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Types of Arbitrage Online

You’ve Tried FBA, So What’s Next? 

After setting up two seven-figure Amazon FBA businesses, I've learned a lot about what makes an online arbitrage endeavor successful. I've also interviewed several online arbitrage entrepreneurs on the Fast Track FBA YouTube channel to get their tips and tricks. I'm often surprised and intrigued by the different types of arbitrage online that sellers take advantage of. That's why, in this post, I wanted to delve into the range of sites, products, and methods you can use to enhance your online arbitrage business if you've already scaled your FBA store. 

Table of Contents

top 100 online arbitrage websites amazon usa
top 100 online arbitrage websites amazon uk
top 100 Suppliers USA
  • My Top 100 US list that I use
  • See the most profitable suppliers for me
  • This is regularly updated based on my actual result
  • Find the suppliers who built my 7 figure business
  • Understand which suppliers we are still buying from
  • Do your own analysis on the suppliers
top 100 Suppliers UK
  • My Top 100 UK list that I use
  • See the most profitable suppliers for me
  • This is regularly updated based on my actual result
  • Find the suppliers who built my 7 figure business
  • Understand which suppliers we are still buying from
  • Do your own analysis on the suppliers

What Is Arbitrage Online?

If you've been reselling on Amazon for a while, you've probably heard the term arbitrage. Quite simply, it means buying a product on one marketplace and reselling it on another for a profit. That's the basis of Amazon FBA, arguably the most popular form of arbitrage online. 

 

However, only a few FBA resellers know that the landscape of online arbitrage extends far beyond Amazon. Sites like eBay, Udemy, or even your own eCommerce website all offer opportunities to scale your arbitrage business and increase your ROI. 

Why Expand Your Arbitrage Online Efforts?

If your Amazon FBA business is thriving, you might be asking why you'd ever move away from selling on the marketplace. Well, the beauty of arbitrage online is that you can use it to scale your existing business and take your FBA efforts to the next level. Adding another dimension to your Amazon business offers you: 

1. Scalability

While making huge profits on Amazon is definitely possible, as your business grows, you might find that relying solely on FBA limits your potential. By exploring other online arbitrage opportunities, you can handle larger volumes, expand your product range, and reach new markets without being constrained by Amazon's storage fees and inventory limits.

2. Diversification

Amazon isn't going anywhere anytime soon. But, your account might be. All it takes is a few IP complaints and you could lose everything you've worked so hard to build up. So, by diversifying your sales channels, you'll reduce dependency on Amazon and gain a safety net. This way, changes in Amazon's policies or algorithm will have a manageable impact on your overall business.

3. Flexibility

Expanding beyond Amazon FBA gives you more control over your business operations. You can set your own policies, adjust pricing strategies, and directly manage customer interactions. This flexibility allows you to tailor your business to meet specific customer needs and market demands, leading to potentially higher profit margins and customer satisfaction.

Having said that, FBA will always be my favorite form of arbitrage online. After all, access to Amazon's logistics saves you time, money, and hassle. So, before we delve into the variety that arbitrage offers, let's take a look at how you can expand your FBA efforts.

Scaling Your FBA Business 

I asked the Fast Track FBA Facebook group what they planned to do with their Amazon business, and got some interesting insights. Let's take a closer look at the options below. 

Amazon FBA offers opportunities for growth including wholesale and private-label selling.

Wholesale

If you want to stick with Amazon FBA, wholesale is a great way to decrease the competition from other sellers and further carve out your business's niche. Rather than purchasing products that are already listed on Amazon, you can:

 

  1. Find local suppliers of products that have a limited or no online presence. 
  2. Reach out with your Amazon experience and inquire about prices. 
  3. Determine potential profits and take advantage of bulk orders. 
  4. List the products on Amazon or create unique listings. 

 

With far fewer FBA sellers sharing your listing, you'll have a better chance of winning the buy box and earning increased profits. If you want to know more about Amazon FBA wholesale selling, check out my guide here.  

 

Wholesale arbitrage also offers the chance to gain exclusive contracts with suppliers, eliminating the competition altogether. However, this model still requires work, and sourcing viable wholesale suppliers can be even more time-consuming than regular sourcing. 

If you're adding wholesale to your retail arbitrage business model, you'll need some help. The Fast Track FBA VA Academy will get you the extra hands you need to expedite sourcing, purchasing, and shipping. With virtual assistants trained to find deals and support your arbitrage online Amazon business, whether retail or wholesale, you can focus on maximizing your profits.

Private Label 

Technically, private label isn't a form of arbitrage, since it involves creating your own products rather than selling those from other suppliers. However, it can be a great way to add to your Amazon offerings and expand your business while utilizing FBA. You'll need to:

 

  1. Research products with high demand and low competition to find a niche.
  2. Create a brand name, logo, and packaging that appeals to your existing Amazon customers. 
  3. Find a reliable manufacturer to produce your private-label products. 
  4. Discuss pricing, minimum order quantities, production timelines, and payment terms with your manufacturer.
  5. List the products on Amazon. 
  6. Plan a product launch strategy and take advantage of Amazon's PPC advertising. 

 

Launching a private-label product can give you an edge in the Amazon marketplace. But, since you're essentially starting another business, it takes a lot of effort. Do some research into other FBA sellers who've tried private label before, like Carter Maxwell

Services 

Since you know the ins and outs of Amazon arbitrage, you can expand your business by offering services to sellers who are just getting started, like… 

1. Prep Centres

I interviewed @1000ASINS, also known as Daniel Boufford, who started his own prep center, Epic Prep LLC. The best thing about this option is that you already have all you need to offer services to those doing arbitrage online. For example, if you rent space in a warehouse and prep your products before shipping them to Amazon, there's no reason why you couldn't expand this and offer it to other FBA sellers. 

2. Niche Courses 

I also interviewed Phillipp, AKA @HappyArbitrage, who has invaluable knowledge of selling on Amazon.DE. Since German Amazon can be confusing for sellers who are used to the US and UK marketplaces, he started a course that teaches FBA sellers how to take advantage of the second-biggest Amazon marketplace in the world. Like Philipp, if you've got niche knowledge of Amazon thanks to your own FBA journey, there's no reason you can't offer it to others in a dedicated course. 

Arbitrage Online: Moving Away from Amazon

Thomas explains how to scale your Amazon business.

Finally, if you've scaled your Amazon business to a point you're happy with, you can use your experience to explore other opportunities for online arbitrage. 

eBay and Etsy 

Like Amazon, retail arbitrage is thriving on sites like eBay and Etsy. 

 

  • These sites follow the same basic principles as Amazon FBA, so there's no learning curve besides getting to grips with their functionality. 

 

  • Despite some overlap, eBay and Etsy have a unique customer base. If your Amazon sales could be better, listing products on these sites can help clear your inventory. 

 

However, as mentioned, if you're selling on these sites, you'll need to ship products to customers yourself. This might mean increased reliance on a fulfillment center and extra time spent dealing with customer service issues. If you'd like to know more, check out my interview with @Conareselling, who got her start on eBay.  

Dropshipping

Dropshipping involves listing a supplier's products on your site, and providing the supplier with the customer's details so they can ship directly to them. 

 

  • Dropshipping gives you greater flexibility in terms of both branding and pricing. It also allows you to avoid fees on other sites like Amazon or eBay that affect your profits. 

 

  • The starting capital required to set up a dropshipping business is relatively low. This means you can invest minimal profits from your Amazon business and still have a good chance of success. 

 

  • While you won't be able to use Amazon's delivery infrastructure, dropshipping eliminates the need to ship products from suppliers to your home or warehouse. You won't even need to hold inventory. 

 

However, dropshipping is an incredibly popular option for online arbitrage, so you might find equal or more competition for your products. You'll also need to rely on suppliers for quality control, so if there are delays with shipping, there's little you can do. 

 

Bear in mind that you can use the dropshipping model on Amazon. I created a guide here if you'd like to learn more. 

eCommerce

If you've done the legwork necessary to create private-label products, why sell them only on Amazon? After creating your site, you can list your products and offer them to customers directly. 

 

  • With customers coming directly to you for your products, you can form better relationships with them. With ownership of their data, you'll also be able to take advantage of digital marketing, and resolve complaints personally.  

 

  • Selling private-label products through your eCommerce store means starting your own business. You can use this experience to expand your product range, seek partnerships, and even supply your creations to new FBA sellers. 

 

However, this form of online arbitrage is a lengthy process, and depending on your location and the nature of your products, you may need to seek permits and licenses. 

 

Additionally, you'll be responsible for building and maintaining your e-commerce website, managing inventory, handling customer inquiries and orders, and ensuring a smooth shipping process. As such, a reliable method for your FBA business that works even if you're dedicating your time elsewhere is necessary. 

Check Out These Posts to Learn More

I hope you enjoyed learning about different methods of arbitrage online. If you want to know more about scaling and expanding your Amazon business, check out these posts: How to Train a Virtual Assistant for Amazon Arbitrage, Amazon Leads List for Online Arbitrage in 2024, and The Four Best Courses for Online Arbitrage

 

We also created a playlist on YouTube named the Amazon FBA Full Course 2024.

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