I'm going to differ from others. Online arbitrage is still possible on Amazon and elsewhere, if the cost of inventory is low enough. I do 100% online arbitrage (no dropshipping of any kind). My sales are 55/25/15/5 FBA/Walmart/FBM/eBay. I mostly source from Amazon, sometimes Walmart or other retailers, and rarely from the manufacturer itself (but some of my best-selling products come from the manufacturer). I mostly sell my products at $50-200. My rule of thumb is to buy inventory for 50% or less of what I expect to sell it for, so that means paying 100. Obviously the lower the better. If I have confidence in selling an item for more than $200 I'll go above 50%. I did $300K (+25% yoy) in revenue in 2023, and ~$85K (+39% yoy) pretax profit. I prefer to focus on return on investment. That $85K came from $149K in inventory; that is, I spent $149K for the inventory that I sold in 2023, I got that $149K back, and earned $85K in addition, so a ROI of >55%. I agree with u/CoyotePuncher about this strategy not being viable for "upper level" annual sales (let's say seven figures). I'd love to prove him (and me) wrong, though! CC: u/catjuggler , u/mttl Answer from TMWNN on reddit.com
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Reddit
reddit.com › r/fulfillmentbyamazon › is online arbitrage still viable on amazon given buy box removal for high pricing?
r/FulfillmentByAmazon on Reddit: Is Online Arbitrage Still Viable on Amazon Given Buy Box Removal for High Pricing?
January 3, 2024 -

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.

Top answer
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I'm going to differ from others. Online arbitrage is still possible on Amazon and elsewhere, if the cost of inventory is low enough. I do 100% online arbitrage (no dropshipping of any kind). My sales are 55/25/15/5 FBA/Walmart/FBM/eBay. I mostly source from Amazon, sometimes Walmart or other retailers, and rarely from the manufacturer itself (but some of my best-selling products come from the manufacturer). I mostly sell my products at $50-200. My rule of thumb is to buy inventory for 50% or less of what I expect to sell it for, so that means paying $25-$100. Obviously the lower the better. If I have confidence in selling an item for more than $200 I'll go above 50%. I did $300K (+25% yoy) in revenue in 2023, and ~$85K (+39% yoy) pretax profit. I prefer to focus on return on investment. That $85K came from $149K in inventory; that is, I spent $149K for the inventory that I sold in 2023, I got that $149K back, and earned $85K in addition, so a ROI of >55%. I agree with u/CoyotePuncher about this strategy not being viable for "upper level" annual sales (let's say seven figures). I'd love to prove him (and me) wrong, though! CC: u/catjuggler , u/mttl
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A big part of OA is finding stuff that’s discontinued, rare, or hard to find. For example, a limited run flavor of Coke. In those cases, buy box isn’t necessary, people will buy it anyway. If you aren’t able to sell something unless you have buy box, it just wasn’t a good product with enough demand or constricted enough supply. Dropshippers are the biggest threat. They can instantly list on Amazon the entire catalog of Walmart.com at razor thin margins, leaving zero opportunity for regular old OA. Is OA viable? Only if you’re creative. Create multipacks and bundles, create your own Amazon listings, run ads, predict supply shortages and demand increases. Competitors and dropshippers aren’t doing any of that. They’re doing things in a “lazy” way and refusing to do anything outside the box.
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Seller Assistant
sellerassistant.app › blog › is-online-arbitrage-still-profitable-in-2024
Is Online Arbitrage Still Profitable in 2025? - Seller Assistant Blog
January 3, 2025 - You might have heard whispers that online arbitrage is no longer profitable. That's simply not true! While the landscape has evolved, opportunities still abound for savvy entrepreneurs.
People also ask

What is online arbitrage?
Online arbitrage is a business model where sellers buy products from one online retailer and sell them to another online retailer for a profit.
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sellerassistant.app
sellerassistant.app › blog › is-online-arbitrage-dead-for-new-sellers
Is Online Arbitrage Dead for New Sellers in 2025? - Seller Assistant ...
What is Online Arbitrage?
A: Online arbitrage involves purchasing discounted products from online retailers and reselling them on marketplaces like Amazon or eBay for a profit. Unlike traditional retail arbitrage, it doesn't involve visiting physical stores; instead, sellers source products entirely online.
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thesellingguys.com
thesellingguys.com › home › is amazon retail arbitrage worth it? or is arbitrage dead? 😱
Is Amazon Retail Arbitrage Worth It? Or is Arbitrage Dead? 😱
Is online arbitrage worth it?
Online arbitrage can be a profitable business model. Still, it is important to be aware of the challenges, such as competition, increasing number of restricted products and brands, and price changes. You can use Amazon seller tools like Seller Assistant App to find profitable products to sell.
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sellerassistant.app
sellerassistant.app › blog › is-online-arbitrage-dead-for-new-sellers
Is Online Arbitrage Dead for New Sellers in 2025? - Seller Assistant ...
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AmzScout
amzscout.net › blog › amazon arbitrage
Amazon Arbitrage: Is It Worth Starting in 2025?
September 8, 2025 - It is a simple, and quick way to source products and you don’t need a comprehensive course to get started. While increased competition has made it harder to profit from arbitrage, sellers that know how to find winning products can still find success with Amazon arbitrage.
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Aura
goaura.com › blog › online-arbitrage-guide
Online Arbitrage: Getting Started for New Amazon Sellers (2025)
Yes, more sellers are entering the space—but this also means more opportunities, better tools, and proven strategies you can leverage. Online arbitrage combines profit potential with location independence and scalability.
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The Selling Guys
thesellingguys.com › home › is amazon retail arbitrage worth it? or is arbitrage dead? 😱
Is Amazon Retail Arbitrage Worth It? Or is Arbitrage Dead? 😱
November 13, 2025 - It’s an effective strategy if you lack your own products or large-scale buying power. While competition and brand restrictions pose challenges, it remains a profitable option that can be the perfect springboard into wholesale, private label, ...
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Your Selling Guide
yoursellingguide.com › 2022 › 07 › 20 › amazon-fba-profit-margin
Is Retail Arbitrage Profitable? My 6 Month Amazon FBA Profit Margin - Your Selling Guide by Nikki Kirk
Despite these benefits, starting an Amazon FBA profitable business still requires investment and time. You will have to wait 4-6 weeks for your first payout from Amazon, and it will take even longer to put your overall Amazon FBA profit margin in the black. If you’re an Amazon FBA beginner, you can make starting your retail arbitrage business easier by learning with my Beginner FBA Course.
Published   September 15, 2023
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SmartScout
smartscout.com › amazon-selling-guides › is-amazon-online-arbitrage-worth-it
Is Amazon Online Arbitrage Worth It?
Additionally, SmartScout can analyze ... can make an informed decision about the potential profitability of the item. ‍ · Although Amazon Online Arbitrage offers potential profitability, it carries inherent risks and challenges....
Find elsewhere
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Quora
quora.com › Is-online-arbitrage-on-Amazon-profitable
Is online arbitrage on Amazon profitable? - Quora
Answer: Yes, online arbitrage on Amazon can be profitable. This involves purchasing a product from an online retailer, supplier, or wholesaler to resell the product at a higher price for a profit on another online marketplace such as Amazon.
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AmzScout
amzscout.net › blog › how to start an online arbitrage
Amazon Online Arbitrage Business: A 5-Step Guide to Start in 2025
September 8, 2025 - If you’ve ever shopped online then you already know enough to get started. It’s Easy: The whole process can be done at home from your computer. Virtually anyone can do it. It’s also a lot easier than retail arbitrage, which forces you to drive from store to store looking for deals. Smaller Profit Margins: Because you’re buying from other retailers you’re going to end up paying more per item. This doesn’t mean you can’t still make a profit, but you’ll make a lot less than you would if you bought from a wholesaler or manufacturer.
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Arbitrage Hero
arbitragehero.com › home › is online arbitrage still worth it in 2025? a look at the pros and cons
Is Online Arbitrage Still Worth It in 2025? Pros & Cons
July 9, 2025 - The answer to this question is pretty straightforward: yes, online retail arbitrage is still profitable, there’s no doubt.
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SellerLogic
sellerlogic.com › home › selling on amazon › amazon retail arbitrage: the 2025 guide for professionals
How to Make Money With Retail Arbitrage on Amazon
August 20, 2025 - Over 25% of Amazon sellers use retail or online arbitrage, and 58% of new sellers manage to become profitable in their first year (source: JungleScout State of the Amazon Seller report 2025) – many are able to do this because the startup costs ...
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StartupBros
startupbros.com › how-to-make-money-with-retail-arbitrage
How to Make Money with Retail Arbitrage: Top 5 Secrets
January 11, 2025 - With platforms like Amazon providing a massive marketplace, all it takes is a sharp eye for deals, a little patience, and some know-how to turn product-hunting into a profitable venture. I’m Will Mitchell, a veteran in the e-commerce space with over 20 years of experience importing from China and selling products online. I’ve helped thousands of entrepreneurs find how to make money with retail arbitrage and am passionate about sharing insights from my journey so far.
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Appeal Wizards
appealwizards.com › home › uncategorized › retail arbitrage in 2025: is it still worth it in today’s climate?
Retail Arbitrage in 2025: Is It Still Worth It in Today’s Climate? - Appeal Wizards - Amazon Appeal Experts
May 9, 2025 - Retail arbitrage isn’t a secret anymore. Seller apps and scanning tools have made competition fierce. In-store clearance shelves are often cleared out within hours by resellers. Profits are dwindling in categories that were once lucrative.
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Forceget
forceget.com › home › blog › online arbitrage vs dropshipping: which business model is most profitable in 2025?
Online Arbitrage vs Dropshipping: Which Business Model Is Most Profitable in 2025? - Forceget Supply Chain Logistics
May 29, 2025 - Online arbitrage is accessible, offers control over quality, and aligns well with Amazon FBA eCommerce models. It allows sellers to use Fulfillment by Amazon Shopify integration for seamless backend management. However, it requires time intensive product sourcing and initial capital outlay. The major drawback is the competitive nature of sourcing, the more accessible a deal is, the more sellers can exploit it. Furthermore, profit tracking requires tight monitoring due to platform fees and shipping variables.
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Amazon
voc.ai › home › blog › ecommerce
Online Arbitrage on Amazon: A Profitable Business Model for 2024
June 30, 2024 - But what exactly is it, and how ... and selling them for a higher price on another—in this case, Amazon. The profit lies in the price difference, making it a potentially lucrative business venture....
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Reddit
reddit.com › r/fulfillmentbyamazon › is online & retail arbitrage dying on amazon? my concerns + what do you think?
r/FulfillmentByAmazon on Reddit: Is Online & Retail Arbitrage Dying on Amazon? My Concerns + What Do You Think?
June 25, 2025 -

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!

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Threecolts
threecolts.com › home › blog › getting started with online arbitrage in 2025: a complete beginner’s guide
Getting started with online arbitrage in 2025 - Threecolts Blog
August 25, 2025 - After nine months, many successful sellers begin scaling their business through outsourcing, automation, and bulk purchasing. This leads to higher profit margins and greater efficiency. This is when online arbitrage truly becomes a sustainable ...
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Jungle Scout
junglescout.com › resources › articles › online-arbitrage-guide
How to Make Money via Online Arbitrage in 2024 - Jungle Scout
November 6, 2024 - Whether you are a complete beginner or have been selling on Amazon for years, online arbitrage is a fantastic way to make some money online. Now, don’t just limit yourself to sourcing products online.
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Saasant
saasant.com › blog › amazon-retail-arbitrage
Amazon Retail Arbitrage: The Complete Guide to Make Profit [2024]
December 20, 2023 - Arbitrage is identifying and utilizing the price difference for reselling, which is generally rewarding. Imagine finding a great deal on a popular item at a discount store and then listing it on Amazon, where shoppers are willing to pay more. This method is perfect for entrepreneurs who want ...