The Hidden Arbitrage Strategy Inside eBay’s VeRO and Suppression Systems

Everyone worries about getting taken down by eBay’s policies. But what if that fear is exactly what’s hiding one of the platform’s most valuable — and unexplored arbitrage strategies?

What Is Arbitrage?

Arbitrage, simply put, is the practice of buying something for less and selling it for more — often by spotting differences in how markets work. Think buying clearance items locally and flipping them online.

In the case of policy-based arbitrage, the “gap” isn’t in pricing, but in how platforms like eBay enforce (or don’t enforce) their own rules. Sellers who understand these gaps can sometimes create listings that dodge blanket keyword suppression — and outperform competitors without breaking the rules.

What Is Policy-Based Arbitrage?

Policy-based arbitrage is a strategy that leverages the gaps between what eBay enforces, what they allow, and how your competitors respond to those rules. It’s not about breaking the rules — it’s about understanding how inconsistently they’re enforced, and finding markets that are being artificially constrained because of that.

Why the VeRO List Isn’t Enough

Most sellers rely on eBay’s VeRO (Verified Rights Owner) program and Platform Policies to understand what’s off-limits. And while those are important starting points, they don’t tell the full story.

Many categories contain items that aren’t explicitly banned — yet still face suppression, shadow bans, and take-downs. These listings might be hidden in search, de-ranked, or quietly limited in visibility due to automated enforcement systems. In these cases, it’s not about breaking a rule — it’s about tripping an invisible wire.

Suppression Creates Opportunity

Suppression is friction — and friction means fewer competitors. If you can detect markets where:

• Demand is high (via sell-through rate)
• Listings are getting pulled or hidden (via visible listing counts)
• Supply is constrained (via sold/active ratios)

Then you’ve just uncovered an arbitrage scenario. These are markets where listings are often pulled, but buyers are still actively searching. Fewer sellers. More room for price control.

Real Examples of Policy-Driven Gaps

Searches like “donjoy iceman clear 3” or “philips respironics water tank” show this clearly. They have high demand, but only certain sellers seem to break through — often because they’ve figured out how to title around risky keywords or land listings that avoid algorithmic flags.

Market Case Studies: Navigating Policy-Influenced Demand

Donjoy Iceman Clear 3

The Donjoy Iceman Clear 3, an electric cold therapy unit, offers a great example of how buyer demand persists even in tightly moderated categories. eBay frequently flags medical-related keywords, especially when listings use terms like “healing,” “curing,” or anything implying a medical claim. This causes legitimate listings to be suppressed or removed — even if the item itself doesn’t violate platform policy.

Many sellers work around this unintentionally by using broader, safer descriptors such as “cold therapy machine” or “cold water pump” These terms avoid triggering enforcement but still attract buyers who understand what the item is. The market for these remains strong — indicating that demand can thrive in categories with moderate to high listing suppression.

• Search Keywords: donjoy iceman clear 3
• Search Range: 90 Days
• Total Sold Items: 63
• Est. Sold Listings: 20
• Total Sellers: 55
• Total Active Items: 33
• Total Active Listings: 31
• Sell-Through Rate: 65.56%
• Sold/Active Ratio: 1.91
• Total Item Sales: $2,492.28

Data pulled from eBay Research on August 17, 2025

Philips Respironics Water Tank

While eBay enforces restrictions around certain medical or regulated products, not all listings are removed equally — especially when keyword phrasing becomes more general or product categorization shifts.

Take for example the Philips Respironics water tank, a component typically associated with CPAP machines. Listings directly naming the device often disappear quickly, yet some sellers continue to move units under more ambiguous titles like “dehumidifier water tank”. This suggests that enforcement tends to focus on specific keyword matches, inadvertently creating more demand pull toward broader or cleaner phrasing.

We don’t recommend this strategy — it exists in a gray area and may violate eBay’s terms of service — but we believe it’s important to understand how real sellers adapt to platform dynamics. If you’re exploring these kinds of markets, you can use our free eBay Research Helper to safely analyze search volume, competition, and listing behaviors. It’s the exact tool used to gather the following metrics:

• Search Keywords: philips respironics water tank
• Search Range: 90 Days
• Total Sold Items: 186
• Est. Sold Listings: 86
• Total Sellers: 131
• Total Active Items: 268
• Total Active Listings: 210
• Sell-Through Rate: 41.01%
• Sold/Active Ratio: 0.69
• Total Item Sales: $4,741.14

Data pulled from eBay Research on August 17, 2025

This reveals a curious imbalance: strong demand exists, yet sellers often walk a fine line to serve it. Whether by design or accident, this pattern illustrates how policy enforcement subtly shapes smaller, conversion-heavy niches on eBay.

Types of Policy-Based Arbitrage

• Outright Banned Workarounds – Items eBay explicitly forbids (like CPAP machines) but which still get listed using generic or alternative phrasing. Not recommended, but shows real buyer demand in blacklisted niches.
• Soft-Suppressed Items – Products that are technically allowed, but get flagged for certain keywords (e.g. “healing,” “injury”) and lose visibility. Smart phrasing can restore reach without breaking rules.
• VeRO-Landmine Niches – Legal to sell, but trademark enforcement (like Velcro or issues with “Brand” item specific) causes many sellers to avoid listing. Opportunity exists for compliant listings using generic terminology.
• Cassini-Level Suppression – No policy violations, just poor search performance due to weak SEO, lack of Top Rated status, or a simple miscategorization. These overlooked listings often signal low-competition, high-upside niches.

Why This Strategy Is Underutilized

Because most sellers are reactive. They wait to get flagged, then avoid the category forever. But that’s where opportunity lives. If you build listings that comply in structure but still target these suppressed markets, you gain a foothold where few others are willing to compete.

Conclusion: Friction Is Profit

The biggest eBay opportunities today don’t come from scanning catalogs or following trends. They come from understanding how eBay enforces — or doesn’t enforce — its own rules. That’s where you win.

Stay tuned as we release tools and frameworks that make this kind of arbitrage strategy visible at a glance. If you’re an eBay seller tired of saturated niches, this is your edge.