| What is arbitrage?Put simply, arbitrage is the | | | | for exactly the same title when researching |
| purchase of an item on one market for | | | | completed prices, particularly if the item has |
| immediate sale on another market in order to | | | | something like a model or serial number in the |
| profit from a discrepancy in the price between | | | | title, just search for the most obvious search |
| those markets.Arbitrage is a term more | | | | phrase.(If you find you are getting irrelevant |
| commonly used in the worlds financial and | | | | results just use negatives in the search box to |
| securities markets where, for example, traders | | | | search for items that don't contain the word, for |
| search out and take advantage of differences in | | | | example "playstation 2 -controller" to search for all |
| currency prices between different county's | | | | listings that contain the keyword "playstation 2" in |
| currency markets.In any situation where a | | | | the title but not the keyword "controller")When |
| difference in price of a product, service or item | | | | analyzing the completed items it makes sense to |
| exists an arbitrage opportunity presents itself | | | | ignore any closed auctions where the final selling |
| because it allows you to buy at the lower price | | | | price is considerably higher than the others. It's |
| and sell for the higher price making a profit | | | | tempting to focus on these blips but these are |
| in-between.eBay arbitrageSo what does arbitrage | | | | exceptions rather than the norm so be sure to |
| have to do with eBay and how can you apply the | | | | look at what the typical final selling price is, and |
| concept to make a profit?Every day, sellers list | | | | base your potential final selling price on that.You |
| items on eBay in inappropriate categories or with | | | | should always factor in the delivery charge into |
| poorly worded, incorrect or misspelled titles and | | | | the final selling price of the item. A $20 item with |
| descriptions. Due to the way that most people | | | | a $5 shipping is essentially the same price as a $5 |
| search for items on eBay (by entering keywords | | | | item with $20 shipping so when investigating your |
| in the search box) these poorly listed auctions are | | | | potential final selling price you need to take both |
| hidden from the vast majority of buyers.Given | | | | figures into account.Assuming you find equivalent |
| the sheer volume of auctions being listed and | | | | items that sold on eBay at a price high enough |
| running at any one time, these poorly listed | | | | for you to turn a profit you are in business. The |
| auctions are a constant source of potential | | | | only thing left to do is decide how much you are |
| arbitrage opportunities.Lets take a look at the | | | | willing to pay for the misspelled item, including |
| different types of arbitrage opportunities on | | | | shipping then place your bid.So the next question |
| eBay...Misspelled titles and descriptionsTaking | | | | is when to place the bid?If there are no other |
| advantage of misspelled titles and descriptions is | | | | bids on the item then you should immediately bid |
| probably the most well known and popular type | | | | the minimum amount, if there are already bids on |
| of arbitrage on eBay. These opportunities exist | | | | the item then you should either wait until near the |
| simply because people don't realise how important | | | | end of the auction to place your bid or use a |
| their auction title is to the success of their | | | | sniping tool to bid in the dying seconds of the |
| listing.As we mentioned earlier, most people | | | | auction.Why should you place a bid on the item if |
| search for an item by entering keywords in the | | | | there are no existing bids? Simple. eBay only |
| search box on eBay's main page. What most | | | | allows sellers to revise their items if there are no |
| sellers don't realise is that eBay by default only | | | | existing bids. If the seller realises he has misspelled |
| searches the auction title and not the auction | | | | a critical word in his auction and there are no bids |
| description as well. In order to search the auction | | | | then he can revise his listing and the arbitrage |
| description as well as the title the user has to use | | | | opportunity is lost. Placing the bid means the seller |
| the "advanced search" option and check "search | | | | is locked into the auction.This type of arbitrage is |
| title and description".Very few people know of this | | | | a numbers game - some you'll win, some you'll |
| "feature" and even fewer take the time to use | | | | lose. There are lots of people out there searching |
| it.To give you an example, searching just titles for | | | | for things like "playstaton", "pearl neklace" or |
| the keyword "Playstation 2" today returns 10576 | | | | "camra".Cross Auction ArbitrageCross auction |
| items but searching for "playstation 2" in titles and | | | | arbitrage is simple; you just look out for items on |
| descriptions returns 59879 items.This is not to | | | | eBay that you can sell on other auction sites (or |
| say that there are almost 49000 arbitrage | | | | any internet site that allows you to sell items.)For |
| opportunities with "playstation 2" as a large | | | | example, many computer games sell on eBay at |
| proportion of these will be genuine items that | | | | prices below what their used equivalents sell for |
| simply don't have playstation 2 in the title, but it | | | | on The secret to success here is to place bids on |
| does prove that these opportunities exist and are | | | | lots of items (once you've researched their |
| there waiting to be found.It really is a just a | | | | Amazon prices) you'll lose most but the few that |
| matter of common sense and simple maths; If a | | | | you do win will make you a tidy profit.Books are |
| listing rarely gets displayed because the keywords | | | | another potential cross auction arbitrage |
| in the title are misspelled then it simply isn't going | | | | opportunity between eBay and |
| to a lot of bids. The fewer the number of bids, | | | | Amazon.PositioningTo explain how positioning |
| the lower the final price of the item is going to | | | | works as an arbitrage strategy you need to |
| be!So how do you use this information to your | | | | understand the mentality of buyers and sellers on |
| advantage, and profit? Just search the listings for | | | | eBay.When people are interested in either buying |
| items with misspelled keywords in the title.An | | | | or selling a particular item they pretty much |
| easy way to do this is to use a free search | | | | remain within their own specific market. For |
| engine designed to highlight these arbitrage | | | | example, if you were a collector of antiques you |
| opportunities such as but you can just as easily | | | | would browse the "collectibles" categories looking |
| search the listings yourself for misspellings. is a | | | | for items to buy and likewise if you were a seller |
| free website that will generate misspellings for | | | | of collectibles you would list your items in the |
| you based on keywords you enter. For instance, | | | | same category.But as a seller there are other |
| entering "playstation" gave me the following | | | | markets that are potentially open to you that |
| misspellings;playstatiom, playstation, praystatiom, | | | | many people just don't think of capitalising on.To |
| paystation, plystation, plastation, playtation, | | | | continue with the collectibles example, there are |
| playsation, playsttion, playstaion, playstatin, | | | | people out there who may be more interested in |
| pleighstatiom, preighstatiom, pleighstation, | | | | the specific subject matter of the item rather |
| pleighstaton, preighstation, preighstaton, | | | | than its specific collectibility. Take old signs, aside |
| pleighstashon, preighstashon, pleighstashun, | | | | from their potential value to a collector, these |
| preighstashun, pleighstasion, preighstasion, | | | | signs may be of a higher value to someone |
| praystasion, playstaton, playstashun, playstashon, | | | | looking for something nice to hang on their wall!All |
| praystation, praystaton, praystashun, | | | | that is missing is you in the middle buying the |
| praystashon, playstasion, pleighstachun, | | | | items as a collectible and re-listing as an object of |
| praystachun, preighstachun, playstachon, | | | | art!The secret here is to list the item in the more |
| pleighstachon, praystachon, preighstachon, | | | | appropriate category using keywords and phrases |
| playstachun, p1aystat1on, playstat1on, playstatino, | | | | that would appeal to your new market - not the |
| playstatoin, playstaiton, playsttaion, playsattion, | | | | current market.Favourite SearchesAlmost nobody |
| playtsation, plasytation, plyastation, palystation, | | | | on eBay uses the favourite searches feature, but |
| lpaystation, playstatio, laystationok, some of these | | | | for those of us interested in finding arbitrage |
| are going to be way off the mark (pleighstashon | | | | opportunities, it's a potential goldmine.When you |
| for example) but these will give you a good place | | | | search eBay using keywords (the way most |
| to start.You don't have to search for each | | | | people search) and hit the search button you'll be |
| misspelling in turn, eBay allows you to use a sort | | | | presented with a link at the top right of your |
| of logical OR functionality in your searches by | | | | results labelled "add to favourite searches". When |
| entering your keywords in parenthesis separated | | | | you click this link you'll be taken to the "add to |
| by commas, for example;(playstatiom, paystation, | | | | my favourite searches" page which allows you to |
| plystation, plastation)The only limitation here is | | | | save this search for future use.Now this is where |
| that you must limit your entire search query to | | | | it gets interesting - check the "email me daily" box |
| 300 characters.Once you have found a potential | | | | and you'll get an email from eBay highlighting |
| arbitrage opportunity your next step is to | | | | potential arbitrage opportunities as and when they |
| investigate the typical final selling price of | | | | are listed - you don't even need to |
| equivalent but correctly spelled items on eBay.To | | | | search!ConclusionWe hope this article has given |
| do this you need to search the closed auctions | | | | you an insight into the many arbitrage |
| for the exact same item as your potential | | | | opportunities that exist on eBay. For more free |
| arbitrage opportunity. Simply click "advanced | | | | tips, ideas and strategies for successful eBay |
| search" from any screen, enter your description | | | | selling, visit us at Williams is the owner and writer |
| and check "completed listings only". Checking this | | | | of The web's #1 resource for free advice, tips |
| box will only return listings that have already | | | | and strategies on how to sell successfully on |
| ended allowing you to research completed auction | | | | eBay. |
| prices for your item.It's important not to search | | | | |