How to Make Money With Retail Arbitrage

Retail arbitrage can be a good way to supplement your main source of money with additional income streams? If you are a person who loves to shop and bargain hunt, retail arbitrage is one way to bring in some bucks on the side. It will work even if you do this part-time.

 

What Is Retail Arbitrage?

Arbitrage basically means, "buy low, sell high." More specifically, it is the practice of making a profit by taking advantage of a price difference between two different marketplaces. In retail arbitrage, you find local sources for bargain-priced items, and resell them online in a venue where you can get a higher price.

Is this just a fancy way of saying, "Sell stuff on eBay"? Yes and no. Retail arbitrage is a particular niche in online selling. Many people on eBay, Amazon and other online marketplaces are doing retail arbitrage, but not everyone. And eBay is not the only, or even the best, place to do this these days, depending on what you are selling.

How Does Retail Arbitrage Work?

So here is how you do retail arbitrage. You go to a discount store, say, Big Lots or TJ Maxx. You bring some money and your smartphone with a price scanner app. You dig through the discounted, sale, and clearance items and scan them with your phone, checking the price at the store against typical selling prices at your online marketplace of choice.

For example, suppose there is a popular brand of toy like Disney's Frozen II. These product lines have dozens and dozens of items, some of which go in and out of stock pretty quickly -- and there are also kids and collectors out there who simply have to have every one of them.

You find a Frozen II toy on sale, and check the selling prices on Amazon. The sale price where you are is say, $7.99, but the lowest selling price on Amazon is for example $19.99. If you buy it here, and sell it through Amazon's Marketplace, you can potentially make almost $10.00 profit after expenses and fees! Based on how much you think you can sell it for, how quickly it will sell, and how easy or difficult it will be to ship, you decide that you will buy this toy and re-sell it, and into your cart it goes.

If you love shopping, this is the fun part, also know as "sourcing" or "scouting." Once you have made your purchases, you move on to selling your items, and making your money.

Where and How Do I Sell?

One of the easiest ways to do retail arbitrage is through Amazon's "Fulfillment by Amazon" (FBA) program. You set up a seller account through Amazon, enter the product codes for the items you are selling, and Amazon gives you a label to attach to each item and a shipping address to send it to. You pack up the items in a box and send them to the fulfillment center. Amazon takes it from there. Your products are stored in Amazon's warehouses under your name until someone purchases them, then Amazon packs them, ships them, and deposits the money in your seller account. Amazon subtracts their fees and transfers the rest of your seller account money to your personal bank account every other week.

You do not have to store your stock or a ton of shipping supplies at your home. You don't have to pack individual items and rush off with them to the Post Office or UPS. Best of all, your merchandise is covered by the same satisfaction and delivery guarantees that Amazon offers for their own products, including free two-day shipping for Amazon Prime members!

Amazon FBA is a convenient and popular way to sell new, unopened items or certain types of used items like books, DVDs, and other media. Don't forget: before you go on a buying spree for food and beauty products make sure you have been approved by Amazon to sell in these categories!

Other used and collectible items can find a better home on Ebay or specialty marketplaces. And for really big items, like cars (yes, people do this with used cars!), your best bet is to sell locally through Craigslist or other venues that reach nearby buyers.

Is Retail Arbitrage Legal?

Absolutely! You are taking advantage of market differences, in the best capitalist tradition. Consider how many people live far from specialty stores like Pottery Barn, Restoration Hardware, or IKEA, but love their products. Or who may live near those stores and other bargain outlets, but would prefer the convenience of shopping online. These are the people who buy your items.

There is one area where the practice of buying for resale can run afoul of manufacturers' proprietary agreements, and this is in high-end designer merchandise. To keep the demand (and prices) up for their products, companies like Gucci or Louis Vuitton deliberately make them scarce by making exclusive distribution agreements with retailers in an area. If a manufacturer finds out that you are reselling their items, they can ban you from buying their products, and demand that the online selling venue remove your listings! Because of the prevalence of counterfeits at this level, many online selling locations will not even let you list such items. For this reason, most online sellers steer clear of high-end designer stuff.

How Much Money Can I Make With Retail Arbitrage?

This is not a get-rich-quick scheme by any means. It is a type of hobby income, since you have to really enjoy shopping and digging for bargains. The pace of sourcing and selling can vary considerably throughout the year as well, so the income is not always steady. That said, with good knowledge and good local sources, you can make hundreds and even thousands of dollars a month. There are some people who do this well enough to make a full time living at it, but the majority of sellers do this as a part-time gig.

If you are going to try retail arbitrage, you need to do your research beforehand, and start small. There are plenty of websites, e-books, and YouTube videos out there that explain the process in detail, including all the ins and outs of using Amazon's fulfillment program. There are even fee-based subscription services that provide daily updates on items going on sale at Wal-Mart, Target, and other big box and online retailers.

The best way to do this is to pick a niche where you already know something about the brands available, and what typical selling prices are. Your niche can be books and media, toys, cooking equipment, or pretty much anything you know about and enjoy shopping for. Some sellers specialize in medical supplies, fishing equipment, or even closeout beauty products -- it is amazing what devotees of a particular type of lotion or makeup will pay to get the last of a discontinued item! Many sellers start out in one niche and add new ones or drop old ones as they expand their knowledge of what sells well and what is easy to source in their local area.

You will make some mistakes. Many items are languishing in clearance aisles and bargain outlets because no one wants them, or because they are low quality and cheap. It takes research to separate the garbage from the arbitrage. There is a learning curve, but if you get a thrill from the quest for items to sell, and turning your bargains into profits, the learning process is a fun challenge and not a depressing chore.

By far the best season for selling your arbitraged items is the year-end holiday season. There are more people buying and more demand for scarcer items, so prices are higher. If you want to be ready to make some real money in November and December, start building your arbitrage business in the spring and summer so you have things down to a routine by fall. This also will give you a chance to build a track record and gather favorable feedback in your chosen selling venues.

Finally, be flexible and keep learning about various niche markets. Sources can dry up, and profitable items can become unprofitable if the market becomes flooded with them and prices drop. However, there will ALWAYS be items out there that online buyers will pay a premium price for, and there are ALWAYS sellers, be they retail stores, thrift stores, or your neighbor having a yard sale, who want to simply rid themselves of merchandise and don't care about seeking the highest profit for it.

Reselling From Charity Shops For A Profit

If you treat your online selling as a business then you are familiar with the need to source your inventory at the best possible prices in order to achieve the highest profits. This is why charitable organization shops are popular sourcing venues for online sellers.

While charitable organizations originally opened shops to provide quality goods at affordable prices for those struggling financially, they are becoming increasingly aware of their popularity with a wider demographic, including online sellers.

Online sellers may feel a sense of guilt at buying their merchandise from charity shops, with several factors making them feel this way. Let’s take a look at some of those:

Is it wrong to buy items that the needy may want to purchase, thereby reducing the number of items available to those less financially secure?

The majority of charitable organization stores have more stock than they can handle. Many of these stores have limited space and will replace sold items very quickly. Of course this is not true of every store and is largely dependent upon population and wealth of the community.

Is it wrong to offer items to potential buyers that were sourced from a charitable organization store?

Unless there is some marking or store tag left on the item when photographed there is no way that a potential buyer can tell where it came from. The buyer is more interested in whether the item is in good, working condition. Besides, the likes of Salvation Army and Goodwill often receive items that are still factory sealed, but offer them to the public at much reduced prices.

Is it deceitful in any way to purchase from a charity shop with the intention of re-selling?

I believe that most charity shop employees are aware that a number of their regular customers sell online. In fact, I would go as far as to say that they are grateful to such customers, as often they will buy large quantities of items. This helps the store keep shelves stocked with new items, and at the same time keeps the money coming in. Also, it is wise to note that many online sellers donate back items that have not sold.

At the end of the day $1 is $1 whether it comes from an online seller or someone bargain hunting for them self. Provided the money is put back into the community via charitable works then there is no need to feel any guilt whatsoever.

And you can always make a donation to your favorite charity shop at the end of the year!

Make Money From Old Magazines On eBay and Etsy

Yes, you can make money from old magazines! Old and not so old magazines can be sold complete or cut apart 

Do you have old magazines lying around the house that you no longer have the room to store? Don’t be so quick to throw them away. You can make money from old magazines if you know how to market them. Old magazines are among the "free things to sell on ebay" I blogged about last week.
Many people assume a magazine only has value if it's very old. Nothing could be further from the truth. People value magazines for their information. If you have a magazine with information about a particular product, hobby, person or a magazine article that solves a very specific problem, people will gladly pay money for it. People also value magazines for their photos. Magazines depicting rare photos of particular celebrities, leaders, criminals or other persons of interest, particularly if those photos are not common, can be in high demand.

Here are some ways you can make money from old magazines (not just old, even recent issues will do!):

 

1. Flip through your magazines and find articles containing information on how to do a hobby related project. This should be information that's not easily found elsewhere. You can sell the article along with the complete magazine on one of the auctions sites such as Ebay.. It's important that you list the article under the appropriate Ebay category for best results. If you're selling an article on building a ceramics kiln, list it under crafts followed by one of the ceramics categories. Don't list it under the magazine category as this is too general. Other articles that can be sold using this technique are rare articles on particular types of collectibles which can be found in such magazines as Antiques Magazine.

2. Look for magazines with cover photos of popular celebrities. If the celebrity generates interest or is controversial in some capacity, this makes the magazine even more marketable. Surprisingly enough, it's often the lesser known celebrities that garner the bids on Ebay since there are fewer magazine covers featuring their photos. If in doubt regarding the marketability of a particular magazine, you can do an Ebay search using the celebrity name and see how quickly items relating to that particular celebrity sell. Again, Ebay is the best place to sell magazines with celebrity cover photos. If there's an inside photo spread of the celebrity, be sure to mention this in your description.

3. Look for older issues of popular magazines, particularly the first few issues produced. Those issues tend to be less common since fewer were produced. They're also in greater demand because fewer people have them since the magazine wasn't as well known at the time of initial publication. Of particular interest are early issues of niche publications on specific hobbies or collectibles, especially if the magazine is out of print. Some of these issues can bring very high prices on Ebay.

4. Another way to profit from older magazines is to look for old ads for watches, cars, beer, coca cola and other items people deem worth of collecting. Carefully, remove the ads from the magazine and sell them to collectors who can frame and display them as art. You can sell just the ad or you can frame the ad yourself and sell it as a completed work of art. It's easy to do research on Ebay to see what sells and what doesn't. 


5. If you have large groups of a particular publication, for example a years worth of Martha Stewart Living magazine, you can sell the magazines as a set. Often, magazines that won't sell well individually can be sold in groups of three of more issues.

6. If a magazine has a cover created by a famous person, the magazine can be sold on the merit of its cover. For example, a magazine with a Norman Rockwell or Maxwell Parrish cover may be in great demand with collectors.

7. If all else fails or if you don't have time to put your magazines up on auction, you can display them at your next yard sale and sell them for 25 cents each. You'll be surprised at how quickly those quarters can add up.
Now you know there are many ways to make money from old magazines. Be on the look out for interesting magazines at the next yard sale you attend. It may be the start of a whole new business for you.

8 Free Things to Sell online

Making money from selling items on eBay doesn't always require outlaying a bunch of money. The thought of having to fork out a couple of hundred dollars to buy inventory, list it and then hope that someone will come along and pay more for it than what you did can be daunting, particularly for anyone who is just wanting to ‘test the waters’. Fortunately there are some things that sell well, are readily available and don’t cost a cent!

1. Beach glass, pottery shards, rocks and sea shells.
If you are fortunate to live close enough to the ocean, love to wander along the beach and find little treasures and don’t mind getting a little sand between your toes, then you are in the perfect position to not only have fun but make a little money from your seaside excursions. The beach is often a great source of beautiful pieces of sea glass that has been smoothed by the salt water, broken pieces of pottery and gorgeous shells. Jewelry makers, crafters and artists are always seeking these treasures to create beautiful art pieces. Collectors of the more unusual pieces you may find will be pleased to purchase them from you online.

2. Magazines
Yes, magazines! These are often easily located in recycle bins and on street curbs, waiting for the recycling truck to come by and pick them up. Provided they are on the curb you may take them. Just make sure that they are still in good clean, dry condition. Magazines are often given away on the likes of CraigsList also. The magazines to look out for are the likes of teen magazines, craft magazines and magazines that are published about a niche or specialist topic, because these are often not available outside of the USA and there is a potential international market for them. It is not worth your time or energy however, to collect the more common magazines such as Time, People etc. More about selling magazine online here: Make Money From Old Magazines On eBay

3. Beer Coasters (beer mats).
These are highly collectible, and the more difficult they are for someone to come by the better they sell. Even the more common ones can sell well, though they are best bundled into a lot to sell. Coasters from little-known, independent breweries, boutique breweries and the like can fetch a good price. Best of all these are easily obtained from your local friendly bar and / or restaurant.

4. Matchbooks.
Thought matchbooks were a thing of the past? Not so! People still collect them and are keen to add new ones so wherever you go be sure to pick them up. Sell them in small lots. This is another item that is valued by international buyers.

5. Stamps from mail you receive.
Whether it be mail received at home or at the office, the stamps have the potential to be a good money maker, particularly if you find uncancelled stamps. Once in a while you will find that a stamp fails to go through the cancelling machine and these are good to sell on eBay as either “mint ungummed” or “used uncancelled” (check out some of the recent sales here). People buy them to put on their own mail and you don’t even have to go to the bother of removing them from the letters. For cancelled stamps, just cut around the stamp leaving a margin of paper, put them aside and once you have collected a good number of them they can be sold by weight: “1 pound on paper USA stamp mixture” (example here).

6. Empty toilet rolls
I am sure you are sitting there questioning my sanity on this one, but let me assure you that empty toilet rolls DO sell on eBay. Crafters love them, and although it might take you a good while to collect enough to be worth selling, there is money to be made from something that would ordinarily be tossed into the recycling bin.

7. Used buttons
How often have you tossed a torn button-up shirt into the trash and not given it another thought? There is money to be made in used buttons, particularly if they are old and / or unusual. Next time you go through your wardrobe and decide that it is time to toss out some items, provided they are not fit to be donated to a charitable organization, take a minute to snip those buttons off. Make sure the buttons are not broken, scratched or chipped. While not a huge money maker, used buttons do sell and are one of the easiest and cheapest items to ship.

8. Box Tops for Education
If you no longer have school-age children, or your school does not collect Box Tops for Education, there is a market for these on eBay too. Check for them on the likes of cereal boxes etc. Again, it may take you a while to accumulate enough to warrant putting them on eBay, but considering you are just throwing the empty packaging in the recycle bin, it takes very little effort to snip out the Box Top logo and put it aside.
These are just a few ideas to get you thinking of things that someone else would be willing to pay money for on eBay. Take the time to explore some of the more unusual items that sell on eBay. One of the best places to start researching is in the crafting section. You may be surprised by some of the items that sell. Start looking at some of the items that you might think have absolutely no use to you and see if there is a market for them on eBay. If you can make a few dollars from those items, then why not give it a go?

How To Sell On Ebay In The Current Market

How to sell on eBay Now

Like many old timers and work-at-home eBay sellers, I am not a drop-shipper nor a big business selling new iPhones, LCD's and laptops; I am just a mom who loves thrifting and trawling garage sales to find items to sell on my listings for a bit of pocket money for the family. I know I am not alone, but I am also aware how difficult eBay selling has become these days so I have complied this guide to help. The old days when it was all so easy...

 Back when I started on eBay, around 1998, I could sell a freezer to an Eskimo (well almost) because collectibles, antiques and vintage items were huge on eBay, buyers were still competing with each other and the market was strong. Before eBay came along, finding collectibles to add to a collection was much more difficult; when it arrived, it was met with excitement because, with a click of their mouse, buyers could find THAT piece that was missing in their collection thanks to a new world with hundreds and hundreds of items.

Before eBay, collectors had to attend shows, antique and thrift stores, belong to collectors' forums and read ads in specialized magazines; when eBay arrived I could go to half a dozen of garage sales over the weekend, haul home tons of stuff that would end up being sold before the end of the week and do it all with no worries because I could start most of it off at a dollar and know I would get the right price after yet another ferocious bidding wars.

That was then...this is now.

 Of course that is all in the past and today Ebay has changed. It is now a much more accessible market with a new look, new consumer base and the negative influence of a new, much worse economy; an economy where buyers are not spending as much to build up their collection because they have a more limited budget and are less inclined to spend money on non-essential items. Buyers should never spend money they need for food and necessities unless they are sure to at least make their money back. In regard to the site's new looks, the front page now looks like you landed on BestBuy rather than a friendly retailer because all the small mom and pop pages, who sell collectibles and unique items thinking “I'll try selling that just in case it's hot” are being viewed as a thing of the past.

New attitudes, such as eBay's new idea not to show all the listings at all times – meaning you pay for your listing but it may not be shown on every related search – have reshaped the landscape and the additional fees have provided that final nail in the coffin for us casual, at-home sellers. Another important point to remember is that the market is ever-changing and things that sold well 10/15 years ago do not perform quite so well in today's bidding wars, either because they are no longer hot or because years of buying and trading has dented the competitive edge.

Among the things that have come to pass, here are a few hot niches I used to make a killing with: In the late 1990's I could successfully sell vintage clothes to those enjoying the current emo trend as well as practically anything with Roy Dupuis, the French-Canadian star of the TV show La Femme Nikita. Even magazines and clippings would go for impressive amounts of money and I could buy a magazine from a news-stand in Canada, put it on Ebay and end up selling it for $25, $50 or maybe even more. Once the early 2000s hit there was a huge craze for Star Wars' Hayden Christensen, where I again sold a few magazines at high mark-ups, and of course this more recently turned into all-things Twilight.

Selling on eBay may have changed but you can still be successful. As a seller, each of the points above is sure to have an impact, so what can you do to avoid losing money when buying items to resell online. Here are a few tips:

 #1 – Know the market. Essentially this means putting in some research so that you know what is currently selling well, and by that I mean items that sell almost every time they are listed. Know what's hot and what's not in a few specific niches. For, example, board games and some very niche collectibles still perform above the current standard, with a sell through rate of close to 100%, and they can be found relatively easily in garage sales. If in doubt, pick an area that you feel comfortable with, one where you have prior knowledge and experience. Here's a great example of a niche that still work well: Rare Board Games You Need To Look Out For

 #2 – Find an area where there is demand. There are some items that are on trend but experiencing a saturated market but there are others where the demand is equally high but supply is limited. Latching onto these more limited niches is a great way to start and should offer much better returns.

 #3 – Buy things you can use and need but that also have a chance to sell. Taking a slightly more practical approach to your selling options could be the best idea for cautious sellers on a budget because if, for whatever reason, they fail to sell, they can still be used by you and your family. A good example of this is kids' clothes; buying nice, second-hand boutique and popular name brands that could sell well are a great idea because if they fail, your kids can wear them instead! The same goes for vintage household items; if you need mugs, glasses or plates then try to find cheap vintage brands and antiques that will look good in your home and have buyer appeal.

In short, the image and attitudes of eBay and its listings may have changed significantly over the years, and it may seem as though simple at-home sellers like us are no longer welcome, but by following these tips and understanding the new market it is possible to succeed.