As someone who’s been selling through online arbitrage on Amazon for about 2 years now, I’m facing a dilemma and would appreciate your insights. Lately, Amazon seems to be actively removing the buy box for sellers if the item’s price is significantly higher than on other websites. This strategy of Amazon complicates our ability to forecast profitability.
The main issue here is the lack of clarity from Amazon regarding the maximum price threshold before they decide to remove the buy box. This uncertainty makes each purchase a risk, potentially leading to razor-thin margins, breaking even, or even losses. I’ve purchased products before that seemed promising only to have Amazon remove the buy box until I brought it down to a price that led to a loss.
Given these circumstances, I’m questioning the feasibility of continuing with OA on Amazon. How are you all managing this situation? Do you still find OA on Amazon to be a viable strategy?
Eager to hear your thoughts and experiences.
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What is online arbitrage?
What is Online Arbitrage?
Is online arbitrage worth it?
I've been heavily thinking about the future of online and retail arbitrage, especially with Amazon's evolving policies, and I'm starting to wonder if these models are being actively phased out or becoming too risky to be viable.
Here are some of my major pain points and concerns:
Proof of Ownership/Inventory Loss: This is a big one. If Amazon loses your FBA inventory (and let's be real, it happens), a retail receipt often isn't considered a sufficient invoice to prove ownership and get reimbursed. It feels like we're increasingly at Amazon's mercy here.
IP Complaints & Invoices: Getting hit with an intellectual property complaint (even if it's baseless) is a nightmare. Without a direct invoice from an authorized distributor, it's incredibly difficult, if not impossible, to defend yourself. Receipts just don't cut it.
New Stolen Goods Policy (Effective 6/30): I just heard about Amazon implementing a new stolen goods policy on June 30th. While I understand the intent, I'm really concerned about how this will impact arbitrage sellers. Does anyone have more details on this and how it might add another layer of complexity or risk?
I see so many YouTubers still promoting retail and online arbitrage as paths to making millions. While I admire their success, I'm struggling to reconcile that with the increasing difficulties and risks involved.
So, my question to the community is: Are online and retail arbitrage dead or dying as sustainable business models on Amazon? Or am I just missing something crucial?
Would love to hear your experiences, strategies for navigating these issues, or if you've shifted away from arbitrage and why.
Thanks in advance for your insights!