The practice involves purchasing goods, often at a discount or lower price point, and then reselling them through the Amazon marketplace at a higher price, thereby generating a profit. An example would be sourcing clearance items from retail stores and listing them on Amazon at the original retail value or slightly below, capitalizing on convenience and wider market reach.
This method of retail arbitrage offers opportunities for individuals and businesses to generate income with relatively low startup costs. Historically, similar approaches have been employed in various resale markets; however, the accessibility and scalability of Amazon have significantly broadened its appeal and potential returns. Benefits include flexibility, independence, and the potential for substantial profit margins.