Online arbitrage seems like an easy way to make money. All you need to do is buy products cheaply from an online store and then sell them for a profit on Amazon or another marketplace.
That might sound too good to be true, and that’s because it is. Online arbitrage is tough. It’s not a “get rich quick” scheme, and many people who try it end up out of pocket and holding plenty of inventory that they can’t sell. The secret to successful online arbitrage is using tools, data, and a methodical approach to identify the right products, understand your revenue and margins, and sell at a profit.
We’ll help you find the right online arbitrage tools for your ecommerce needs.
- What is online arbitrage?
- Why do you need online arbitrage software?
- Product sourcing tools for online arbitrage
- Price and sales rank history tools
- Repricing tools
- Arbitrage dropship automation
- Find the right combination for you
What is online arbitrage?
Here’s how online arbitrage works:
- Find a product that you can purchase for less than it’s selling for on Amazon or another marketplace.
- Buy the product from the supplier and have it sent to you or delivered to an FBA warehouse.
- List the product for sale at a price that gives you a healthy margin.
- The product sells and you make a profit.
We’ve identified some of the most popular online arbitrage tools. Learn about how they work, what you can use them for, and why they give you the ability to become a successful online arbitrage seller. The tools we cover in this roundup include:
- Product sourcing tools
- Price and rank history tools
- Repricing tools
- Dropship automation tools
Why do you need online arbitrage software?
You might be wondering why you need to use online arbitrage software and tools to begin with. While it’s true that you can run a semi-successful arbitrage business without them, the right software gives you several benefits.
Find profitable niches and deals
There are millions of items listed for sale online, all at different price points. Manually gathering and processing that information, then uncovering the rare, hidden gems is enormously time consuming and resource intensive. Product sourcing tools take away a lot of this pain by automatically comparing prices across hundreds of online stores and helping you find the most profitable products.
List and sell products before the competition
Online arbitrage has a low barrier to entry, so you’ll have lots of competitors. Every competitor wants to post their products up quickly so they can capture early customers looking for a bargain. Online arbitrage software, including product sourcing and dropship automation tools, helps you identify and list products quickly, getting you an early advantage and building momentum.
Establish demand and Best Sellers Rank for products
You don’t want to buy products that sell slowly or don’t sell at all. Price and rank history tools can show how the price and Best Sellers Rank (BSR) have changed on Amazon over time. This helps you find items with stable prices and strong demand so you can make money faster.
Understand expenses so you sell at a profit
Successful online arbitrage relies on you understanding all of your costs. Whether that’s purchase price, shipping, Amazon FBA fees, paying for your time, or any one of dozens of business costs, you need a solid understanding of your profit margins. Online arbitrage software can help you understand and manage your costs so you price to make a profit on every sale.
Let’s explore the software that can help you meet your online arbitrage goals.
Product sourcing tools for online arbitrage
Online arbitrage product sourcing tools are your starting point for finding good deals to sell at a healthy profit margin. Use product sourcing tools to:
- Scan products across suppliers, online marketplaces, listings, and other online resources.
- Get product pricing from multiple suppliers and stores.
- Identify the best deals by category, product, and marketplace.
- Filter and recommend products based on price, availability, demand, profit margin, and other criteria.
When you’re choosing product sourcing tools, look at how many stores they scan, the target marketplaces they compare prices to, fee and profit calculations, and useful, additional features.
Tactical Arbitrage is an online selling tool focusing on the Amazon marketplace. Features include:
- Search specific store categories and URLs or conduct general keyword searches.
- Filter products on multiple criteria including ROI and sales ranking.
- Results analysis for a deep dive into specific listings and products.
- Recommended deals to find products where you’ll make the most profit.
- Carry out a reverse lookup for Amazon products.
- Scan over 1,000 product sourcing websites with more added each week.
The price for Tactical Arbitrage varies between $70 and $149 a month, depending on the features you need.
BuyBotPro works as an online arbitrage virtual assistant. It’s designed to analyze and automate all of your FBA sourcing and purchasing needs. Features include:
- Automatically analyzes multiple deals and provides recommendations on the best opportunities.
- ROI and profit margin analysis that shows how much you will make after all fees, expenses, and other costs are deducted.
- Demand analysis based on selling rank so you can focus on items that will sell quickly.
- Competition analysis to tell you how other marketplace vendors are listing and selling your products.
- Inventory recommendations so you can purchase and sell the right number of items.
- Custom filter and search criteria, Hazmat and eligibility checking, sales estimator, and more.
The price for BuyBotPro varies between $35 and $45 a month, depending on the features you need. You can get a discount by paying for a year in advance.
SourceMogul is a specialized search engine that finds products you can sell profitably on Amazon. The software has been created by people who trade on Amazon to help other arbitrage sellers. Features include:
- Carry out general searches or analyze specific categories and niches.
- Front load your searches and SourceMogul will run them in the background, providing results as they’re ready.
- Detailed results analysis with advanced filtering criteria.
- Sales rank and pricing histories for every product.
- Integration with supplier stores and FBA preparation centers.
- Brand restrictions checker to eliminate products you can’t sell on Amazon.
- Unlimited searches of almost 400 websites split between the U.S. and the U.K.
The price for SourceMogul is $97 a month or $970 a year. New customers receive an introductory discount.
FBA Wizard provides deep product sourcing for Amazon and provides some innovative functionality including private label searches and U.S. flipping. Features include:
- Upload product and wholesale lists and scan all your predefined products across multiple retailers.
- Sell on eBay by searching dropshippers so you can sell through your storefront and ship direct to customers.
- Search private label products to find new, unusual, and profitable niches.
- Flip products between the Amazon U.S. and Amazon Canada stores at a profit.
- Understand sales demand across items.
- Use a fee calculator to input your expenses and understand profit margins.
The price for FBA Wizard is $99 a month or $699 a year.
Price and sales rank history tools
Online arbitrage is about much more than just sourcing the right products. You want to sell items quickly at the right price point. Use price and rank history tools to:
- Understand the historic price of items so you can determine likely profit margins.
- Establish there’s a demand by exploring sales ranks of products.
- Focus on items with a stable price history for predictability.
- Choose items with low availability on Amazon so customers buy from you.
Price and rank history are important for understanding “price stability”. You don’t want to buy or set prices when the Amazon price has temporarily spiked, giving a false impression of a profitable arbitrage deal. You could be left with a loss when the price returns to “normal”, which can happen very quickly.
Yes, this is their real name! camelcamelcamel is a free Amazon price tracker that monitors millions of products on the Amazon marketplace and lets you know when the prices drop. Features include:
- Create price watches for specific Amazon products.
- Get alerts via email or Twitter when the prices go down.
- View complete price histories of almost 20 million Amazon products.
- Use browser extensions to check price histories as you browse.
camelcamelcamel is free for users. They make money through affiliate links when you use the tool, so there’s no cost to you.
Keepa is a helpful Amazon price tracker that offers extensive pricing history and functionality for Amazon products. Features include:
- Extensive price history information and graphs.
- Price drop and item availability alerts.
- Browser extensions that show price history as you browse products.
- Compare prices across multiple Amazon international websites.
- Monitoring of over 650 million products.
Keepa’s basic data features are free, but advanced usage requires a subscription of 15 euros a month.
Repricing tools help online sellers to reprice items across marketplaces. Although these tools are not specific to online arbitrage, they’re an important part of the toolset. Use repricing tools to:
- Automatically update product prices as your competitors change their pricing and selling strategies.
- Reprice items if your existing online arbitrage tool doesn’t support this feature
- Shift products quickly by always pricing items keenly, while retaining a profit margin.
It’s important to note that multi-functional arbitrage tools don’t typically have a built-in repricer, so you will need to use a separate one to check you’re pricing competitively.
RepricerExpress automatically updates your product prices giving you the best chance of appearing in the Amazon Buy Box. Features include:
- Automatic Amazon repricing based on the criteria you choose.
- Set different repricing strategies based on your competitors.
- Complete, current views of pricing across all your products.
- Understand how product prices have changed in the last hour, day, or week.
- Filter and sort data by marketplace across Amazon.
- Get detailed competitor analysis.
RepricerExpress has various pricing plans depending on how many products you want to reprice. Costs range from $55 to $249 a month.
BQool Repricing Central
BQool Repricing Central provides innovative functionality and fast repricing to help you understand and price against the competition. Features include:
- Accelerated repricing to reprice items up to every five minutes, if needed.
- Built in price and profitability calculator so you can ensure you’re always selling at a profit.
- Detailed reports including listing rank, offer, Buy Box win percentage, position and fulfillment.
- Competitor insight and analysis including handling time, expedited shipping status, and back-ordered status.
- Customized repricing settings and strategies depending on competitor type.
- Repricing history and scheduling.
BQool Repricing Central has several pricing plans ranging from $25 to $100 a month, depending on the features you need. There are discounts for yearly subscriptions.
Sellery is a real-time Amazon repricing software tool with an innovative price plan and deep, customizable pricing strategies. Features include:
- Repricing almost instantly, in real time.
- Extremely detailed pricing strategies based on multiple criteria for smart repricing.
- Automatic, preset algorithm-based pricing rules.
- Specialized repricing for private label sellers.
- Cost and profit analysis to ensure you never sell an item at a loss.
Sellery has an interesting pricing model, meaning you pay them one percent of your gross monthly sales. There’s a minimum charge of $50 a month and a maximum charge of $2,000 a month.
PricingLab Smart Price
Unlike other pricing tools, Smart Price from PricingLab provides detailed monitoring and repricing across multiple sales channels besides Amazon. Features include:
- Integrate product costs and other expenses into your repricing strategy to ensure profit margins.
- Highly customizable repricing rules including by product, brand, category, sales channel, or competitor.
- Monitor prices across multiple sites, including comparison websites and competitors.
- Take advantage of automatic and instant price updates for your product catalogue.
- Use Smart Price across multiple marketplaces and price comparison sites including Amazon, Cdiscount, PriceMinister, Fnac, Darty, Bol, and Google Shopping.
Smart Price comes with three different pricing plans, ranging from 49 to 99 euros a month, depending on how often you want product prices updated.
Arbitrage dropship automation
Online arbitrage dropshipping is a little different to “standard” online arbitrage and also to conventional dropshipping. Here’s how it works:
- Find products where there is a big enough price difference that you can buy from a specific online retailer and resell through an online marketplace, at a profit.
- List the item on the online marketplace, marking up the price enough to make a profit after all fees.
- When the item sells on the marketplace, buy it from the online retailer and enter the buyer’s address as the delivery address.
Amazon-to-eBay arbitrage is the best known combination where this method is used, but it can be applied to any online retailer (as long as they accept a delivery address other than the cardholder’s) and any online marketplace – in theory.
You never handle the product yourself, because it is sent direct from the retailer, who doesn’t know you are using them as a supplier. With conventional dropshipping, in contrast, you buy from a wholesale supplier who you have a pre-agreed relationship with.
You don’t have to pay for the product upfront either, because you only make your purchase after the buyer has completed their own order.
So what’s dropship automation? It’s taking this idea even further, so no human involvement at all is needed to process the buyer’s order. When the buyer checks out on the marketplace, the software kicks in and makes the purchase from the online retailer, on your behalf.
That’s what the tools in this section do, sometimes along with other useful features for arbitrage sellers, such as creating marketplace listings.
You can find more online arbitrage tools with dropship functionality in our directory.
OAGenius provides a suite of online arbitrage tools with a strong focus on dropshipping. Features include:
- List product inventories including synchronization and bulk management.
- Active price monitoring in the marketplace and syncing of data to repricing tools.
- Inventory management to integrate dropshipping supplier inventories with your product listing availability.
- Take advantage of dropship arbitrage opportunities in real time.
- Automated order sourcing, fulfillment, shipping, tracking, and delivery.
OAGenius pricing ranges from $175 to $975 a month, depending on the number of product listings you’re managing.
PriceYak is a comprehensive online arbitrage tool designed specifically for dropshippers. Initially designed for Amazon-to-eBay arbitrage, features now include:
- Complete dropshipping automation suite for selling on selling on eBay, Amazon, or Shopify.
- Minimal information required to create product listings
- Built in repricing tools to ensure you maintain a healthy profit margin and stay competitive.
- Automated order placement and fulfillment process.
- Advanced sorting, filtering, and reporting on products, prices, and listings.
PriceYak uses an unusual charging structure when paying for the service, based on usage:
- Free repricing for the first 100 listings for every store in a PriceYak account, after that it’s a $0.10 repricing fee per listing.
- Free automatic ordering for the first 300 orders per store, after that it’s a $0.40 ordering fee per product sold.
Segemai Retail is a specialized tool designed for Amazon-to-eBay arbitrage and dropship automation. Features include:
- Auto-list products by the product ID for fast list management.
- Update and reprice items on eBay depending on multiple criteria.
- Automated order fulfillment and dropshipping between Amazon and eBay.
- Complete API integration and easy import and export via CSV.
- eBay store management, templates, defaults, and presets.
Segemai Retail has a custom pricing plan depending on number of listings, quantity of items for repricing, and how many orders are processed.
Find the right combination for you
We hope you’ve found this collection of online arbitrage tools useful. Although using these tools is optional, arbitrage software is a good way to significantly reduce the time and effort it takes to find and sell products.
Successful sellers will use a sensible combination of these tools based on what they’re selling, where they’re sourcing, their business model, and their desired customers. We’ve linked to our directory pages for most of the tools above where you can get more insight including an overview, user reviews, discussions, and specifications.
Most of these tools have free trial periods, so we recommend creating a shortlist of tools, trying them out, and seeing what works for you.
The first edition of this post was published in January 2016.