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The Ultimate Beginners Guide to Retail Arbitrage 2022

— May 20, 2022

Look for products that won’t cost you too much but that are also sought after and will likely be bought quickly online.

Retail arbitrage has the potential of earning you a steady income, and it’s still just as lucrative in 2022 as it was a couple of years ago, if not more so. With Amazon’s steady growth, you can expect to be able to grow a successful business simply by investing enough time and staying on the top of sales. 

Here is how you can make it in retail arbitrage in 2022. 

What is Retail Arbitrage? 

Retail arbitrage is buying items from retailers at discounted prices and reselling them online. Amazon is the most popular platform available, but it certainly isn’t the only one. We will be basing our guide on it, but you can take these tips and apply them elsewhere too. 

Register an Amazon Seller Account 

Your first step is to set up a seller account on Amazon. The steps you need to take are very straightforward and easy to follow. 

You can choose to register an individual account, which is free, but that will come with a $0.99 charge per item sold. Once you have sold over 40 items, you will need to switch to a professional account, which is $39.99 per month.

Get the Amazon Seller App 

You will then need to start sourcing the products you want to sell. The Amazon Seller App is a great way to start, as it will let you scan the barcode of a product and tell you what its price is on Amazon. 

You can also use it to manage your listings, message customers, and find items you want to sell in the future. 

Visit Your Local Stores 

You then need to start looking for the products you want to sell. You can do this online, of course, but you can also start visiting your local retail stores. 

Look for products that won’t cost you too much but that are also sought after and will likely be bought quickly online. Also make sure you look for decent discounts, as something that is only 10% off won’t earn you a significant commission back. 

Stores will often announce their sales in advance, so make sure to hit them regularly and keep coming back to see what’s available. You can also check social media to see what people are talking about and where they’ve been shopping at discounted prices recently.

Find Online Clearance Sales 

You shouldn’t neglect online shopping and online stores and sales either. There are numerous apps and tools that you can use that will help you hunt down the kinds of prices that will be worth your while.

Amazon Created Knockoffs, Modified Search Results to Boost Sales
Photo by Christian Wiediger from Pexels

You should also make sure to register for coupons or become a member of loyalty clubs and programs that can help you save a lot on an order, which you can then leverage to make a more profitable sale on Amazon. 

Do the Math Right 

While you are only working with a handful of items, it will be very easy to stay on top of your prices and profit margins. But as you start working with larger volumes, you can also start experimenting with different prices.

Your goal is to always earn at least a small amount for each sale. You want to factor in the time it has taken you to source and list the item into consideration. However, you can also lose a bit on an item or two if it will allow you to earn a lot somewhere else. 

Your overall math needs to stay in the green. So, keep track of your figures and regularly reprice your items to get the most out of them. 

List and Promote Your Items 

Once you have your clearance items, you can list them on Amazon. Make sure to do your best to stand out and write great product descriptions that will entice shoppers to make a purchase from you and not your competitors. 

Remember that you also need to promote these products. So, to fuel your sales even further, figure out a marketing plan that you have both the resources and knowledge. 

Final Thoughts 

Retail arbitrage is a great way to get started with e-commerce. Just make sure that you buy quality products that you will be able to sell at the right prices.

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