Starting an online arbitrage business is one of the fastest ways to start selling on Amazon without creating your own products. Instead of dealing with manufacturers, you source discounted items from online retailers and resell them for a profit. It’s a scalable business model, but success depends on knowing what to buy, where to find it, and how to price it correctly.
In this guide, we’ll walk you through the exact steps to launch and grow your Amazon online arbitrage business. Let’s get started.
What is Amazon Online Arbitrage?
Online arbitrage is a business model where you buy discounted products from online retailers and resell them for a profit. You find deals on websites like Walmart, Target, or Kohl’s, then list those items on Amazon at a higher price. For example, you might buy a toy on clearance sale for $10 and sell it on Amazon for $25. After FBA fees, you pocket the difference.
What makes online arbitrage a great option for new sellers is that you don’t need a huge upfront investment. While we recommend having a budget of $2000 – $3000 it’s completely possible to start your business with just a couple hundred dollars.
Is Amazon Online Arbitrage Legal?
Yes, online arbitrage is completely legal—and it’s a very popular business model on Amazon. Thousands of sellers make a full-time income by buying discounted products from retail websites and reselling them for a profit.
In the U.S., the First Sale Doctrine protects your right to resell legally purchased goods. In simple terms, once you buy a product, you have the right to sell it, whether you got it from Walmart, Target, or any other retailer. As long as the product is authentic and in new condition, Amazon allows you to list and sell it.
That said, some brands try to restrict resellers through IP complaints or brand gating on Amazon. While this doesn’t make arbitrage illegal, it does mean you need to be mindful of which brands you sell. Software like SellerAmp can alert you if you are gated from selling certain brands or if you are at risk of a possible IP complaint.
What Is the Difference Between Retail Arbitrage and Online Arbitrage?
Retail arbitrage and online arbitrage are two sides of the same coin, but they work in very different ways. With retail arbitrage, you visit physical stores like Walmart, Target, or thrift shops, in person, to hunt for discounted items. Then, you list those products on Amazon for a profit. It’s a hands-on approach that requires time, gas money, and a lot of patience.
Online arbitrage, on the other hand, lets you work from anywhere. Instead of traveling to stores, you source products from online retailers like Kohls, Walgreens, or even niche websites. When you find a profitable product you buy it online, list it on Amazon, and repeat. It’s faster, more flexible, and doesn’t require you to leave the house.
Pros and Cons of Amazon Online Arbitrage
Before we go into the details of starting your own online arbitrage business, it’s important to decide if this business model is right for you. There are a lot of different ways to get started in e-commerce from private labeling to wholesale, and each one has its pros and cons. Here are the positives and negatives when it comes to online arbitrage on Amazon.
Pros
- Low Startup Costs: You don’t need thousands of dollars to get started. With just a few hundred dollars, you can begin sourcing products and listing them for sale. This makes it one of the most accessible ways to start selling on Amazon.
- Flexibility: Source products at any time and at any place. Online arbitrage works great as a side hustle and can easily scale into a full-time income. Also, if you decide to use a prep center you can make your business completely location independent as well. It’s an excellent business model for anyone interested in the digital nomad lifestyle
- Wide Range of Products: Unlike private label or wholesale sellers, online arbitrage allows you to sell in a wide range of niches and a huge selection of products. This added flexibility can come in handy, especially in Q4.
- Existing Customers: Since you are sourcing existing products with established brands there are already millions of customers looking to buy the products you sell. Combine this with the largest e-commerce platform in the world, and you have prebuilt demand for all of your products.
Cons
- High Competition: Since anyone can source products online, you’ll face more competition. Price wars are common, and profit margins can shrink if too many sellers jump on the same product.
- Time-Consuming: With both online and retail arbitrage there is a need to constantly source new products. This means that every day you’ll need to research new product ideas, check online retailers, find discounts, etc.
- Lower Margins: Even if you’re able to find the best sales and discount codes, online arbitrage typically has lower profit margins compared with other Amazon business models.
Recommended Tools for Online Arbitrage
When you’re just getting started with Amazon online arbitrage, it’s important not to overinvest in expensive software. The good news? You don’t need to. The two tools we recommend for beginners—Keepa and SellerAmp—are both affordable at around $20 per month each and will give you everything you need to find profitable products.
As your business grows and you start managing more inventory, we also recommend investing in a repricer to help you win the buy box and maximize sales. Let’s take a closer look at each tool and how it can help your business.
Keepa
One of the biggest mistakes new sellers make is assuming that today’s prices will stay the same. This is where Keepa comes in. Keepa is the number one software for historical pricing, sales rank, and competition information, giving you a clear picture of a product’s long-term performance before you invest in inventory.
With Keepa, you can:
- See historical Buy Box prices to understand typical selling prices over time.
- Analyze sales rank trends to determine how often an item sells.
- Check if Amazon is on the listing and what share of the buy box they get
- Monitor the number of FBA and FBM sellers on each listing
Keepa integrates directly into Amazon’s product pages, making it easy to access this data while browsing. At just €19/month (about $20 USD), it’s one of the most affordable and important tools for online arbitrage sellers.
SellerAmp
SellerAmp is our go-to sourcing tool for Amazon online arbitrage, helping sellers quickly analyze products for profitability and competition. It comes with a Chrome extension, mobile app, and web app, making it easy to research products from anywhere.
It includes tons of features including Smart Search, which allows you to right-click on any product while browsing an online store and instantly search for its Amazon listing. Within seconds, you’ll see essential data like sales rank (BSR), estimated profit, competition levels, and whether Amazon is on the listing. You can also view other sellers’ storefronts directly within SellerAmp—an excellent method for sourcing winning products.
With SellerAmp you can quickly see if you are eligible to sell a product (or gated), get notified of potential IP complaints, see fee breakdowns, and much, much more. It also includes a profit calculator that helps you determine ROI, breakeven prices, and estimated profit margins before making a purchase.
At just $19.95 a month, SellerAmp pays for itself in time savings alone. It’s a must-have tool for both new and experienced arbitrage sellers looking to source profitable products. If you want to try SellerAmp for yourself, they offer a 14-day free trial.
Repricing Software
Once you start selling regularly, manually adjusting prices dozens of times each day becomes impossible. This is where repricers come in. A repricer automatically adjusts your prices in real-time based on competition, helping you stay competitive and win the Buy Box more frequently.
Besides winning the buy box, repricers allow you to focus on sourcing and scaling your business rather than spending hours adjusting prices. If you’re serious about online arbitrage, it’s one of the best investments you can make.
There are tons of repricers available but the two we recommend most for new sellers are Aura and BQool. Both of these repricers have budget-friendly new seller plans and both offer flexible, AI-powered repricing tools.
For more information on repricers including Aura and BQool check out our full guide: 7 Best Amazon Repricers to Win the Buy Box in 2025 for a deeper look.
How to Start Amazon Online Arbitrage in 2025
In this guide, we’ll assume you’ve already signed up to Seller Central and have a Professional Seller Account. If you don’t have a seller account and are not sure where to start, check out our guide: How to Create an Amazon Seller Account. Now, let’s break down the key steps to launching your online arbitrage business.
Step 1: Find Products Using Reverse Sourcing
One of the biggest mistakes new online arbitrage sellers make is jumping into clearance sales or discount websites, buying products blindly, and hoping they’ll sell on Amazon. While this might work occasionally, it’s a risky strategy that often leads to wasted time and money. Without proper research, you could end up with inventory that doesn’t sell or, worse products you aren’t eligible to sell period.
That’s where reverse sourcing comes in. Instead of starting with deals and hoping for the best, reverse sourcing flips the script. You begin by identifying products that are already profitable for other sellers on Amazon. This method removes the guesswork and helps you focus on already profitable products. Here’s how to do it:
- Find a Successful Product on Amazon: Look for items with a solid sales history and check the sellers on the listing. Click “Other sellers on Amazon” and find sellers with 20-150 reviews. These sellers are likely experienced and profitable but not so large that they have access to exclusive deals or wholesale opportunities unavailable to you.
- Click the Seller’s Name: This takes you to their profile.
- Visit Their Storefront: Click “Visit the [Store Name’s] Storefront. Here, you’ll see all the products they sell.
- Research Sourcing Options: Go through the list of products and analyze them using tools like KEEPA and SellerAmp. We’ll go over this in more detail in step 2.
Step 2: Analyze the Product for Profitability
Not every deal is a good deal. Use tools like SellerAmp and Keepa to analyze the product’s profitability.
The first thing to check is the BSR or Best Seller Rank, this number signifies how popular an item is, the lower the number, the more monthly sales the product has. We recommend targeting products with a BSR of 200 000 or lower, anything higher than this and you might struggle to make consistent sales.
Secondly, you’ll want to use a tool like Keepa to check the sales history of each product. Check to see price trends and whether or not the product goes through seasonal spikes. If the current price is higher than the average make sure to use the lower price when you’re calculating estimated profit margins. Calculate your potential profit by factoring in Amazon fees, shipping costs, and your purchase price. Aim for at least 25-35% ROI to make it worth your while.
Additionally, you’ll want to check if Amazon is on the listing and what percentage of the Buy Box they get. In some cases, Amazon may share the buy box and in others, they may dominate the listing. If you find a product where Amazon is winning the buy box the majority of the time, it is best to move on.
Step 3: Decide on a Fulfillment Method
When selling on Amazon, you can choose between Fulfilled by Amazon (FBA) or Fulfilled by Merchant (FBM).
- FBA: With this method, you send your inventory to Amazon’s fulfillment centers, and they handle storage, packing, shipping, and customer service. While FBA comes with fees, it saves time and increases your chances of winning the Buy Box, leading to more sales.
- FBM: This option requires you to store, pack, and ship products yourself. It offers more control over your inventory and can be useful for oversized or slow-moving items. However, it also means handling customer service and shipping logistics.
For most online arbitrage sellers, FBA is the better choice because it allows for hands-off fulfillment, faster shipping, and most importantly makes it much easier to win the Buy Box. For new sellers especially, FBA makes it easier to scale your business without being tied down by daily order management.
If you need a deeper comparison of FBA vs. FBM, check out our article: Amazon FBA vs FBM: Which Fulfillment Method is Right for You? for a full breakdown of the pros and cons of each method.
Step 4: List Your Products and Ship Them To Amazon
Listing an online arbitrage product is simple since the product is already being sold on Amazon.
Start by finding the product’s ASIN (Amazon Standard Identification Number) and adding it in Seller Central under “Add Products.” Select “New Condition,” set your price, and choose your fulfillment method.
Once your product is listed, it’s time to prepare your shipment to Amazon’s fulfillment centers. You’ll need a few essentials: a packing scale to weigh your items, a printer for shipping labels, and basic supplies like tape and boxes. In Seller Central, select your product in “Manage Inventory” and follow the prompts to create your shipment. Amazon will guide you through labeling, packing, and choosing a carrier like UPS or FedEx.
The key is to stay organized. Keep your packing area tidy, double-check labels, and ensure your boxes are secure. Once your shipment is ready, drop it off at your chosen carrier or schedule a pickup. With your inventory on its way, you’re one step closer to making your first sale.
If you need more information on Amazon’s requirements check out the Product Packaging Requirements section in Seller Central.
Step 5: Keep Your Prices Competitive and Win the Buy Box
The work doesn’t stop after listing your product. To stay competitive, you need to monitor your prices and adjust them strategically, and that’s where a repricer comes in.
A repricer is a tool that automatically adjusts your prices based on real-time market conditions. Since over 80% of Amazon sales happen through the Buy Box, having the right price is key to winning it. A repricer helps you stay competitive without constantly checking your listings, ensuring your prices remain in the optimal range for sales and profitability.
If you price too high, you’ll lose the Buy Box and miss out on sales, price too low, and your margins suffer. That’s why most online arbitrage sellers use an automated repricer like Aura or BQool to adjust prices dynamically while keeping profits in check.
Want to learn more about how the Buy Box works and what factors influence it? Check out our full guide: “How to Win the Buy Box on Amazon: The #1 Key to More Sales.”
Best Websites for Online Arbitrage
With so many websites out there for online arbitrage, it can be tough to know where to start. Here are some of our top picks for North American sellers.
- Walmart.com: A go-to for a wide range of products, from toys to home goods. Look for clearance deals and items sold directly by Walmart for the best prices.
- Target.com: Great for seasonal items, home decor, and electronics. Check the “Clearance” section for hidden gems.
- Kohl’s: Known for clothing, home goods, and kitchenware. Use Kohl’s Cash and coupons to maximize discounts.
- BestBuy.com: Ideal for electronics and tech accessories. Keep an eye on open-box deals and seasonal sales.
- Walgreens.com: Perfect for health, beauty, and personal care products. Look for weekly deals and rewards program discounts.
- Brickseek.com: A deal aggregator that shows discounts from Walmart, Target, and other retailers. Great for finding in-store and online deals.
- Woot.com: Amazon’s deal site offering daily discounts on electronics, home goods, and more. Products often sell out fast, so act quickly.
- Slickdeals.net: A community-driven deal site where users share discounts from thousands of retailers. Perfect for finding unexpected bargains.
- Ulta.com: A top destination for beauty and skincare products. Use their rewards program and coupons to save even more.
How to Increase Profit Margins with Coupons, Cashback, and Discounts
Successful online arbitrage isn’t just about finding profitable products—it’s about making products profitable. Many items that don’t seem like great deals at first glance can turn into money-makers when you apply the right combination of discounts, cashback, and gift cards. Yes, it takes extra effort, but that extra work directly boosts your bottom line.
1. Use Coupons to Lower Costs
Retailers offer a variety of discounts, but they don’t always advertise them upfront. Many online stores provide exclusive coupon codes when you sign up for their email list, so we recommend creating a secondary email account just for these promotions. Also, coupon browser extensions like Capital One Shopping and RetailMeNot can automatically apply the best codes available at checkout.
Don’t forget to check multiple coupon sites as well, just because you can’t find a discount on one site, doesn’t mean there aren’t discounts available on another.
2. Earn Cashback on Every Purchase
Cashback programs give you a percentage of your money back on purchases, turning every buy into a slightly better deal. Some of the best cashback options include:
- Rakuten – Pays cashback via check or PayPal every quarter.
- TopCashback – Often provides higher rates than competitors.
- BeFrugal – Offers competitive cashback with frequent bonus deals.
Also, take advantage of store rewards programs like Kohl’s Rewards. These programs can give you cashback, store credit, or additional discounts that stack with other savings. Over time, these perks add up and increase your overall profit margins.
3. Buy Discounted Gift Cards for Additional Savings
Buying discounted gift cards is another easy way to lower your costs. Websites like Raise, Cardbear, and CardCash sell gift cards at discounted rates for major online retailers. Before buying, check the store’s policies, some retailers restrict stacking gift cards with coupon codes or cashback. But when allowed, this extra layer of savings can greatly increase your margins.
Frequently Asked Questions (FAQs)
How much money do I need to start online arbitrage?
You can start Amazon online arbitrage with as little as $500−1,000. However, having $2,000−3,000 is ideal for building a diverse inventory. This budget covers product costs, Amazon fees, and shipping expenses. Start small, reinvest your profits, and scale over time.
Is online arbitrage profitable in 2025?
Yes, online arbitrage is still profitable in 2025. While competition has increased, tools, like reverse sourcing and cashback extensions, help sellers maintain healthy profit margins. On average, online arbitrage sellers earn 15-20% net margins. Success depends on consistent product research, strategic sourcing, and staying updated on Amazon’s policies.
Does Amazon allow online arbitrage?
Yes, Amazon allows online arbitrage, and it’s a widely used business model. In fact, roughly 25% of Amazon sellers use online arbitrage to source and resell products. As long as the products are genuine, new, and meet Amazon’s selling policies, you can legally buy from retailers and resell them on Amazon for a profit
Can I buy from Walmart and sell on Amazon?
Yes, you can buy from Walmart and sell on Amazon, and in fact, Walmart is one of the most common websites used by online arbitrage sellers. Keep in mind, because Walmart is such a popular source, many of the products you find there will likely have high competition on Amazon, with multiple sellers on the same listing.
Is arbitrage a good side hustle?
Yes, arbitrage is a great side hustle because it offers flexibility in both time and location. Whether you work a full-time job, stay home with kids, or need a side hustle that fits around a busy schedule, arbitrage allows you to find and sell products on your own terms. Since you can do most of the work online, it’s also ideal for those looking for the “digital nomad” lifestyle.
Conclusion
Amazon online arbitrage is more than just a side hustle—it’s a proven way to build a flexible, scalable business from anywhere. Whether you’re looking to earn extra income or replace your 9-to-5, this model offers low startup costs, minimal risk, and the flexibility to fit your lifestyle.
By now, you’ve learned the essentials: how to find profitable products using reverse sourcing, analyze them with tools like SellerAmp and Keepa, and list them on Amazon using FBA to maximize your chances of winning the Buy Box. The key to success in online arbitrage is consistency. It’s not about finding one big winner but about continually sourcing reliable, profitable products. Start small, reinvest your profits, and scale your business as you go
The world of online arbitrage is waiting—and so are your profits.
