When you’re sourcing products for online arbitrage (OA), not all leads are created equal. Some look great on the surface—high ROI, clean profit—but are dead stock, IP risks, or highly over-saturated listings. Paid leads list or manual sourcing, whether you’re working it, clear criteria save you from bad buys and stay profitable. Here’s what you need to be looking at before you make a trigger on any OA lead:

1. Profit After All Costs

Always use the whole, not buy cost versus sell cost. Account for: Amazon fees, inbound shipping, sales tax (in the event exempt from taxes), prep center or package fee. A lead will have a 40% ROI but if you are only netting $1.50 profit, then chances are it is not your time well spent. Myself, I seek no less than a $5 profit unless testing low-risk, speedy mover.

2. Sales Rank (BSR)

BSR will inform you how fast something moves, but you need to read it in context. Different categories have different “good” ranges. A rank 50,000 product in Home & Kitchen is fine, but 50,000 in Toys is a turtle. Check out Keepa or SellerAMP to see how often it actually sells each month. Avoid spikes from one-off events—like Prime Day—or your stock will sit for months.

3. Price Stability

A lead might look profitable at the present price, but that doesn’t always hold true. Look at Keepa to view the last 30–90 days of price history. Avoid products with abrupt drops after similar leads being posted. Be wary of short-term price spikes that skew the ROI. Consistency over hype.

4. Competition

Too many sellers will kill a listing quickly. Look at how many FBA sellers are already on it. Is Amazon on the listing? They don’t usually share the Buy Box. Does the Buy Box rotate or sell to one seller with tons of inventory? And—was this lead blasted to 100+ people on a shared list? If so, it’ll crash fast. Smaller lists or your own sourcing ahead of you here.

5. Brand and IP Risk

Some brands are known to send IP complaints even if your listing is 100% authentic. Cross-check using IP alert tools or community blacklists. Watch out for “gated” luxury or boutique brands who do not allow resellers. A spotless Keepa chart (no deep dips or holes in seller history) is a decent sign. Protecting your account is more valuable than chasing a fast flip.

6. Seasonality or Trendiness

Know the timing. Are you looking at a Halloween product in February? Or a hot item that’s already peaked on TikTok? Seasonal demand can catch you with off-season inventory. Trendy items crash when the craze dies down. Think about how fast you can sell and replenish before getting into fads.

7. Source Reliability and Quantity

Always check source store first before getting excited. Can you buy more than 1 or 2? Does the site gate reseller orders? (Some of the box stores do.) Are there subscription paywalls or concealed shipping costs? Good leads aren’t all about margin—them must actually be buyable.

8. Gated or Ungated

Before you go checkout, make sure you are ungated to sell the item. Check your Amazon Seller Central or use tools like SellerAMP. Some products can look great but are gated in your store. If it’s a lead that you love, check if it’s simple to get ungated (through invoice or auto-approval). Don’t tie up capital in something that you cannot list.

Final Thoughts

The difference between good and bad OA leads is the difference between growing and burning out. If you want consistent profit, you need to look deeper than the numbers and take in the entire picture—competition, stability, risk, and real-world sourcing. This is how I filter leads before putting them on my list. If you’re looking for a curated list that uses all of these criteria, check out the OASource lead list here. No fluff—just solid flips.

2 Responses

  1. What’s your go-to method for estimating inbound shipping costs? I always seem to underestimate that.

    1. Yeah, I feel you. I usually pad my shipping estimates by about 20% just to be safe. Better to overestimate than get a nasty surprise!

  2. Good point about accounting for ALL the costs! It’s easy to get blinded by that initial ROI number.

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