Learn how to maximize retail arbitrage sourcing so you get to earn more. Retail arbitrage is one of the easiest to way to get into business – thus, having the right knowledge is key to fully make the most out of it.
Whether you are already into retail arbitrage sourcing or are planning to get into this, it is best to fully know how you can maximize it for better-earning potentials. Do not stop researching for ways how. Keep on learning and apply whatever you think is applicable to you.
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You see, thanks to technology, there are endless possibilities to make money online. But let’s face it, with a lot of people doing the same thing that you probably are already doing to thinking of doing, you better make sure to step up your game, right?
The digital age lets you choose which path you would opt to go – depending on your interest and if you will be a little technical or be really business-minded, depending on what the people need.
Some people may find this topic a little strange or new. But actually, retail arbitrage on Amazon has been there for quite a while now. In fact, there are a lot of people doing it and making money out of it – particularly people who are into online selling.
But what about retail arbitrage sourcing? What does it mean in particular? Well, you will find out more about this method as you read on and you will get to know different strategies when doing retail arbitrage sourcing. But basically, it’s the process of sourcing items that you will resell through Amazon.
WHAT IS RETAIL ARBITRAGE?
Okay, so we kept mentioning retail arbitrage, but what does it really mean?
Well, retail arbitrage refers to when you buy products from your local retail stores (most of the time sale or marked down items), and then sell the very same items through online selling platforms to make a profit.
It’s basically buying something from a lower price and then reselling it online at a much higher price to earn or make money out of it.
You might be reacting like, “Oh! That’s what you mean!? I actually knew it all along.” Yes, you do. It’s just that there really is a specific term pertaining to this act.
Retail arbitrage is definitely not a new thing. In fact, there are a lot of people doing it already.
In an article published by The Washington Post, it says that in December 2018, Google Trends reported that searches for retail arbitrage spikes on YouTube, which means more and more people are becoming interested in venturing into this.
Among the most common and very reliable source of products where people who are into retail arbitrage are Target, Walmart, and Home Depot. Yes, you are right! Most clearance racks stores are where sellers get their items from! After all, these stores sell great finds at a very low price.
Before we move on, you may want to check this video from Side Hustle Network wherein they share some basic information about retail arbitrage specifically for Amazon FBA. This one’s a very helpful video especially for newbies in retail arbitrage.
HOW TO MAKE MONEY THROUGH RETAIL ARBITRAGE?
As we have already mentioned a while ago, you earn money through retail arbitrage when you get to buy significantly low priced items and sell them on a marketplace at a higher price.
However, you have to keep in mind that as you put a price tag on each item, you have to consider other fees like shipping and marketplace fees.
For instance, you buy an item from an outlet store for $10 and the item sells at $24.99 via Amazon, which is the most popular online marketplace that people who get into retail arbitrage use. Once a customer buys the item, the site will deduct all the fees leaving you with just $18. With that, you make an $8 profit from the item. Come to think of it, you only invested $10 but you got to earn almost the same price! No wonder why this is becoming a trend nowadays – because really, there is money in this kind of business.
HOW TO GET STARTED IN RETAIL ARBITRAGE?
To get started with retail arbitrage on Amazon, all you have to do is follow these very simple steps:
Set up an Amazon seller account.
Of course, you can’t sell items on this platform without signing up. Make sure though that you are signing up for a seller account and not otherwise. Also, we recommend using an “individual” seller account because it does not have monthly fees and is definitely perfect for amateur sellers.
Fill out all online forms.
After signing up, you will be required to fill out some important forms to get your account validated, and so you can start using it in selling items on the platform. Filling out the forms will only take you less than 10 minutes. After this, you will be able to start selling on Amazon.
Upon signing up, access the free app.
The free app will be beneficial to you as it will help you figure out which products to buy and then sell via Amazon. For a starter, it’s the only retail arbitrage app that you need to get you started. What’s also nice about the app is it lets you scan the barcode of any product and then it will automatically show you how much the product sells on Amazon – including the fees and other pieces or significant information.
WHAT ARE THE DIFFERENT RETAIL ARBITRAGE SOURCING STRATEGIES?
Obviously, from the term itself, retail arbitrage sourcing refers to the act of sourcing or scouting where to get items that you will sell through online selling platforms.
As we earlier mentioned, the most common places where people get items to sell are clearance or outlet stores – which is not surprising because you really do get the same in-store products at a definitely lower amount.
Here’s the thing, many people who get into retail arbitrage are not able to maximize what this industry can give. That is why we thought of sharing some practical tips on how you can improve the opportunities you get in your personal retail arbitrage strategies. These are:
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Do not shop for items just to fill your shopping cart.
Do not get us wrong here, there is totally nothing wrong with choosing items that are on sale at the moment. Of course, remember the retail arbitrage mantra – buy items that are on sale or at a lower price. But sometimes, we neglect to realize that buying items on wholesale or by bulk basis, even when they are not on sale, is cheaper too.
We suggest you apply as a wholesale retailer for items that you source via stores like Wal-Mart clearance aisles. This is especially applicable if you have staple items – meaning an item that is bought by many people. You should try doing this, and see how actually convenient it can get.
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Make it a habit to ask questions.
One thing we noticed with people on the retail arbitrage scene is that most of them are not fond of asking. You go to the store, you shop, but you always fail to ask. What do we mean by that? Well, sometimes you miss the chance of making things more convenient and favorable for you.
For example, stores like Wal-Mart can actually bring the item directly at your home, especially if you buy items in bulk. This is so convenient because it means you get to save a lot of time to use for something else. We mean like you get to save time driving for hours from your home to the store, plus the effort, you get to save a lot of energy that you can use instead in making strategies to sell more.
Another thing, when you go and buy in bulk, even if the items are on sale, sometimes they still give discounts – of course, only if you ask. Do not be afraid to ask and get turned down, because come to think of it, how else would you know if you can get an additional discount if you would not ask, right? What if they actually do, but you did not ask? You missed a chance to save money, at the same time, make more!
You know, in retail arbitrage sourcing, you got to be wise and you have to be very strategic, otherwise, you will miss a lot of possible chances to make more profit.
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Sometimes, it pays to go for disregarded items.
Sometimes, we tend to overlook items that actually sell! Most of the time, we get too lazy enough that if something goes wrong like a barcode not scanning, we tend to just let it sit because we thought, it won’t matter. And then, when you finally did take notice of it, you get surprised by how much you make money out of it. So, you end up regretting skipping it the first time. You could have profited more if you did not let your laziness get the best of you.
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You never know how much money you can get from oversized items, so, go get them!
A lot of people often neglect oversized items because they find it pricey compared to regular items. While this may be true, but come to think of it, it’s actually just the same. You will still make a profit out of it! Sometimes, we miss the fact that there is actually a good chance of selling oversized items because only a few people take a chance of selling these kinds of items.
Remember this, ignoring oversized is a mistake. Wondering why? Well, who knows? You might have just missed a great opportunity for making money. Keep this in mind, as long as you have a right estimate of the shipping cost, there should not be a problem.
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Do not be afraid to try something else.
When you do retail arbitrage sourcing, do not be afraid to go out of your comfort zone. Meaning, while it is okay to stick with buying the same products over and over again because they sell, it would also be nice to check for new items and try selling them too. Who knows, they might just click too!
Also, do not be afraid to try getting stuff from new stores. While you can stick to one or be loyal, there is nothing wrong with checking out other stores. Again, who knows, they might have something wonderful to offer, after all, right?
Remember, when you get into the business, you should never be afraid to take risks. Well, yes, you already did take a risk when you decided to sell items, but you should never stop there. You should continue making and embracing risks. Do not get stuck somewhere. Continue spreading your wings, as they say. You should never stop taking chances because who knows, by making or taking that unusual route, it might just lead you to better business opportunities and make more profit!
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Go for late-night shopping.
Here’s the thing, you do not need to spend for a feasibility study just to know what product sells and what’s not. All you have to do is visit the store at late night or before it closes. Go around and check the shelves.
As you go around, take note of the empty or nearly empty spots on the shelves – those are the products that sell. Meaning, those are the products that you should buy and resell on the marketplace.
The next time you go visit the store, you should go get as much as you can of those products, or you can ask the store if they can deliver boxes of those items. Oh, wait, no, we do not mean you hoard the items so people will have no choice but to buy from you – at least buy a good amount of the products for you to sell online. After all, you still have to check whether or not it will be an online bestseller too.
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Be extra friendly and nice to the people at the store especially the manager.
Believe it or not, it pays to be nice and friendly. Nobody wants rude people anyway. But you know, if you are nice with people on the store, sometimes even without you asking, they will be the ones to give you ideas on what sells and what doesn’t sell, give you discounts even without you asking for one, some store managers are generous enough to sell you things even before the store’s sale period, or even match the price from their competitors! Yes! They do that! Well, only if they feel like you deserve one – and if they see you are being nice.
So, yeah, whenever you go to the stores, make it a habit to smile and talk to the salespersons or the managers. Be genuinely friendly and you will surely get some friendly benefits you will be thankful for.
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Source items from all the stores in one area.
Another retail arbitrage sourcing strategy that you may want to consider is sourcing products from stores within an area. All you have to do is look or choose a specific area where a lot of stores are located – that way, you get to save more time and gas too compared to shopping items from one area to another.
Remember, you have to be strategic, so make sure you spend minimal time driving around. Instead, use most of your time shopping and looking for items you will sell.
Before even starting your shopping escapade, make sure to plan ahead your route. You can use Google Maps to help you with planning which store go first and then what’s next, and so on. The next time you go retail arbitrage, you can pick a different area but following the same strategy or plan to ensure you make the most out of your time in a day.
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You may consider sourcing from one store in multiple locations, too.
Sounds like contradicting from what we earlier said? Well, not really. We are just here to give you options and you get to choose which to follow depending on what works best for you.
Another strategy that you can consider doing in retail arbitrage sourcing is, for instance, you already have a good lead of items from one particular store, you can check where their branches are and check for sale or markdowns. Doing so will help you save more and earn more.
Another thing, this applies to when you have particular leads in one store and then they ran out of stock – at least you know where else you can find the items, right?
Like the one above, before going to the store, make sure to plan your route ahead so you get to cover a larger radius from where you live. One or two stores will be good in a day. Okay, to give you an idea, for instance, you are going to shop at Target. What you can do is to go to Target branched in a 30-mile radius in a day. But of course, this depends on where your home is and how many Target branched there are nearby.
If you are rooting for clearance sale, if you have a good relationship with the store or just want to take a chance, you can call them up and ask for an update if they are doing a clearance sale before heading to the store to ensure you do not waste time.
So, there you have it. These are just a few tips on maximizing your retail arbitrage sourcing model – making it better and more favorable for you. You can add more to this list because for sure, some of you may have more ideas or have habits that you do that help you get better sourcing opportunities.
In addition to this list…
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Don’t forget your retail arbitrage sourcing list.
Let’s face it, the key component of a successful retail arbitrage is ensuring you have all the necessary things you need before you start sourcing. Having the right gear can help you save time and energy, which allows you to make better sourcing decisions, and also, to be able to find more profitable inventory for your online business — or in some people’s case, their Amazon FBA business.
Some of the essentials include:
– Smart Phone
– Car Charger or Power Bank
– Scotty Peeler
– Water Bottle (to keep you hydrated)
– Sharpie
– Gift Cards
– Envelope (to keep receipts organized)
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Try out retail arbitrage online sourcing.
If time is very crucial for you, there is still a way for you to get into retail arbitrage by simply sorting for items online. Yes, there is totally nothing wrong with buying stuff online and then reselling them to another marketplace like Amazon.
While it sounds pretty cool and simple, in reality, it may be a little tricky. The challenge here is to ensure you get the right product to sell at the lowest price so you can resell it higher.
Nevertheless, if you have the skills to search for the right supplier, then this should not be a problem at all. In fact, it’s an advantage for you.
FINAL THOUGHTS ON RETAIL ARBITRAGE SOURCING
So, there you have it. Now that you already know what retail arbitrage is and you already have a few tips on how you can maximize your retail arbitrage sourcing, all you have to do is start setting up an Amazon seller account!
We highly recommend taking this route to individuals who have time to go around and shop for items – it’s actually ideal for stay at home moms who want to earn extra bucks.
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