Online Arbitrage Sourcing List vs Software: Which One Fits Your Amazon Business?

Introduction to Online Arbitrage Sourcing

So, what does online arbitrage sourcing even mean? The basic principle of online arbitrage is buying an item and reselling it. For your business to be successful, the item must meet certain criteria. For example, it must offer a good ROI and be profitable. The criteria for choosing the items depends on you and your individual needs as a seller, but profitability is usually what most sellers look for.

After determining the criteria that speak to your needs and goals, you can start sourcing products. The basic idea is to find products that are priced lower than what they are going for on Amazon, but this is just the tip of the iceberg.

Sourcing can be done either manually – which is not recommended – or using various methods such as sourcing lists, OA software, hiring a virtual assistant, etc. But in this article, we will focus on online arbitrage sourcing list vs software because these are the most prominent ways.

Different Methods for Online Arbitrage Sourcing

When it comes to online arbitrage, there are two basic methods to choose from: using sourcing lists or utilizing software. Sourcing lists are an effective way to find items to buy and flip online. There are many companies that offer sourcing lists to Amazon sellers. These lists are usually compiled by the companies’ VAs or expert teams using various software and consist of items that are available for sale at a discount on various online platforms. 

On the other hand, online arbitrage software is an automated tool designed to help identify products that can be bought and sold online. This software uses various metrics to analyze millions of listings to help identify products with a high potential profit margin. You can learn more about different methods for online arbitrage sourcing here.

Online Arbitrage Sourcing Lists

To understand the difference between online arbitrage sourcing list vs software, you must first know what each of them means. OA sourcing lists are exactly what they sound like – they’re comprehensive lists of profitable products that you can buy at one price and sell at a higher price online. These lists are usually compiled by companies who have hired a virtual assistant or use various software to test the products’ profitability.

Essentially, the lists act as a shortcut to finding profitable products that you wouldn’t otherwise have known about. As you may have guessed, sourcing lists don’t come for free, but they’re definitely worth the cost since they save you a lot of time and trouble. Of course, you have to find a reliable sourcing lists provider that is tried, tested and trusted by users. Some of the most popular providers include OABeans, OA Hunt, Online Arbitrage Deals, etc.

How Sourcing Lists Work?

The process of creating an online arbitrage sourcing list involves analyzing sales data, trends, and customer demand to determine which products are in high demand and offer a good profit margin.

To find these profitable products, sourcing list providers use various tools such as price trackers, product research software, and data analysis tools. These tools help them identify price fluctuations, sales trends, and other important data points that can be used to make informed buying decisions. They also take into account factors such as shipping costs, fees associated with selling on Amazon, and other expenses that may impact profitability.

Pros and Cons of Sourcing Lists?

Here are some pros and cons of using online arbitrage sourcing list vs software:

Pros:

• Saves time: Online arbitrage sourcing lists can save you a lot of time by eliminating the need to manually search for profitable products to sell.
• Provides a vast selection of products: Online arbitrage sourcing lists allow sellers to access a massive selection of products.
• Helps to identify profitable products and make informed decisions: These lists provide comprehensive insights like reviews, rankings, and trends about products. They also provide information about profitability, fees, and competition which can help sellers make informed decisions about purchasing and selling products.
• Curated selection: Sourcing lists are usually compiled by experts who use various software to identify and handpick profitable products. This means that you receive a carefully curated list of items with potentially high profit margins. 
• Regular updates: Sourcing lists are usually updated regularly, which provides you with a continuous flow of fresh ideas for your next product. 
• Niche focus: Sourcing lists focus on specific niches or categories, which allows you to target your preferred market segments and specialize in a certain area of e-Commerce. 
• Reduced risk of account suspension: Since the items on sourcing lists are carefully handpicked by experts and checked against various criteria, there is a lower risk of encountering counterfeit or restricted products which reduces the risk of account suspension. 
• Personal support: Some providers offer one-on-one support or allow you access to a community of fellow sellers, giving you the opportunity to ask questions and share experiences. 
• Trial periods and guarantees: Many providers offer trial periods or money-back guarantees, which allow you to test the service and see if it’s worth investing on. 

Cons:

• Costly: Online arbitrage sourcing lists can be expensive, which may not be feasible for all sellers. This is one of the similarities between online arbitrage sourcing list vs software.
• Competition: Online arbitrage sourcing lists are available to everyone, meaning other sellers may be using the same lists, leading to increased competition with your business. However, sourcing list providers have managed to deal with this issue by limiting the number of seats for each list.
• Limited control: With sourcing lists, you rely on the provider’s choices, which may not always align with your individual preferences and the criteria you have set for yourself. However, with sourcing software, you have the option to customize parameters and use filters to target specific products. 
• Availability: Since sourcing lists are handpicked by a team of experts, the number of products may be limited which doesn’t give you many options. However, with OA software, you can scan a much larger number of products and choose between a wider selection. 

Top Sourcing List Providers?

Having a reliable online arbitrage sourcing list provider can completely transform your sourcing efforts. Here are three providers that have stood out amongst the rest:

1.  OABeans

OABeans is one of the top sourcing list providers with many users who are generating big profits using their leads. They offer their leads in three individual plans that cater to any seller’s needs, whether a beginner or a veteran. All lists include a price history check, IP complaint check, and Buy Box eligibility check, and a new list gets delivered to you every day. In addition, the leads do not include hazmat, fragile, or oversized products and they are not sold by Amazon.

2. Online Arbitrage Deals

3. OA Hunt 

4. OA Cheddar 

5. OA Leads Pro 

6. FBA Lead List 

7. Go Atlas 

8. One Good Deal 

9. Lead Geek

Online Arbitrage Sourcing Software

As mentioned before, to know the difference between online arbitrage sourcing list vs software, we must first familiarize ourselves with each concept. Online arbitrage sourcing software is a tool designed to help sellers find profitable products to sell on various e-commerce platforms. It involves using advanced algorithms to scan different marketplaces and identify items that are being sold at a low price and can be resold at a higher price.

These software usually have a user-friendly interface with customization options. They also provide more experienced users with the potential for advanced analysis. Popular and reliable examples of online arbitrage sourcing software include Tactical Arbitrage, Source Mogul, etc.

The Functionality of Sourcing Software

The main difference between online arbitrage sourcing list vs software is that with sourcing lists, somebody else has done the research and provided you with the results. However, with sourcing software, you must do the research yourself to find out which products are worth buying. Most sourcing software offer features such as product research, price history, IP complaint checks, etc.

Sourcing software works by scanning multiple e-commerce websites across millions of products to identify items that can be bought at a low price and sold at a higher price. Once the software has identified these products, it provides users with the necessary data such as the price, sales rank, and other key metrics to make informed decisions about which products to purchase.

Pros and Cons of Software

As with any solution, sourcing software is not perfect. Here are its pros and cons:

Pros: 

• Useful features: Many online arbitrage sourcing software tools offer features such as price tracking and alerts which can help you stay up-to-date with price changes and fluctuations.
• Identifying market trends: Online arbitrage sourcing software can also help you identify profitable niches and trends in the market.
• Automation: OA software automates the product sourcing process by scanning various marketplaces and comparing prices to find profitable products in an effective way.
• Customization: Most OA sourcing software allow you to customize parameters such as price range and profit margin according to your individual preferences.
• Integration with e-Commerce platforms: Many OA software tools integrate with marketplaces such as Amazon and eBay, allowing you to manage inventory, pricing, and listings seamlessly.
• Continuous improvement: OA sourcing software developers continuously update and improve their algorithms to provide you with the most accurate results. 

Cons: 

• An expensive solution: The use of online arbitrage sourcing software can be expensive, especially if you are just starting out.
• Steep learning curve: There is a learning curve associated with using these tools, which can be frustrating for some people.
• Potential inaccuracy: Online arbitrage sourcing software can also be inaccurate at times, which can lead to bad business decisions.
• Time-consuming: Using OA software to scan various marketplaces and find profitable products can be quite time-consuming, whereas OA sourcing lists are already prepared for you.  
• Data overload: OA software generates an enormous volume of data which may require additional time to analyze and filter for the most relevant information. 
• Impersonal: In comparison to OA sourcing lists, OA software lacks a certain human touch and the experience and intuition of experts. 

Top Online Arbitrage Sourcing Software Providers 

Tactical Arbitrage, AZInsight, and InventoryLab are some of the most powerful tools for online arbitrage sourcing, allowing users to quickly analyze product data and find profitable opportunities.

• Tactical Arbitrage offers a comprehensive suite of tools for online arbitrage, including advanced Amazon scanning, a robust product search engine, and custom search filters. 
• Source Mogul 
• OAXRAY

Comparing Lists and Software

So, what are the differences between an online arbitrage sourcing list vs software? An online arbitrage sourcing list is simply a list of products and the corresponding online stores where they can be purchased at a lower price. This list can save time for sellers who might not have the time, experience, or capability to research on their own. On the other hand, online arbitrage software is a comprehensive tool that utilizes an algorithm to find potentially profitable products. Let’s find out more about their differences:

Cost and Investment

Although the costs of online arbitrage sourcing lists and OA software tools are similar, sourcing lists tend to be more expensive. However, they offer certain advantages that justify their higher price. As mentioned, sourcing lists provide a straightforward and efficient way to identify profitable products for sellers, saving time and effort.

Time Efficiency

This one is quite simple: with OA sourcing lists, your service provider does all the research and checks the items against various criteria, so all you have to do is check your inbox every day to receive the lists and click on the links provided to buy the items. However, with OA software, you have to put aside the time to use the tool for research and finding products yourself.

Profit Margins and Scalability

With online arbitrage sourcing software, you’re free to do your own research and choose the leads according to your individual needs. In other words, it offers customization options which can lead to more profits (if each lead is carefully handpicked by yourself). However, sourcing lists are not individually made and catered for each seller, so you can only check the leads against your criteria to see which one fits you more.

Learning Curve and User Experience

This one might be quite obvious when comparing online arbitrage sourcing list vs software, but OA sourcing software tools tend to have a steep learning curve. This is why sourcing lists are mostly recommended to beginners and software tools to expert sellers because when you have a certain amount of experience and knowledge in the field, it’s easier and more efficient to use the tools. Of course, you can always purchase both solutions!

Human Touch and Experience 

One of the main issues with OA sourcing software solutions is that the data is generated by AI and lacks a certain human touch. Additionally, you will face a huge volume of data that you have to sort through and make sense of. However, sourcing lists are compiled by human experts and handpicked according to certain criteria. 

Comparison Table

Comparing OABeans and Tactical Arbitrage

Let’s take a look at some practical examples of online arbitrage sourcing list vs software. OABeans and Tactical Arbitrage are two of the most prominent online arbitrage service providers that focus on the Amazon marketplace. OABeans is mostly focused on providing sourcing lists, while Tactical Arbitrage offers a useful and efficient tool for sellers. Let’s get to know them more:

OABeans: A Leading Sourcing List Provider

OABeans consists of a team of experts with years of experience selling on Amazon. Their sourcing lists are best for sellers who like to save time and benefit from a ready-to-use list full of profitable opportunities. Their features include:

• Daily chosen and carefully picked leads that are analyzed with metrics such as ROI, profit margin, BSR, and competition.
• IP complaint check is done for all leads to ensure the sellers’ account health.
• The leads’ price history is checked over the past 30-90 days to avoid the risk of price fluctuations.
• OABeans offers different lists for professionals and beginners based on whether their account is gated or ungated.
• Their plans start at $118-$298 per month. You can also pay quarterly which saves you a lot of money.
• OABeans offers sourcing lists containing 4-10 leads every day that are checked against various criteria such as price history, IP complaint, Buy Box eligibility, etc.
• OABeans doesn’t have a learning curve, because the leads are researched and picked by experts.

Tactical Arbitrage: A Top Sourcing Software

When comparing online arbitrage sourcing list vs software tools, Tactical Arbitrage is a name that most sellers are familiar with. This tool offers features such as:

• Searching specific store categories and URLs or conducting keyword research
• Filtering products on criteria such as ROI and sales rank
• Reverse lookup for Amazon products
• Result analysis, recommended deals, etc.
• Two online arbitrage plans that cost around $89-$109 per month or $840-$1020 annually
• Their online arbitrage plan includes features such as product search and reverse search for finding products online.
• Tactical Arbitrage has a steep learning curve that requires you to have a good understanding of the market and how to use product research tools. 

Determining the Best Method for Your Business

After comparing online arbitrage sourcing list vs software, you might be wondering which one is more suitable for your business. Well, this depends on various factors – for example, how much budget do you have? How much time are you willing to put aside for product sourcing? Are you an expert seller or a beginner? Do you consider this a side hustle or a serious business that you want to expand in the future? Let’s find out more:  

Assessing Your Business Needs

First of all, think about the reason you started this business. Do you need to instantly make money to pay off debts? Are you looking for a good return on investment in the long run? Or do you just see this as a hobby that might turn into something more? Whatever it is, make an honest assessment of your needs and choose the right method accordingly.

Balancing Risk and Reward

There’s a little bit of risk in everything, but it’s important to find a balance between risk and reward. For example, if one method is risky, you should at least make sure it has a high ROI. If you are a beginner, it’s best to trust the experts and use reliable sourcing lists. After you gain enough experience and knowledge, you can start using software to find your own leads.

Factors to Consider When Choosing a Sourcing Method

So, what are the factors we must consider when choosing between online arbitrage sourcing list vs software? As we already discussed, each method has its own pros and cons which makes it more suitable for a certain situation. The most important factors you must consider when choosing a sourcing method include:

• Budget – online arbitrage sourcing lists are usually less expensive than sourcing software, so you may prefer them if you have a limited budget.
• Time – learning how to work with sourcing software takes time, but so does sifting through the leads in sourcing lists to ensure they are profitable. You must determine how much time you’re willing to spend sourcing products.
• Niche – Depending on your specific niche or category, one tool may be more suitable than the other. For example, if you are interested in a highly-competitive niche, sourcing software can be a better option.
• Personal preference – You might prefer one tool to the other based on your individual experience and preferences.

Trial and Error: Finding the Perfect Fit

The best way to find out which sourcing method is more suitable for your business is to try both of them. Purchase a sourcing list and get a free trial of sourcing software. Use them both and compare them in terms of time consummation, budget-friendliness, and overall user experience. This way, you can find the perfect fit for your business.

Integrating the Chosen Method into Your Workflow

After choosing between an online arbitrage sourcing list vs software, you have to integrate it into your workflow in a way that maximizes efficiency. Here’s how you can do that:

1. First, you need to learn how to work with the software or sourcing list. Learn how to use it effectively. Sourcing lists don’t have much of a learning curve, but you must know how to work with software tools. If they offer training videos or tutorials, you can use them to learn the basics.
2. After learning to use your chosen sourcing method, you must integrate it into your workflow. This may require you to set aside a certain time (for example, each day or every week) to review the leads and make purchases.
3. Before purchasing any of the leads, check the competition (and their in-stock number) to see how fast the product is going to be sold. Make sure to check for restrictions before purchasing the leads.
4. If you’re going to use OA software, use filters such as category, price range, sales rank, etc. to narrow down your search. Consider your individual needs and goals to set up specific criteria such as maximum profit margins, minimum competition, etc.
5. Finally, monitor the process closely and make adjustments when needed. If your sourcing list or software is not producing the desired results, try a different option or adjust your sourcing strategy.
6. Keep track of fast-selling items and adjust your sourcing criteria accordingly. This way, you can avoid items that don’t sell well.

Final Thoughts

In this article, we discussed online arbitrage sourcing list vs software. Both methods are great for sellers who want to find profitable products in a time-efficient way. However, they have some differences that might make one more desirable than the other – of course, this also depends on your individual needs and goals as a seller.

The best way to find out which method works for you is to try them both. Through trial and error, not only will you determine the most suitable method, but you will also learn a lot about the field along the way.