Arbitrage on the internet Part 2

Feb 16, 2010

Another form of arbitrage on the internet can be found with products. Essentially, in this case, you will buy something for a low price and sell it to someone at a higher price. We see this every day in the real world. For example, someone may trade in their car for $5,000 and the dealer resells it for $7,000.

So, how is it done on the internet? Well, you could potentially buy something during a one time sale of say 30% off. Then, you can resell it for 20% more on sites like eBay or Craigslist. Make sense. The key here though is to make sure you’re not holding the ball. In some cases, you can actually list your product for sale before you even buy it. This way, if no one buys the product, you don’t actually purchase the original product.

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