What is Retail Arbitrage and How to Get Started

Posted 2 years ago by Max Komonov

Retail arbitrage has become increasingly popular over the听years. But what exactly is听it? Arbitrage is听the听practice of听buying various products at听discounted rates 补苍诲听reselling them through Amazon. When done properly, individuals can make a听profit selling these products without ever handling them in听person. This can be听anything from books to听makeup to听musical instruments.

On听the听surface, this may seem like a听quick 补苍诲听simple way to听make money. In听practice, retail arbitrage can be听difficult 补苍诲听time-consuming, particularly in听the听early stages of听learning. Many retail arbitrage businesses go听through a听learning curve in听the听beginning until they understand the听process more thoroughly.

This article will give an听in-depth look into retail arbitrage. We听will discuss how to听begin 补苍诲听what it听takes to听build an听arbitrage business.

What Is听Retail Arbitrage?

There are two main types of听arbitrage: retail arbitrage 补苍诲听online arbitrage. You may be听wondering, what is听retail arbitrage 补苍诲听how is听it听different from online arbitrage? They are quite similar with slight differences.

Retail arbitrage is听specific to听Amazon. In听fact, it听is听often called Amazon arbitrage. It听works by听purchasing discounted products from a听brick-and-mortar store such as听Target or听Walmart, then reselling them for听a听higher price on听Amazon. Those who are skilled at听this practice know shortcuts of听how to听find heavily discounted products.

Online arbitrage is听quite similar. Just like retail arbitrage, you would purchase products specifically from online retailers 补苍诲听resell them on听a听different online marketplace. With online arbitrage, it听does not have to听be听resold on听Amazon. You may also use online marketplaces such as听eBay or听Alibaba. eBay retail arbitrage is听very popular for听a听variety of听products.

What Are the听Benefits of听Retail Arbitrage?

There are many benefits to听starting your own business. Retail arbitrage is听a听great place to听start. Benefits of听Amazon arbitrage include:

It听is听low risk 补苍诲听potentially high reward. In听most cases, you do听not have a听huge amount of听inventory to听unload. Whatever product you choose, there is听likely a听market for听it听somewhere. If听you are unable to听sell them on听Amazon, there are plenty of听other marketplaces, such as听LetGo, eBay, Craigslist, or听Poshmark. Since you have ideally purchased your products at听a听discount, it听is听likely that you will at听least make your money back.
Getting started is听easy 补苍诲听affordable. Amazon makes the听process of听becoming an听individual seller very simple. As听a听seller, Amazon will take $0.99听for听each item sold until you reach 40听items a听month. If听you sell more than 40听items, then it听will cost you $39.99, along with fulfillment fees (which are quite affordable).
You get to听choose what to听sell. When it听comes to听Amazon arbitrage, you can sell items that you鈥檙e passionate about. If听you love mugs with puns written on听them, there is听a听market for听that. If听you love Nike shoes, you can purchase 补苍诲听resell them as听well. The beauty of听arbitrage is听that you get to听create a听business 补苍诲听sell products that you believe in.

Is听There Retail Arbitrage Software?

A听great way to听maximize your business is听to听invest in听retail arbitrage software. Finding quality software can give you a听major advantage over other sellers. Some of听these advantages include the听following:

You will have an听automation tool. This means that you will not have to听manually track prices, place orders, or听seek out profitable products. These little details often take up听a听lot of听time, so听having arbitrage software will allow you to听put your focus on听other things.
You will be听able to听build a听scalable 补苍诲听efficient business. These tools allow you to听manage inventory easily, access automated repricing tools, 补苍诲听simplify reselling from multiple accounts 补苍诲听sources.

Some of听the听more popular forms of听retail arbitrage software include SmartScout, Keepa, Source Mogul, Tactical Arbitrage, 补苍诲听IP听Alert. Software is听available at听different prices depending on听what they offer. Be听sure to听do听your research before purchasing.

Using a听Retail Arbitrage App

In听order to听begin your retail arbitrage business, you will need to听download an听app. This allows you to听research products 补苍诲听identify which ones you want to听resell. A听retail arbitrage app works as听a听scanner for听product barcodes. It听pulls up听important product data 补苍诲听identifies which items are already saturating the听Amazon marketplace 补苍诲听the听cost of听specific items.

Examples of听these apps include the听Amazon Seller App, Scoutly, 补苍诲听ScanPower. Apps are a听great way of听learning how likely a听product will sell on听Amazon.

What is听Retail Arbitrage Sourcing?

When it听comes to听retail arbitrage, sourcing is听the听process of听finding products that will be听profitable on听Amazon. As听mentioned in听the听last section, retail arbitrage apps allow you to听scan specific products to听get information about their price 补苍诲听popularity.

If听you prefer not to听do听this research manually, many types of听arbitrage software are also able to听simplify this process. Such software can make recommendations, follow your specific directions, 补苍诲听more. Sourcing is听extremely important 补苍诲听is听perhaps the听most important part of听building a听profitable retail arbitrage business.

What Are the听Best Stores for听Retail Arbitrage?

The best stores for听retail arbitrage are often places with a听wide variety of听products. Many of听these stores offer discounts on听a听regular basis, which is听essential for听a听retail arbitrage business. A听great way to听build your business is听to听go听to听these stores with your arbitrage app 补苍诲听start scanning the听barcodes of听various products. Popular stores to听buy 补苍诲听resell products from include:

Target
Walmart
Kmart
Staples
Office Depot
尝辞飞别鈥檚
Home Depot
CVS
Rite Aid
The Vitamin Shoppe
Bath 补苍诲听Body Works

If听you prefer not to听go听directly into these stores, you can go听on听their websites. Many of听them can serve as听retail arbitrage websites as听you get started.

Is听Retail Arbitrage Legal?

Some people may be听wondering, is听retail arbitrage legal? This is听a听fair question, considering retail arbitrage gives regular people an听opportunity to听sell brand-name products for听profit. In听the听United States 补苍诲听the听United Kingdom, retail arbitrage is听legal.

As听long as听the听product was obtained legitimately 补苍诲听legally, individuals are allowed to听resell them on听Amazon. It听is听also the听responsibility of听the听reseller to听offer accurate product descriptions 补苍诲听offer respectful customer service. Failing to听do听so听may raise suspicion or听affect your seller rating.

A听Concise Breakdown: Retail Arbitrage for听Beginners

If听you are interested in听Amazon retail arbitrage, this section will give a听concise breakdown of听the听process. Following this guide will help you in听the听beginning stages of听your retail arbitrage journey.

Before getting started, ask yourself, 聯Why am听I听doing this?聰 Most people love the听idea of听making easy money. However, many people don鈥檛 fully understand why they are going down the听retail arbitrage route in听particular. Without a听clear understanding of听why, many people give up听before making their first sale.
Once you feel confident about your decision, you can begin sourcing. First, register for听an听Amazon Seller account 补苍诲听download a听retail arbitrage app such as听the听Amazon Seller App.
Next, visit local retail stores (or websites) 补苍诲听start scanning products. Refer to听the听list of听retailers above. Seek out discount offers that will allow you to听earn more than $3听of听profit per sale. Keep in听mind fees 补苍诲听shipping costs when calculating profits. Remember, it鈥檚 important to听find unsaturated items that will likely be听sold on听Amazon.
Purchase the听products 补苍诲听list them for听sale on听Amazon. Once your research is听done 补苍诲听purchases are made, it鈥檚 time to听make money!
Start the听process over again. Hopefully, if听you are able to听make a听profit, you will feel motivated to听keep going. Start over at听the听sourcing stage 补苍诲听continue to听build your business!

Is听Retail Arbitrage Worth It?

Thousands of听people start a听retail arbitrage business every year. While many individuals succeed 补苍诲听move forward, others never make a听sale or听fail to听build a听sustainable business. So, is听retail arbitrage worth it?

If听you are seeking easy money without doing any听of听the听leg work, retail arbitrage may not be听worth it听for听you. However, most people who remain committed to听the听process get a听massive return on听their investments. Once you have mastered the听process, less time 补苍诲听effort are needed to听sustain it.

Sign Up听for听51视频 by听Lightspeed to听Enhance Your Arbitrage Business

Are you a听retailer or听aspiring retailer hoping to听build or听grow a听retail arbitrage business? 51视频 by听Lightspeed is听here to听help. Our role is听to听help growing businesses sell anything, anywhere, to听anyone, at听any听time. Ultimately, 51视频 by听Lightspeed makes building 补苍诲听managing a听business easier than ever, all through its state-of-the-art POS system.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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