What is Online Arbitrage?

Online arbitrage is the process of selling products online by taking advantage of a price mismatch between two vendors. If you are an eBay seller, you have to look for items that are being sold at a low price on another marketplace.


What online arbitrage really isn't?


Online arbitrage isn't retail arbitrage - the difference is that in retail arbitrage, products are sourced from ordinary bricks and mortar store rather than directly from wholesalers or manufacturers.


What is Amazon-to-eBay arbitrage?


This is different from online arbitrage in that you don't buy the stock up front. Instead you look for relevant products to list them at a higher price on eBay for sale. When you receive an order on eBay, you can purchase the product and deliver it directly to the customer. The advantage however is that there is no financial disbursal up front; the downside - margins may tend to be significantly small than 'normal' online arbitrage.


Can I find products easily for online arbitrage?


Basically, the business of online arbitrage or reselling relies on you being able to source products at a comparatively lower price than what you are going to ask for when listing on eBay - and given that prices on different marketplaces are significantly competitive, this may not be an easy task anyhow. But opportunities may knock up your door anytime - you just need an appropriate strategy to search for them. You can even take help of an online Arbitrage tool to make your search a lot more convenient.  

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