Why wouldnt I try retail arbitrage out for myself?
When I hear about someonestarting a business reselling on Amazonthat requires little investment and minimal risk, Im all ears.
Before I started working at StartupBros, I came across multiple videos and articles they had posted online that explained how reselling on Amazon using retail arbitrage can be profitable.
Heres one of my favorites, check it out:
How I Turned $2,200 Of Rice Cakes Into A $1-Million E-Commerce Business
Most well-known stores likeWalmart, Big Lots, Target, and Home Depothave clearance sections where you can find products that you can resell on Amazon or even ebay.
The idea is tofind the clearance item, buy it, ship it to Amazon FBA and make a profit on the margin.
Its not illegal to do and people do it every day to earn some extra income on the side.
So, I went out to Walmart, Big Lots, and Target to try and sniff out some great deals.
Unfortunately, I had no luck at Big Lots. Some cheap bracelets at Walmart admittedly stood out to me, but most of what I purchased came fromTarget:red sticker clearance items are great places to start reselling.
The time it took for me to shop and scan items wasabout 2 hours.
Truthfully, at certain moments, I was paranoid that store employees were surveying me with their eagle eyes. But the nervousness was all in my head, though nobody from the store interrogated me, or even approached me at all.
I ended up walking away with6 unique products, but 13 items in totalwhen you factor in multiple purchases of the same product.
I just couldnt help my urge to double and triple up on some of the better deals.
Of course I could have bought more, but I didnt want to waste any money.
This was a reselling experiment, so there was no need to go crazy.I set a $150 budget and stuck to it.
Open afreeAmazon Seller account.(Since I was selling less than 40 items a month, I chose the free option. That was a no-brainer.)
Scanning my clearance items into my account was absolutely painless. I just used the Amazon iPhone app andcreated a shipment to an Amazon fulfillment center.
I even let Amazon label my items for me. They did charge me a little for this, but I was fine with it. They know what theyre doing, after all.
Now, I live in Florida, and Amazon instructed me to ship all of my items to an Amazon warehouse in Joliet, IL, which is just outside of Chicago.
I thought that was strange, since there are several warehouses much closer to me, but I just went with the flow.
The cost for sending this entire shipment, thanks to Amazons discount, was only $5.03.
I dropped the package off at the UPS store and never looked back.
A few days later, my items were delivered to Amazon, checked into their system, and placed within the Amazon US Marketplace.
Amazon notified me of every step throughout this entire process, so I was always in the loop.
[Case Study 1] Accountant Loses Job and Creates a $1 Million Dollar Per Year Amazon Business
To my surprise, I had a sale the very next day.
People were actually buying these items, and I was making a decent profit!
After about a month and a half, I was able to resell every single item!
(Well, actually one item took a little longer.)
The Peanuts blanket didnt resell until I dropped the price multiple times.
Regardless, the profit from the other 12 items more than made up for it.
After it was all said and done,I made around $100 from selling 13 products reselling using Amazon FBA.
It took around 2.5 hours of my time, which equates to an impressive $40 an hour.
Obviously, there is more to reselling on Amazon than just watching a YouTube video or reading an article.
So, The reason I wrote this article is to motivate you to stop waiting around for the right conditions, opportunity, weather, [insert excuse here] JustDO ITalready.
You can obsess over all of the what-ifs until your brain oozes out of your ears.
Therefore, take action, learn, and change direction if you need to.
You willneverknow everything there is to know. You will constantly learn new and improved ways to grow your business.
UPC Codes for Amazon Sellers: Everything You Need to Know!
Experimenting with Retail Arbitrage Taught Me…
Label products to buy and resell on Amazon FBA
Set up my bank account to accept payments from Amazon
Understand the importance of Amazon FBA and using Prime
And, naturally, there were boatloads of other tiny lessons learned along the way.
The real-world hands-on education I received just by taking a very small financial risk and leaping into action was worth thousands of dollars in itself.
So,this took less than 3 hours of my time, and about $150 in startup costsin order to pay for the products up front.
And personally, I look at the $100 I made in profit as a BONUS.
Have you ever been curious about buying and reselling products on Amazon?
Retail arbitrage is a great way to get started with very little risk.
Use our Retail Arbitrage Business Guide to turn this into a business.
Exact Steps to Start a Retail Arbitrage Business
If you end up enjoying the process, and youd like to grow as an Amazon seller, the next logical step would be to private-label a product.
Do I Need an LLC, Business License, or Import License to sell on Amazon?
We have incredible resources to get started fromproduct photographytoAmazon ranking hacksto get you up and running quickly!
Dont forget that if you have questions about retail arbitrage, reselling on Amazon, orprivate-labeling a product, we have a live Q&A session weekly. Ask away, and well be more than happy to lend you a helping hand.
Because, if youre looking for an 7,000 word all-inclusive step by step guide to learnhow to sell on Amazonwith videos, checklists, and detailed to-dos then check out our Amazon article!
If I can get started selling on Amazon, so can you.
Dont forget to post your questions.We want to help you understand thewholeprocess and make sure you dont leave with doubts!
Will Mitchell is a serial entrepreneur and Founder of StartupBros. You can learn more about him at theStartupbros about page. If you have any questions or comments for him, just send an email orleave a comment!
I am trying to get the Cheat sheet listed above and every time I try to enter my email and get to the @ the screen goes away? Can you tell me how else to get this cheat sheet? Thank you
Hey Victoria, we fixed it! If you enter your email then the Retail Arbitrage PDF cheat sheet automatically downloads and you can continue reading 🙂
why is everything i read saying DO NOT ARBITRAGE ON AMAZON ? I am totally confused. I have limited funds and would only use it to get to the next level.
Thanks for sharing I appreciated the information
How did you know that the 13 items you purchased from Target would be of more value on Amazon? Was this just dumb luck?
What background work did you do on these 13 products before deciding they were of more value somewhere other than Target?
He used a scanning app on his phone. It will tell you if the item is profitable to buy.
Almost everything comes up as restricted and on the rare occasion it doesnt, the Amazon fees completely negate any profit. In the last month, I have sold only one item (my inventory is varied and has over 50 items). And I lost money on it because of the fees. I dont understand how anyone makes money doing this.
Garage sales/thrift stores are good starting places to find unrestricted items with high roi.
using gift cards and buying in non tax states will give you an extra boost against your competition.
Thanks for sharing this experience with us, Iam so interested but scared in the same time
I would like to know how you prepare the items? What is the right way to package them ?
Amazon Seller app is the scanning app to use.:
It tells you your costs to ship and fees along with the estimated profit youll make on an item.
It sounds very interested. However, is it safe buying discount brand product from Walmart or Target and resell in amazon? Will i be complained by the big brand owner and get in trouble in Amazon?
You are scanning and purchasing clearance items that the big stores are looking to get rid of. Arbitrage: The practice of taking advantage of a price difference between two or more markets and profiting the difference. That is legal. The only trouble you face is the fear of not exploring a perfectly legal opportunity that will make you money.
I want to resell beauty products mostly. What are the restrictions on makeup?
I want to start selling on Amazon and perhaps I will start with clearance items. However I do have a specific product in mind but I do not know how to get a UPC/EAN and SKU numbers. Could I get some tips on that?
Hey Raphael, if you have a product in mind that youre importing and need a UPC code then we have an entire article about that 🙂
Head over to that URL and everything you need is there!
Can I ship items I purchased thru online directly to Amazon Fullfillment warehouse? How will I know the exact address of the Amazon warehouse?
Hey Alvin, yes you can. First thing you want to do is create a product listing on Amazon then you will fill out all the information selling as fulfilled by merchant. Once the listing is live you can switch your listing to FBA (Fulfilled by Amazon). Your listing will then not go live until Amazon receives your product. Next you want to create an Amazon shipping plan and at the end of that you will get an address for the designated warehouse.
What happens when your account is suspended after receiving an inauthenticity claim and Amazon does not accept a Walmart receipt as proof of authenticity?
Thanks for the article it was really helpful and unintentionally I was doing the same thing going into clearance and searching by scanning in App.
1. What you exactly look into the app while searching.
2. Can I start with Merchant Fulfill/ Selling by myself instead of FBA?
I have a question: If amazon for some reason ask you to prove the validity of the supply chain of your inventory bought at Walmart or target by requesting Invoice and Letter from supplier (for not brand owner), what will be the plan in this case? has this issue happened to you? they suspend accounts for inauthentic item, likely RA from Walmart or target.
I want to try and start this, but I think Amazon does not allow selling branded items. Hope you can help correct me with this. Thank you
How do You get through the hurdles of having so many clearance products restricted while trying to sell arbitrage with amazon. Seems like a lot of people are having a problem with this. How do you break through this hurdle?
Hey Jennifer, what category of products did you find that are restricted? For most categories there are ways to get approval to sell. There is a difference between a restricted product and a gated product. We would love to help if we had more information 🙂
When purchasing items from Walmart, Target, etc. will Amazon accept the receipt I have for the purchase without any issues? Also, when I scan the item at the store will it tell me if the item is approved to sell before I make the purchase? Im currently selling makeup bags black and pink on Amazon under the seller name SerenaRose. I purchased them from AliExpress for $0.80/per bag and currently selling it for $6.99. Made good profit so far, but would really love to purchase items myself close to home. Thanks in advance for the tips in this article.
Hey Benazeer, awesome to hear that youre taking action thats whats most important! Our experience is that they are okay with the receipt from the store. The Amazon seller app will tell you if a product is restricted or gated when you scan. I would recommend though since youre already selling on Amazon that you should increase the number of products in your category that way you have more to offer buyers of your bags 🙂 Both are great ways to move forward.
Hey Anne, you should try and take off any clearance stickers or markings. If the price is written on the box there is not much you can do. Stickers should be removed though!
If the price is written on the box in permanent marker, try using a little Endust, Pledge or Lysol sprays on a rag. A gentle rub should remove the ink.
I love your article and how detailed it is. I wrote a program that scans Amazon products and looks for similar items on Alibaba and other wholesalers.
I think anyone can easily find products to flip for profit. Its pretty accurate and you only wait half a second for the result.
Hey Alex, thanks for the tip. Well check it out!
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