Arbitrage

Arbitrage is a technique whereby a marketer or entrepreneur strives to capitalise on differences in prices or conditions between two or more market participants or distribution channels. Arbitrage is based on finding and exploiting market inefficiencies to make a profit by purchasing goods or services at a lower price and reselling them at a higher price.

Arbitrage can be applied in a variety of areas including e-commerce, financial markets and advertising.

For example, in e-commerce, arbitrage can be done by acquiring goods from one seller at a low price and selling them on another platform or marketplace at a higher price to make the difference in profit.

In advertising arbitrage, different channels and platforms are used to buy advertising traffic at a lower price and resell it to advertisers at a higher price, thereby profiting from the difference between the prices.