What is online arbitrage (OA) How it works on Amazon in 2022
                     What Is Online Arbitrage (OA) 
How It Works On Amazon In 
2022
What is Online 
AThreb Ointlrinaeg Aerb?itrage refers to product re-selling. Buy products 
from one online marketplace at cheap price and sell it online on 
another marketplace at high profit.
Suppose, I bought an item on a retail store like Walmart, Home 
depot or eBay for $20. The same product is getting sold on 
Amazon at $50. I will list the product on Amazon at $50. What i am 
making is profit.
You can resell it on your own store or Amazon. Online arbitrage 
works effectively on Amazon. You will find an existing product 
listing to sell on Amazon. Buy the stock and start selling on the 
existing Amazon listing.
Is Online Arbitrage legal on 
Yes, you can do onAlinme aarbziotrang?e on Amazon. Follow 
Amazon guidelines and run risk free arbitrage 
business.
What Should I do Merchant Fulfilled 
or Amazon Fulfilled?
To run and drive results through online arbitrage, I will recommend 
you Fulfilled by Amazon model. Send your inventory to Amazon 
and do hassle free online business. They will pack the orders and 
process them to the customers.
Also, FBA sellers have high chances of winning the buy box. The 
buy box is “Buy Now” button on Amazon.
You will find many sellers selling the same product on a single 
listing. As a new seller it is difficult to win buy box on the listing. 
With FBA and price down, you can win the buy box.
How to Find Products and Source Them 
for Amazon OA?
Online Arbitrage as explained is a process of re-selling a product 
on Amazon. So, you will start your product research from 
Amazon. Find best selling items on Amazon with following criteria:
• Lightweight (0-5 pounds)
• small or standard box dimension
• BSR under 100000 for main product category
• Number of sellers under 5 or less
• Good profit margin up to (at least $5/unit)
• Average ratings 3.5 or more
 Check whether you can sell the product on Amazon or not. Login 
to the seller central account and check it. Sort out what items are 
allowed to list on Amazon from your list.
The next step is product sourcing. You have mad a list of good 
products. Now, use product price comparison sites like Google 
shopping, Bizrate etc. Find best deals for the same product on 
Wayfair, Target, or other retail stores. This way you can grab a 
good deal and stock the products at best prices.
Another way of sourcing product is stock clearance or liquidation 
sites. Search the product on the such sites and find are they listed 
for sale. Here you can save even more than large retail stores as 
supplier wants to clear the inventory asap. You can save up to 
80% on the product M.R.P.
Automatic 
Method
The alternative to the manual product research and sourcing are 
arbitrage tools. Tactical Arbitrage and Source mogul are best to 
add in the Arsenal. It searches the products on hundreds of 
retail websites online. You will get list of the same product on 
different sites. This way you can purchase it at lowest possible 
price online.
Do Amazon Charge Fees to FBA 
Amazon gives you a platfSoreml lteo sresll?ing online. It charges 15% 
referral fees of the selling price on every order. Suppose, you 
are selling a product at $50. You will pay $7.5 on every order 
you receive on Amazon.
FBA Fees
Amazon is handling order shipment for you. It will charge you FBA 
fees for order fulfillment. The shipping fees depends on package 
weight.
Professional Seller 
Amazon allowPsl alimnited inventory storage to FBA sellers as an 
individual seller. You will need to buy $39.99 monthly subscription 
on Amazon seller central to keep unlimited stock. The plan allows 
you unlimited storage space and listings.
Monthly Storage 
Amazon proFveidees you space to keep the stock. It charges you for 
using the warehouse storage. The standard charges of monthly 
storage fees  depends on cubic feet area your inventory covers in 
the warehouse.
How to Calculate 
To calculateP prroffiit tp?er sale, you need to prepare an excel sheet. 
Sum product purchasing price, FBA fees, and shipping fees you 
pay to carrier to forward the stock to the Amazon warehouse. 
Subtract it from the selling price. This way you can check the profit 
you making on every unit.
Remember you paying $39.99 as a subscription fee and monthly 
storage fees. So, you need to subtract it from your monthly profit 
revenue to get the actual profit count.
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