Online Arbitrage Calculator
Calculate your online arbitrage profits for Amazon and eBay. Include prep center fees, shipping costs, platform fees, ROAS/ACOS advertising metrics, and get a complete ROI analysis to maximize your reselling profits.
Product Details
Source Purchase
Prep centers prepare your inventory for Amazon FBA (labeling, packaging, etc.)
Selling Platform
Profit Summary
Excellent Profit Opportunity
This arbitrage opportunity will generate $0 in profit per unit with a 0.0% profit margin on Amazon FBA.
Total profit for 10 units: $0
ROI: 0.0% return on investment
Net Profit Per Unit
$0
Revenue - Fees - Costs
Total Profit (10 units)
$0
Profit per unit × quantity
Profit Margin
0.0%
Profit as % of revenue
Return on Investment (ROI)
0.0%
Profit vs. total investment
Break-Even Sale Price
$0
Minimum price to avoid loss
Cost Breakdown
Total Source Cost
$0
Purchase price + shipping to you
Total Platform Fees
$0
Amazon FBA fees
Total Costs
$0
All costs combined
Platform Fee Breakdown
Referral Fee
$0
Category-based commission
FBA Fulfillment Fee
$0
Pick, pack, and ship
Per-Item Fee
$0
$0.99 per item (Individual plan)
Revenue Per Unit
$0
Sale price
Total Revenue (10 units)
$0
Revenue per unit × quantity
Online Arbitrage: Your Complete Guide to Profitable E-Commerce Reselling
What is Online Arbitrage?
Online arbitrage (OA) is the practice of purchasing products from online retailers at a lower price and reselling them on other e-commerce platforms like Amazon or eBay for a profit. Unlike traditional retail arbitrage that requires visiting physical stores, online arbitrage can be done entirely from your computer, making it accessible to anyone with an internet connection.
The business model is straightforward: find products selling for less on websites like Walmart.com, Target.com, or clearance sections of online retailers, purchase them at discounted prices, and list them for sale at market price on Amazon FBA, eBay, or other marketplaces. The difference between your purchase cost (including fees and shipping) and your sale price is your profit.
Successful online arbitrage requires understanding platform fees, calculating profit margins accurately, sourcing consistently profitable products, and managing inventory efficiently. This calculator helps you analyze potential deals before purchasing to ensure profitability.
Best Source Websites for Online Arbitrage
Finding reliable sources with consistent inventory and good profit margins is crucial to online arbitrage success. Here are the most popular and profitable source websites:
Major Retailers
- •Walmart.com: Clearance section often has deeply discounted items. Look for rollbacks, clearance tags, and online-only deals. Free shipping over $35 helps margins.
- •Target.com: Cartwheel deals, weekly clearance, and seasonal transitions offer opportunities. Target RedCard saves additional 5%.
- •Home Depot / Lowes: Tool deals, seasonal clearance on outdoor items, and discontinued products can be very profitable.
- •CVS / Walgreens: Combine coupons with ExtraBucks or Balance Rewards for health/beauty products with excellent margins.
- •Office Depot / Staples: Back-to-school sales and office supply clearance can yield 100%+ ROI deals.
Discount & Liquidation Sites
- •Overstock.com: Closeouts and overstock inventory from major retailers at 40-70% off retail price.
- •Sierra Trading Post: Outdoor gear and clothing at steep discounts. Stack coupons for even better deals.
- •T.J.Maxx / Marshalls Online: Designer and name-brand items at 20-60% below retail.
- •6pm.com: Zappos outlet with shoes and clothing at clearance prices year-round.
Specialized Sources
- •Manufacturer Direct: Contact brands directly for wholesale pricing or become an authorized reseller for consistent supply.
- •Flash Sale Sites: Woot, Steep and Cheap, and daily deal sites offer time-limited deep discounts.
- •Coupon Stacking: Combine manufacturer coupons with retailer coupons and cashback sites (Rakuten, TopCashback) to maximize savings.
- •Browser Extensions: Keepa, CamelCamelCamel, and Honey track price history and alert you to price drops.
Understanding Prep Centers for Amazon FBA
Prep centers are third-party services that receive your online arbitrage purchases, prepare them according to Amazon's requirements, and ship them to Amazon fulfillment centers. For sellers doing high-volume online arbitrage or those who don't want to handle logistics themselves, prep centers are invaluable.
Common Prep Center Services
- •Product Receiving: Accepts deliveries from your online purchases at their warehouse address ($0-0.50 per item).
- •FNSKU Labeling: Applies Amazon barcode labels to each unit ($0.25-0.40 per item). Required for commingled inventory tracking.
- •Poly Bagging: Seals products in protective plastic bags as required by Amazon ($0.10-0.25 per item).
- •Bundling: Creates multi-pack bundles or kits ($0.50-2.00 per bundle depending on complexity).
- •Inspection & Photos: Quality checks for damage and provides photos of items ($0.15-0.30 per item).
- •Storage: Short-term warehousing while accumulating inventory for shipment ($0.10-0.50 per cubic foot per month).
- •FBA Shipping: Consolidates and ships to Amazon warehouses (variable based on weight and destination).
Should You Use a Prep Center?
Consider using a prep center if you:
- •Process more than 100 units per month and value time over cost
- •Lack space for inventory storage and prep work at home
- •Ship products directly from retailer to prep center (saves time and shipping costs)
- •Want to scale your business without proportionally increasing your time investment
Consider prepping yourself if you:
- •Process fewer than 50 units per month (prep fees may eliminate profit)
- •Have low-margin products where $0.50-1.00 per unit in fees kills profitability
- •Enjoy the hands-on process and have available time and space
- •Are just starting and want to learn all aspects of the business
Choosing Your Selling Platform: Amazon vs eBay
The platform you choose significantly impacts your profit margins, time investment, and overall business strategy. Here's how the major platforms compare:
Amazon FBA
Pros:
- •Prime eligibility drives higher conversion rates
- •Amazon handles all customer service and returns
- •Scales easily - no packing or shipping work
- •Massive customer base and trust in platform
Cons:
- •Higher fees (15% referral + $3-8 FBA fulfillment)
- •Storage fees for slow-moving inventory
- •Strict prep requirements and potential penalties
- •Competition from other sellers on same listings
eBay
Pros:
- •Lower fees (13.6% average vs 15-20% on Amazon)
- •No storage fees or long-term inventory costs
- •More freedom in listing creation and branding
- •Better for unique, collectible, or used items
Cons:
- •You handle all shipping and customer service
- •Slower sales velocity than Amazon Prime
- •More work per sale (packing, shipping, messaging)
- •Harder to scale to high volumes
Profit Calculation Strategy: Know Your Numbers
Successful online arbitrage requires precise profit calculations before every purchase. Many beginners make the mistake of only considering the purchase price and sale price, forgetting the numerous fees that can eliminate profit margins.
All Costs to Include in Calculations:
- •Product Cost: Purchase price per unit from source
- •Shipping to You: Cost to get products from retailer (if not free shipping)
- •Sales Tax: If your state charges sales tax on purchases (can sometimes be recouped)
- •Referral Fees: Platform commission (15% Amazon, 13.6% eBay average)
- •Fulfillment Fees: FBA fees based on size/weight, or your shipping cost for FBM/eBay
- •Prep Costs: Labeling, poly bagging, bundling fees if using prep center
- •Storage Fees: Amazon monthly storage and potential long-term fees
- •Subscription Fees: Amazon Professional ($39.99/mo) or Individual ($0.99/item)
- •Returns/Refunds: Budget 2-5% for customer returns and damaged inventory
Minimum ROI Thresholds:
- •Minimum 30% ROI: Industry standard for online arbitrage to account for time, risk, and potential issues
- •50%+ ROI: Ideal target for sustainable business growth and reinvestment
- •100%+ ROI: Excellent deals worth buying in larger quantities if sales rank is strong
- •Minimum $3-5 Profit Per Unit: Below this, the time and effort may not justify the return
Final Tips for Success
Online arbitrage is a viable business model, but success requires discipline, accurate calculations, and consistent effort. Use this calculator before every purchase to ensure you're accounting for all costs and fees.
- •Start small and reinvest profits to scale gradually
- •Track every expense meticulously for accurate profit analysis
- •Research sales rank and competition before buying inventory
- •Build relationships with prep centers for better rates at volume
- •Diversify across multiple products and categories to reduce risk
Frequently Asked Questions
What is online arbitrage and how does it work?
Online arbitrage is buying products from online retailers at discounted prices and reselling them on e-commerce platforms like Amazon or eBay for profit. You find deals on sites like Walmart.com or Target.com, purchase at low prices, and list them at market price on selling platforms. The difference between your total costs (including fees) and sale price is your profit.
What are the best websites to source products for online arbitrage?
Top sources include Walmart.com, Target.com, Home Depot, CVS, and Office Depot for clearance deals. Overstock, Sierra Trading Post, and 6pm.com offer consistent discount inventory. Stack coupons and cashback from sites like Rakuten to maximize margins. Use browser extensions like Keepa to track price history and find optimal buying opportunities.
Should I use Amazon FBA or eBay for online arbitrage?
Amazon FBA offers higher sales velocity, Prime eligibility, and hands-off fulfillment but has higher fees (15% referral + $3-8 FBA) and storage costs. eBay has lower fees (13.6% average) and no storage fees, but you handle all shipping and customer service. Choose FBA for scalability and speed, eBay for lower fees and control.
What is a prep center and do I need one?
Prep centers receive your online purchases, label them with FNSKU barcodes, poly bag items, and ship to Amazon FBA warehouses. Fees typically range from $0.30-0.50 per unit for labeling plus $0.10-0.25 for bagging. Use a prep center if you process 100+ units monthly and value time over cost, or if you lack space for inventory prep at home.
What is a good ROI for online arbitrage deals?
Target minimum 30% ROI to account for time, risk, and potential issues. Ideal deals offer 50%+ ROI for sustainable growth and reinvestment. Deals with 100%+ ROI are excellent if sales rank is strong. Also ensure minimum $3-5 profit per unit - below this, the effort may not justify the return even if ROI percentage looks good.
What costs should I include in my profit calculations?
Include product cost, shipping to you, sales tax, referral fees (15% Amazon / 13.6% eBay), FBA fulfillment fees or your shipping cost, prep center fees if applicable, Amazon storage fees, subscription fees ($39.99/mo Professional or $0.99/item Individual), and budget 2-5% for returns and damaged inventory. Missing any of these can eliminate your profit.
How do I avoid buying products that won't sell?
Check Amazon sales rank before buying - products ranked under 100,000 in their category sell consistently. Use Keepa or CamelCamelCamel to view price history and ensure the current price isn't artificially inflated. Look at number of sellers and reviews - too many sellers means high competition and potential race to the bottom on pricing.
Can I ship products directly from retailer to prep center?
Yes, and this is highly recommended for efficiency. Most prep centers provide you with a unique receiving ID to include with your orders. Ship purchases directly from Walmart, Target, etc. to your prep center address. This saves time, eliminates double shipping costs, and allows you to scale without handling physical inventory yourself.
What is the difference between gating and restricted brands on Amazon?
Gated categories (like grocery, toys during Q4, topical) require approval before you can sell in them. Restricted brands require authorization from the brand owner to sell. Check if products are gated before purchasing - you can't list them until approved. Some brands are permanently restricted, while others may grant approval with invoices showing authorized sourcing.
How much money do I need to start online arbitrage?
You can start with $500-1,000 to test the model and learn. Invest in 10-20 different products to diversify risk. As you sell inventory and generate profit, reinvest returns to scale gradually. Budget for Amazon Professional subscription ($39.99/mo) if planning to sell more than 40 items monthly. Most successful sellers reinvest profits for 6-12 months before taking income.