What is Amazon Online Arbitrage Sourcing and How Does it Work?

Amazon online arbitrage sourcing is a popular method used by e-commerce sellers to make money on Amazon. It involves finding products on other online marketplaces and buying them at a lower price, then reselling them on Amazon for a profit.

More and more Amazon sellers are employing this strategy to boost their sales and profits in recent years due to its rising popularity.

In this article, we’ll go into more detail about what Amazon online arbitrage is, how it operates, and how to get started with it.

How Does Amazon Online Arbitrage Work?

Amazon online arbitrage Sourcing is a method of reselling products on Amazon by purchasing them at a lower price from one retailer and then selling them at a higher price on Amazon.

It’s a great way for entrepreneurs and business owners to earn extra income by taking advantage of the price differences between retailers and Amazon’s marketplace.

In Amazon online arbitrage sourcing, you are essentially buying low and selling high. The idea is to find products that are priced lower than their current selling price on Amazon and then resell them for a higher profit.

This process can be done manually, by scouring various websites to find deals, or by using specialized software to help streamline the process. 

One of the advantages of Amazon online arbitrage sourcing is that it can be done from anywhere in the world. As long as you have an internet connection and access to the Amazon marketplace, you can start buying and reselling products.

Additionally, Amazon online arbitrage does not require a lot of upfront investment. You can start with as little as a few hundred dollars and gradually build up your inventory and profits.

Amazon online arbitrage is also a great way to start a business without having to develop your own product. Instead, you can leverage the power of Amazon’s marketplace to find profitable products to sell.

By sourcing products that are already selling well on Amazon, you can take advantage of the built-in demand and save yourself the time and effort of developing and marketing your own product.

Is Amazon Online Arbitrage Legal?

Yes, Amazon online arbitrage is legal. It is a legitimate way for you to source products to sell on Amazon. It is however crucial to adhere to Amazon’s policies to ensure you are not breaking any laws or regulations,

One potential legal issue with Amazon online arbitrage is the possibility of selling counterfeit or infringing products. It can result in legal action against you the seller, including lawsuits and account suspensions. 

This is why Amazon prohibits sellers from selling well-known brands that are prone to counterfeits such as Rolex, Gucci, Louis Vuitton, etc.

It is crucial to carefully vet any products you plan to sell and ensure they are legitimate and not infringing on any intellectual property rights so your Amazon seller account does not get suspended.

How to Get Started with Amazon Online Arbitrage

There are a few simple steps you can follow to get started with Amazon online arbitrage, which are summarised below:

Step 1: Open an Amazon Seller Account

Amazon seller central

The first step in getting started with Amazon online arbitrage is to open an Amazon seller account.

Go to the Amazon seller central homepage and register by providing the necessary information such as your email, business information, billing method, and account information. 

After which you’ll have to verify your account to start selling.

Step 2: Find Good Deals

Once you’ve opened and verified your account, the next step is to find good deals on products that will make you decent profits.

You can either do this by looking for items on retail platforms to sell or by using an Amazon leads list. 

A lead list is a list of products that you can sell on Amazon. These lists are usually spreadsheets and they contain valuable information on profitable products. 

The information contained in Amazon leads lists is sourced from online retailers, such as Walmart or Target, and analyzed to identify profitable products.

You can subscribe to an Amazon arbitrage leads list service to save time and effort in product sourcing, and increase your chances of finding profitable items to sell on Amazon

Step 3: List Your Products on Amazon

The next step is to list your products on Amazon. This involves creating a seller account, selecting the products you want to sell, and listing them on the site.

You’ll need to set your prices and provide product descriptions and images, so be sure to take the time to create attractive listings that will attract buyers.

Step 4: Fulfill Your Orders

Once your products are listed, the next step is to fulfill your orders. This involves packaging and shipping your products to your buyers.

You can do this in several ways:


Technically, in this method of selling, you the seller are buying the items from the retailer after you already sold them. This is known as retail dropshipping.

However, it’s worth noting that this method is frowned upon by Amazon and is a violation of their dropshipping policy unless you’re using 2-step dropshipping.

Fulfillment by Merchant

Also called FBM, this method requires you to buy items from retailers and ship them to yourself.

After you receive them, you list them to Amazon and then you use the inventory that you purchased to fulfill the orders as sales come in through Amazon. 

One problem with using this method to sell your arbitrage products is that you need to have space to store them after you purchased them.

This problem can become a significant issue as you continue to grow your store and fulfill more orders. It is advisable to get affordable warehouse services to store your FBM items.

Fulfillment by Amazon

In this method, you can ship the items to Amazon’s “prep center” warehouse. In this warehouse, Amazon will package your orders and then ship them to your customers.

Note that this selling method comes with some Amazon fulfillment fees.

Ecom Circles for Amazon Online Arbitrage

Just like any other business, you need the best tools to succeed in Amazon online arbitrage. One such tool is the Ecom Circles automated dropshipping software.

This software is an all-in-one solution for Amazon arbitrage sellers.

The Ecom Circles automated dropshipping software can help fulfill arbitrage orders from more than 30 supported suppliers including retailers such as Target, Costco, Home Depot, Bestbuy, etc. 

EC automated dropshipping software - suppliers page

In addition to having access to a range of retail and wholesale suppliers, the Ecom Circles automated dropshipping software automates various tasks, such as listing items, updating stock and prices, tracking orders, and fulfillment.

This Amazon automation capability saves you valuable time, which you can invest in other aspects of your Amazon online arbitrage business. 

The software has a dashboard that displays key metrics, such as sales, profits, and expenses, which makes it easier for you to manage and monitor your Amazon online arbitrage business.

The EC automated dropshipping software supports the 2-step dropshipping method to fulfill your orders. 2-step dropshipping works just like normal dropshipping but includes an additional step to ensure your compliance with Amazon’s dropshipping policies.

Consider the scenario; you decide to list an item you sourced from retailers like say Target on Amazon. Your account will be flagged if you go the normal dropshipping route, which is where the customer buys the product and you have Target fulfill the order directly.

Amazon does not like items from their website appearing in third-party boxes. 2-step dropshipping solves this problem by involving an additional step where your item moves from Target to a warehouse where it is repackaged with an unmarked box and shipped to your customers.

Read more: Two-Step Dropshipping: The Revolutionary Solution for Dropshippers in 2023

How Ecom Circles Automated Dropshipping Software Works

The first thing you need to do is to sign up for the Ecom Circles automated dropshipping software. It comes with a 14-day free trial.

During the onboarding process, we will connect your Amazon account to the software. The EC dropshipping tool can support multiple Amazon accounts so you can connect as many accounts to the software.

List your Items

Once your Amazon seller account is connected, you can list items directly from the EC dropshipping software. The tool supports bulk listing, making it easier for you to list as many items at once.

Track Inventory

The Ecom Circles automated dropshipping software automatically tracks your inventory from your supplier’s end and updates the inventory on your storefront.

Say you initially list an item on Amazon and you indicate on your listing that you have 20 items in your stock (based on the information your supplier gives you), this tool will automatically update your stock if this number changes i.e. reduces or increases.

The tool also automatically updates your price based on the information it gets from the supplier.

Fulfill Orders

Once an item is purchased on your storefront, the order reflects in the software. We will then help you fulfill the order from the supplier’s end and send it to your customers.


If you want to take your Amazon online arbitrage business to the next level, sign up for the Ecom Circles automated dropshipping software today.

Also, check out our Amazon Chrome extension for sellers



(It’s Free)

Open automation architecture

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