Defining Search Arbitrage?

Have you ever searched for something on Google or another search engine and found wildly varying prices for the same exact product on different sites? If so, you may have come across an opportunity for search arbitrage.

In simple terms, search arbitrage refers to taking advantage of price discrepancies that exist between different online sellers for identical products. For example, Retailer A may be selling a certain widget for $50 while Retailer B sells the exact same widget for $75.

As an individual reseller, you can leverage those price differences to buy from the cheaper retailer and then resell to consumers on marketplaces like eBay at a higher price – essentially buying low and selling higher. The difference between your cost and selling price is your profit margin.

So in that example, you could buy the widget from Retailer A for $50 and then sell it on eBay for say $60 or $65, pocketing the $10-15 price spread as pure profit. This arbitrage opportunity exists simply because the two retailers have priced the same product differently.

How Search Arbitrage Works

The key steps involved in capitalizing on a search arbitrage play are:

1. Identifying Price Discrepancies: This involves searching for the same item across multiple online sellers to uncover price differences. For example, searching “logitech webcam” may show the same webcam priced at $60 on Amazon but $75 on Walmart.com.
2. Purchasing the Cheaper Item: You then buy the product from the site selling it for less in order to secure the lowest cost. In our example, you would purchase the $60 webcam from Amazon.
3. Reselling for Higher: Finally, you relist and resell the product on sites like eBay for a competitive price that still allows you a healthy profit margin. Listing the webcam for $70 on eBay would allow for $10 in arbitrage profit.

The key is finding substantial price differences between multiple sellers on identical products. Then you simply buy low and sell higher. With the right price spread, sizable profits can be made with minimal effort!

Real-World Example

Let’s walk through a real-life search arbitrage example:

• Mike searches Google Shopping for “youth football cleats.”
• He notices the Nike Vapor Edge cleats are $54.99 with free shipping on one site, but $69.99 + $7.50 for shipping on another site.
• Mike purchases the cleats for $54.99 from the cheaper site.
• He then relists the brand new cleats on eBay for $64.99 with free shipping.
• His eBay listing sells, netting him $64.99 – $54.99 = $10 in search arbitrage profit!

As you can see, finding and acting on search arbitrage requires just 4 simple steps, but can unlock easy profits if substantial price discrepancies exist.

Getting Set Up for Arbitrage Success

While the concept itself sounds simple enough, being successful with Search Arbitrage does require some key ingredients. Based on expert recommendations, here’s your starter checklist:

Reliable Product Research Tools

You’ll need a way to systematically identify price discrepancies across Amazon. This means having access to purpose-built tools that can scan marketplaces and spotlight money-making opportunities. Without the right tools, doing product searches manually would be incredibly tedious and inefficient. Some top options to consider include eFlip, Splitly, and Helium 10.

Multi-Market Amazon Accounts

To actually make buys and sells across different Amazon sites, you need access – which means setting up accounts globally. Most experts suggest having an account on both Amazon US and sites in Europe to maximize potential. Be sure to use the same email and payment information during setup for easy transfers later.

Budget for Initial Inventory Purchases

Just like any business, you’ll need some startup capital to build an inventory. Try setting aside at least $500 to make those first Search Arbitrage purchases. Many sellers are able to see ROI in their first month with as little as 10-15 products listed.

Patience & Analytical Skills

Beyond products and tools, success in Search Arbitrage requires smart thinking: constantly analyzing data to spot trends, avoiding restrictions Amazon may impose, and responding strategically over time. Developing patience and problem-solving skills is a must. You likely won’t achieve huge profits overnight. View this as a long-term endeavor.

Where can I learn Search Arbitrage?

Search arbitrage can seem complicated at first glance, but it’s an invaluable skill for marketers and entrepreneurs to add to their toolkit. At its core, search arbitrage leverages the difference between the cost of acquiring traffic versus the value of that traffic to make a profit.

What Exactly is Meant By “Search Arbitrage”?

Simply put, search arbitrage refers to the practice of generating revenue from search engine traffic. It involves purchasing and selling advertising slots on search engines to create a positive ROI. Most commonly, search arbitrage utilizes Google AdWords campaigns that target buyer keywords and drive traffic to offers that convert higher than the cost of the traffic itself.

For example, let’s say you spend $1 to drive a click from Google search to your landing page. If the visitor on that landing page goes on to complete an action worth $5 to you, then you have a $4 profit from arbitraging the search traffic.

Rinse and repeat across profitable keywords, scale up the best converts, and voila—you have an automated income stream from leveraging search traffic.

Why Learn This Valuable Tactic?

Like any marketing skill, search arbitrage takes some effort to learn. But the payoff for mastering this tactic is well worth it. Here’s why you should consider adding search arbitrage to your money-making toolkit:

• Proven business model – Search arbitrage has been working successfully for digital marketers for over a decade now. So, you can say that the concept has stood the test of time.
• Low overhead – Compared to other business models, the overhead costs are minimal here. No physical products to warehouse, no extensive staff to manage—just solid analytics and campaign management skills.
• Scalable success – With the ability to automate campaigns and scale up profit-drivers, savvy search arbitrageurs can steadily grow revenue. Six and even 7-figure businesses have been built on these search tactics alone.
• Evergreen traffic source – Unlike fads that come and go, search engine traffic continues growing steadily year after year. Master profitable search tactics now and they can pay off for years to come.

Where Should I Start Learning?

If you think search arbitrage may suit your skills and interests, you have a few options for getting the training you need:

• Take an online course – Our Academy have in-depth courses dedicated specifically to search arbitrage. Experts walk you through every step so you can start practicing.
• Follow case studies – Plenty of digital marketers publish their real-world search arbitrage case studies online. Read these to see the tactics in action and model success.
• Hire a search expert coach – For highly customized 1-on-1 training, you can bring on a search marketing expert. They can assess your niche, goals and create a personalized arbitrage game plan.

Whichever learning path you choose, be sure to apply the concepts right away. Like riding a bike, search arbitrage is best learned through doing. Test keywords, run small scale campaigns, analyze the data, optimize and scale—these practical steps will pave the way for search arbitrage mastery.

In Closing

As you can see, search arbitrage offers digital marketers and entrepreneurs alike a reliable, evergreen business model perfect for today’s online landscape. Yes, there is a learning curve. But with a bit of effort, the payoff of almost-passive revenue from high-converting search traffic is well worth the investment. Choose your preferred search arbitrage training method and start acquiring this valuable skill set today and become A Media Buyer.