An Ultimate Online Arbitrage Guide to Make More Money

online arbitrage guide

This is the ultimate online arbitrage guide for 2022 to guide beginner sellers and experienced sellers so make sure you stick around. It’s possible to make hundreds of dollars a day by purchasing items from websites and then selling them on a third-party platform if you know where to look and what products to look for. This method is known as online arbitrage. The practice is known as Amazon arbitrage or Amazon online arbitrage, but it can also be used on other marketplaces.

The most credible places to buy merchandise is from websites like Walmart, Home Depot, and Target, from which you are likely already making purchases. In a moment, we’ll go over some more online arbitrage sites.

Buying something online and then reselling it online seems a little strange, doesn’t it?

I was hesitant at first, but it’s proven to be a terrific approach for my company to source inventory over time. It allows you to find inventory from anywhere with an internet connection. That said, it isn’t as simple as browsing to websites and purchasing anything. While we’ll go over all of our tactics, here are two major ideas that I believe are essential for OA success in 2022.

Key 1: Use a good product evaluation tool

While you can execute online arbitrage “manually” by going to websites and scanning their catalog for sales or clearance products, then comparing the prices to what the item sells for on Amazon, we recommend using bulk product evaluation tools.

This allows you to automatically process a complete website’s inventory, after which you may manually review things that match the criteria you define in the tool. You don’t look at every product; instead, you focus on the ones with the best chance of being lucrative.

Key 2: Leverage gift cards, cash back sites, coupons, and free shipping with Online Arbitrage

When compared to retail, online arbitrage allows you to use coupons, cashback sites, discounted gift cards, and other tactics to get large discounts.

Many consumers are unaware that this is available, and it may turn many things that would otherwise be marginally appealing into very appealing opportunities.

If you don’t use these tactics, you’re likely to be wasting a lot of time by missing out on opportunities. All of these will be covered later in this tutorial.

How does Online Arbitrage maximize profits?

Online Arbitrage makes you money when you buy items at a significantly lower price compared to what you will sell them for on a different marketplace. However, don’t forget to factor in marketplace fees and shipping charges.

Let’s assume you can get an item for $19 on Walmart’s website, but it costs $44.99 on Amazon. After fees and shipping expenses are deducted, Amazon will pay you $34 if a consumer purchases your item. In this case, you’d generate a $15 profit on your $19 initial investment.

Essentially, this is how you can make money on Amazon through online arbitrage. Learn more about how to get started with online arbitrage in the sections below.

How to Get Started with Online Arbitrage Sourcing?

Setting up an Amazon seller account is the first step in getting started with online arbitrage. You’ll need this account to sell products on the platform.

I recommend creating a “professional” seller account when creating your account.

This account has a $39.99 monthly fee but allows you to list as many products as you can in a given month making this ideal for novice Amazon sellers. You can register here. Make sure to scroll down to the bottom of the page and click the “professional seller” link.

After that, you’ll be asked to fill out several documents to get your account set up. The application should take no more than 10 minutes to complete. Most people will be approved immediately away, however your application may need to be reviewed by Amazon. You’ll be able to start selling on Amazon after your account has been approved.

Your new seller account will tell you if you’re eligible to sell a variety of things, and it’ll play a big role in determining what to buy, which we’ll go into later in this piece.

What Tools Do I Need for Online Arbitrage?

Many business ideas necessitate a large sum of money up front, but internet arbitrage is not one of them. Starting with at least $200 is ideal, but you can get started with whatever you have on hand. To get started, all you need is the ability to purchase a few products to sell.

Most of these aren’t necessary to get started, but they will make things easier, so I’d recommend looking into them as soon as you have the funds. Later in this book, we’ll go through how to actually use the tools.

If you’re not utilizing one of the other tools on the list, you’ll need to use the FBA Revenue Calculator. It’s completely free and given by Amazon.

Adding a second monitor — When practicing online arbitrage, having a second monitor will make your life lot easier. It allows you to have products you’re thinking about buying open in one tab and the Amazon listing for the item open in another. This makes it easier to compare products, double-check that the items are compatible, and hunt for special deals.

InventoryLab – InventoryLab is a software suite that assists you in selling on Amazon. An online “Scout” tool is one of these tools. It will allow you to search for things and then display on one screen nearly all of the information you need to make a purchasing decision. You’ll discover why when we walk through the steps required.

Utilizing Cash Back Sites with Online Arbitrage

We’ll start with cash back websites. These are websites that pay you a portion of your purchases at participating stores. All you have to do is begin your buying excursion using the cash back site’s link.

Let’s imagine you’re planning to buy something on, and the cash back site is providing 8% cash back. If you begin your shopping journey at that cash back site through their link, you will receive 4% cash back on your complete Walmart purchase. You’ll get $20 in cash back if you spend $250. It will cost you nothing extra to use a cash back site, so it is strictly a benefit. These benefits mount up quickly.

I recommend using Rakuten as it is the most secure and is the most trusted cash back site in the US. Rakuten also can apply free coupons that can help you save money to put back into arbitrage leads.

How to List Items for Sale and Send them to FBA Warehouses?

After you’ve purchased some products and had them delivered, the next step is to put them for sale on Amazon. For almost every item that we sell on Amazon, we use the Fulfillment by Amazon service in my company. Using this service, we may ship things in bulk to Amazon, and they will manage shipping to individual customers.

I’ve written a detailed blog post that will lead you through the process of listing your things for sale and having them transported to Amazon’s FBA warehouses. If you’ve never shipped with Amazon FBA before, you’ll want to check out my whole guide to Amazon FBA shipping.

I highly suggest the website Brickseek will eliminate a lot of the guesswork in the process. They easily show you how much of a discount you’re getting compared to the original MSRP. This makes finding good retail arbitrage deals a lot easier.

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