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OA – Online Arbitrage

Definition updated on November 2023

What is OA (Online Arbitrage) and how does it relate to e-commerce and reselling?

Online Arbitrage (OA) is a method used by sneaker resellers, and other types of resellers, where they purchase products online at a lower price and then sell them at a higher price on a different online platform or marketplace. The goal is to exploit price discrepancies between different online retailers or between online and offline stores. For example, a sneaker that's on sale or discounted on one website can be purchased and then listed on another platform where demand and prices are higher. Successful OA requires meticulous research, a keen understanding of market trends, and quick decision-making. Tools and software are often employed to track price fluctuations, scout for deals, and notify resellers of potential high-margin opportunities. For sneaker resellers, OA can be especially lucrative during sales events or when brands release limited stock online. Buying at a discount and then capitalizing on scarcity or high demand elsewhere allows for a profitable turnover. However, OA also comes with challenges, such as ensuring product authenticity, dealing with returns, and managing online platform fees. A key advantage of online arbitrage over traditional arbitrage is the ability to source products from anywhere, without the need for physical presence. In the sneaker resell world, mastering OA techniques can lead to a steady stream of profitable opportunities, especially when leveraging data and technology to spot and act on these deals swiftly.

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