Many people are confused about Online Arbitrage. Here is brief knowledge about it for beginners.
What is Online Arbitrage?
Online Arbitrage is a process in which we buy products from any retailers then sell on Amazon.
FOR EXAMPLE: We buy products from retailers (Ebay, Walmart, target etc.) in 5$ then sell on amazon in 15$. After cutting 2$ prep fee 2$ amazon fee, 2$ referral fee,
2+2+2=6, 5$ + 6$ = 11 $,
Finally we will get profit 4$ per product.
Is Online Arbitrage same as wholesale?
No, it is not same as wholesale because in wholesale we need brand approval but in OA we can sell product without approval. basically we hunt product which is not restricted from brand, we sell auto approved product.
LLC is necessary for Online arbitrage?
No, it is not necessary because we need LLC for brand approval but in online arbitrage we don't need approval so we can start without LLC.
Is Online Arbitrage same as drop shipping?
No, it is not same as drop shipping because in drop shipping we are responsible of our inventory like , packing, picking, shipping but in Online Arbitrage we keep our inventory in amazon warehouse and amazon is responsible for picking, packing and shipping all that.
How many budget is required for Online Arbitrage?
We can start online arbitrage with 1000 to 2000$.
Can we buy products in Bulk?
We cannot buy products in bulk because we are not buying from brand, we are buying from any local stores so in starting we buy 15 to 20 units.
Hunting For Online Arbitrage:
Online Arbitrage hunting same as wholesale, we hunt product On amazon, then we can do manually sourcing on Google.
Is it risky model?
Yes, it is risky but less risky than drop shipping.
Also Visit Amazon Product Research Techniques: Click Here
