Online arbitrage is similar to retail arbitrage but involves purchasing discounted products from online retailers (Walmart.com, Target.com, clearance websites) and reselling them on Amazon at higher prices.
Online arbitrage offers scalability advantages over retail arbitrage since sourcing can be done remotely. However, it shares the same fundamental limitations around brand gating and supply inconsistency.
RIDGE primarily serves private label and brand sellers with comprehensive market analysis, but our competitive landscape data helps identify whether a niche is affected by arbitrage-driven price volatility.
A seller finds a beauty product on sale at Ulta.com for $12 (normally $24), orders 50 units, and lists them on Amazon FBA at $22.99. After fees, profit is approximately $5.50/unit.