Is Online Arbitrage Dead for New Sellers in 2025?

Short answer: No, but it’s getting trickier. Online arbitrage has long been a popular way for new Amazon sellers to break into e-commerce. The appeal is obvious: buying discounted products online and reselling them for a profit on Amazon. 

But as we step into 2025, many are asking whether online arbitrage is still a viable business model.

The good news? Online arbitrage isn’t dead. But the landscape has changed. Rising competition and stricter Amazon policies make success harder to achieve. That said, with the right product sourcing software, new sellers can still carve out profitable deals.

In this post, we will take a look at the current challenges of online arbitrage and provide tips to find winning online arbitrage leads.

Can You Do Online Arbitrage in 2025?

For new sellers starting out on Amazon, online arbitrage can be a great way to enter the platform. That is because with online arbitrage, you don’t have to put much money into your business initially, and it is relatively easy to set up. Also, sellers can potentially earn good money by finding the right products.

However, nowadays, it is becoming more difficult for new sellers to be successful. The market is more competitive than ever, and the margins are not very high. The remedy to that is using Amazon product sourcing tools. They help sellers successfully identify winning online arbitrage products.

How Does Online Arbitrage Work in 2025?

Online arbitrage is a business model where sellers buy products from one online store and sell them on another online store, such as Amazon, for a profit. Below you’ll see how it works.

Online arbitrage in 2025 step by step 

Step 1. Set up your Amazon seller account

Start by registering as an Amazon seller. 

Choose the right plan based on your selling volume:

• Individual plan

Ideal for those selling fewer than 40 units per month.

• Professional plan

Best for sellers planning to exceed 40 units per month.

• You’ll need to provide your business details, tax information, and payment method. Once registered, you’ll gain access to Amazon Seller Central, where you’ll manage inventory, sales, and orders.

Step 2. Identify profitable deals

Look for products where the supplier’s price is significantly lower than Amazon’s. 

Here’s how you can do it:

• Manually search retail websites for individual products.
• Scan supplier websites and automatically find deals with Seller Assistant's Price List Analyzer.
• Track high-performing products on Amazon using Seller Assistant’s Seller Spy.
• Outsource deal research by hiring a virtual assistant.
• Subscribe to lead lists to save time on sourcing.

Step 3. Do in-depth product research 

Before purchasing, analyze each product’s profitability and demand to avoid bad investments. Use Seller Assistant and similar tools to check:

• If the product is eligible for sale under your account.
• Expected profitability after Amazon fees and shipping costs.
• Sales trends and market competition.
• Potential risks, such as IP complaints, Amazon policy violations, and alerts (hazmat, meltable, etc.)
• Skipping research can lead to slow sales, losses, or account issues, so always verify before buying.

Step 4. Determine purchase quantities

• Estimate how many units to buy based on demand and budget. Use Seller Assistant’s Sales Estimator to forecast monthly sales potential.
• For beginners: Start with small test orders to avoid overstocking and tying up capital in slow-moving inventory. Scale gradually as you gain experience.

Step 5. Source your products

Once you’ve identified profitable products, purchase them from online retailers. Maximize your savings by leveraging:

• Seasonal sales and promotions.
• Cashback offers and rebate programs.
• Coupons, gift cards, and credit card rewards.
• New user discounts on supplier websites.
• Stacking these savings can reduce your costs by up to 20%, increasing your overall profit margins.

Step 6. List your products on Amazon

Add your items to Amazon’s catalog using one of two methods:

• Joining an existing listing
• If the product is already being sold on Amazon.
• Creating a new listing
• Only if the product does not yet exist in Amazon’s catalog.
• Important: Amazon prohibits duplicate listings, so always check for an existing product page before creating a new one.

Step 7. Choose your fulfillment method

Decide how you will handle order fulfillment:

• Fulfillment by Amazon (FBA)

Amazon handles storage, packing, shipping, and customer service for a fee.

• Fulfillment by Merchant (FBM)

You manage your own storage and shipping.

• While FBA is more convenient, it comes with added costs. Always calculate your profitability before selecting your fulfillment method.

Step 8. Set competitive pricing

Pricing your products correctly is key to winning the Buy Box and maximizing sales. Follow these strategies:

• Use repricing tools to automatically adjust prices based on market fluctuations.
• Calculate your break-even point (BEP) to avoid losses.
• Select a pricing strategy that balances profitability and competitiveness.

Step 9. Monitor performance and scale your business

• Online arbitrage requires continuous optimization. Regularly track:
• Sales performance and profit margins.
• Customer feedback and reviews to maintain a high seller rating.
• Inventory levels to prevent stockouts or overstocking.
• As you gain experience, scale your business by increasing your inventory, expanding into new product categories, and automating sourcing and pricing processes.

Note. Seller Assistant is all-in-one product-sourcing software offering 20+ tools that helps Amazon sellers quickly find profitable and low-risk deals. It provides you with effective solutions for bulk wholesale price list scanning and brand analysis alongside advanced product research extensions, tools, and features providing you with in-depth product research data.

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: Side Panel View, Storefront Widget, Quick View, FBM&FBA Profit Calculator, Sales Estimator, Offers, Variation Viewer, Stock Checker, and offers secure and efficient solutions for teamwork.

Why Is Online Arbitrage Still Popular with Amazon Sellers?

Online arbitrage can be a profitable way to make money on Amazon, and there are more and more sellers coming in. However, it takes time, effort, and research to be successful. Here’s why online arbitrage is still popular with Amazon sellers.

Low startup costs

Online arbitrage is a low-cost business to start. Sellers don't need to invest in manufacturing and can begin reselling products immediately.

Easy to get started

Online arbitrage is also comparatively easy to get started with. Sellers need to find profitable products, source them, and list them on Amazon. 

Potential for high profits

With online arbitrage, sellers can potentially earn high profits by finding products that are selling for a lower price on one retailer and selling them for a higher price on another retailer.

Flexibility

Online arbitrage is a flexible business model that sellers can run from anywhere with an internet connection.

What Are the Challenges of Online Arbitrage in 2025?

The way you do online arbitrage is different compared to 3-4 years ago. There are more challenges in this business, and it requires more effort to overcome them. Despite that, there are still opportunities for new sellers to succeed in it. 

Amazon’s growing restrictions

• Brand gating

More brands are restricting third-party sellers. If you’re not approved, you can’t sell their products.

IP complaints

• Companies are increasingly aggressive in protecting their products, leading to more takedown notices.
• Product restrictions

Many once-open categories and products now require approval, making it harder for new sellers to list products.

More competition, tighter margins

• In 2025, product sourcing tools are no secret. More sellers using the same sourcing tools like Seller Assistant mean increased competition and shrinking profit margins.
• Price wars and undercutting are common, reducing the profitability of once-lucrative finds.

Retailers blocking resellers

• Some online stores are cracking down on bulk purchases or canceling orders suspected of being for resale.
• Big retailers like Walmart, Target, and Best Buy are limiting purchase quantities and restricting reseller accounts.

Automation in online arbitrage

• Advanced product sourcing automation tools like Seller Assistant's Price List Analyzer.

are helping top sellers find and analyze deals faster than ever.

• Those who invest in smart sourcing tools and automation will have an edge over those still relying on manual research.

Price drops

Due to increased competition, prices change quickly, and most sellers use repricing tools to price their products automatically. This makes it challenging to maintain the projected price and guarantee long-term profit.

Dos and Don'ts of Online Arbitrage

Online arbitrage can be a profitable and low-risk way to start selling on Amazon – if done correctly. Many beginners make simple mistakes that can lead to listing issues, financial losses, or even account suspensions. To help you succeed, here’s a clear breakdown of the best practices and common pitfalls to avoid when starting your online arbitrage journey.

How to Find Online Arbitrage Products in 2025? 

Finding profitable products is the foundation of success in online arbitrage. Sellers use various sourcing strategies, each with its own benefits. Below, we explore the most effective ways to find products, along with tips on how to research them properly.

Strategy 1. Find deals yourself

• What it is

This strategy involves manually searching for individual deals where there is a clear price difference between the supplier's price (lower) and Amazon's price (higher). It’s best suited for sellers who prefer a hands-on approach to product selection. However, it can be very time-consuming, making it difficult to find many deals quickly.

• What is achieved

By using this method, sellers can hand-pick high-quality, low-risk products and develop a deep understanding of market trends. Since it's a manual process, there is more control over the products selected.

• How it works

Search for popular, low-risk products manually on retail websites. Use Seller Assistant Extension's user-friendly dashboard to get essential product data directly on Amazon product and search pages, supplier websites, and competitor storefronts to quickly assess a product's resale potential, profitability, and hidden risks.

How to research effectively

• Gain instant access to detailed product insights directly on Amazon product pages, including sales potential, velocity, competition levels, Buy Box probability, product restrictions, IP complaints, profitability metrics, top-selling variations, and historical sales data.
• Analyze potential deals on supplier websites with Side Panel View, displaying Amazon product data alongside supplier pricing for quick comparisons.
• Quickly identify profitable products on Amazon search pages with Quick View, providing an at-a-glance overview of which listings are worth reselling.
• Detect high-risk products and brands with IP Alert, which highlights intellectual property complaints and Amazon policy violations, along with the type and date of reported issues.
• Accurately calculate profitability with the FBM&FBA Profit Calculator, which factors in Amazon fees, logistics costs, taxes, and other expenses – customizable to match your business model.
• Easily determine VAT and other tax obligations using the VAT Calculator, designed for sellers who sell internationally.
• Verify your selling eligibility and check for restricted brands and categories with the Restriction Checker, helping you avoid compliance issues.
• Stay ahead of potential product risks by receiving alerts for hazmat classifications, generic brands, bulky or heavy items, meltable or fragile products, adult-content flags, competition from Amazon itself, and other risks.
• Forecast sales and revenue for your products with the Sales Estimator, providing data-driven insights into expected monthly sales volume.
• Track real-time inventory levels of competing sellers with the Stock Checker, offering visibility into available stock from both FBA and FBM sellers.
• Evaluate product variations and best-selling options with the Variation Viewer, which displays sales distribution and rating shares across different variations.
• Monitor competitor pricing strategies with the Offers feature, analyzing seller prices, stock availability, and Buy Box distribution percentages.
• Streamline your product research workflow by exporting key data directly to Google Sheets with a single click.
• Find supplier sources quickly with Lookup Links, which connect you to product listings across platforms like Google, eBay, Walmart, and Target.
• Organize and track your research by adding product notes, including source links, preferences, and key observations, across Amazon search pages and supplier websites.
• Review historical pricing and sales trends with interactive charts powered by Keepa, helping you make informed sourcing decisions based on long-term data patterns.

Who is it good for

• Beginners who want to learn how to analyze products manually.
• Sellers who prefer full control over their sourcing and don’t mind spending extra time researching.

Read more

Strategy 2. Parse and automatically scan supplier lists

• What it is

This strategy uses automation tools to scan bulk supplier product lists, allowing sellers to analyze a large number of products efficiently. It is perfect for sellers managing a large inventory who need to quickly filter through thousands of products.

• What is achieved

Sellers can save time by automatically filtering high-margin, low-risk products from supplier catalogs. This method also reduces costly sourcing mistakes by flagging restrictions, high competition, or pricing issues in advance.

• How it works
  

Parse supplier website with all their products. Use Seller Assistant's Price List Analyzer to upload and scan a supplier’s price list

• The tool automatically matches products to Amazon listings, calculates profitability, and populates your sheets with numerous data including product BRS, sales velocity, competition, Buy Box %, variations and their share, flags potential risks like gated products, too high ROI, hazmat, meltable, etc, and much more. You can configure the sheet and filter results.

• Sellers can quickly identify the most profitable opportunities without manual searching.

How to research effectively

• Sales performance

Check Best Sellers Rank (BSR) to verify demand.

• Competition level

Avoid listings with more than 15 sellers or those dominated by Amazon.

• Buy Box chances

Identify who controls the Buy Box and if you can compete.

• Pricing and profitability

Ensure ROI and profit margins meet your business goals.

• Restrictions

Verify product restrictions, selling eligibility, IP complaints and Amazon policy violations.

Who is it good for

• Online arbitrage sellers managing bulk product sourcing.
• Sellers who want to automate the research process and save time.

Read more

Strategy 3. Research your competitors to sell what they sell

• What it is

Competitor research involves analyzing successful Amazon sellers to discover the products they are selling. This allows sellers to capitalize on proven deals and avoid the guesswork of product selection.

• What is achieved

By identifying top-performing products and brands, sellers can increase their chances of success by offering similar or identical items. This method helps sellers focus on high-demand, profitable products.

• How it works
  

Use Seller Assistant’s Seller Spy to automate tracking competitor stores.

• Analyze what products they sell, what they have recently added or removed, and their pricing strategies.
• Identify best-selling deals to build a similar product portfolio.

How to research effectively

• New product monitoring
• Track what competitors are adding to stay ahead of trends.
• Product removals
• Identify items competitors stop selling to avoid slow-moving inventory.
• Seller feedback
• Analyze competitor product ratings and customer reviews.
• Pricing strategies
• Monitor competitor pricing to stay competitive and optimize profits.

Who is it good for

• Online arbitrage sellers looking for proven, high-demand products.
• Sellers who want to reduce risk by focusing on already successful products.

Read more

Strategy 4. Hire a virtual assistant

• What it is

A virtual assistant (VA) is someone hired to find product deals on behalf of the seller. VAs can handle the time-consuming process of deal searching, allowing sellers to focus on scaling their business.

• What is achieved
  
  • Saves time by outsourcing product research.
  • Increases sourcing efficiency, helping sellers find more deals in less time.
  • Helps sellers manage larger inventories without spending hours searching for products.

• How it works
  
  • Find a virtual assistant on Fiverr or specialized websites that offer VA services.
  • Choose a VA with experience in Amazon product research.
  • Ensure you don’t overpay and test their skills before committing to long-term contracts.
  • Use Seller Assistant’s Virtual Assistant Account feature with built-in VPN access to securely and efficiently manage their lead-sourcing team without sharing your Amazon seller account credentials.

• How to research effectively
  
  • Provide clear guidelines on pricing, ROI, and product categories.
  • Set performance expectations to ensure the VA finds quality leads.
  • Use tools like Seller Assistant to verify the leads provided by the VA.

• Who is it good for
  
  • Sellers looking to outsource product sourcing.
  • Busy sellers who want to scale their online arbitrage business without spending too much time on research.

Read more

Strategy 5. Buy leads lists

• What it is

A leads list is a pre-researched collection of profitable product deals that sellers can purchase. These lists contain ready-to-buy products that have already been analyzed for profitability, competition, and demand.

• What is achieved
  
  • Saves time and effort in product research.
  • Provides instant access to deals from expert product researchers.
  • Helps new sellers start selling quickly without spending hours finding deals.

• How it works
  
  • Purchase a leads list from a reputable provider or find a VA to create one.
  • Use Seller Assistant to verify product profitability before purchasing inventory.
  • Be cautious of low-quality lists that may contain outdated or unprofitable products.

• How to research effectively
  
  • Only buy from trusted lead list providers.
  • Cross-check each product’s sales rank, competition, and profit margins before buying.
  • Avoid lists that do not provide key metrics like ROI, BSR, or potential restrictions.

• Who is it good for
  
  • Sellers who don’t have time for manual product research.
  • Beginners who want to start selling immediately with pre-vetted deals.

FAQ

What is online arbitrage?

Online arbitrage is a business model where sellers buy products from one online retailer and sell them to another online retailer for a profit.

How much can you make with online arbitrage?

The amount of money you can make with online arbitrage depends on a number of factors, including the products you choose, the margins you are able to achieve, and the amount of time and effort you put into your business. However, it is possible to make a significant income from online arbitrage, with some sellers reporting profits of over $10,000 per month.

Is online arbitrage worth it?

Online arbitrage can be a profitable business model. Still, it is important to be aware of the challenges, such as competition, increasing number of restricted products and brands, and price changes. You can use Amazon seller tools like Seller Assistant to find profitable products to sell.

Is arbitrage still viable?

Online arbitrage is still viable, but it is becoming more competitive. It is essential to be aware of the challenges and to focus on profitable products and markets where the competition is less intense. You can find such products with Seller Assistant.

Final Thoughts

Online arbitrage is still feasible in 2025 but is getting more difficult. New sellers can still succeed, but they must be aware of the challenges and take steps to reduce them. They can mitigate these challenges by using product sourcing software like Seller Assistant to find profitable products.

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, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: 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.