OA

Online Arbitrage (OA) is a popular sourcing method among third-party (3P) sellers on Amazon. Instead of buying inventory wholesale or manufacturing their own products, OA sellers find deals on other e-commerce platforms (like Walmart, Target, eBay, or niche online retailers), purchase those items, and resell them on Amazon at a markup.

Key elements of OA:

• Relies on price mismatches between online retailers and Amazon
• Sellers often use tools like Keepa, SellerAmp, Tactical Arbitrage, or RevSeller to analyze deal profitability
• Products are typically shipped to the seller (or a prep center), then relabeled and sent to FBA
• Requires attention to brand restrictions, IP complaints, and Amazon policies

Why OA is attractive:

• Low barrier to entry - no need for supplier accounts or custom branding
• Quick to scale with the right tools and sourcing strategies
• Can generate high ROI on the right products
• Useful for testing product demand before committing to wholesale or private label

Risks and challenges:

• Limited stock availability from sourcing sites
• Prone to Buy Box competition and price tanking
• Higher risk of account suspensions due to authenticity complaints
• Brands may be gated or protected under Brand Registry

💡 Example: A seller buys LEGO sets on clearance from Target.com and resells them on Amazon with a 40% profit margin using FBA.

In short:
OA (Online Arbitrage) is the practice of buying discounted products from other online retailers and reselling them on Amazon for profit - a common entry-level strategy among 3P sellers.