What is an eBay arbitrage and how to profit from them?

An “eBay arbitrage” is when a product can be purchased for significantly less than it is selling for on eBay.

The term “arbitrage” means taking advantage of a price difference between two or more market places i.e. buying low in one market place, and selling high in another market place.

Item criteria for eBay arbitrage?

An eBay arbitrage can be a used or new item and it is up to each eBay seller to find the best methodology which suits them. Some eBay sellers prefer to sell new items, others used items. Some sellers are experts on a particular niche i.e. antiques and prefer to sell just that niche.

Our criteria for eBay arbitrages is to only research new items as they can be bought and sold multiple times.

The source supplier for an eBay arbitrage can come from a multitude of places. From eBay in another country, a discount store or auction house etc… However for supplier longevity and to cut out middlemen for maximum profits, we prefer to only source items from either wholesale suppliers or direct from the manufacturers.

Other criteria we have for eBay arbitrages is an arbitrage must be purchased for at least 50% less than it has been selling for and the product must have at least 90 days proven sales history. It also must have been selling at least 15 times per month for the last 90 days.

Items to avoid for eBay arbitrage

An eBay arbitrage must also not be a trend or fad i.e. Christmas decorations, Halloween costumes etc, as sales of these items are seasonal and not linear.

As eBay sellers, the market place for eBay arbitrages to be sold is on eBay. However, most often the same items can be sold through other marketplaces including Amazon and eBay seller’s independent websites if they own one.