Amazon Arbitrage: How to Find Products and Sell Profitably

Amazon arbitrage is one of the fastest and most accessible ways to build a profitable Amazon business – if you know how to find the right products. 

Whether you're just starting out or looking to sharpen your sourcing strategy, success hinges on smart product selection and data-backed decisions.

In this post, we’ll walk you through the exact methods top sellers use to spot winning deals and resell them for real profit. You’ll also discover how tools like Seller Assistant can save hours of research and help you stay one step ahead.

What Is Amazon Arbitrage?

Amazon arbitrage is a resale strategy where you purchase products at a lower price from one source – usually retail stores or websites – and sell them at a higher price on Amazon. The profit lies in the price gap between what you pay and what customers are willing to pay on Amazon, after accounting for fees, shipping, and other costs.

Arbitrage example

Imagine you find a popular Bluetooth speaker on clearance at a local Best Buy for $20. 

• You check Amazon and see the same item listed for $49. 
• After you buy the speaker, you create a listing on Amazon. 
• Once it sells, you subtract Amazon’s fees, shipping expenses, and taxes – which come to around $14 total. 
• That leaves you with a net profit of $15 on a single item. 
• Multiply that by 10 units, and you’ve earned $150 – just by identifying a pricing mismatch.

This is the core of arbitrage: spotting opportunities where others don’t and moving quickly to capitalize on them.

Types of Amazon arbitrage

There are two primary models of doing Amazon arbitrage:

• Online arbitrage (OA)

This involves sourcing deals from online retail stores like Walmart.com or Target.com and having the products shipped to your home or prep center.

• Retail arbitrage 

With retail arbitrage, you visit physical stores, scan shelves for underpriced items, and bring the inventory home yourself to prepare for resale.

Understanding Online Arbitrage

Online arbitrage is a method of purchasing discounted items from eCommerce stores and reselling them for a higher price on Amazon. The model revolves around spotting price discrepancies between platforms and profiting from the gap – all without leaving your desk.

Unlike retail arbitrage, which requires you to physically shop in stores, online arbitrage enables you to manage your business remotely. It's more scalable, less physically demanding, and perfect for those who want to run operations from anywhere with an internet connection.

Real-world example

• Let’s say you’re browsing Overstock.com and spot a trending home decor item – a minimalist wall clock – on sale for $18 during a weekend clearance event. 
• You verify that you can sell the item on your account. Then, a check on Amazon shows the same clock listed at $44. After subtracting Amazon fees and estimated shipping costs (about $12 total), your net profit is around $14 per unit. You verify a product's BSR to see that a product sells, check a product for restrictions, IP alerts, and other risks, and the product proves to be a good deal.
• You decide to order 15 units, which earns you $210 in profit – all handled from your laptop, no store visit required.

Benefits of online arbitrage

Affordable entry point

You don’t need a huge investment to get started. With a few hundred dollars and the right tools, you can start sourcing and selling today.

Remote flexibility

Run your entire business from your laptop. It’s a great model for digital nomads or anyone who prefers a location-independent workflow.

Easy to scale

Start with a few items and reinvest your profits to grow. The process can be scaled up as you gain experience.

Frequent online discounts

E-commerce sites regularly offer clearance deals, seasonal sales, and promo codes – perfect for arbitrage sellers looking for profitable buys.

Challenges of online arbitrage

Intense competition

The most profitable deals attract a lot of attention. If you’re not fast, your margins can shrink due to price drops and new sellers.

Research takes time

Identifying winning products takes consistent analysis and patience. Tools like Seller Assistant help a lot, but there’s still work involved.

Eligibility and restrictions

You must verify if you can sell a product on your Amazon account before you buy it because you will not be able to list products you’re not allowed to offer. Also, you must check products for restrictions – you may need Amazon’s approval to sell specific products. Failing to verify this before buying can lead to wasted inventory.

Scaling demands strategy

While getting started is easy, long-term growth requires careful reinvestment, smart sourcing, and automation.

Step-by-step: how to sell with online arbitrage

Step 1. Create your Amazon seller account

Pick between an Individual account (for fewer than 40 items/month) or a Professional account (for higher volume). Register with your business info, tax details, and banking data.

Step 2. Source deals efficiently

You can manually browse retail sites or use sourcing tools like Seller Assistant's Price List Analyzer to automate bulk searches, Brand Analyzer to focus on profitable, sellable brands, and Seller Spy to track what your competitors are selling successfully.

Step 3. Validate deal sellability

Check key metrics like sales rank, profit margins, Amazon fees, and seller restrictions using Seller Assistant's tools. Make sure your numbers work before buying.

Step 4. Choose how much to buy

Start with smaller quantities while you test the waters. Use tools like the Sales Estimator to forecast monthly sales volume and avoid overstocking.

Step 5. Purchase your products

Look for ways to save: use coupons, cashback offers, gift cards, and stack discounts. Reducing your upfront cost increases your overall margin.

Step 6. List on Amazon

Add your offer to an existing product listing or create one if it’s new to Amazon. Avoid duplicate listings – Amazon will remove such listings.

Step 7. Pick your fulfillment method

Choose between Fulfillment by Amazon (FBA), where Amazon stores and ships your items, or Fulfillment by Merchant (FBM), where you handle shipping yourself. FBA offers convenience but comes with higher fees.

Step 8. Set competitive prices

Use automated repricing tools to stay competitive. Set your minimum price based on your break-even point (check it in Seller Assistant) and desired profit.

Step 9. Monitor and grow

Track performance through Seller Central. Monitor your inventory, sales, and sourcing results. Reinvest profits, expand your product range, and use automation to keep scaling efficiently.

Note. Seller Assistant is a comprehensive product-sourcing software that helps Amazon sellers quickly find high-profit deals. It combines three extensions: Seller Assistant Browser Extension, and IP-Alert Chrome Extension by Seller Assistant, and VPN by Seller Assistant, Amazon seller tools: Price List Analyzer, Brand Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Storefront Widget, Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, IP Alert, and Restrictions Checker.

Seller Assistant shows all necessary product data on Amazon search, product, and inventory pages, and on any website to help you find high-margin deals. By using this FBA and FBM product sourcing software, you can easily identify products that have the potential to be sold well on Amazon.

Understanding Retail Arbitrage

Retail arbitrage is a reselling strategy where you buy discounted products from brick-and-mortar retail stores and flip them for a profit on Amazon. Your earnings come from the price difference – after accounting for Amazon’s fees and shipping costs.

Unlike online arbitrage, which can be done entirely from a computer, retail arbitrage requires boots on the ground. You physically browse store aisles, scan products, and bring your inventory home. It’s a hands-on approach that rewards hustle, speed, and local deal-hunting.

Real-world example

• You walk into TJ Maxx and head to the skincare section. You find a high-end facial serum on clearance for $7 that typically sells on Amazon for $24. 
• Using the Amazon Seller App, you verify that the product isn’t restricted and has a Best Sellers Rank within the top 50,000 in its category. After Amazon’s fees and shipping (about $8 total), you still clear a $9 profit per unit. 
• You pick up 10 bottles, earning $90 profit from one stop at your local store.

Benefits of retail arbitrage

Fast and easy setup

All you need is an Amazon seller account and a trip to your nearest retail store. No fancy software or upfront training required.

Minimal upfront investment

You can get started with $500 or less. Buy only what you’re confident you can sell.

Beginner-friendly

Anyone can do it – if you can scan a barcode and compare prices, you’ve got the skills.

Low financial risk

You’re buying small quantities of products with proven demand. That keeps your investment low and manageable.

Challenges of retail arbitrage

Time-intensive sourcing

You have to be in-store, scanning, sorting, and deciding. It can eat up hours quickly.

Manual restocking

When inventory runs low, you have to physically go back and source again – no restocking with a click.

Deal hunting takes effort

Sometimes, you'll scan 50 items before you find one worth flipping. It takes persistence.

Hard to scale

Growth is limited by how many stores you can visit and how much stock you can carry. Scaling to a full-time business takes serious effort.

Step-by-step: how to sell with retail arbitrage

Step 1. Register for an Amazon seller account

Choose between an Individual or Professional plan depending on how many items you plan to sell. Provide your tax and banking info to get started.

Step 2. Get a barcode scanning app

Install the free Amazon Seller App or a third-party scanner to compare in-store prices to Amazon listings instantly.

Step 3. Go deal hunting

Visit local retailers like Walmart, Target, TJ Maxx, or outlet stores. Focus on clearance racks, seasonal sales, and liquidation events.

Step 4. Match items to Amazon listings

Make sure the item you find is an exact match to the product on Amazon. That means checking the brand, size, packaging, and model number.

Step 5. Do your homework

Check BSR, price history, and potential restrictions using the Amazon Seller App. Avoid products with red flags like IP complaints or hazmat labels.

Step 6. Make your purchase

Once the numbers look right, buy the inventory – but start small. Don’t overcommit until you’ve proven the item will sell.

Step 7. List the item on Amazon

Go to Seller Central, click “Sell a product,” choose the right listing, and input the condition, quantity, and price.

Step 8. Pick your fulfillment strategy

Use FBA to let Amazon handle storage, shipping, and customer service – or choose FBM if you want to fulfill orders yourself.

Step 9. Watch sales and replenish

Once you start selling, it’s time to repeat the process. Stay consistent with sourcing and always be looking for your next winning deal.

4 Methods to Find Profitable Products for Online Arbitrage

Choosing the right products is the cornerstone of success in online arbitrage. While finding a great deal may seem simple, consistently sourcing profitable inventory requires smart tools, proven strategies, and solid research. You’re not just looking for cheap items – you’re looking for high-demand, low-risk, high-margin opportunities that align with Amazon’s rules and market behavior.

Below are four highly effective methods that will help you identify profitable deals and streamline your online arbitrage workflow – starting with automated supplier list analysis.

Method 1. Source deals from supplier price lists with automation

What it is

This strategy – often called automated supplier sourcing – is ideal for sellers who don’t yet have supplier relationships or want to expand their online arbitrage efforts into wholesale territory. It’s all about working backwards: starting with a list of supplier products, then matching them to Amazon listings to uncover resale opportunities.

How it works

You begin with scraping product data from supplier or e-commerce retailer websites. You’ll receive a spreadsheet that includes hundreds or thousands of UPCs. Your job is to evaluate each product to identify which ones are profitable, eligible for resale, and carry low risk. Doing this manually would be exhausting and prone to errors – so automation is key.

That’s where tools like Seller Assistant’s Price List Analyzer come in. This software scans bulk product lists, automatically matches items to their Amazon listings, and delivers insights like profitability, restrictions, and sales trends – all in a few clicks.

Tools to use

Seller Assistant’s Price List Analyzer simplifies every step of the process. It’s designed specifically for Amazon sellers who work with supplier spreadsheets or bulk product data.

What you can do with Price List Analyzer

• Automatically match supplier UPCs with Amazon ASINs.
• Confirm whether the product is eligible for your Amazon account.
• Enrich spreadsheets with data like profit, ROI, margin, break-even point, and estimated monthly sales.
• Analyze FBA and FBM competition.
• Review historical pricing and Buy Box trends (30/90/180 days).
• Detect high-risk products (hazmat, meltable, fragile, flagged listings, Amazon in Buy Box, etc.).
• Filter the entire product list by profitability, competition, and restriction status to surface only the best deals.

Step-by-step: how to use automated sourcing

Step 1. Access Price List Analyzer

Log in to your Seller Assistant account and open the Price List Analyzer tool from your dashboard.

Step 2. Upload your supplier file

Click the “Upload” button, select your target marketplace, and drag in the Excel spreadsheet that contains your wholesale product list.

Step 3. Map essential data fields

Map the key columns such as ASIN, product cost, and supplier price so the system can accurately analyze and compare listings.

Step 4. Start the analysis

Click “Analyze Price List” to begin the scan. The tool will now match your supplier’s products to Amazon listings and collect critical performance data.

Step 5. Filter and review your results

Once the report is generated, use filters to narrow down the product list based on profitability, sales performance, restrictions, or risk level. This helps you instantly surface your best opportunities.

Step 6. Download your refined product list

Export the filtered list and review it one final time. With this data-backed selection in hand, you can confidently move forward with purchasing.

Read more

Method 2. Manual deep dive

What it is

This approach – commonly referred to as self-sourcing – focuses on identifying high-demand, best-selling products directly on Amazon and then searching for suppliers that offer those items at lower prices. It’s a great strategy for sellers who want more control and are ready to reverse-engineer successful listings.

How it works

Start by exploring specific Amazon subcategories or niches. You can also scan through top-performing Amazon categories like Amazon Best Sellers, Amazon Movers & Shakers, Amazon’s Hot New Releases, and Amazon "Most Wished For" lists. Use Seller Assistant’s Quick View to highlight promising ASINs directly from Amazon’s search results.

Once you’ve selected a product that looks profitable, the next step is to track down a supplier offering it at a viable price. You can do this using Seller Assistant’s Lookup Links, or by browsing options from the built-in list of List of 500+ US suppliers. Then, use Side Panel View to conduct a full evaluation of the supplier’s offer without leaving their site.

Tools to use

The Side Panel View feature from Seller Assistant is essential for this strategy. It allows you to analyze supplier product pages in real time and compare them directly to Amazon listings – saving hours of research.

What you can do with Side Panel View

• Match supplier products to Amazon ASINs directly from the supplier’s website
• Instantly view sales velocity, BSR, profit, ROI, margins, and break-even points
• See competition breakdowns (FBA, FBM, Amazon offers) and Buy Box ownership
• Review IP alerts, restrictions, hazmat warnings, or meltable flags on the fly
• Calculate profits side-by-side to confirm deal potential
• Uncover the top-selling product variants without leaving the supplier page

Step-by-step: how to self-source products for online arbitrage

Step 1. Find a promising Amazon product

Use Amazon’s category pages or special lists to discover trending products. With Seller Assistant’s Quick View, scan product listings to evaluate sales rank (BSR), seller count, Amazon presence in the Buy Box, IP warnings, and restrictions. This helps you pre-qualify ASINs with solid demand and low risk.

Step 2. Search for a supplier

Open the product listing on Amazon and launch Seller Assistant’s Lookup Links. Choose your preferred search engine or supplier type. The tool will return a list of potential sources for that exact product.

Step 3. Compare supplier and Amazon listing side-by-side

• Once you’ve found a supplier, activate the Side Panel View from your Chrome browser by clicking the Extensions icon and selecting Seller Assistant Extension.

• Side Panel View will show you matching Amazon listings based on the page title or keyword. 

• Scroll through the results and click the product image or “Product Details” to open a detailed view without leaving the supplier’s page.

• There, you can:
  
  • Confirm product eligibility
  • Review all core profitability metrics
  • Evaluate listing competition
  • Check for red flags
  • Run profit calculations to ensure the deal meets your ROI targets

• If everything checks out, you’ve just found a solid lead worth sourcing.

Read more

Method 3. Monitor competitors to find winning products

What it is

This strategy – often referred to as competitor research – is ideal for sellers who want to discover profitable product ideas by analyzing what other successful Amazon sellers are listing and removing. It helps you uncover trending ASINs, brand opportunities, and pricing insights that can give you a strategic edge.

How it works

You systematically track competing sellers to find out what they’re selling, what’s new in their inventory, and what they’ve stopped selling. This allows you to spot high-performing products and brand gaps in your own catalog. You can then use this information to expand your inventory, refine pricing, and stay ahead in crowded niches.

Tools to use

Seller Assistant’s Seller Spy automates this entire process. Instead of manually checking seller storefronts, you can track them over time and receive detailed reports about new ASINs, price changes, and product removals. This tool helps you take the guesswork out of competitor analysis.

What you can do with Seller Spy

• Monitor product additions and removals from any Amazon storefront
• See exactly when a product was added or removed
• Identify products your competitors sell that you don’t – revealing product gaps
• Track pricing strategies and adjust your own to stay competitive
• Download Excel reports with ASINs, product links, titles, and images
• Access detailed seller info like storefront name, rating, reviews, and location
• Collaborate across your team (for Teams users)
• View the last update timestamp to ensure your data is fresh

Step-by-step: how to track competitors with Seller Spy

Step 1. Log into your Seller Assistant account

Start by accessing your Seller Assistant personal account with your personal login credentials.

Step 2. Add a competitor to your tracking list

Paste the URL of the competitor’s Amazon storefront into the “Add seller” field, click “Add,” and wait for the seller to be added to your list.

Step 3. Export your competitor data

Download the tracking report as an .xls file directly from your dashboard. This file contains a complete log of tracked changes.

Step 4. Analyze the data

Open the report to review:

• ASINs added or removed
• Date of each event
• Product titles and links
• Current pricing
• ASIN status (active/inactive)

Step 5. Spot new opportunities

Look at newly added ASINs to evaluate their sales potential. If a product fits your criteria and fills a gap in your catalog, consider adding it to your inventory.

Read more

Method 4. Outsource product sourcing to a virtual assistant

What it is

Delegating product research to a virtual assistant (VA) can save you hours of manual work while keeping your sourcing consistent and scalable. VAs can scan supplier websites, run profitability checks, and deliver curated lists of deals based on your specific criteria. When equipped with the right tools, they can operate efficiently without risking your account security or operational consistency.

How it works

Hire an experienced VA from freelance platforms like Fiverr, or from agencies that specialize in Amazon product sourcing. Look for someone who understands deal analysis, ROI metrics, and how to use sourcing tools like Seller Assistant. With the right setup, you can safely assign tasks without granting access to your Amazon Seller Central.

Tools to use

Seller Assistant’s Virtual Assistant Account feature is designed to streamline and secure this delegation process. It includes built-in VPN access, enabling your VA to research from anywhere while protecting your business.

What you can do with Virtual Assistant Account

• Grant deal sourcing access without sharing Amazon login credentials
• Let VAs view and check product restrictions directly with the Restriction Checker
• Use Bulk Restriction Checker to evaluate up to 20,000 ASINs in one go
• Ensure smooth international access with built-in VPN support
• Limit access to sensitive data while keeping workflows fully functional
• Stay compliant and secure by separating sourcing tasks from account management

Step-by-step: how to delegate deal hunting to a VA

Step 1. Hire a qualified virtual assistant

Browse platforms like Fiverr or work with trusted VA providers. Choose someone with hands-on experience in Amazon online arbitrage, especially deal evaluation and sourcing.

Step 2. Set up secure Seller Assistant access

Activate the Virtual Assistant Account feature in your Seller Assistant dashboard. It provides your VA with restricted, secure access and a built-in VPN to bypass geo restrictions on supplier websites.

Step 3. Define your sourcing criteria

Provide clear guidelines: target ROI, profit margins, product categories, and acceptable risk levels (e.g., no IP complaints or gated items). Set daily or weekly goals for the number and quality of leads. Use  Seller Assistant Extension to validate the results they submit.

Step 4. Onboard your VA with limited access

• Link your Amazon Seller Central account. with your Seller Assistant account
• Go to the Teams tab in the side menu
• Click “Invite member” and enter your VA’s email
• Your VA receives an invite with access credentials
• Once accepted, they can immediately begin using the sourcing tools including Restriction Checker, Bulk Restriction Checker, and more.

Read more

Where to Find Products for Retail Arbitrage

One of the biggest challenges in retail arbitrage is knowing where to look for products worth flipping. Successful retail arbitrage depends on finding in-store clearance deals, seasonal markdowns, and overlooked inventory with strong resale value on Amazon.

To help you get started, here are the main types of retail locations that regularly offer profitable opportunities – plus specific examples and links where possible.

Big-box retail chains

What they are

National retail stores that carry a wide range of branded products across categories like toys, electronics, home goods, and personal care.

Why they’re useful

These stores frequently offer clearance items, overstock markdowns, and promotional pricing – perfect conditions for sourcing deals.

Examples

• Walmart – Check the clearance sections and rollback deals.
• Target – Explore the end caps and use their app to track store-specific deals.
• Best Buy – Look for tech clearance and open-box items.
• Kohl’s – Seasonal sales and rewards points can boost your margins.

Discount and off-price retailers

What they are

Stores that sell overstock and excess inventory from major brands at lower prices. Great for branded products at deep discounts.

Why they’re useful

You can often find premium brands with retail tags at 30–70% off, offering excellent resale margins.

Examples

• TJ Maxx – Find deals in skincare, kitchen gadgets, and accessories.
• Marshalls – Great for athletic wear and beauty products.
• Ross Dress for Less – Known for low prices on home goods and apparel.
• Burlington – Frequent markdowns across all product categories.

Dollar stores and value chains

What they are

Budget-friendly chains with extremely low-priced inventory. Ideal for sourcing low-cost, high-turnover products.

Why they’re useful

You can often find niche or seasonal products that sell well in bundles or multipacks on Amazon.

Examples

• Dollar Tree – Great for sourcing small kitchen, craft, or party supply items.
• Five Below – Often stocks trending gadgets, toys, and accessories.

Grocery and drugstores

What they are

Local supermarkets or pharmacy chains with rotating stock and deep discounts on perishable or seasonal products.

Why they’re useful

Clearance snacks, beauty items, and health products can have high demand and low Amazon competition.

Examples

• Walgreens – Check for clearance in vitamins and cosmetics
• CVS – Often has markdowns in personal care and household items.
• Kroger – Great for finding discontinued grocery items with strong Amazon resale prices.

Local liquidation stores and outlet malls

What they are

Stores that purchase overstock or returned goods from major retailers and resell them at steep discounts.

Why they’re useful

These stores often carry surprise finds – anything from electronics to appliances to clothing, all with major resale potential.

Examples

• Ollie’s Bargain Outlet – Deep discounts across all departments.
• Big Lots – Frequently updates stock, offering one-time buying opportunities.

Is Amazon retail arbitrage worth it?

Yes, retail arbitrage can be a great low-cost entry into selling on Amazon, especially for beginners. With the right sourcing strategy, it offers solid margins and flexible growth potential.

FAQ

Is retail arbitrage allowed on Amazon?

Yes, Amazon allows retail arbitrage as long as the products are authentic and meet Amazon’s selling policies. However, you must check for brand restrictions and gated categories before listing.

How does Amazon arbitrage work?

Amazon arbitrage involves buying products at a lower price from retail or online stores and reselling them at a higher price on Amazon. The profit comes from the price difference, minus fees and expenses.

Is Amazon arbitrage still profitable?

Yes, it remains profitable for sellers who use proper tools, research, and stay ahead of market trends. Profitability depends on finding the right deals and managing costs effectively.

Is arbitrage illegal on Amazon?

No, arbitrage is not illegal on Amazon. It’s legal as long as the products are legitimate and you're not violating brand or category restrictions. Always follow Amazon’s rules to avoid account issues.

Is Amazon FBA really profitable?

Yes, Amazon FBA can be highly profitable when paired with smart sourcing and inventory management. It streamlines shipping and customer service, allowing sellers to scale more efficiently.

Final Thoughts

Amazon arbitrage continues to be one of the most accessible and scalable ways to build a profitable eCommerce business. Whether you’re sourcing products from retail stores or scanning online deals, your success depends on smart product selection, consistent research, and using the right tools to guide your decisions.

With product sourcing tools like Seller Assistant, you can automate the toughest parts of product research, validate deals faster, and stay ahead of the competition. 

Seller Assistant is an all-in-one product sourcing software offering all the features vital for product sourcing. It combines three extensions: Seller Assistant Extension, IP Alert, and VPN by Seller Assistant, tools: Price List Analyzer, Brand Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Storefront Widget, Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, and other features that help quickly find high-profit deals. Seller Assistant also offers integration with Zapier allowing to create custom product sourcing workflows.