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Amazon arbitrage means buying a product cheaper elsewhere and reselling it on Amazon to capture the difference — but Amazon sets its own rules of the game, different from ordinary reselling.
Why Amazon specifically
Amazon brings two things an ordinary online store doesn't have: massive, already-qualified traffic, and the Buy Box, the purchase box that captures most of the sales on a listing. The whole game in Amazon arbitrage is winning that Buy Box — or choosing products where it isn't locked down by a dominant seller.
Concepts to master before you start
- ASIN / EAN: the ASIN is Amazon's own platform identifier; matching it against the supplier's EAN is what lets you compare the same product across two sources.
- BSR (Best Seller Rank): indicates how often a product sells within its category — a demand signal, not a guarantee.
- Restrictions and ungating: certain brands and categories (health, toys, some fragrances) require prior approval, usually on presentation of supplier invoices.
- Competition on the listing: the number of sellers already present on an ASIN directly determines the margin left over.
FBA or FBM
Two ways to execute the sale once you've found the product:
- FBA (Fulfilled by Amazon): you send stock to Amazon's warehouses, which handles storage, shipping, returns and the Prime badge. In exchange, you pay storage and handling fees.
- FBM (Fulfilled by Merchant): you store and ship it yourself. More comfortable margin per unit, but without the Prime badge (except Seller Fulfilled Prime, under conditions) and with logistics on your shoulders.
The full detail — account setup, VAT, choosing FBA/FBM — is in our guide to selling on Amazon.
The method to get started
- Choose 2–3 reliable supplier sources (see our overview of B2B wholesalers)
- Systematically compare supplier price vs. Amazon price on the same EAN
- Calculate the net margin, not the gross gap (full method in calculating your margin)
- Check BSR, seller count and restrictions before any purchase
- Start small, measure, then scale what works
Common pitfalls
- Buying on a gross gap without having checked FBA fees and net VAT
- Positioning on a listing saturated with sellers (instant price war)
- Ignoring a brand restriction discovered only after buying the stock
Amazon arbitrage rewards rigorous calculation more than gut feeling. ArbitragePro+ continuously compares your sources against Amazon prices to surface only genuinely usable net gaps.