The Easy Way to Start With Online Arbitrage

online arbitrage

You are thinking of starting an online business selling products on Amazon, Ebay, maybe even on your private store. Surely, the following question haunted you from day one:  “What products shall I sell?“. You could go on designing and creating your own product. These days everything can be done remotely by contacting a manufacturer in Asia. However, the endeavor may be risky especially if it’s your first online business.

A more gentle way to dive into the online selling world is to leverage online arbitrage!

Online arbitrage to the rescue

Retail arbitrage is as old as the business of trading itself. The idea is to buy a product from one store and resell it on another with a nice margin. People used to go Target and local wholesalers, spend the afternoon looking for products, then resell them on various stores (ebay, Amazon, etc.).

Now everything can be done remotely. One popular strategy is to buy from Alibaba, aliexpress, and other online wholesalers and sell on Amazon FBA (Fulfillement by Amazon). Amazon takes care of the shipping and customer service in exchange for a fee, and you don’t need to worry about storing thousands of boxes in your garage.

Great, but not all products are equal! Some are heavily demanded by the market, others not so much. How to make sure you do not waste hundreds of dollars buying an inventory that will end up collecting dust in Amazon’s warehouses?

Online arbitrage with Arbitrage Ideas

Arbitrage Ideas attacks the problem from another angle altogether. Every day we scan Amazon best sellers in more than 20,000 categories and find their equivalent on wholesalers. Every product you find on Arbitrage Ideas already proved itself as a high value product!

online arbitrage example

The same product on sold on Amazon for $6 can be found on Alibaba for $0.35, provided you buy 100 items of course. That’s the power of wholesale shopping!

Some products are in competitive categories (notice the small yellow dot in the middle of the previous figure). If you do not already have an established selling record, you may want to stay away from such products. Other items however are not so competitive as you can see below:

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You can order the list by competitive score, number of reviews or number of stars until you find your next golden gem!

You may want to use Arbitrage Ideas to find exactly the same product on alibaba, but cheaper and resell it on Amazon under the same ASIN (product identifier). Another strategy would be to create your own private label. Simply contact the manufacturer, provide them with your logo and brand name and they will slap it on the product. That way you can list it in Amazon under a new identifier.

In the later case however, you should be prepared to take on advertising and marketing on your own. This is something you will have to do eventually anyway if you want to achieve decent success in the online business.

Red Hot Products

If you are starting out in online selling, you may want to focus on Red Hot Products. These products present the following characteristics:

  • Absolute rank between 1,000 and 10,000: the product is in demand but is not over competitive.
  • Weight under 3 pounds: lower delivery and management fees
  • Less than 500 reviews: lower competition
  • Net margin over 25%: guaranteed profit

online arbitrage 4

I will not be so blunt as to say that Arbitrage Ideas is 100% accurate in finding a product’s match. Some products are difficult to match (small image, too much white, generic form, etc.). Other products are close enough and thus can be flipped under your own brand.  Arbitrage Ideas does a decent job for a price ten times lower that the competition. And most importantly, the search result is in real-time!

Give it a spin, you have a free quota of queries every day and hopefully it will help you bootstrap your online business with minimum overhead.