5 Ways to Find Amazon Online Arbitrage Leads

It's no secret that sourcing online arbitrage deals can be time-consuming and challenging, no matter your method. But if you're serious about scaling up and earning real money, think about considering new strategies to find winning Amazon leads. 

Anticipating new methods of lead sourcing can help simplify and streamline identifying high-margin deals for your Amazon store.

Some strategies described in this post offer you lead sourcing automation, while others propose buying verified ready-to-sell deals. This post describes 5 methods to find online arbitrage deals and their pros and cons and helps you decide which one fits your business best.

What Are Amazon Online Arbitrage Leads?

Amazon online arbitrage leads, also called Amazon online arbitrage deals, refer to potential opportunities where resellers (online arbitrage sellers) can purchase products from other online retailers or marketplaces at lower prices and then resell them on Amazon for a profit.

These leads can be found manually through product research or by using specialized tools, purchased on the online arbitrage deals marketplace, and services that offer leads lists for resellers.

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How it works

• Sourcing products

Online arbitrage sellers find discounted products or products that are priced below their Amazon Buy Box price. These items are usually sourced from popular online stores, discount retailers, or clearance sales.

• Reselling on Amazon

Once purchased, these products are listed on Amazon, where the seller can sell them at a higher price, profiting from the price difference.

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Key criteria of a good online arbitrage lead

Price gap

There should be a significant difference between the purchase price on the original platform and the resale price on Amazon. The larger the price gap, the higher the potential for profit after fees and expenses.

High demand

The product should have a strong demand, indicated by a good sales rank on Amazon. Use Amazon’s Best Sellers Rank (BSR) to gauge potential; a BSR between 1 and 50,000 signifies solid sales volume.

Healthy profit margins

After factoring in Amazon’s fees, shipping costs, and other overheads, the product must provide a healthy profit margin. Ensure that these costs don’t erode profitability, and aim for a minimum margin that aligns with your business goals. A profit margin must be over 10%.

Moderate competition

Moderate competition is ideal, typically between 3 to 15 sellers offering the product on the listing. Avoid products with more than 15 sellers, as high competition can limit pricing power. Also, steer clear of products sold by Amazon, as they can dominate the listing and it’s very difficult to compete with them.

No risks

Ensure you are eligible to sell the product on your Amazon account. Avoid restricted products or items requiring approval unless you can secure that approval. 

Also, check for any intellectual property (IP) complaints or issues that may pose legal risks before you buy the product. Typically, if you don’t have approval from a brand to sell products with IP complaints, Amazon will not allow you to list them.

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How to Find Online Arbitrage Leads?

If you are not sure where to start looking for online arbitrage leads, look into how many products you sell. The way you source leads depends on how many of them you want to sell. 

If you are a beginner and source several products daily, you can do it yourself with the help of product research tools or purchase ready-to-sell leads. But if you sell hundreds of products, you must automate product research and hire deal researchers / virtual assistants to do sourcing. 

Below you can find 5 strategies that will help you find online arbitrage deals.

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Strategy 1. Automated Sourcing

Automated sourcing, or supplier-to-Amazon sourcing, is an effective strategy for online arbitrage sellers without existing suppliers, who want to grow their existing OA business to wholesale or sell many products.

By scraping product data from supplier websites and working backward to match these products on Amazon, sellers can uncover potential deals. Below, we explain how reverse sourcing works and the tools that make this process easier.

How it works

This method involves scraping product data from supplier or e-commerce websites. Typically, you’ll receive a file containing hundreds or thousands of products, which can be a goldmine for finding new resale opportunities. 

Your key task is to assess the profitability and other relevant factors for each product, then filter out the most profitable leads for resale on Amazon. However, given the volume of products, manually identifying the best deals can be both time-consuming and challenging, which is why automating the process is crucial.

Tools to use

Seller Assistant’s Price List Analyzer is a must-have tool that makes reverse sourcing more efficient. By uploading your supplier’s product list into the tool, it automatically matches those products with corresponding listings on Amazon. The tool calculates vital profitability metrics such as Return on Investment (ROI), Best Sellers Rank (BSR), Buy Box price, and Amazon fees.

This tool helps you quickly identify the most profitable products, allowing you to filter results based on key factors like profitability, making it easier to spot the best opportunities and maximize your profits.

Price List Analyzer data

• UPC; 
• ASIN and link to ASIN on Amazon;
• Title;
• COG; 
• BSR;
• Buy Box Price;
• Profit;
• ROI;
• FBM/FBA fees, 
• Referral fees;
• Storage fees;
• Other fees, calculated by Seller Assistant’s FBM&FBA Profit Calculator, excluding Inbound Placement Service fees.

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

Seller Assistant shows all essential 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.

Pros of automated sourcing

Automated lead identification

Automated sourcing allows sellers to quickly analyze large lists of products from suppliers, which saves time compared to manual research. This enables sellers to uncover profitable products more quickly and scale their business faster.

Data-driven decision making

With tools like the Price List Analyzer, sellers can rely on calculated profitability metrics such as ROI and BSR to make informed decisions. This reduces the guesswork and minimizes the risk of choosing unprofitable products.

Cons of automated sourcing

Initial setup and learning curve

Setting up automated sourcing tools requires some initial investment of time and learning. For sellers unfamiliar with the software, there may be a learning curve that slows down the process at first.

Reliance on supplier data

The accuracy of automated sourcing is dependent on the quality and availability of data from suppliers. If the supplier data is outdated or inaccurate, this can lead to incorrect profitability assessments and missed opportunities.

Strategy 2. Buying from Seller Assistant Deals Marketplace

If you’re interested in quickly and safely purchasing ready-to-sell deals to scale your business, you can find them on the marketplace for OA deals. This strategy works well for online arbitrage beginners who don’t have extensive experience with product research, and sellers who sell tens of products and want to quickly and effortlessly scale their business.

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How it works

The principle of buying leads on the online deal marketplace is the same as any other marketplace: sellers offer deals, and buyers select the deals they like and purchase them. 

To buy them, you must register an account on the marketplace. After that, you can select the leads you want deal by deal, based on the criteria of your choice. 

Tools to use

The most popular marketplace for OA deals is Seller Assistant Deals. Seller Assistant Deals is an online platform designed for buying and selling Amazon Online Arbitrage opportunities. Its purpose is to help OA sellers launch and grow their Amazon business with minimal risk.

With Seller Assistant Deals, you can buy with confidence — you select a deal, and they manage the purchase and refunds. The platform offers a refund guarantee if the supplier's product is unavailable or misrepresented. 

Only deals that match your Amazon Seller Account eligibility are offered, and every deal is verified by a moderator for accuracy. Each deal is sold to no more than three buyers within 30 days to maintain exclusivity. The marketplace features only profitable deals, and profitability is updated daily.

You don't need to prepay anything. All deals are double-checked with the marketplace’s proprietary software and by human moderators. You will have access only to the deals you can sell from your Amazon seller account. 

You can review numerous deal metrics before buying the deals. 

Seller Assistant Deals metrics shown before purchase:

• Price graph;
• Average 90-day BSR;
• BSR and category;
• 30-day BSR drops;
• Average 90-day BSR;
• ROI;
• Profit;
• Quantity of FBM and FBA sellers;
• BuyBox price;
• Cost of Goods;
• 3PL costs;
• Amazon Referral fee;
• FBA fees;
• Red flags and warnings (oversize, variations, meltable, HazMat, etc.);
• Restrictions for your seller account (brand gate);
• Supplier's website link;
• OA Deal Vendor's name;
• OA Deal Vendor's message.

Deal metrics shown after purchase:

• ASIN;
• Link to the product on the supplier’s website;
• Purchasing instructions and promo codes (optional).

Pros of Seller Assistant Deals marketplace 

Safe and hassle-free purchases

The marketplace handles the entire purchase and refund process, ensuring a secure transaction. You also benefit from a refund warranty if the supplier's product is unavailable or misrepresented.

Exclusive and verified deals

All deals are verified by a moderator and sold to no more than three buyers within 30 days, maintaining exclusivity. This ensures you get reliable, profitable opportunities that fit your Amazon Seller Account.

Cons of Seller Assistant Deals marketplace 

Account creation required

To access personalized deal recommendations, you must create an account and connect your Amazon Seller Account. This adds an extra step before you can start purchasing deals.

Limited offer availability

Each deal is only available to a small number of buyers, which could limit your options if the deals sell out quickly. You'll need to act fast to secure profitable opportunities.

Strategy 3. Self-Sourcing

Self-sourcing is a strategy where sellers independently identify in-demand products on Amazon and then seek out suppliers who can offer these items at a lower price. This method is especially valuable for online arbitrage sellers looking to leverage price discrepancies by purchasing low and selling high.

Self-sourcing begins with finding products that are popular on Amazon. Sellers typically explore Amazon Best Sellers, Amazon Movers & Shakers, Amazon’s Hot New Releases, and Amazon "Most Wished For" sections to discover these products. 

Once you identify a potential product, the next step is to locate a supplier that offers the item at a competitive price. After finding a supplier, you can use Seller Assistant’s Side Panel View on the supplier's website to gather essential metrics for analysis.

Tools to use

Seller Assistant’s Side Panel View is a critical tool for self-sourcing research. After identifying a popular product on Amazon, you can use this tool to simplify the supplier search and evaluate profitability by comparing products directly on the supplier’s website.

Side Panel View data 

• Product title;
• Image; 
• ASIN; 
• Brand;
• Category;
• Best Sellers Rank (BSR); 
• Product flags (hazmat, meltable, fragile, oversized, generic brand, adult, sold by Amazon, IP alert);
• Likes and dislikes;
• Restriction checker (lock icon)
• FBA and FBM seller count; 
• Break-even price point (BEP);
• Estimated product sales (Est);
• BuyBox price;
• Cost of Goods (COG, enterable).
• Profit;
• ROI;
• Offers (offer count - total, FBA and FBM; seller, stock, and Buy Box %);
• Variations (rating, share);
• Supplier notes and link;
• Saving to Google Sheets.

How it works step-by-step

• Step 1. Product supplier search

Start by opening the product listing on Amazon and using Seller Assistant’s Lookup Links to find suppliers. Choose your preferred search engine, and the tool will offer relevant supplier options.

• Step 2. Activate Side Panel View

To access the Side Panel View, highlight the product title on the supplier’s website, right-click, and select "Search with Seller Assistant" from the context menu. This tool will then display the product’s offers and profitability metrics.

• Step 3. Side-by-side product comparison

After finding a suitable supplier, use Seller Assistant’s Side Panel View to compare the Amazon listing and the supplier’s offer. This allows you to evaluate key metrics side-by-side, helping you decide whether the product is worth sourcing based on the extended research. You must make sure the product meets your custom product research criteria. If it does, you find a lead.

Pros of self-sourcing

No sourcing costs

You don’t have to pay for sourcing tools or services, which reduces overhead and increases profitability. This makes it easier to focus your budget on purchasing inventory and scaling your business.

Full control over the sourcing

With full control over the sourcing process, you can personally select the products that align with your business strategy and profit goals. This autonomy allows you to make informed decisions and quickly adapt to market changes without relying on third-party sourcing services.

Cons of self-sourcing

Time and effort intensive

Product research requires significant time and effort to identify profitable opportunities. It can be a lengthy process, especially when sorting through numerous products.

Experience is required

Successfully finding profitable products demands a solid understanding of market trends and sourcing strategies. Without experience, it can be challenging to consistently identify high-return products.

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Strategy 4. Competitor Research

Competitor research is a great strategy for online arbitrage sellers who want to automate researching competitors for new product ideas and brand insights. By analyzing your competitors’ product offerings and identifying market gaps, you can expand your inventory and uncover new opportunities to grow your business. 

This approach can be also beneficial for all sellers who want to streamline competitor research and seek a competitive advantage.

How it works

Competitor research involves systematically tracking your rivals to find market opportunities. By reviewing their product listings, you can identify high-demand items with limited competition or discover popular brands they carry that you haven’t yet included in your offerings. This strategy helps you optimize your product lineup and meet customer demands more effectively, keeping you competitive.

Tools to use

Seller Assistant’s Seller Spy simplifies the process of competitor research by automatically tracking the brands and products your competitors add or remove. It also provides insights into their pricing strategies, enabling you to make informed decisions for your own inventory.

By using Seller Spy, you can quickly gather data to identify new product opportunities and adjust pricing. Simply enter your competitor’s information into the tool, and download a detailed report that includes key metrics, such as product additions and removals, pricing, and direct links.

Seller Spy product tracking details

• The date a product was added or removed from competitor offerings;
• The status of each product (added or removed);
• Product image;
• Product ASIN;
• Your competitor's current selling price;
• Direct product links.

Pros of competitor research with Seller Spy

Automated tracking

Seller Spy automates the process of tracking competitors, saving you time and effort compared to manual research. It provides real-time insights on product additions, removals, and pricing, allowing for faster decision-making.

Comprehensive data

With Seller Spy, you gain access to detailed competitor data, including product images, ASINs, and direct links. This enables you to make well-informed decisions on product sourcing and pricing adjustments based on your competitors' activities.

Cons of competitor research with Seller Spy

Potential overreliance on competitors

While Seller Spy provides valuable data, focusing too heavily on competitors' actions may limit your ability to innovate and pursue original strategies. You might end up following trends instead of setting them, which could reduce your uniqueness in the market.

Learning curve

Although Seller Spy simplifies research, there may be a learning curve when using the tool for the first time. For those unfamiliar with such tools, it may take some time to fully utilize all its features effectively.

Strategy 5. Leads Lists

Amazon online arbitrage lead lists services are subscription-based services or platforms that provide curated lists of profitable products for online arbitrage sellers. These services help sellers identify potential products that can be purchased from other retailers at a low price and resold on Amazon for a higher price, allowing sellers to take advantage of price differences.

These services compile and regularly update lists of products that meet certain profitability criteria, such as price gaps, BSR, and expected ROI.

How it works

Depending on your pricing plan, you must prepay a subscription fee to unlock access to the list. The fee, in many cases, is quite expensive.

Typically, you choose the pricing plan and receive updated leads lists to your email or download them. When you buy lists of leads, you can’t select them, and the same deal may pop up in several lists, which means you pay for one deal twice. The lists are updated during business days with several new deals. Lead lists include important data like the product’s buy cost, selling price on Amazon, Amazon fees, estimated profit, and ROI, allowing sellers to quickly evaluate potential opportunities.

Some lead list services limit the number of subscribers to maintain exclusivity and reduce competition among sellers who use the same leads. However, many lead-sourcing companies share each list with dozens of buyers to get maximum profits. That often results in the most profitable leads being quickly sold out. Also, that creates additional competition between the sellers, thus lowering profit margins. 

Pros of lead sourcing services

Time and effort savings

Lead sourcing services save you time by providing pre-researched, ready-to-sell deals. This allows you to focus on growing your business rather than spending hours on product sourcing.

Pre-verified deals

The deals offered are (typically) verified for profitability and eligibility, reducing the risk of buying unsuitable products. This helps streamline decision-making and minimizes the need for additional research, if the verification is done correctly.

Cons of lead sourcing services

Prepayment required

Accessing lead lists often requires prepayment, and you usually cannot select individual deals. This forces you to buy entire lists without the ability to tailor them to your specific needs.

Limited exclusivity and quality concerns

The same lead list can be sold to multiple buyers, increasing competition for the same products. Additionally, some users may find inconsistencies in deal verification, and most platforms offer no refunds, only replacements for unsuitable leads.

Tools to use

There are many different lead-sourcing platforms offering lead lists to Amazon OA sellers. If you are looking for a cost-efficient offer from a deal-sourcing company, OABeans can deliver you a list of profitable online arbitrage deals. 

With OABeans, you can get leads lists in your account daily, buy items at a lower price from sources like Walmart​, and sell them at a higher price on Amazon.

FAQ

Is online arbitrage legal?

Yes, online arbitrage is legal as long as you're not violating any laws or Amazon’s policies. It involves buying products from one platform at a lower price and reselling them on another, which is a common practice in many industries.

How profitable is online arbitrage?

Online arbitrage can be highly profitable if done correctly, with potential margins ranging from 10% to 50% or more. Profitability depends on factors such as product selection, sourcing costs, and effective pricing strategies.

Is Amazon online arbitrage risky?

Yes, Amazon online arbitrage carries risks such as price fluctuations, competition, and potential issues with Amazon's seller policies like intellectual property complaints and eligibility to sell specific products on your account. Additionally, products may be restricted, which can impact your ability to sell them.

How much money do you need to start arbitrage?

You can start online arbitrage with as little as $500 to $1,000, though higher starting capital allows for greater flexibility and inventory options. The initial investment depends on factors like sourcing costs, tools, and shipping expenses.

Is retail arbitrage allowed on Amazon?

Yes, retail arbitrage is allowed on Amazon as long as the products comply with Amazon’s policies and are not restricted or counterfeit. However, sellers should ensure they have the necessary approvals and are aware of any restrictions for specific brands or categories.

Final Thoughts

Finding profitable OA leads has always been challenging. However, this process can be simplified or even automated, depending on the scale of your business. You can reach your sales targets and successfully scale your Amazon business with the right approach and tools.

Seller Assistant will effectively and reliably help you with product research. Seller Assistant is a popular product sourcing software that helps sellers quickly find high-margin deals and estimate product profitability. This all-in-one software incorporates all features vital for product research: Price List Analyzer, Seller Spy, Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, IP Alert, and Restrictions Checker.