45 Ways to Buy Low & Sell High with Retail Arbitrage

Our post on becoming an Amazon FBA Seller continues to be wildly popular, even a couple years after its publication. But, at the same time, we received a lot of comments about how it could even be possible to make a profit selling on Amazon when they are known for their low prices and undercutting the competition. The answer is mastering retail arbitrage.

When it comes to retail arbitrage, the name of the game is to buy low and sell high. You are not paying full price to buy the season’s best sellers off the shelf to resell. Instead, you are shopping the best sales and bartering for the best deals.

That’s what makes this such a popular side hustle for the bargain hunters, single parents, stay-at-home moms and more. When it’s your job to stretch the family dollar, you learn how to not only save a buck, but to probably save two!

Today we are digging deeper into the reselling game and looking at 45 ways to buy low, sell high, and get the biggest bang for your arbitrage buck.

Want to learn more about becoming a reseller? Check out these popular posts:

• How to Become an Amazon FBA Seller with Cynthia Stine
• How to Make a Living on eBay with Sarah Titus
• How to Flip Items on Depop

Retail Arbitrage Tools You’ll Need

The whole point of retail arbitrage is to make a profit. But, it’s a little hard to keep a mental catalog of all the prices on all the things so you can tell when you spot a great sale. Luckily, there are a few great smartphone apps that can make your life a lot easier.

With each of the apps, you will be able to see:

• the first two lines of the product title
• product image
• product category
• Amazon bestseller rank
• total number of offers from other sellers
• whether Amazon is a seller
• if your account is eligible for selling the product
• lowest price for both FBA and merchant fulfilled
• your estimated profit

Amazon Seller app – This app was created by Amazon specifically for sellers. Not only can you compare prices before buying, you can also see your inventory, take care of customer service issues and more. This app is free and is a great way to get started and see if retail arbitrage is for you.

Scoutify 2 app – This paid app has some advanced features making it valuable to any serious seller:

• results are much faster
• ability to use a bluetooth scanner
• add your sales tax for more accurate fees calculation
• ability to see price and rank history
• Set up buying guides & “to buy” lists

Profit Bandit app – Here’s another paid app, with a lower monthly price point making it perfect for small sellers looking to grow their business more quickly. With this app you can:

• pull pricing data from other websites to get a better outlook
• see the weight of the item so you can calculate shipping costs
• set up your own “to buy” list so you can easily keep track of things you know sell well

There’s one more thing I want to mention to you: a book called How to Shop for Free by Kathy Spencer. This book can take your shopping to a whole new level. This is a must-have, especially if you are looking to flip kid’s clothes or toys. It’s got incredible strategy and techniques that you can use to start and scale a reseller business.

Both Sarah and Cynthia give a rundown of additional tools specific to their preferred selling platforms in the posts linked to above.

Categories of Products You Can Buy Cheap and Sell High

You can look for deals in any category. In fact, it can be overwhelming to know where to start. Many people pick one or two categories to specialize in, which allows them to learn more about the intricacies of each one. It’s a lot harder to keep track of selling rules for twenty different types of items than two.

Amazon has a lot of rules to play by, so it is very important that you know what items you will be allowed to sell before you make a purchase. Here are the categories open to both individual and professional sellers, without prior approval.

But, just because you can sell within a category, it doesn’t mean you can sell anything. There are restrictions for certain brands, and you may need to pay additional fees to be approved for some items. Additionally, some categories have special guidelines all sellers must abide by. Check out the seller site on Amazon for the most up-to-date rules.

• Amazon Device Accessories
• Amazon Kindle (used)
• Baby Products (excluding apparel) *
• Beauty
• Books
• Camera & Photo
• Cell Phones
• Collectibles (Books)
• Electronics (Accessories)
• Electronics (Consumer)
• Health & Personal Care
• Home & Garden
• Industrial & Scientific
• Music**
• Musical Instruments
• Office Products
• Outdoors
• Personal Computers
• Software & Computer Games
• Sports
• Tools & Home Improvement
• Toys & Games*
• Video Games & Video Game Consoles

*Holiday restrictions may apply.

**Amazon is not currently accepting new sellers in this category.

These categories are available for professional sellers without prior approval. Like the categories above, there may be some additional requirements for some categories.

• Business Products (B2B)
• Clothing & Accessories
• Fashion Jewelry
• Luggage & Travel Accessories
• Shoes, Handbags, & Sunglasses

The following categories require approval by Amazon before you can sell. There’s a contact form on their website to use and you will receive approval or a request for information within approximately three business days.

• Automotive & Powersports*
• Collectible Coins*
• Collectibles (Entertainment)
• Fine Jewelry*
• Fine Art*
• Grocery & Grocery Food*
• Handmade
• Historical & Advertising Collectibles**
• Professional Services
• Sports Collectibles*
• Video, DVD, & Blu-Ray*
• Watches*

*Only professional sellers can request approval in this category.

**Amazon is not currently accepting new sellers in this category.

Some categories allow you to sell both new and used items, but others only allow brand new products. Those categories are:

• Baby Products
• Beauty
• Clothing & Accessories
• Fashion Jewelry
• Fine Jewelry
• Grocery & Gourmet Food
• Handmade
• Health & Personal Care
• Industrial & Scientific
• Luggage & Travel Accessories
• Shoes, Handbags & Sunglasses

Knowing what you’re allowed to sell on Amazon is essential, which is another reason using one of the apps mentioned above is a smart move.

Amazon isn’t the only place where you can post items for sale, so if you don’t qualify for a certain category, don’t worry. Here are some other places you can try selling:

• eBay
• Craigslist
• Facebook Marketplace
• Facebook BST (buy/sell/trade) groups
• Marketplace apps

The more experience you gain, the better you’ll be able to predict the best place to list each item.

Risks to Retail Arbitrage

Like any business venture, there are some risks associated with retail arbitrage. In recent years, there have been restrictions put on people trying to resell, creating several “gated” categories. Many brands are filing complaints about people selling their products as new, without being an authorized reseller.

There are certain protections offered to the first purchaser of a new product. But, those benefits and warranties don’t transfer when the product is resold. That means even though you may have never used a product, it can’t be legally sold as new.

In response, Amazon has revamped their restrictions. The Selling Family has a list of brands that are known to be restricted. There are some hefty fees if you try to sell restricted products, and you risk losing your seller’s account.

Here are some other risks involved with this business:

• Buying products that don’t sell
• Paying too much for your products and losing money on the transaction
• Not having space to store your inventory
• Damage to your merchandise if not stored properly
• You might purchase a product that lots of other sellers are selling and have trouble moving it
• Spending too much time on your business, so your profits per hour are very low

If you’re thinking about going into retail arbitrage, you need to be prepared for a little bit of failure. Every one of us makes mistakes. The key is to reduce the number and frequency of your mistakes, which you’ll be able to do more effectively over time.

Be careful, especially when you’re starting out and getting the hang of it. But don’t let the risks scare you away. This is a lot of fun and can even feel like a game!

45 Ways to Buy Low So You Can Sell High

Despite the risks, retail arbitrage can be a good way to earn some money from home. And since I’m all for increasing the savings wherever you can, I want to share 45 different places to check for deals. The better deal you can pick up, the more profit potential you have.

• Gamestop – Pick up cheap, but popular, games to resell on Craigslist, Amazon, or eBay
• Going out of business sales – big stuff can be flipped locally, small stuff can go to Amazon
• Clearance Racks – oh, how I love a clearance rack…
• Garage or yard sales
• Thrift stores – go on the tag sale days for crazy deals
• Craigslist – you can occasionally find good stuff in the free section, but hurry because it moves quickly!
• Flea markets – a lot of wholesalers work the flea market scene, you may be able to buy in bulk
• Dropshipping – just make sure you verify the quality of goods first or you might be stuck with junk.
• Wholesale companies
• Discount Book Stores – there’s always a huge market for books
• Grocery store – there is a whole subset of sellers focusing on this Amazon category
• Retired direct sales consultants – they may not be able to sell that inventory on auction sites, but you can!
• Classified Ads – most local papers also publish these online
• Estate Sales – you never know what treasures you’ll find
• Libraries – they often give books away for pennies on the dollar, or give them away free
• Outlet Malls
• BOGO Sales – you can use blogs such as the Free Stuff Finder to help you find these
• Mass Retailers – Walmart, Target, etc. (shop those sales & clearance racks)
• Your house – we all have new stuff lying around somewhere that we bought as a gift we didn’t give, received as a gift we didn’t want or forgot we bought and bought another. Sell it! And sell your gently used but unwanted items, too.
• Buy on eBay to sell on Amazon, and vice versa
• Liquidation stores – these can be a little dirty, gross and have expired items on the shelves, shop smart. You can’t sell expired merchandise.
• Toy stores – scope out the clearance racks
• Deal Blogs – subscribe to the big blogs that post in-store and online deals like Hip2Save. They share great coupons and low prices for plenty of products that’ll make a great flip.
• Rummage sales
• IKEA – As Cynthia tells us in her post above, people can buy IKEA online but the shipping time takes weeks. People would much rather pay a premium to get their goodies with free two-day Prime shipping.
• Walgreens and CVS – remember to use coupons if you have them, and check the clearance sections
• Costco and Sam’s Club – but remember that many items you buy in a bulk pack are not eligible for individual resale.
• Dollar Tree – you won’t be able to resell everything from these stores so shop carefully. Keep your eyes out for seasonal items, discontinued products in cosmetics, party supplies, and anything you know is a great seller
• Black Friday sales!
• Cyber Monday sales!
• Tuesday Morning – every FBA seller I have consulted loves this place. It’s regional so that’s a big plus for those who have one in the area. A lot of us don’t and maybe we want some of their stuff. ????
• Woot! – This is actually an Amazon store offering one crazy markdown per day. Who knew? They even have a garage sale section!
• BigLots
• Hit up the gottadeal.com and SlickDeals forums. Keep in mind a lot of other sellers are probably in there, too. The offline bargains may be where the real deals are.
• Facebook Marketplace- You can find just about anything you’re looking for on here.
• Online Auction Websites like eBid – It’s like a real auction, but you don’t have to go anywhere! Just make sure to read the fine print before you buy. Some sites require you to pick up your purchase in person, while others will package and ship it out for a fee.
• Local Auctions – Depending on your location, you might not have as much competition at a local auction as you would at an online one where other sellers will be.
• LetGo – Set your search radius and see what deals are available near you.
• Online Commerce Companies – you can buy huge batches of products from sites like Alibaba and then resell them.
• Mom and Pop stores – You can often find unique items in stores that aren’t part of a huge chain.
• Online Flea Markets – check out vFlea or Bonanza
• Church Bazaars – there’s usually some bargains hidden among the junk
• The Side of the Road – Often you can find items for free or for a tiny price sitting along the side of the road next to someone’s house. Always keep your eyes peeled!
• OfferUp – Another marketplace site where you can buy and sell.

As a crazy couponer, this post wouldn’t be complete with additional ways to save and make money on these purchases. For those on a budget, thrifting may be the way to go in the beginning. It takes more time than money.

For those that have a little more to spend and don’t want to spend day in and day out digging through Goodwill shelves, retail arbitrage is the way to go. Here are some ways to get the most out of your shopping trips both online and off.

1. Ebates – If you are shopping online, you have to sign up or you’re leaving a lot of money on the table. I’ve already made over $1,200 with this program. That’s nothing to sneeze at.
2. Grocery loyalty programs – next, you need to start signing up for loyalty programs at stores you frequent. This often gives you access to additional price breaks and other perks. Some of my favorites:
3. Staples Rewards
4. Walgreens and CVS Rewards – usually cash towards your next purchase after spending a certain amount, also special discounts on sale items
5. Capital One No Hassle Rewards – You need a credit card or debit card on file at Amazon anyway, and if you are disciplined in your payments why not use it to make inventory purchases for the rewards? Credit Karma recently told me this was the card that would give me the most rewards based on my spending habits – approximately $150 per year. I can pick up $150 bills all day long.
6. Best Buy Reward Zone
7. Save 5% and get Free Shipping at Target – Apply for a REDcard
8. JCP Rewards – $10 reward whenever you spend $100 in a calendar month
9. Gap Rewards – 10 percent off every Tuesday in stores and on Gap.com, OldNavy.com, and Piperlime.com. Spend $1 in stores or online and get five points. Earn at Gap and all its sister companies: Athleta.com, Banana Republic, Old Navy, and Piperlime.com. For Gap and Banana Republic cards, earn a $10 reward certificate every time you accumulate 1,000 points. For Old Navy cards, earn $5 in rewards when you rack up 500 points. Combine this with the savings outlined in How to Shop for Free for some big savings.
10. Tuesday Morning Perks
11. RetailMeNot – always check for a coupon code before placing an online order
12. Buy discounted gift cards through a reputable site like Raise.com or Cardpool to save even more on purchases. (Tip: Use Ebates first to get cash back on your Raise purchase.)
13. iBotta

Don’t talk yourself out of arbitrage because you think you need to flip things like designer handbags. Not so. People are reselling things like toner cartridges every day. There are three rules you need to remember when choosing product to resell:

• Underpriced
• In-demand (don’t buy crap just because it’s cheap)
• Easy to ship

Paperwork and Photos

You need to keep track of your expenses and profits, so you know if you’re actually making money. These records will also help you figure out which items are most profitable, so you can purchase more of them. You can create a simple spreadsheet in Excel or Google Sheets when you first get started. Remember to list any fees on this spreadsheet, so you can find your actual profit.

Pictures are worth 1,000 words, so make sure you take high-quality photos of each item you’re selling. Be completely honest in your description and describe any flaws with the product. You want to have your sellers leave positive reviews, so don’t give them any reasons not to.

I Have Limited Funds. How Can I Get Started?

Start with what you have. Clean out your closets and attic. Go to flea markets and thrift stores. The first item I ever flipped was a huge Calphalon Dutch oven I spotted marked down to $.99. They were regularly priced around $90! I bought two – one for myself and one to sell on eBay. I made around $40. Not too shabby!

The rule of thumb with retail arbitrage sourcing tends to be a minimum 50% expected profit when making a purchase. That leaves plenty of profit that you can reinvest into bigger and better stuff to resell. And don’t forget to add in any associated listing and shipping fees. If you’ll be paid via PayPal, there’s another fee to deduct.

Remember to pick your selling platform wisely. Amazon buyers tend to like the new, shiny, undamaged items. If you are picking up deeply discounted scratch-and-dent items, your best place to resell may be eBay, Craigslist, Offerup or Facebook Groups. It’s also my understanding that the clothing category is gated at Amazon, so the other platforms are a better bet – at least in the beginning – for new sellers with a penchant for apparel.

The great news is, you don’t have to pick just one!