Advantages and Disadvantages of Retail and Online Arbitrage

Advantages of Retail and Online Arbitrage:

  • Better profit margins than the other models

because we get products at exceptional rates. 

  • Low risk:

Getting the things at low rates, that can be sold anywhere if they didn’t sell according to the seller's plan. 

  • Easy to start: 

No permissions or authorizations required in most cases! 

Disadvantages of Retail and Online Arbitrage:

  • Not a solid business:

There’s no consistency in this business, as we get products for the first time, we might not find that product again! 

  • No reputation 

If a customer buys a product from our store, customers consider it just buying it from any random brand! 

  • No goodwill of the brand:

When we sell other brand products, we don’t make any goodwill, goodwill is just for the brand in this model. 

What is meant by goodwill?

An intangible asset, which is a customer's confidence in any brand or personality, that is also a trust badge for the customer. 

Goodwill helps in brand marketing, it also helps the brands in selling their new products, recurring sales,  no objection to higher price,  and much more.

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Introduction to E commerce

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