5 min read

How To Do Online Arbitrage On Amazon (Amazon OA)

Written by
Vanessa Hung
Published on
October 4, 2023

Navigating the world of online retail can often seem like a daunting task. Did you know over two million third-party sellers contribute to about half of Amazon's sales? As an entrepreneur looking for new avenues, understanding how to do online arbitrage on Amazon might just be your ticket to success in this vast marketplace.

Stick around and we'll unravel the secrets behind turning arbitrage opportunities into profits on Amazon!

Key Takeaways

What is Online Arbitrage on Amazon?

Online Arbitrage on Amazon is a method of sourcing products from online retailers and reselling them at a higher price on the Amazon marketplace to make a profit.

How it works

In online arbitrage, you buy products from an online retailer and sell them on a different platform like Amazon for a higher price. You start by identifying a product that's selling for less on another site than it is on Amazon.

After purchasing the product, listing it on Amazon at a higher rate generates profit margins. The core of this strategy hinges upon your ability to spot lucrative deals and capitalize on price differences between various marketplaces.

Utilizing tools or software can streamline this process, automating the search for profitable items across multiple platforms simultaneously. Once you make a sale, employing Fulfillment By Amazon (FBA) can handle storage, packing, and shipping logistics so that all you have to focus on is scaling your business and maximizing profits.

Legality and restrictions

While doing online arbitrage on Amazon, it's crucial to understand the legal framework and restrictions. Selling counterfeit merchandise is illegal and can lead to account suspension or even legal action.

Always verify that you have the right to sell each product. Some brands restrict who may sell their products on Amazon, while others require approval from Amazon before you can offer their goods.

Ignoring these restrictions can cost your business dearly in lost sales and penalties. Complying with laws and regulations ensures a smooth operation of your online arbitrage business on Amazon.

Pros and Cons of Online Arbitrage on Amazon

Online arbitrage on Amazon has its fair share of pros and cons. On the positive side, there is the potential for significant profit, thanks to low startup costs and the flexibility to work from anywhere.

However, it's important to consider the competition that comes with online arbitrage, as well as the time-consuming nature of finding products and dealing with limited inventory.

Pros: potential for profit, flexibility, low startup costs

With online arbitrage on Amazon, there are several pros that can benefit you as an Amazon seller. First and foremost, there is the potential for significant profit. By finding products at a lower price and selling them at a higher price, you can make a nice profit margin.

Additionally, online arbitrage offers flexibility in terms of working hours and location. You have the freedom to work whenever and wherever you want, making it convenient for those with busy schedules or other commitments.

Lastly, one of the major advantages of online arbitrage is its low startup costs. Compared to other business ventures, the initial investment required is relatively minimal, allowing you to get started without breaking the bank.

Cons: competition, time-consuming, limited inventory

Competition can be a drawback when it comes to online arbitrage on Amazon. With many sellers participating in this business model, finding profitable products can become challenging.

It requires thorough research and analysis to identify unique opportunities that are not saturated with competition.

Time-consuming is another con of online arbitrage on Amazon. Sourcing profitable products involves conducting extensive market research and comparing prices across different platforms.

Additionally, you need to invest time in managing inventory, handling customer inquiries, and optimizing your listings for better visibility.

Limited inventory can also pose a challenge in online arbitrage on Amazon. As a seller, you rely on finding discounted products from various sources and reselling them at higher prices.

However, there may be limitations in terms of availability or the number of units you can purchase from certain suppliers.

Tips for Success in Online Arbitrage on Amazon

To succeed in online arbitrage on Amazon, generate product ideas, find and validate products, decide how to fulfill orders, win the Buy Box, increase profit margins with coupon codes and cash back sites, and use tools for automation and efficiency.

Generate product ideas

To successfully do online arbitrage on Amazon, you need to have a constant stream of product ideas. This is crucial because it allows you to find profitable items that are in demand.

One way to generate product ideas is by researching trending products and popular niches. Look for trends in consumer behavior, such as seasonal items or new technology releases. Additionally, pay attention to customer reviews and feedback to see what people are talking about and what they want.

Another approach is to analyze the competition by looking at top-selling products in your category and identifying opportunities for improvement or unique selling points. By consistently generating fresh product ideas, you can stay ahead of the game and find success with online arbitrage on Amazon.

Find products

To find products for online arbitrage on Amazon, start by generating product ideas. Look for popular items that are in-demand and have a good profit margin potential.

Once you have identified a product, validate it by checking its sales velocity. This will give you an idea of how quickly the item sells and if there is enough demand to support your business.

You can also look at the competition for that specific product to ensure there is room for you to compete effectively.

When deciding how to fulfill orders, consider using Amazon FBA (Fulfillment by Amazon). This service allows you to store your inventory in Amazon's warehouses and let them handle shipping and customer service.

It saves time and ensures fast delivery to customers.

Validate products

To ensure the success of your online arbitrage business on Amazon, it is crucial to validate the products before making a purchase. This step involves conducting thorough research and analysis to determine if a product has good potential for profit.

Look at factors such as sales rank, customer reviews, competition, and price history. By validating products, you can make informed decisions and choose items that have higher chances of selling well and generating profits.

Remember to focus on finding products with a strong demand and limited competition in order to maximize your chances of success in online arbitrage on Amazon.

Decide how to fulfill orders

To successfully fulfill orders in online arbitrage on Amazon, you have a few options to consider. One option is to fulfill orders yourself, also known as merchant fulfilled. This means that when a customer places an order, you are responsible for packing and shipping the product directly to them.

Another option is to use Amazon's Fulfillment by Amazon (FBA) service. With FBA, you send your products to Amazon's warehouses and they handle the packing, shipping, and customer service for you.

This can be a convenient and time-saving option that allows you to focus on finding more profitable products. Ultimately, the choice of how to fulfill orders depends on your preference and resources available.

Win the Buy Box

To be successful in online arbitrage on Amazon, one of the key factors is winning the Buy Box. The Buy Box is the little box on a product page that allows customers to add items directly to their cart with just one click.

It's important because most Amazon shoppers don't bother scrolling down to check out other sellers; they simply buy from whoever has won the Buy Box. So, how can you win it? First and foremost, you need to have competitive pricing.

Make sure your prices are lower or at least in line with other sellers for the same product. Next, focus on maintaining a high seller rating and providing excellent customer service.

Use tools for automation and efficiency

Maximize your efficiency and streamline your online arbitrage business by incorporating automation tools. These tools can help you save time, reduce manual work, and increase productivity.

Look for software that can automate tasks such as product research, price tracking, inventory management, and order fulfillment. By utilizing these tools, you can focus on more important aspects of your business like sourcing profitable products and growing your profits.

Stay ahead of the competition by leveraging automation to make your online arbitrage journey smoother and more efficient.


In conclusion, online arbitrage on Amazon can be a lucrative business opportunity for sellers. By following the steps outlined in this guide, you can get started with ease and maximize your chances of success.

Remember to research products carefully, use tools for efficiency, and stay persistent - soon enough, you'll be reaping the benefits of online arbitrage on Amazon. Happy selling!


1. What is online arbitrage on Amazon?

Online arbitrage, also known as Amazon OA, is a retail strategy where you buy products for lower prices from one place and sell them for a profit on Amazon.

2. How can I start doing online arbitrage on Amazon?

To start with online arbitrage, you need to learn the process which includes manual sourcing of items and understanding rules set by the platform. An online course titled 'Amazon FBA Online Arbitrage Course' could guide you effectively through this process.

3. Does taking an amazon online arbitrage course help expand my knowledge in this field?

Yes definitely! By enrolling in an Arbitrage Course specifically focused on Online Arbitrate on Amazon, it will provide detailed instruction to enhance your skills further in this area.

4. What does 'manual sourcing' mean in the context of online arbitraging?

Manual sourcing refers to finding profitable products to sell yourself rather than using automated tools or services; It's often taught as part of an Online Arbitrate course provided by experts.

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