Best Stores for Retail Arbitrage Sourcing

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Last Updated on September 15, 2023 by Ellen

If you’d like to sell items on eBay or Amazon, you need to check out the best stores for retail arbitrage sourcing. Get these tips for reselling clearance items and more.

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If you'd like to sell items on eBay or Amazon, you need to check out the best stores for retail arbitrage. Get these tips for reselling clearance items and more.

Best Stores for Retail Arbitrage

To succeed in retail arbitrage, the first thing you need to do is find your inventory. Big-box stores, department stores, and your local retail store are the best places to find inventory.

You can also find great deals online, but it’s important to do your research and make sure you’re getting a good deal before you buy.

Once you have your inventory, you need to figure out where to sell it. eBay and Amazon are the two most popular platforms for retail arbitrage, but there are others out there.

eBay is a great platform because it has a huge audience, and you can sell items for a higher price than on Amazon. However, Amazon is more competitive, and the fees are higher, so you need to be careful when pricing your items.

If you see a local store going out of business, you can always contact them about retail arbitrage. I’ve purchased several store lots this way.

If you'd like to sell items on eBay or Amazon, you need to check out the best stores for retail arbitrage. Get these tips for reselling clearance items and more.

What is retail arbitrage?

Retail arbitrage is finding deals on items at local stores and selling them on eBay or Amazon for a profit. It can be a great way to make money, but it takes a lot of research and planning.

Keep reading for some retail arbitrage tips.

Is retail arbitrage legal?

Yes, retail arbitrage is legal. However, you need to make sure you’re following the rules of the platforms you’re selling on. eBay and Amazon both have policies against reselling items that are not your own.

a stack of LP records

Can you make good money with retail arbitrage?

Yes, you can make a good amount of money with retail arbitrage. However, it takes a lot of work and research to find the best deals. If you’re willing to put in the time, retail arbitrage can be a great way to make money.

The best retail arbitrage products are the ones you can get at a discount and sell for the highest profit. It will vary based on where you live and what you can find in your area.

What is a good profit margin for retail arbitrage?

A good profit margin for retail arbitrage is 10% to 50%. However, it’s important to remember that you need to factor in the costs of shipping and fees when pricing your items.

If you’re shopping online retailers for inventory, keep in mind that you will need to pay for shipping to get the item to you. Clearance and sale products will be your best bet.

Some people also shop offline and online retailers who make price errors. Online retail stores are known for accidentally pricing items wrong or allowing discount codes to be stacked when they shouldn’t be.

This method of retail arbitrage takes a lot of practice. It is safer to stick to clearance items and thrift stores if you are new to retail arbitrage.

a man sourcing products at a local big box retailer

Amazon retail arbitrage vs ebay

Is retail arbitrage better on Amazon or eBay? It depends on what you’re selling. eBay is a better platform for selling items for a higher price, while Amazon is more competitive and the fees are higher. You need to research and decide which platform is best for your items.

Don’t forget to use the Facebook online marketplace to sell your items.

Once you’re established, you might want to consider setting up your own e-commerce store. An online store will cost more money than listing on eBay or Amazon.

How to become a retail arbitrage seller

If you’re interested in becoming a retail arbitrage seller, there are a few things you need to do. First, you need to find a good supplier. You can find suppliers online or by contacting local stores.

You also need to create an eBay or Amazon account and learn how to use the platforms. There are many tutorials available online that can help you get started as a retail arbitrage seller.

Finally, you need to start pricing your items and figuring out what you want to sell. It’s good to start with a few items and see how they sell. If things go well, you can expand your inventory and become a full-time arbitrage seller.

a woman looking through a jewelry tray

What are the risks of retail arbitrage?

There are a few risks associated with retail arbitrage. The first is that it can be difficult to find good deals on items. You need to do your research and make sure you’re getting a good deal before you buy.

The second risk is that the market for certain items can be competitive. If there are too many sellers selling the same item, you may not be able to make a profit.

Finally, it’s important to remember that retail arbitrage is a business. You need to invest time and money into it, and there is no guarantee that you will make a profit.

Tips for retail arbitrage sourcing

If you’re looking to get into retail arbitrage, here are a few tips to help you find good deals.

-Check out clearance racks: Many stores have clearance racks that sell items for a discounted price. This is a great place to find deals on inventory. Reselling clearance items will usually earn you the most profit.

-Contact local stores: If you know of a store that doesn’t have a website, you can contact them and ask if they would be interested in selling to you. Many stores are happy to sell to resellers, and you may be able to get a better deal than you would online.

-Look for sales: Many stores have sales throughout the year. This is a great time to find deals on inventory.

-Use online tools: Many online tools can help you find good deals on items. Google Shopping, for example, allows you to see how much an item is selling for on eBay and Amazon. This can help you decide if a deal is worth pursuing.

-Be patient: It takes time to find good deals on inventory, so be patient and keep looking. Eventually, you will find the right deal.

If you'd like to sell items on eBay or Amazon, you need to check out the best stores for retail arbitrage. Get these tips for reselling clearance items and more.

Best local retail stores for retail arbitrage

The best local retail stores for retail arbitrage vary depending on your location. However, some general tips include looking for big-box stores, department stores, and local retailers. You can also find great deals online, but it’s important to do your research first.

I find many great deals for retail arbitrage by checking out the clearance racks at stores like TJMaxx and other big-box discount retailers. You have to look for a really good clearance price in a physical store to make this work.

Don’t think you have to stick to a higher-end retail store to make retail arbitrage work for you. I have found great deals to flip at dollar stores and chain retailers like Walgreens. Grab a copy of this book to learn more about reselling dollar store items.

Toy stores can be a great place for retail arbitrage around the holidays. Look for the hottest toys to make a healthy profit. Market demand will go up as the toy is harder to find. That means you can ask for a higher price. This reference book is a must if you’re interested in toys.

Just look for the store’s markdown products or clearance prices. And, always buy in large quantities if you can.

I rarely look at products at normal retail prices, but you may want to if it has a great sales rank. You can use the Amazon sellers app to figure this out.

Check thrift stores

You can definitely do retail arbitrage at your local consignment store. You need to know what you’re looking for when shopping at a thrift store.

Not all employees recognize popular brands when they place donations on the floor. I’ve found Fendi shirts priced at $6 before.

You must know what you’re looking for when you visit a thrift store. If you don’t, you risk buying fakes or things that are not worth spending your money on.

Savvy sellers often specialize in one or two things. Check out what other retail arbitrage sellers list on eBay to find out the most popular names to look for.

clothing racks with women's clothes

How much should I buy?

When it comes to how much to buy, you need to think about how quickly you can sell the items you purchase. If you can sell everything you buy immediately, get everything you have room to store.

However, if you know that it will take a while to sell the items, you’ll only want to buy as much as you have room for. Keep in mind that your money will be tied up in retail arbitrage until it sells.

If you have a great deal, you may want to look into getting a storage locker. Keep in mind that monthly storage fees will eat away at your profit.

Don’t forget to consider sales tax in your retail arbitrage business model. If the clearance prices are low enough, it may not be as much an issue unless you buy large quantities.

You don’t want to purchase too much inventory and have extra items that you can’t sell. This will only cause you to lose money.

What should I bring with me?

Bring a cell phone to look up the sales ranks and prices on things you consider. And a notebook to make notes about questions you have is handy. This sales log is really helpful for keeping track of things.

I find that a magnifying glass helps quite a bit when sourcing jewelry. This way, I can see the designer tags.

If you’re searching for clearance items, all you really need is your phone with the Amazon seller app and some reusable tote bags.

a vintage store front

Where can I get the best deal for retail arbitrage?

The best place to find deals for retail arbitrage depends on what you’re looking for. Department stores, big-box stores, and local retailers are great places to start. You can also find some great deals online, but it’s important to do your research first.

Buying clearance items and reselling them is a simple way to get started, even if you don’t have an Amazon seller account.

If you’re interested in getting started in retail arbitrage and selling online, these are some of the best retail stores to check out. Remember to focus on clearance products for the best price.

  • TJMaxx
  • Walgreens
  • Target
  • Home Depot
  • most thrift stores
  • Walmart
  • Outlet stores
  • A liquidation store
  • Bed Bath & Beyond
  • GNC
  • Ross
  • Dollar stores

Now that I’ve given you some tips on starting your own retail arbitrage business don’t forget to scan clearance racks the next time you’re at the store.

Selling clearance items on Amazon

If you want to try Amazon for your platform, you will need to get enough of the same item to make the listing worthwhile. Buying up clearance lots is often an easy way to do this. Be mindful of the expiration dates.

Selling clearance items on eBay is also a possibility. Many eBay sellers source clearance lots from stores ranging from drug stores and grocery stores to big box stores.

eBay to Amazon arbitrage is more difficult since you will need to pay for shipping. But, it’s possible if you focus on pallets. I find that being an eBay seller is easiest for online arbitrage.

Related reading

Now that you know the best sites for online retail arbitrage, read these:

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