Originally Posted by Chargeit
FBA is fulfillment by amazon. Basically you send your products to amazon for them to store and ship them. They also deal with any customer service.
Arbitrage is buying something cheap at retail and then selling it for a profit. Such as something goes on sale at your local Walmart. Said item normally sells for twice the price on Amazon. You buy a number of the items and then sell them on ebay, amazon, whatever. Basically a way to make some money selling stuff when you lack the funds to go all in on wholesale.
I've been looking into this lately and have come to the conclusion that Arbitrage is a good way to get your feet in the door for selling online. Learn the process, take your lumps while the stakes are low and then move on to branding and wholesale.
The darker side of Arbitrage would be buying something like the NES classic for $60 at launch and then putting it up for $150 - $200 to take advantage of it being out of stock. This is the kind of behavior that gives arbitrage a bad name.