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What is ROI in Amazon arbitrage?

Profit as a percentage of what you spent - the arbitrage decision number.

ROI - return on investment - is profit divided by what you paid, expressed as a percentage. Buy at $10, net $3 after all fees: that is 30% ROI. Arbitrage sellers think in ROI rather than margin because capital is the constraint - ROI tells you what each dollar you spend comes back as.

Common working floors in online arbitrage are around 30-40% ROI and a few dollars minimum profit per unit, leaving room for price dips and surprises. The right floor is yours to set; the point is to set one and check every buy against it rather than against enthusiasm.

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Every scan result carries fees, profit, ROI and the price history - the terms above, applied for you.

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ASINUPC / EANBSR (Best Sellers Rank)Buy BoxFBAFBMSeller CentralReferral fee

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Frequently Asked Questions

Is ROI or profit margin more important?＋

They answer different questions: margin describes the sale, ROI describes your capital. Arbitrage sellers steer by ROI because reordering is the game - what a dollar returns decides how fast the business compounds. Set a floor on both and mind the absolute profit per unit too.

Should ROI be calculated before or after Amazon fees?＋

Always after - referral, fulfilment and any prep costs subtracted. ROI on the sticker difference is fiction; the scan results and the calculator both show the after-fees number for exactly that reason.