Operating an online eBay store is tough and eBay arbitrage can make your live easier! There’s no way to tell how your inventory will perform, and when it will sell. And when you’re investing in wholesale products, this can cost you time and money. Thankfully, eBay arbitrage exists as a solution that’s straightforward and relies on your existing knowledge of eBay sourcing.
eBay arbitrage enables you to operate a fast-paced operation that turns around stock quickly and provides fast returns. Simply put, it’s purchasing a product for a low price in one market and then selling it for higher in another.
The main reason that arbitrage exists is that there are millions of eBay sellers who lack the savvy or skill to market their products properly. As a result they end up placing incorrectly listed items filled with spelling mistakes and low resolution, fuzzy images. Your average shopper will not find their products when conducting a search. They may also pass it over to due to the poor quality of the listing, unaware of its real value.
This is where you enter the picture. You select a market (for example, used cameras) and search for serial numbers or brand names with one or two letters spelt incorrectly (Canon becomes Conon, Leica becomes Leicia) with low minimum bids and pricing. If you’re reasonably confident the item can be resold as is for much more using a better listing, you should place a bid immediately.
Once you’ve won, what’s next?
Once you’ve won your bid, it’s up to you where and how you resell the item. You might want to properly list it and go for a full asking price on eBay. Alternatively, you may turn to an offline trade magazine or forum to make the sale.
Of course this is a very simplified explanation of how eBay arbitrage works. You will definitely need to put more work and effort into the process than is indicated above. What doesn’t change is the fact that arbitrage remains a fool-proof, worthwhile method of making money fast, online – provided you know what you’re doing.
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