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Online arbitrage
Online arbitrage means buying products from online shops and reselling them, often through an online marketplace. Start small, check all costs and restrictions before buying, and treat any profit example as illustrative rather than a promise.
Open the interactive guide (checklist, video, read-aloud) →In plain words
- Buy a small amount of a product from an online shop.
- Check that you can list it on your chosen marketplace.
- Work out all costs before you buy.
- List it and wait for a buyer.
- Record what you spend and what you receive.
- You may lose money if it does not sell.
Who it suits
It may suit adults who are comfortable comparing prices, checking product eligibility and keeping track of stock and costs. It is a poor fit if you need quick or predictable income, or cannot afford to have money tied up in unsold stock.
People may pay for an item because it is available on a marketplace they already use, or because buying it there is convenient. Your item may not sell at the price you expect, and your costs can use up the difference.
Step by step
- Choose your marketplace and fulfilment method. Decide where you plan to list products and whether you will send orders yourself (FBM) or use Amazon fulfilment (FBA). Compare the work and costs before choosing. RetailScout About 30-60 minutes.
- Set a small budget you can afford to tie up. Decide the most you can spend without relying on a quick sale. A UK guide describes £100–£300 as a possible starting amount, while also suggesting testing with a single unit; these are examples, not targets. RetailScout About 20-30 minutes.
- Compare products and likely selling prices. Look at products from retailers you can buy from, then compare the product with the listing on your chosen marketplace. A current listing price does not mean your item will sell for that amount. About 30-60 minutes per sourcing session.
- Check listing permission before you buy. Check the specific product and listing to see whether you are allowed to sell it. Look for brand restrictions or gating before purchase, as a UK sourcing guide advises. Fulfilledby.co.uk About 10-20 minutes per product.
- Calculate all likely costs before ordering. Include the purchase price, delivery to you, marketplace fees, fulfilment, preparation and postage. One guide gives £3.95 as an example delivery cost that can affect a small order; Amazon fees can also take a large share of a sale. RetailScout About 10-20 minutes per product.
- Test a small quantity and record the purchase. Start with a small test rather than using your whole budget on one order. Keep the receipt and note the product, listing, purchase cost and other costs; a UK guide suggests testing with a single unit. RetailScout About 15-30 minutes, plus delivery time.
- Check the stock and prepare it to sell. When the item arrives, check that its condition matches the description and that it is suitable for the listing. Then prepare and send it using your chosen fulfilment method, or list it for self-fulfilment. About 15-45 minutes per small batch.
- Record sales, fees and any unsold stock. Track the sale price, fees, postage and remaining stock in one simple record. Use the actual amounts received and spent to decide whether to buy that product again. About 10-20 minutes per week.
- Review your records and local tax rules. Check your actual income and costs before you continue or increase your stock purchases. Review the tax rules for where you live, and ask HMRC or Revenue if you are unsure. About 30-60 minutes initially, then review regularly.
Your first 15 minutes
Choose one marketplace and one retailer, then assess a single product from listing check through to estimated net margin before placing any order.
The money
Compare the current marketplace listing, but do not assume that price guarantees a sale. Set a price only after subtracting your purchase cost, delivery, marketplace and fulfilment fees, preparation, postage and any other costs; leave room for the risk of slow sales or unsold stock.
Example only: one week, using five items. In the Sellerbility illustration, one item bought for £10 and sold for £20 might leave £3 after Amazon fees; it is not a typical or guaranteed result. <a href="https://sellerbility.com/uk" target="_blank" rel="noopener noreferrer">Sellerbility</a> For simple arithmetic only, five items at those illustrative amounts would be £100 sales − £50 stock − £35 other costs = £15 before tax. A separate € illustration, not a market rate: €100 sales − €50 stock − €35 other costs = €15 before tax. Replace every figure with your actual costs and proceeds.
The rules
Online arbitrage is generally lawful in the UK and Ireland. Follow tax, marketplace and consumer rules. Only list products you are allowed to sell. There is no general licence for this activity. Check product-specific rules and your marketplace’s seller terms before you buy.
UK and Northern Ireland
- Tax and records. The UK trading allowance covers the first £1,000 a year of trading income. This is gross income before expenses. If you earn more than this, tell HMRC. If you need to register for Self Assessment, register by 5 October after the tax year ends. GOV.UK Tax Help for Hustles GOV.UK
- VAT and platform reports. You must register for VAT if your taxable turnover goes over £90,000. Since 1 January 2024, platforms report sellers to HMRC if they have 30 or more items or about £1,700 a year in sales. A platform report does not mean you have a tax bill. Business.gov.uk GOV.UK
- Online sales and returns. If you sell online to consumers as a trader, distance-selling rules may give customers cancellation rights. For goods, the usual cancellation period ends 14 days after the customer receives them. Before the contract, give customers the required information. Where cancellation rights apply, make the cancellation form available. Tell customers before the contract if they must pay return costs. Make the costs and any additional payments clear. Customers should return goods within 14 days of cancelling. Refund them within 14 days of receiving the goods or proof of return. The refund must include standard delivery, but not the extra cost of a more expensive delivery option. Unless you agree otherwise, deliver without undue delay and within 30 days. Exceptions apply. Legislation.gov.uk UK Government guidance
- Advertising and data. If you publish advertising or affiliate content, label it clearly. For example, use “Ad”. If you process customers’ personal data, use the ICO self-assessment tool to check whether a data protection fee applies. The ICO says you are likely to be exempt if you hold customer details only for your own accounts and transaction records. This does not apply to information processed by or obtained from credit reference agencies. ASA ICO
- Platform and product rules. Before you buy, check the marketplace’s account terms, product restrictions and listing requirements. Check whether brands have restrictions or are gated. Fulfilledby.co.uk
- Age and insurance. There is no specific legal minimum age for this work identified here. Check the marketplace’s account terms before you register. Consider suitable business and stock insurance. Ask an insurer what cover suits your circumstances.
Ireland
- Income tax reporting. If you work under PAYE, register for self-assessment (Form 11) if your taxable non-PAYE income is over €5,000 or your gross non-PAYE income is over €30,000. Below that, declare it on Form 12 through myAccount. If you are unsure, check with Revenue or a tax adviser. Revenue
- VAT on goods. The VAT registration threshold for goods is €85,000. If you are unsure how the threshold applies to your sales, check with Revenue. Revenue
- Platform reports. Under DAC7, platforms report sellers of goods unless they have fewer than 30 transactions and under €2,000. A platform report does not by itself mean you owe tax. Revenue
- Online sales and returns. The 14-day cancellation right applies when a consumer buys goods or services online from a business. It does not apply to a purchase from a private individual. For goods, the period starts when the customer receives the item. Before purchase, give your name, physical address and contact details. Give product details, the total price and any extra charges. Give cancellation information, provide a cancellation form and explain how to use it. The customer must tell you within the 14 days if they want to cancel. They then have another 14 days to return the goods. Refund the customer within 14 days of being told about the cancellation, subject to receiving the returned items. Use the same payment method unless the customer agrees otherwise. Make payment clear. Make sure customers actively choose extras; do not pre-tick them. Send an order confirmation in a durable format, such as email. If you do not tell the customer about the cancellation right, it can be extended to 12 months beyond when it would otherwise have expired. Exceptions apply. CCPC CCPC
- Business name and ads. If you trade under a name other than your own, register the business name with the CRO. If you publish commercial or affiliate content, label it clearly, such as “#Ad”. CRO CCPC
- Age and insurance. There is no specific legal minimum age for this work identified here. Check the marketplace’s account terms before you register. Consider suitable business and stock insurance. Ask an insurer what cover suits your circumstances.
Checked against official sources: 22 October 2026. Not yet reviewed by a qualified tax or legal adviser. General guidance, not legal advice. Check the official link beside each point before you start.
Common mistakes
- Buying before checking whether the specific product listing is allowed.
- Forgetting delivery, marketplace, fulfilment, preparation or postage costs.
- Assuming a listed price means your item will sell for that amount.
- Buying too much stock before testing one small quantity.
- Failing to keep receipts and record actual sales, fees and unsold stock.
AI-made demonstration: this module has a 20-second street-chat video in the interactive guide. The presenter and the people in it are computer-generated, not real people.