Retail arbitrage could be the tactic for you if you want to make some extra cash online. It\u2019s relatively easy, and the profits can be very rewarding, especially if you\u2019ve got an eye for a great bargain and are good at predicting trends. But just what is retail arbitrage? And more importantly, how does it work? Check out our informative piece on retail arbitrage here at OddsMonkey and learn how to sell items for a profit!<\/p>\n\n\n\n
In this guide, we\u2019ll look at:<\/p>\n\n\n\n
Retail arbitrage (also known as arbing) is the practice of buying and selling items to make a profit. It\u2019s a little different from normal retail because you normally find products in a store sale and bulk buy them. The idea is that you then sell them online in order to make a profit and pocket the difference.<\/p>\n\n\n\n
It\u2019s very much in line with the cash for clothes side hustle<\/a> which is an extremely popular method of earning some extra cash. With the advanced opportunities available online, it\u2019s very different from Del boy\u2019s market stall.<\/p>\n\n\n\n The main difference between retail arbitrage and traditional retailing is that the items aren\u2019t sourced from a wholesaler or manufacturer. Instead, they\u2019re bought from other retailers, usually from a clearance stand.<\/p>\n\n\n\n The concept of retail arbitrage is pretty straight-forward. Most retailers have a clearance section or carry out bulk discounts. It usually happens when they are looking to offload old stock. <\/p>\n\n\n\n As an example, let\u2019s say you find an item that was originally priced at \u00a330 but has been reduced to \u00a310. It may well be old stock but it\u2019s still in fashion so it should sell. You should then consider buying as many of the item(s) as possible. Once you have your products, you need to sell them less than the RRP but with enough of an increase on what you paid to make a profit.<\/p>\n\n\n\n The most popular platform to resell on is Amazon. One of the main draws is their in-house fulfilment service. We\u2019ll cover this in more detail further on in the guide.<\/p>\n\n\n\n Retail arbitrage as a concept is legal. It\u2019s been around for years. Think of all those weekends you\u2019ve spent traipsing around car boot sales or trawling through charity shops. If you\u2019ve ever bought something and flipped it, even on a small scale, that\u2019s technically retail arbitrage.<\/p>\n\n\n\n However, there are some things that you should be aware of when sourcing products to resell.<\/p>\n\n\n\n Where you get the item from is important. In terms of the brand and the guidelines surrounding its sale. For example, if you buy a six-pack of Coca-Cola which says \u201cnot for individual resale\u201d on the box, you can\u2019t resell the individual cans. Also, some brands only allow their products to be sold through authorised resellers, so you should check first and avoid these items.<\/p>\n\n\n\n On a small scale, it\u2019s unlikely that you\u2019ll face legal prosecution if you sell items like these, but it\u2019s still a good idea to avoid them. Please be aware that you could be banned from some online selling platforms if you sell unauthorised items. If you are hoping to learn more about selling sites, check out our How to Sell on Etsy post<\/a>!<\/p>\n\n\n\n Retail arbitrage is a popular way to make money online. Especially in the UK, where Google Trends indicate it has been a highly-searched term over the last five years. In fact, the search term reached a peak in August 2020, perhaps due to the effects of lockdown restrictions and more people setting up home businesses. People searching for retail arbitrage has dropped since that peak but make no mistake, it\u2019s not dead.<\/p>\n\n\n\n In fact, it\u2019s more competitive than ever which also means it\u2019s more difficult to succeed. The landscape has changed significantly in the last 5 years with increased competition and stricter policies from firms such as Amazon. However, with the right approach and product sourcing software, it can still be well paid. Once you\u2019re making a decent profit from retail arbitrage, consider hiring a virtual assistant<\/a> to do the product research for you.<\/p>\n\n\n\n Now, as with most money-making methods, this isn\u2019t necessarily a get-rich-quick scheme or something to jump straight into without properly preparing beforehand. Let\u2019s take a look at some of the advantages and disadvantages of retail arbitrage using Amazon as your resale platform. This is Fulfilment by Amazon (FBA).<\/p>\n\n\n\n Low Overheads<\/strong><\/p>\n\n\n\n Access To Reputable Marketplaces<\/strong><\/p>\n\n\n\n Profit Potential<\/strong><\/p>\n\n\n\n Flexible<\/strong><\/p>\n\n\n\n Gateway<\/strong><\/p>\n\n\n\n Learn valuable business skills<\/strong><\/p>\n\n\n\n Did you make the right decision?<\/strong><\/p>\n\n\n\n Hidden Costs<\/strong><\/p>\n\n\n\n Access Denied<\/strong><\/p>\n\n\n\n No Quality Control<\/strong><\/p>\n\n\n\n Dropshipping is one technique that bears many similarities to retail arbitrage, where retailers sell and deliver goods to the end consumer using a supply chain rather than direct retailer-to-customer shipping. However, there are a few key differences: with dropshipping, the seller never handles the goods they sell but instead sources them from a third-party supplier. The goods are then packaged and sent straight to the customer. The profits come from the margin between the wholesale and resale price.<\/p>\n\n\n\n Both strategies have pros and cons, so the technique which will be most suitable and lucrative for you will depend on your circumstances. To learn more about this, take a look at our guide to making money online with dropshipping<\/a>.<\/p>\n\n\n\n Now that we\u2019ve looked at what retail arbitrage is and what you need to get started, it\u2019s time to jump into exactly how to make money selling on Amazon.<\/p>\n\n\n\n Amazon is probably the most popular online platform for people doing retail arbitrage. And because it\u2019s been used for this purpose for a while, there\u2019s loads of information out there on what you need to do. We\u2019ll take a look at some of the platform-specifics you\u2019ll need to start making money through Amazon.<\/p>\n\n\n\n Whether you\u2019re considering starting a brand new business venture, generating income alongside your normal job or trying to make money whilst on maternity leave<\/a>, retail arbitrage has great potential.<\/p>\n\n\n\n If you\u2019re interested in starting a side hustle to earn some extra cash, then you might want to take a look at our selection of Side Hustle Guides<\/a> on how to make money online<\/a>.<\/p>\n\n\n\n Here at OddsMonkey, we have loads of tips and tricks you can use to generate additional income, including guides to dropshipping<\/a>, making money on YouTube<\/a>, freelancing<\/a>, and completing online surveys<\/a>. You could also try your hand at matched betting, where you can use the promotional free bets offered by bookmakers to make money \u2014 to learn more about how this works, read our matched betting guide<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Learn all about retail arbitrage, how it works and how you can start making money from it.<\/p>\n","protected":false},"author":2,"featured_media":1961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_breakdance_hide_in_design_set":false,"_breakdance_tags":"","footnotes":""},"categories":[85],"tags":[],"acf":[],"yoast_head":"\r\n
\n\n\n\nHow Retail Arbitrage Works<\/h2>\n\n\n\n
\n\n\n\nIs Retail Arbitrage Legal?<\/h2>\n\n\n\n
\n\n\n\nIs Retail Arbitrage Dead? (2025)<\/h2>\n\n\n\n
\n\n\n\nRetail Arbitrage For Beginners<\/h2>\n\n\n\n
\n\n\n\nAdvantages And Disadvantages Of Retail Arbitrage<\/h2>\n\n\n\n
Advantages of Retail Arbitrage<\/strong><\/h3>\n\n\n\n
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Disadvantages of Retail Arbitrage<\/strong><\/h3>\n\n\n\n
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\n\n\n\nDropshipping Vs Retail Arbitrage<\/h2>\n\n\n\n
\n\n\n\nHow To Sell On Amazon<\/h2>\n\n\n\n
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Open A Seller Account<\/strong><\/h3>\n\n\n\n
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The Amazon Seller App<\/strong><\/h3>\n\n\n\n
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Fulfilment by Amazon (FBA)<\/strong><\/h3>\n\n\n\n
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Private labelling<\/strong><\/h3>\n\n\n\n
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\n\n\n\nTips For Retail Arbitrage Success<\/h2>\n\n\n\n
Be open-minded<\/strong><\/h3>\n\n\n\n
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Utilise Scanning Apps<\/strong><\/h3>\n\n\n\n
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Buy Cheap<\/strong><\/h3>\n\n\n\n
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Use Online Arbitrage Opportunities<\/strong><\/h3>\n\n\n\n
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Avoid Gated Brands<\/strong><\/h3>\n\n\n\n
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Condition<\/strong><\/h3>\n\n\n\n
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Start Small<\/strong><\/h3>\n\n\n\n
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\n\n\n\nOther Ways To Make Money Online<\/h2>\n\n\n\n