Anyone with internet access and a small amount of cash can buy products from 3rd party sites that are priced lower than the same items on Amazon, sell them on Amazon and pocket the profit.
When someone does this and decides to reinvest the profits, you can create a full scale business. I have met many Amazon sellers who focus exclusively on online arbitrage and sell well over 7 figures a year!
These results are certainly not typical but they are absolutely possible.
By buying, selling and investing you can quickly turn a few hundred dollars into a few thousand dollars (and so on and so forth).
Note: Online arbitrage is NOT the same thing as drop shipping. Conventional drop shipping is against Amazon terms of service and involves listing products for sale before you have them in your possession. It is different and not the method for Amazon product sourcing that I recommend.
This article will showcase the tools that give you an unfair advantage over other sellers.
How Is Online Arbitrage Possible?
"Why would a store price their product lower than I could resell it for?"
I get asked this a lot. People think this model seems impossible and illogical because online retailers should know they could sell their items at higher prices if they wanted to.
This same argument is made about retail arbitrage. People think, "why wouldn't they just sell the underpriced items on Amazon?"
Well, it's unreasonable to think that every online retailer monitors Amazon and other online retailers to make sure that they are priced the same. Tools like Tactical Arbitrage (the #1 tool on my list below) allow you to scan over 800+ online sites so it's an inevitability that some of them will have items priced low enough below Amazon (or eBay) that you can make a profit.
We all have the same limitations: time and information. While we can always obtain more information, it still takes time. This means that pricing items perfectly in a world of constantly changing inventory (different models, variations etc) is impossible.
The opportunities to buy low and sell high happen all day, every day and as long as we buy and sell goods online, this opportunity will never go away.
Quote me on that if you'd like.
Now, online arbitrage isn’t easy, but there are plenty of high quality tools that will help you find more product opportunities and make more money on Amazon.
As far as online sourcing goes, the world is your oyster.
The Keys to a Successful Online Arbitrage Business
Online arbitrage is a numbers game. The more data you can sort through, the more leads you will find and the more money you will make. To do that, you need the right tools.
#1 They help you analyze product data better
There is a lot of data out there. There is money in making sense of it.
#2 They help you analyze product data faster.
Tools like Tactical Arbitrage can scour the internet for leads for you while you're sleeping. You can set a process and get an alert sent to your phone or email when it is finished running!
Even newer sellers can find tons of products to sell, even though they will be gated in many things at first.
Deals are everywhere but they are buried and need to be found.
Like an archeologist unearthing a stegosaurus skeleton or a tourist scouring the beach with a metal detector, we are merely woring to bring out what is already there. We use tools to find these items before our competitors.
You aren't the only person looking for these leads. If you have the tools in place to help you find them sooner than your competitors, you will win.
With the right arbitrage software/tools, you can now…
- Collect data that helps estimate profitability and sales velocity
- Pull massive amounts of data from hundreds of stores in minutes
- Store, filter and refine huge selections of data
- Set price alerts to help you find leads "passively"
- Find more arbitrage opportunities in less time
- Use fewer tabs and save tons of time when doing online arbitrage
- Go far beyond basic clearance shopping to find products to buy over and over
I go through all of these tools and more in this article, but for now, you should be aware of at least the following.
This post contains affiliate links. These come at no additional cost to you. I appreciate everyone who uses them! Thank you!