Retail Arbitrage
A business model where sellers buy discounted products from retail stores and resell them on Amazon for a profit. It requires minimal upfront investment but involves finding deals, checking restrictions, and managing thin margins.
Related Terms
Online Arbitrage
Similar to retail arbitrage, but products are sourced from online retailers instead of physical stores. Sellers use tools like Keepa and Tactical Arbitrage to find price discrepancies between online retailers and Amazon.
Private Label
A business model where sellers create their own branded products, typically manufactured by third parties. Private label sellers own their brand and control pricing, unlike retail arbitrage or wholesale. It requires more upfront investment but offers higher margins.
Wholesale
A business model where sellers purchase products in bulk directly from manufacturers or authorized distributors at wholesale prices, then resell on Amazon. Requires establishing supplier relationships and often involves brand authorization.