Sourcing List vs VA: Which Is Better for Online Arbitrage?

Quick answer: an online arbitrage sourcing list (a daily list of researched, ready-to-buy Amazon leads) is usually the better choice if you are new, short on time or on a tight budget, because you pay one subscription and skip training. A virtual assistant (VA) makes more sense once you have a proven process, clear buying criteria and enough volume to pay for the VA plus their tools. Many sellers end up using both. Below we compare costs, time, control and results so you can decide.

Introduction to Online Arbitrage Sourcing for Amazon Sellers

Sourcing is a way for online arbitrage sellers on Amazon to find products that fit their criteria across various online marketplaces. The general idea is that the product should be priced lower than on Amazon so that the seller can make a profit by reselling it, but many other factors are involved. For example, one seller may focus more on ROI while another focuses on competition and stock levels. This depends on your individual goal and needs and the state of your business. 

Online arbitrage sourcing involves a lot of research and analysis. OA sellers typically use various tools and software to help them find products that meet their criteria. The criteria usually include ROI, profit, BSR, estimated monthly sales, price history, Buy Box eligibility, competition, in-stock level, number of reviews, and IP complaint. 

The Importance of Efficient Sourcing Strategies

So, why is it essential to use different methods for online arbitrage sourcing, such as a sourcing list or VA? First, sourcing products is a time-consuming task that not everybody enjoys. Most sellers prefer to assign this task to a VA or purchase sourcing lists from providers so that they can focus on more critical tasks. 

In addition, having an efficient sourcing strategy can help sellers stay ahead of the competition and find fast-selling and profitable products before their competitors. It also allows sellers to build a sustainable business that can withstand market fluctuations and changes in customer demand and scale their business when needed. 

Method 1: Online Arbitrage Sourcing Lists

To determine if our OA business needs a sourcing list or VA, we must first familiarize ourselves with each method. Online arbitrage sourcing lists are pre-prepared lists of products that service providers and sourcing companies source. Subscribers receive a set number of leads every day (the amount depends on the provider and plan), usually by email or in a members’ dashboard. Sourcing companies such as OABeans have teams of experts working on the online arbitrage sourcing list using various tools and software. Other companies hire a virtual assistant to handle the sourcing. 

These lists typically contain information such as the product name, ASIN, buying price, and selling price on Amazon. They are also checked against various criteria such as IP complaints, price history, etc. Online arbitrage sourcing lists can be a helpful resource for newbies or sellers who don’t have the time or expertise to do their own product research. 

However, sellers must carefully evaluate the products on the sourcing list to verify the information provided and ensure the leads match their criteria. 

Pros of Using Online Arbitrage Sourcing Lists 

Online arbitrage sourcing lists are a time-efficient and reliable method for sourcing the right products to resell on Amazon. Here are the benefits of OA sourcing lists:

Time-Saving

One of the most significant advantages of using OA sourcing lists is that they save time. Sourcing products to resell on Amazon can be time-consuming, but sourcing lists allow sellers to quickly find fast-selling products without having to do the research themselves. 

Curated Products

As mentioned, sourcing lists are typically compiled by experts who utilize various tools and software to identify and handpick fast-selling and profitable products. This means you will receive a list of carefully curated items with potentially high profit margins daily. 

Lower Learning Curve

You don’t necessarily have to learn to work with complicated software or do manual research when using sourcing lists. All you need to do is check the leads’ viability and ensure they match your criteria before purchasing them because the research has already been done. 

Cons of Using Online Arbitrage Sourcing Lists

As with any method, online arbitrage sourcing lists have some challenges to consider before choosing between a sourcing list or VA. Here are the disadvantages of online arbitrage sourcing lists: 

Subscription Costs

Sourcing lists result from the time and energy spent researching products, so they come at a cost. However, the price is usually nothing compared to the time it saves you and the potential profits you will make. 

Competition 

Sourcing lists are used by multiple sellers, which may increase the competition for specific products. However, some sourcing list providers, such as OABeans, try to solve this by limiting the number of seats for each list. 

Limited Customization

When using a sourcing list, sellers rely on someone else’s research and analysis to find the right products. This means sellers have limited customization options and control over their products.

Method 2: Using Virtual Assistants

Virtual assistants are also very popular among sellers when choosing between OA sourcing methods such as sourcing lists or VA. This method allows you to hire an online assistant to outsource the time-consuming task of finding products. Before hiring an online arbitrage virtual assistant, you must define the task(s) they will be responsible for. Then, you can use online platforms such as Upwork, Fiverr, and Freelancer to find a VA. It’s essential to choose a virtual assistant with experience in OA sourcing who can provide a portfolio or references of previous work. Our guide on how to start an online arbitrage business with VAs covers hiring, training and task delegation step by step.

The virtual assistant will need access to your sourcing tools and, for some tasks, Seller Central. Never share your own login: add the VA as a separate user under Seller Central’s User Permissions and grant only the access they need (for example, view-only inventory and pricing). After setting clear expectations and providing guidelines for accessing and using these resources, you must monitor the VA’s progress and provide feedback or guidance when needed. Ultimately, the VA should be paid for their services according to the agreed-upon terms (hourly, daily, or project-based). 

Pros of Hiring Virtual Assistants

Hiring a virtual assistant to do online arbitrage sourcing can provide several benefits for OA sellers, including: 

Scalability

When you outsource the time-consuming task of sourcing products, you can focus on other essential tasks such as customer service (especially if you use FBM or Fulfillment by Merchant). This way, you can increase productivity and efficiency and eventually scale your business. 

Flexibility

Flexibility can play an important part when choosing between sourcing list or VA. VAs can provide sourcing services on a flexible basis according to your needs. This is particularly helpful for sellers with fluctuating demand or wanting to scale their business quickly. 

Customization

Hiring a virtual assistant allows you to customize your sourcing options. After developing an individual strategy and defining the criteria that are most important for the success of your business, you can provide this information to the VA so that they can source products according to your needs. 

Cons of Hiring Virtual Assistants

While there are many benefits to hiring a VA to do online arbitrage sourcing, there are also some potential disadvantages that sellers should be aware of, including: 

Initial Investment

Hiring a virtual assistant can be cost-effective or expensive, depending on the experience and expertise required. This is considered a challenge, especially for sellers with limited budgets. This is something you should consider when choosing between sourcing list or VA.

Training and Management

When hiring a VA for online arbitrage sourcing, the seller may need time and effort in training or managing the assistant. This can be time-consuming, especially if you are not experienced in managing remote workers. 

Quality Control

Monitoring and controlling the quality of the work provided by the VA can be difficult, so you may need to implement processes to ensure the assistant is sourcing high-quality products that meet your standards. 

Comparing Online Arbitrage Sourcing Lists and Virtual Assistants 

Sourcing lists or VA are two different methods for online arbitrage sourcing, and each has its own advantages and disadvantages, which we discussed earlier. Now, let’s compare them and find out what makes them different: 

Comparing Costs and ROI

VA rates vary widely with location and experience, from a few dollars an hour for entry-level offshore assistants to considerably more for experienced OA sourcing specialists, and a part-time VA quickly adds up to hundreds of dollars a month. On top of that, a VA needs paid tools to work with, such as a Keepa subscription, a product-analysis extension like SellerAmp SAS and often reverse-sourcing software. A sourcing list, by contrast, is a single monthly subscription whose price depends on the provider, the marketplace and the number of leads (see OABeans plans for an example). For most small and new sellers, that makes a sourcing list the cheaper option.

In both cases, ROI depends on the quality of the leads and whether they match your criteria. Leads from a list can return slightly lower ROI per unit because other subscribers may buy the same products and compete on price; that is why seat limits and fast buying matter. A well-trained VA’s leads are exclusive to you, but the extra labor and tool costs come off your margin. For a deeper look, read are OA leads lists worth it?

Balancing Time Investment and Results 

When comparing sourcing lists or VA, hiring a virtual assistant may require a significant time upfront for training and managing. Once the assistant is trained and familiar with your preferences and criteria, they can do the sourcing by themselves, but you still need to manage them and provide feedback to keep the quality of the leads high. In comparison, sourcing lists can save time up front, as researching and curating products has already been done. However, you may still need to review the list and ensure the leads meet your criteria, but the time needed is significantly less than the time required to train and manage a VA. 

In addition, sourcing lists can provide quick results since the research is done and the leads are ready. On the other hand, VAs can offer better results in the long term since they adapt to your specific needs and preferences. 

Assessing the Level of Control and Customization

When comparing sourcing lists or VA, hiring a virtual assistant can provide a higher level of control since you can work directly with the VA to set criteria, provide feedback, and make adjustments when needed. In addition, VAs provide a higher level of customization since they adapt to your specific needs and preferences over the long term. 

On the other hand, using a sourcing list can provide less control since you rely on a third-party provider to research and curate the products. Additionally, the products may not be tailored to your specific needs or preferences. You can combat this by preparing a formula in an Excel or Google Sheets file containing your criteria and checking each lead against them to ensure they fit your business needs. 

Choosing the Right Method for Your Amazon Business 

Choosing between sourcing list or VA depends on your specific needs and preferences, but generally, you should consider factors such as budget, time availability, expertise, control and customization, and scalability. Here’s what you need to do to choose between sourcing list vs VA: 

Evaluating Your Business Needs

What are your overall business goals? If you have ambitious growth plans and want to scale quickly, hiring a virtual assistant may be a better option because they will adapt to your needs and preferences over time. If your goals are more modest and you need a low-risk method to generate extra income, sourcing lists are the way to go. Additionally, consider the factors below when choosing between sourcing list or VA: 

• Budget–sourcing lists are generally cheaper than hiring a virtual assistant and better for the short term.
• Time availability – If you’re short on time and prefer a more hands-off approach, sourcing lists are a better option. 
• Scalability – A VA may be a better option if you plan to scale quickly and need a flexible and adaptable approach to sourcing products.  

Considering a Hybrid Approach

A hybrid approach combines both methods and can be a good option for online arbitrage sourcing. Here’s how you can implement it: 

1. Use a sourcing list as a starting point for product research, especially if you’re new to online arbitrage. You can identify profitable leads on the list and pass them on to your VA for further research and analysis. 
2. Hire a VA for personalized research. You can work with your VA to set specific criteria and preferences, and they can use their expertise and experience to find products that meet your needs. 
3. Use a sourcing list to supplement your product selection. Even if you have already hired a VA, sourcing lists can be a helpful tool for identifying new products or checking for any products the assistant may have missed during their research. 

Tips for Implementing Your Chosen Strategy

Whether you choose sourcing list or VA, you must implement your chosen strategy into the everyday workflow. Here are some tips for doing this: 

Establishing Clear Communication Channels

Effective communication is the key to success if you are working with a virtual assistant. Communicate your preferences and expectations, provide feedback, and be available to answer any questions they may have.

In addition, choose a preferred method of communication (for example, instant messaging, email, or video conference) and set expectations for response times. When communicating with your VA, use clear and concise language and provide detailed instructions. Finally, schedule regular check-ins to review progress and provide feedback. 

Integrating Tools and Software Solutions

If you hire a VA, they will need tools and software solutions to do their job. The sourcing list method also requires using specific tools to check the leads. So, whether you choose sourcing list or VA, you must integrate tools and software solutions to streamline your sourcing process and improve efficiency. For example, Keepa (see how to use Keepa for online arbitrage) and SellerAmp SAS are two of the most popular tools among OA sellers for checking price history, sales rank, eligibility and profit before buying.

Expanding Product Selection and Market Reach

Broaden your product categories to reach new customers and avoid relying on one category. Consider adding complementary products to your current offerings or exploring new categories. Use data analytics tools to analyze price history and the number of reviews for each product to see what’s in demand and can be sold quickly. 

Adapting to Changing Market Conditions and Trends

Keep up-to-date on the newest Amazon guidelines and news to stay ahead of the competition. Monitor sales data regularly, and use data analytics tools to identify patterns to help you make more informed decisions. Be open to trying new strategies, such as adjusting your pricing, exploring new categories, etc. 

Final Thoughts

Ultimately, choosing between sourcing list or VA depends on your business needs and preferences. Virtual assistants are more flexible and can provide personalized support and expertise in product sourcing, but they usually come with a higher cost and require ongoing management and communication. On the other hand, sourcing lists are an affordable and convenient option – especially for online arbitrage beginners – but they may lack a VA’s personal touch and customization. 

When deciding between these two methods, consider your budget, time constraints, and business goals to choose the best option. If you also want to weigh sourcing software, see our comparison of an online arbitrage sourcing list vs software.

FAQ

What is a sourcing list in online arbitrage?

A sourcing list (or leads list) is a daily set of products that are cheaper at an online retailer than their Amazon selling price, with the buy link, ASIN, estimated profit, ROI and sales data already checked. You review the leads and buy the ones that fit your criteria.

Is a VA or a sourcing list cheaper?

For most small sellers, a sourcing list is cheaper, because a VA’s pay plus the tools they need (Keepa, an analysis extension, sourcing software) usually costs more than a single list subscription.

Can I use a sourcing list and a VA together?

Yes. A common setup is to have the VA check list leads against your criteria, find extra units or similar products from the same stores, and handle purchasing, so you get exclusive finds on top of the list.

Should I give my VA my Seller Central password?

No. Add the VA as a separate user through Seller Central’s User Permissions with only the access they need. Sharing your own login puts your account security at risk.