Ebay arbitrage is about listing products on eBay which are previously listed on Amazon. The idea is to gain on the price margin of different stores. Dropshipping enables store owners to accomplish orders directly from a manufacturer. That said you don't have to be worried about shipping and inventory management, you only transfer orders to a dropshipping partner that handles all logistics and inventory related stuff on your behalf.

Before dropshipping, there were two main models of ecommerce.

1. Choose a unique product from scratch – Do you have something different in your mind that is unique in everyway. Great! You can place it for sale in the marketplace and see your revenue growing by leaps and bounds. However, make sure to have the right strategy in place before you do that.

2. Buy inventory in bulk – You don't have to develop a new product from scratch, but you might get stuck with a garage full of widgets that are difficult to sell anywhere. If you are able to obtain a traction, you will have to manage shipping and orders on your own.

With dropshipping you will only be responsible for marketing and selling the products. Another person in the chain, will be accountable for products, inventory, packaging and shipping to distant places. However, that means rather than just finding efficiencies in the system, you need to get clever to take on Amazon, and other dropshipping ecommerce stores.

To sum up, eBay arbitrage is a highly profitable business that can be run out of your home. If you know the tactics to choosing products wisely, you definitely can make a huge difference in the long run.