5 Things We Learned About The Not-So-Mysterious Business Of E-Commerce Arbitrage Image courtesy of Ripple Rug
We’ve written about the practice of arbitrage in e-commerce in the past. Arbitrage is when you take advantage of different prices for the same items in different places, and make money by buying it from one place and reselling it in another. E-commerce has created a new variation on this business: people who receive orders from one site, order the items for their customers on another, and then ship directly, serving as a middleman.
Jason Feifer over at Entrepreneur magazine looked at this scheme in some detail, and wondered how to (maybe) prevent or stop it. He introduces readers to some of the sellers, and also to a cat toy inventor who has declared war on resellers of his products.
The e-commerce platforms vary, but the process is the same: a customer buys from one site, and the item is shipped to them from antoher.
Why It’s Nearly Impossible To Stop This Amazon and eBay Scheme [Entrepreneur]
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