In this article, you’ll know how to maximize your Amazon FBA profits with our online arbitrage sourcing list.
Sourcing videos have gained popularity lately, but have you ever heard of online arbitrage deals? If not, don’t worry because this article is here to provide you with a comprehensive guide. We’ll cover everything you need to know about online arbitrage deals, from what they are to where you can find them. Additionally, we’ll share what are the things you should look into and our very own Top 100 online arbitrage sourcing list in the USA. Get ready to learn how to make the most of online arbitrage deals.
How does online arbitrage work?
Online arbitrage has become a popular method for Amazon FBA sellers to source products from one online retailer and resell them for a higher price on Amazon.
What is an online arbitrage deal?
To fully understand what an online arbitrage deal is, it is important to understand its concept. In simple terms, online arbitrage involves buying products online and then selling them for a profit, normally on platforms such as Amazon, eBay, Facebook marketplace, and more. Every aspect of this business model takes place online, starting from the purchase of the product to the sale.
With that said, what exactly is an online arbitrage deal?
Essentially, it refers to the product itself that you source or find online and then sell on different marketplaces for a profit. It could involve buying a product at a low price and then selling it at a higher price. Be reminded that the terms “online arbitrage deals” and “online arbitrage leads” are often used interchangeably.
When searching for deals online, the process is often called sourcing. With this in mind, let’s dive deeper into the world of online arbitrage deals and explore how you can make the most for your Amazon business.
Where to look for an online arbitrage deal?
As an Amazon seller, the deals you’ll be sourcing will come from online stores, of course. It is important to keep in mind that there are two main types of websites where you can find deals.
Retail websites
These are essentially online stores that sell a wide range of retail products, similar to physical grocery stores. Walmart is a prime example of a retail website where you can find online arbitrage deals to sell on Amazon.
Brand websites
As the name suggests, this type of website sells products under its own brand name. For instance, Boots is a brand website that specializes in beauty products and offers potential opportunities for Amazon sellers.
What to look for when sourcing?
It is crucial to establish your own deal criteria before looking for online arbitrage deals. This said criteria will be based on your strategy, particularly your Return on Investment (ROI) and profit margin.
ROI refers to the amount of money you earn back from your investment, while the profit margin is the percentage of profit you make from your sales. It can be difficult to differentiate between the two, so let’s take a closer look with a sample computation.
Let’s say you have the following numbers:
- Cost of Goods sold (COGs): $5
- Sell price: $15
- Additional fees: $3
- Sales proceeds (what Amazon pays you back): $12
- Ship to Amazon cost and prep: $1
To compute for ROI, start by adding up all your expenses (COG, additional fees, shipping, and prep) and subtracting that from your sell price. So, for this example, it would be:
Profit = $15 – $3 – $5 – $1 = $6
Next, divide your profit ($6) by your COGs ($5) to get your ROI. In this case, it’s 120%.
To calculate the profit margin, divide your profit ($6) by your selling price ($15). You’ll get a profit margin of 40%.
Aside from the profit margin, some Amazon sellers also set a minimum profit that they want to make from online arbitrage deals. This could be $3 or more, depending on your business goals.
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What to know before sourcing
Aside from setting your own deal criteria, there are other important factors to consider when sourcing for online arbitrage deals.
Firstly, ensure that you have the right tools at your disposal. There are many sourcing tools available that can help you determine whether a deal meets your criteria and whether you can make a profit from it. Some of the commonly used tools in the Amazon business include Keepa, FBA Multi-tool, SAS, and BuyBot Pro. These tools are essential for growing your Amazon business.
Secondly, it is important to focus on brands and ASINs that you are ungated for. Amazon has strict regulations on which categories and brand sellers can sell, and being gated means you’re not allowed to sell certain categories and brands until you’ve met certain requirements. Therefore, it’s essential to familiarize yourself with the brands and categories that you’re permitted to sell and prioritize them when sourcing for deals.
If you’re unsure about how to get ungated for certain brands and categories, you can check out the previous article to learn more about the steps you can take to become ungated and expand your selling potential on Amazon.
Top 100 USA online arbitrage sourcing list
We understand that the biggest challenge you’ll face in your Amazon business is to source products to sell on Amazon. Online arbitrage has become a popular method for finding profitable deals, and it can be overwhelming to know where exactly to look. That is why we’ve developed our very own Top 100 USA Online Arbitrage Sourcing List, specially tailored for the USA marketplace.
We have spent countless hours researching and compiling a list of the top 100 online stores and suppliers where you can find profitable deals to sell on Amazon. Honestly, we’ve used this list ourselves and it has been a key factor in helping us grow our Amazon business to 7 figures in the USA marketplace.
Our list includes a variety of stores and marketplaces to make it easy for you to start sourcing deals right away.
We offer both a free and a paid version of our Top 100 Online Arbitrage Sourcing List. The free version includes the list of stores and their websites. While the paid version includes more detailed information and resources to help you make the most of your sourcing efforts.
Why use an online arbitrage sourcing list?
In life, it is common to seek out ways to make things easier and avoid hard work. As we know, sourcing deals is really time-consuming, and finding ways to make it easier is the way to go. This isn’t necessarily a negative trait to possess.
With only 24 hours in a day, taking shortcuts can often lead to a more profitable outcome for your Amazon business. It’s about finding ways to work smarter, not harder, in order to maximize your time and resources.
So why use an online arbitrage sourcing list?
- Saves your time to focus on more important things in your Amazon business.
- Discover future leads and sources,
- Know what other Amazon sellers consider profitable deals
Time to source amazing deals!
Searching for Amazon FBA leads can be a time-consuming task. Our mission is to provide you with the knowledge and understanding you need to navigate this process with greater ease and efficiency.
If you're looking to learn how to source for online arbitrage deals for yourself, you're in luck. We have a previous article that covers everything you need to know about manual sourcing, keepa sourcing, and our top two sourcing techniques. With these techniques, you can find profitable products to resell and make money from the comfort of your own home. So, if you're ready to take your online arbitrage game to the next level, be sure to check out our article for all the tips and tricks you need to succeed.