What is Online Arbitrage
The easiest way to make money on Amazon in 2019
Table of contents:
What is Online Arbitrage?
Online Arbitrage, or "OA", is the act of buying a physical product at a certain price in order to resell it at a higher price, thereby making a profit.
In most cases, products are bought and sold on different marketplaces. For example, a product bought at Walmart for $30 and sold on Amazon for $50. After paying Amazon fees and deducting the initial purchase price, your profit is roughly $8 per unit sold.
This business model becomes interesting once you scale up. In our previous example, if you can sell 20 of those products each week, that's $640 in profits every month!
Difference between "Online" and "Retail" Arbitrage
In essence they mean the same thing, the difference being that for "Retail" Arbitrage (RA) you go buy your products at the physical stores. Whereas for "Online" Arbitrage (OA) you buy your products... online :). In theory, "Online" Arbitrage is a sub-set of Retail Arbitrage. But in order to differentiate both methods we introduced the term "Online".
"Retail" also implies that you buy your products at retailers, as opposed to buying them at wholesalers. However, we often use RA or OA even though we are buying at wholesalers.
Where to start?
There is no secret. The best way to build your e-commerce empire is to take action, right now. I'm sure you have things lying around your house that you don't need (books, gifts that you never opened etc.). Send them to Amazon and start getting used to the process.
You will not go from $0 to $2000 per month overnight, so proceed step by step. Start by trying to earn $100 in profits every month, then scale up little by little by reinvesting your profits and soon enough you will replace your full-time job income with Amazon.