Amazon Arbitrage: Complete Guide to Flipping Products

What is Amazon Arbitrage?

Amazon arbitrage is the practice of buying products at a low price on Amazon (or other retailers) and reselling them at a higher price on a different platform. The difference between the buy price and sell price, minus fees, is your profit.

There are two main types:

• Online Arbitrage — Buying from one online retailer and selling on another (e.g., buy on Walmart, sell on Amazon FBA)
• Retail Arbitrage — Buying from physical stores (clearance, discount racks) and selling online

How Much Can You Make?

Profit margins in Amazon arbitrage typically range from 15% to 50% per product. Successful arbitrage sellers make anywhere from $500 to $10,000+ per month, depending on volume and deal quality.

The key is finding deals with high enough discounts to cover:

• Amazon referral fees (8-15% depending on category)
• FBA fulfillment fees ($3-5 per item)
• Shipping costs
• Your time

Step-by-Step: How to Start Amazon Arbitrage

Step 1: Find Underpriced Products

The hardest part of arbitrage is finding products that are priced low enough to resell profitably. You need to find products that are:

• Discounted by at least 50% from their normal price
• In demand (check Amazon BSR — Best Seller Rank)
• Not restricted by Amazon's brand gating
• Small and lightweight (to minimize shipping/FBA fees)

BargainHuntrs automates this process by scanning 500+ retailers and flagging products with 50%+ discounts that have resale potential.

Step 2: Calculate Your Profit Margin

Before buying anything, calculate your net profit. Use the profit calculator to input:

• Buy price (what you pay)
• Sell price (current Amazon price or market value)
• Amazon referral fee (usually 15%)
• FBA fee (based on size/weight)
• Shipping cost

Aim for at least $10 profit per item and 30%+ ROI. Anything less isn't worth the time and risk.

Step 3: Buy the Product

Once you've verified the deal is profitable, buy it. Use affiliate links (like the ones on BargainHuntrs) to earn cashback on your purchase, which adds to your profit margin.

Step 4: List and Sell

List the product on Amazon, eBay, Facebook Marketplace, or wherever you plan to sell. Use the AI listing generator to create optimized listings with SEO-friendly titles and descriptions.

Step 5: Ship and Repeat

Ship the product to the buyer (or to Amazon FBA). Track your profits and repeat the process with new deals.

Amazon FBA Fees Explained

If you use Amazon FBA (Fulfillment by Amazon), you pay two main fees:

• Referral Fee — 8-15% of the sale price (varies by category)
• Fulfillment Fee — $3.22-$5.42 for standard items (varies by size/weight)

Example: You buy a product for $10 and sell it for $30 on Amazon FBA.

• Sale price: $30
• Referral fee (15%): -$4.50
• FBA fee: -$4.00
• Buy cost: -$10.00
• Net profit: $11.50 (38% ROI)

Common Mistakes to Avoid

• Not calculating fees — Always factor in all fees before buying
• Buying restricted brands — Check Amazon's brand restrictions first
• Ignoring BSR — Products with high BSR take forever to sell
• Buying too much inventory — Start small, test demand, then scale
• Forgetting about returns — Budget for a 5-10% return rate

Tools You Need

• BargainHuntrs — Deal scanner and alert system
• Profit Calculator — Calculate ROI and fees
• AI Listing Generator — Create resale listings
• Amazon Seller App — Scan barcodes and check BSR
• Keepa or CamelCamelCamel — Track Amazon price history

Start Your Arbitrage Journey

Sign up for BargainHuntrsto start finding profitable deals today. It's free to join.