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Arbitrage is simply taking advantage of price differentials. This can apply to products or even services or ads. You can buy ads from Yahoo, which, when clicked, will take the viewer to a page with your Google Ads. If you are paying less for the Yahoo ads and getting more money for the Google Ads you will make profit. But, consider doing this with products, you don’t even need a website. Websites like eBay and Amazon have tons of exactly the same products selling at different prices. These giants have millions of buyers everyday which means that if you list your product for the lowest price it will sell very quickly. So, create an account with Amazon and eBay and start looking for the price differentials.

How I know this works? I use to buy software from eBay and sell it on Amazon and made over 100K per year. Look for the right margins, I tried selling the latest new software but there was no arbitrage there, but I did notice big differentials in older version of Adobe and Microsoft Software. You will be surprised at how many people and even business buy older versions of Photoshop, Acrobat, Office because they can pay way less and the product is nearly identical. At the same time, other business sell their older versions on eBay to recoup their costs.

Companies buy from Amazon because they trust Amazon over eBay which is flooded with pirated and illegal software and scammers who list things as legal. If you can figure out how to sort out and eliminate these scammers and buy real, legitimate software on eBay you can often sell this software on Amazon for double the price. Do not sell pirated or illegal software anywhere, not only because it is illegal, but also because you will quickly be banned from eBay and Amazon.

Expand your research and look for products on Craigslist and start building contacts with companies that want to get rid of their older unused software. You are probably wondering why I stopped this business if it was so profitable and why I would tell you about it. Well, I stopped because I ventured into Academic and Educational software for a very short time and violated Amazon terms which got me banned. I never sold any pirated software but if you do software arbitrage you will realize that piracy is a big issue that affects even legitimate people; for example, Adobe will sometimes shut off your eBay listings even if you are selling legitimate, unregistered, new software. But this piracy issues is also what causes such huge price differentials between websites like eBay and Amazon.

Why am I telling you about this opportunity? Because this is the purpose of this website, I want to show people how to make money online, so come back for more articles like this.