Arbitrage is an incredibly popular side hustle, but the concept is also a little mystifying to those who have never encountered it before. If you have always wondered what arbitrage actually is, how it works, and if it’s a viable method of making money online, then read on to find out more…
What is arbitrage?
- You look for private label items that are being sold at a discount price.
- You buy an item at a low price.
- You then sell that item at a higher price online.
What is the difference between retail and online arbitrage?
If the item you buy is purchased offline, this is referred to as “retail arbitrage”. If you buy the item you intend to sell online, it’s “online arbitrage”. The process, however, is the same: you buy the item for a low price and sell it online at a profit.
Which is better, retail or online arbitrage?
Both can be beneficial, and many sellers choose to do both – if an item is a good deal, and will sell at a profit, then where you source it from is not particularly important.
Is it only possible to buy items when they are discounted?
Buying items at a discount or when they are on clearance is the primary method people engaging in retail or online arbitrage use, but you can buy at “standard” prices too. If the item is being sold at a higher price online – regardless of whether or not it is on offer, – you can still profit.
Do I have to set up my own website to sell the item?
Not necessarily.
By far the simplest method of retail or online arbitrage is to sell items on Amazon.com, as Amazon runs an arbitrage program known as FBA (Fulfilled By Amazon), which allows you to sell via their site. If you want to try using FBA for arbitrage, courses such as those on brockrjohnson.com/ can provide a thorough explanation of how the program works and how it may benefit you.
Alternatively, you can set up your own website for arbitrage purposes, but you will need to finance and promote the site in the hopes of achieving sales.
Is arbitrage a good way to make money online?
Provided you research, learn all you can, and are willing to spend time sourcing products that you can sell at a profit, arbitrage is a viable way of making money online.
Can arbitrage be a full-time business?
As detailed on kashoo.com, turning a side hustle into a full-time job is possible – and if this is your goal, arbitrage could be a good choice for you. The core business model is sustainable – you can buy and list more products as time goes on – and many people do rely on arbitrage as their sole form of income.
In conclusion
If you are looking to build a business you can run from the comfort of your own home, or just bolster your existing income by way of a simple, accessible side hustle then retail or online arbitrage could be the right choice for you.
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