of websites available right now instead of limiting yourself to your local retail store. It also allows you to save on gas, mileage, time, and potential frustration in case you don’t find any good deals in the store.


The best part about online arbitrage is that anyone with any background can do it. You don’t need a special license (as you do wholesale) to buy products to resell. It’s just like shopping for yourself. And in case you’re wondering, yes, Amazon online arbitrage is entirely legal. According to the first-sale doctrine, you have the right to resell any product that you have purchased. 


How Much Money Can You Make from Online Arbitrage? 


With millions of items to choose from, the agony of choice is usually what stops most people from getting started. However, the answer is that you can monetize pretty much anything you find online. However, the easiest way is to focus on what you know. Think about the hobbies you enjoy or maybe toys you buy for your kids.


You may be surprised that you know a lot more than you think. For example, if you bought a $150 Hot Wheels Super Ultimate car park for your kids, you know the market value. And if you happen to find that this used car park is still being sold for $200, immediately you know that you can make $50 in profit.


The same goes for hobbies like trading cards, stamps, coins, art, wine, Legos, etc. If you've spent years buying, collecting, and playing with any of these, you already know a lot about them. You know where to buy them and other little details most people don't know about.


The Internet has opened up a whole world of online arbitrage, allowing people to find opportunities to buy and resell easily. However, when everyone has access to the same tools, prices tend to converge and reduce profit margins. So, you have to do some research to find the most profitable products.


Finally, your revenue from online arbitrage can vary from $50 to thousands of dollars per month, depending on your invested time and capital.


Is Online Arbitrage Still Profitable in 2022? 


Selling on Amazon by doing online arbitrage is getting more competitive, but it is still a huge opportunity if you do it right. Remember that thousands of sellers are making huge profits and earning a high income by doing online arbitrage on Amazon.




But to do this right, you need to be very careful to avoid risky products. Amazon keeps making strict rules with the interests of its customer base in mind, but if you don’t do anything illegal and read its terms and conditions carefully, you should be fine. 


You should determine the criteria which a product must meet for you. Of course, you still have to have a profit after ALL the costs have been taken into account. The criteria you should set are:




  • ROI (Return on Investment)

  • Profit Margin

  • BSR (Best Seller Rank in the Category)

  • Activation Required for Sale?

  • Other Restrictions Such as Dangerous Goods?



Once you have set and checked these criteria, all you have to do is stick to them. Even if sometimes you feel you are giving away potential because a product does not fulfill it, stick to it. This is the only way you can ensure that you can be successful with your business in the long term.


Final Thoughts


Online arbitrage is a new and optimized form of one of the oldest business models. Online arbitrage has recently received a boost, thanks to Amazon. Technology has finally caught up with buying low and selling high. 


As mentioned, online arbitrage is nothing more than the classic resale of commodities. Online arbitrage is just a financial term for buying cheap and selling more expensive to make a profit. Here, the products are not purchased from wholesalers but online retail stores. The price difference between online shops and Amazon is used here. So, if you buy goods cheaper than what is usually traded, you can make a decent profit on the sale.


Source: https://oabeans.com/is-online-arbitrage-dead/