Arbitrage: What is it and why aren't I doing it?

Posted by The Lost Meeple at 8:00 AM

Post by Faid of Nerf Faids

Arbitrage is, quite simply, buying things from the opposing faction's Auction House, or the neutral AH, to sell on your faction's, or vice versa.  It's a pretty simple concept that seems to be lost to a lot of auctioneers.  Why? It can be very intimidating, the pure logistics of moving the items across factions was daunting enough to scare me away for a long time.  Many players assume that the prices they pay are the same the opposing faction is paying for the same item, but it rarely is.  Don't be scared, and don't be fooled: Arbitrage is a gold mine.
What's so great about arbitrage?
Arbitrage . . .

    * . . . requires very little time. You're profiting from the farming of others!
    * . . . will help develop your goldological imagination.
    * . . . is not as cuthroat as other options. It's an intimidating practice to get into and so competition is low.
    * . . . is extremely fun and profitable!


Why now?
Arbitrage is not a new thing, people have been doing it for quite some time and certain addons, such as Auctioneer, actually have built-in tools to help in arbitration.  So why focus on it now? Fluctuation!

New Cataclysm items have flooded the Auction House and demand for everything is high.  Be it something as simple as Whiptail or Volatile Air, or be it a big ticket item like a Crossfire Carbine, there's a lot out there for people to purchase.  Factions can value items very differently.  How much gold is available, how much farming is happening, how much demand there is for raid consumables, and many other factors can influence how much an item is worth and, so long as players prefer their AH to the neutral auciton house, these factors are unique to each faction, not each server.

The overwhelming demand for anything coupled with the uncertainty of item values makes this a prime market for arbitration and you should be taking full advantage.

How do I do it?
The bare bones of arbitration requires a bit of gold on both factions.  If  you're looking to buy a big ticket item, expect to need a lot of gold on the purchasing faction's side.  If you're going for smaller items, like pets or trade goods, sometimes just 100g can be a good start.
The other requirement is a way to move these items across faction lines.  You are not able to buy the auctions of a character on your account. I personally use a second account but often you can request the help of a friend, guild made, or even tip someone from trade (if you trust them) to buy the auctions for you.


   1. Check both Auction House markets. Watch them for a while before you spend large amounts, you don't want to be caught up in an unfortunate market spike!

   2. When you've decided what you'd like to move across, buy as much as you'd like to move.

   3. Head to your preferred Neutral AH. (Gadgetzan, Everlook, or  Booty Bay)

   4. Have your other account, friend, or business partner parked at the Neutral AH as well.  Items can be subject to being sniped when on the auction house, but quick buying can nearly eliminate this risk.

   5. Post them on the Neutral AH for your preferred price. I will usually post them for the minimum amount of gold buyout, knowing that I will be able to snatch them right up before anyone else has a chance. If you expect a delay from your buyer, consider posting them for more. You're going to control the gold in the end, it's just effecting the 15% cut you'll be taking by moving them via the Blackwater Auction House.

   6. Once the items are purchased, move them onto the preferred AH and wait for the gold to roll in.


10 Hot Arbitration Items
In my experience these items can sell very well and vary drastically in price across the factions. Other items can be very profitable, but these are great ones I've had fun playing with so far:

   1. Volatile Air
   2. Volatile Life
   3. Embersilk Cloth
   4. Archaeology Tablets
   5. Reins of the Crimson Deathcharger
   6. Netherweave Bags
   7. Faction-specific  Vendor Pets and Recipes
   8. BoE Cataclysm Epics
   9. Pyrite Ore
  10. Whiptail

What are some of your favorite arbitration items?
Arbitration can effect almost anything that can be sold on the Auction House and there are vast possiblities for how you can use the practice. What are some ways you use arbitration?