Want to make some extra money or even a full income off eBay? Try arbitrage. Simply put, arbitrage is the act of buying a product where it is valued low in one market and selling the product in a market where it is valued higher. How can we use arbitrage methods on ebay? Try these three simple methods:
1. Find products with misspelled titles. Try looking for common misspellings for products, i.e. "nentendo" or "soney." These products often sell for less simple because less people see them, which means less people bid on them (lower demand). Next, turn around and sell the items with the correctly spelled title for more money.
Hint: obviously do your research on the product before going out and buying everything with a misspelled title. My advice would be to search for "completed listings" of the product (correctly spelled) and to compare its prices with the bid offers on the incorrectly spelled products.
2. Check the local thrift stores and flea markets. Often items are undervalued in these markets simply because sellers are looking to clear out their "junk." Some of these items really aren't junk and can be sold on eBay for much more. For example, last year I was browsing through the local Salvation Army and found a Scottie Cameron club priced for just $10. I looked up the completed listings for it eBay and realized it was selling for over $1,000. This is only one example. There are many high value items out there which can be found at thrift stores. Check the completed listings for items in various categories and look for things that may be easy to find in thrift stores.
3. Buy in bulk, sell individually. When I first got into the business of eBay arbitrage (before I even knew what the term arbitrage meant), I realized that several items sold in bulk for much cheaper than individual items. I saw that video systems and game package bundles sold for much less than what it would cost to buy those items individually. I soon realized I could buy these bundle packages and resell the individual products for more to make a nice profit. The nice thing about this method is that it can be done soley through eBay.
Tip: Make sure you take shipping fees into account when calculating profits from such deals. If you are only making $10 per transaction, but it takes you over 2 hours to buy the products, list them, and then ship them it is probably not worth your efforts.
Well that's it! Happy arbitraging!