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How to Start Doing Retail Arbitrage on Amazon?

Do you decide to start your business on Amazon, but you don’t know how to get started?

Do you decide to start your business on Amazon, but you don’t know how to get started? One of the best methods to run your business on Amazon is selling through Retail Arbitrage. As Amazon has grown remarkably during the last few years, this business model has become very profitable and popular.

Retail arbitrage is a very common term in the eCommerce business. It doesn’t require too much money at the beginning. It has many aspects that you should know to become successful. Keep reading our post to learn about retail arbitrage.

What is Retail Arbitrage?

The process of buying products at a low price from any local retail store and reselling them in a marketplace like Amazon at a higher price is called retail arbitrage. In this way, you will be getting lots of profit from your business. There are many places where you can provide your products, such as Walmart, Home Depot, Target, and Lowe’s. Some of these physical retails also have an online website where you can source your products from them for your Retail Arbitrage business. The price difference between two or more markets is what you can make money from.

How Fast Do You See Money with Retail Arbitrage?

Don’t expect to jump in and get rich within the first six weeks! The exact time that you can start earning profit is not precise. It depends on many factors, like learning about Amazon FBA, retail arbitrage, etc.

But generally, retail arbitrage is known as short-term earnings. It is rapid because you don’t need to build a brand or have lasting contact with different suppliers.

To do your job better, you will need the help of technology. Software and tools that help you find the right products are designed to reach your goal faster, save time, have fewer mistakes, and consequently earn more money.

How Much Can You Make from Retail Arbitrage?

The more money you invest, the more inventory you will buy, and the more you can sell and earn profit.

To those who are willing to put in the work, Retail Arbitrage is a sustainable business model. But, there is no guarantee for the amount of money you can gain from Retail Arbitrage. You may encounter successful sellers who earn over $10,000 monthly. However, without hiring employees or significant scaling, it is still possible to make several hundred to several thousand dollars per month. Actually, Retail Arbitrage has never been more profitable with the help of the capabilities and the speed of online tools and mobile devices.

Is Retail Arbitrage Still Profitable in 2022?

Unlike the people who think Retail Arbitrage is not lucrative anymore, we still believe that it will be profitable in 2022, even more than before.

Online shipping has drastically become a trend during the pandemic, and Amazon has been the market leader on that. More and more sellers choose the Amazon ecosystem for their business.

Thousands of Amazon sellers make money with the Retail Arbitrage strategy. So, the chance of making money from Retail Arbitrage is high because there are various stores where you can find your products there, and sell them geographically in different areas. OABeans is one of the companies that provides product listings that are profitable for you.

How to Start Retail Arbitrage Business?

As you decide to start your Retail Arbitrage business on Amazon, you need to follow a couple of steps:

  • Choose your plan

First of all, you should select one of Amazon plans: Individual or professional

The individual plan is a better option for you as a newbie, costing $0.99 per item sold and charging you referral fees.

While you could sell more than 40 items monthly, you can easily switch to a professional plan, which costs $39.99 per month. In addition, you need to choose between two types of fulfillment: Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA).

  • Register for an Amazon Seller Account

Now, you have to set up a seller account on Amazon. You will require the below information during the registration process:

  • Your contact information,
  • A credit card number,
  • A bank account number so Amazon can pay you for your sales
  • Government-issued identification,
  • Your tax information
  • Download the Amazon Seller App

To find your desired products to purchase, you need a scanning app to help you. Among all available apps, the Amazon Seller app is the best.

  • Visit your local retail stores

To select the brick and mortar stores, you have multiple options. Visiting the nearest stores is the easiest way.

  • Scan clearance and sell products using

Apparently, as you install the proper app and choose your retailer store, it is time to search for profitable products. Also, you have to check if you are eligible to sell your selected products.

  • Buy products with a potential profit margin

Now, it is time to purchase the products after you have scanned them. Checking the return of investment (ROI) is critical in this step.

  • List items for selling on Amazon

In this step, you list the products that you bought for selling on Amazon.

How to Pick on Items for Retail Arbitrage?

When you pick the items to sell on Amazon, fast-sold products at a healthy ROI are the best choice. You should not limit yourself just to one type of product. Before buying any product, you have to scan it with tools like Amazon Seller App, which estimates the exact fees on each item. This information helps you make a better decision because, with their calculation, these tools will tell you the possible profits that you can earn from the specific products. Two main criteria to meet while choosing the products are:

  • Minimum earning $3 profit after deducting expenses, shipping, etc
  • At least get a 50% ROI (Return of Investment)

What Are Some Good Stores to Do Retail Arbitrage?

Some of the most top retail stores are listed below for you:

  • Best Buy
  • Bed Bath and Beyond
  • Big Lots
  • Costco
  • CVS
  • Home Depot
  • Kmart
  • Kohl’s
  • Lowes
  • Meijer
  • Menards
  • Office Depot
  • Ocean State Job Lots
  • Publix
  • Rite Aid
  • Tuesday Morning
  • Sam’s Club
  • Shopko
  • Staples
  • Target
  • TJ Maxx
  • Toys R Us
  • Walgreens
  • Walmart

In conclusion, we must say that hard work is what you need to sell successfully on Amazon using retail arbitrage.

Low cost is vital while starting your business in this model. You need to be picky during your product selection on a clearance sale. Besides finding a good deal, listing optimization and product research are essential.

Source: OABeans (

Press Release Distributed by The Express Wire

To view the original version on The Express Wire visit How to Start Doing Retail Arbitrage on Amazon?

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