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post #49 of (permalink) Old 03-16-2019, 04:14 PM
Lady Fitzgerald
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Quote: Originally Posted by Chargeit View Post
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...
Close but not exactly. Fulfillment by Amazon means you provide the product to Amazon to warehouse and list, then when someone places an order, Amazon will fill the order, pack it, then ship it. The product doesn't have to be purchased from another retailer. it could be manufactured by you.

Arbitrage means the practice of selling someone else's goods without actually owning the goods. An example of a legitimate arbitrageur would be a stock broker. Not everyone has the knowledge required to navigate the ends and outs of buying and selling stocks, bonds, etc. so using a stock broker is basically hiring someone who does know the ends and outs and taking care of them for you. Another example is a real estate agent. The agent doesn't own the houses s/he sells; s/he is the one who does the listing for the homeowners, shows the listings to the buyers, then handles the legal aspects of the sale for the sellers and the buyers.

In short, these arbitrageurs are justified with what they do by either adding value to the products they sell or providing a service of value to the seller.

FBA Arbitrage, on the other hand, generally refers specifically to buying up retail products, often at close out or sale prices, then reselling them on Amazon at higher prices. While an argument could be made that making these products available for a larger customer base increase value for the end consumer, the practice also makes those products more expensive for customers who could have obtained the products for the same price the FBA Arbitrageur paid. The practice dances close to the line, usually on the wrong side, between providing a beneficial service and pure speculation, the latter being a despicable practice that is essentially thievery.

Quote: Originally Posted by Chargeit View Post
...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...
I feel the practice should be outlawed, the same as ticket scalping, which is similar, has been.

Quote: Originally Posted by Chargeit View Post
...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.
That scenario is not the only behavior that gives arbitrage a bad name. eBay is rife with fake vendors (scum), mostly Chinese, that simply list another company's products at a higher price as their own, then, when someone orders something from the scum, once the scum receives payment, the scum orders the product the legitimate vendor, pocketing the price difference. Both scenarios are directly equivalent to ticket scalping and should be outlawed for the same reasons.

Quote: Originally Posted by lightsout View Post
Only I care to use newegg for is GPU's. And thats usually just to price them. Amazon for their great returns alone smokes
everyone else. No hassles ever.
I've never been hassled over returning anything to Newegg.

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Last edited by ryan92084; 03-18-2019 at 05:57 AM.
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