Retail arbitrage involves buying products from retail stores at significantly discounted or clearance prices, then reselling them for a profit on sites like Amazon.
How much money can you make?
Profits vary greatly based on factors like your sourcing capabilities, sales volume and operational efficiency. However, many sellers report earning thousands per month once established.
What products should I source?
Focus on small, popular consumer goods like toys, beauty products, apparel and electronics that have steady customer demand but low competition on Amazon.
Where do I find discounted products?
Check clearance sections at big box stores, shop discount retailers like Ross and TJMaxx, or source bulk deals online through liquidation sites.
How do I price items profitably?
When pricing, ensure you account for Amazon seller fees like referral fees and FBA fees so your margins remain strong.
How much inventory should I keep?
Use sales data and forecasts to determine optimal inventory levels. Both overstocking and understocking can negatively impact profitability.
What if products don't sell quickly?
For slow movers, try promotions, bundling strategies and price adjustments. Also re-evaluate selection criteria to improve future sourcing decisions.
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Buy a product cheap at retail, resell it on Amazon for more. That's retail arbitrage. This guide covers what it is, whether it's legal, how to start, where it works, and when to graduate out of it.
