Amazon Arbitrage: The Complete Beginner's Guide to Making Money Reselling on Amazon

Amazon arbitrage is one of the most accessible ways to start making money online. You buy products at a discount from retail stores or other online marketplaces, then resell them on Amazon at a profit. I've been doing this full-time for years, generating over $930K in revenue in 2025 alone.

What Is Amazon Arbitrage?

Amazon arbitrage means buying a product for less than it sells for on Amazon, then listing it on Amazon (usually via FBA — Fulfilled by Amazon) and pocketing the difference after fees. There are two main types:

  • Retail Arbitrage (RA) — Buying clearance and sale items from physical stores like Walmart, Target, and thrift stores
  • Online Arbitrage (OA) — Finding deals online from other retailers, liquidation sites, and wholesale suppliers

How to Calculate Amazon Arbitrage Profit

Before buying anything, you need to know your true profit after all Amazon fees:

  • Referral fee — 8-17% depending on category (most categories are 15%)
  • FBA fulfillment fee — $3.22-$6.50+ depending on size and weight
  • Inbound placement fee — ~$0.27/unit average
  • Storage fees — Monthly and long-term storage fees if items sit

My rule of thumb: I need at least $3-5 profit per unit after all fees to make it worth sourcing, prepping, and shipping.

Finding Profitable Products

This is where most people struggle. Here's what actually works:

  1. Price tracking tools — Services like Keepa track Amazon price history. Look for products with a significant price drop from their 90-day average.
  2. Sales rank matters — A product with a BSR (Best Sellers Rank) under 100,000 in its category typically sells at least 10+ units per month. Above 200K? It's probably a dead listing.
  3. Check for Amazon as a seller — If Amazon is selling the item themselves, they'll almost always win the Buy Box. Look for items where Amazon is NOT competing.
  4. ROI thresholds — I target 30%+ ROI minimum. A $50 item needs to net me at least $15 profit after all fees.

Common Mistakes to Avoid

  • Ignoring sales velocity — A great price doesn't matter if the product only sells once a month
  • Not checking price history — That "deal" might be the normal price, and it's about to drop further
  • Buying gated brands — Some brands require approval to sell on Amazon. Check BEFORE buying inventory
  • Overbuying — Start with 1-3 units of any new product. Scale up once you confirm it sells

Getting Started Today

Check out our Amazon Deals page for real-time price drops scored by profitability. Every deal shows estimated profit, ROI, and sales velocity so you can make informed buying decisions.

The best way to learn arbitrage is to start small. Buy one item, list it, sell it, and understand the process end to end before scaling up.

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