Difference and Definitions Of Retail arbitrage, Online arbitrage, dropshipping, WholeSale and Private Label?

What is meant by Retail Arbitrage?

Buying the products from a physical store, shop or market and selling it to another market with profit margins is known as retail arbitrage. Products are purchased in Bulk for re-selling purposes! 

For Example:

  • Buying the goods from the shop which is liquefying it’s products and selling it on Amazon! 
  • We went to the superstore where we get a 50% off deal on bulk purchase, then we shop the products and sell them on Ebay!

What is meant by Liquefying:

It contains converting of assets, security or products in cash is known as Liquefying, it also contains selling them at lower prices than the normal prices, it mostly happens when someone needs the money! Like closing the business etc.  

What is meant by Online Arbitrage?

Buying the products from an online store  at good prices and then reselling it with a good profit margin is known as Online Arbitrage! 

For Example:

  • Buying the products from Ebay auctions and selling it on Amazon!
  • Buying the products from walmart and selling it on Amazon! 

What is Dropshipping? 

We are having many queries like “how dropshipping business works” so here is the detailed answer:  

Dropshipping is a model of Ecommerce, in which seller don’t need to buy any inventory, Seller gets the products information from the supplier, seller lists and market the products with profit margin, when the customer orders the seller with its information,  Seller orders the product to the supplier with customer information, supplier will deliver the product to the customer, this process is known as dropshipping! 

What is the Wholesale business model in amazon? 

In the wholesale model, the seller buys the products in bulk from any specific brand, and then selling it is known as Wholesale

Wholesale= Bulk + Specific Brand

What is meant by Private Label? 

Private label as names identifies our own label, so described as: 

In a private model, the seller registers it’s brand, and 3rd party or seller manufactures the products with it’s own label(logo), and then sells it, is known as private label! 

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