Arbitrage is simply defined as price differentials for an identical item between two markets. For example, a commodity trader might buy sugar from a foreign country for $.18 per pound and immediately resell it for $.20 per pound on a U.S. exchange. That’s a 10% profit in less than 30 seconds and it’s done thousands of times each day.
I’m not a commodities trader, but I am aware of price inefficiencies and opportunities for a quick profit using eBay and other online merchants and sources.
In this case, I bought this Coach purse for $132.50 delivered to my door from an online store. It wasn’t what I wanted when I opened the box, but I had a 30 day return period. Instead of boxing it back up immediately, I put it on eBay and sold it quickly for $189.99 at a Buy It Now price for a quick $50 profit.
Paying attention to market inefficiencies and price differentials is one of the best ways to profit on eBay!