What if I tell you that you could simultaneously invest a lower budget and generate a decent profit on Amazon? And no, I’m not talking about any black-hat tactics.

What I mean is to consider the Retail arbitrage (RA) strategy. 

It’s a method sellers use to list products bought from retailers (such as Walmart and Target) to a higher price on the Amazon marketplace. Here is why you can find Amazon arbitrage suitable for your strategy: 

• Get a better understanding of seasonal trends and Amazon data; 
• It’s easier to start with RA than a Private Label (PL). You don’t have to look for suppliers and manufacturers because the retailer already does the job; 
• You don’t have to create and advertise listings. All you need to do is to go to the store and scan the UPC of the product with your app. This way, you can understand what would the profit be after the Amazon fees; 
• You can invest a lower budget and better understand your profit and sales processes; 

These are the benefits, but unfortunately, a few drawbacks arise as well: 

• You don’t own the product; 
• You are competing with the other resellers of the brand; 
• You don’t have any control over the product’s quality or quantity. You don’t own anything; 
• It’s tough to scale through Retail Arbitrage. You don’t have the stability of the Private label. Don’t forget that you won’t buy from suppliers and manufacturers, which means your margins would also be lower; 

However, Amazon arbitrage is the perfect method to generate initial cash flow and start your Private label brand.