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Best Products to Sell by Retail Arbitrage
Retail arbitrage is buying goods from local retail stores at low prices and then selling the same items for a profit via online markets. Generally, clearance stores such as Home Depot and Target are the most reliable for product sourcing.
What is Retail Arbitrage?
Retail arbitrage is buying items through brick-and-mortar retail stores (such as Target) and then selling them for a profit online (usually on Amazon or eBay). Utterly different from online arbitrage. Read more about online arbitrage on Amazon.
Retail arbitrage products are usually purchased on sale or clearance, providing a significant discount relative to the retail price and the opportunity for good profits when sold online.
You can sell products bought via retail arbitrage on online marketplaces such as Amazon, eBay, Jet, Etsy, Craigslist, Facebook Marketplace, OfferUp, Let Go, and many more.
Benefits of Retail Arbitrage
Retail arbitrage has several advantages that make it valuable for potential sellers and those who simply need an additional source of income:
- Retail arbitrage is a low-risk business. You can start selling by purchasing a single product, so you don’t have the costs of buying a physical address or bulk products from a wholesaler.
- Retail arbitrage helps sellers to know Amazon Marketplace. Those who perform retail arbitrage business as Amazon sellers have many of the advantages Amazon provides to run a full-fledged shop.
- Establishing a retail arbitrage setup is quick and easy. You have to buy products and list them. So no need to make an Amazon storefront with a name, branding, marketing, etc., with retail arbitrage.
In short, retail arbitrage is an easy, low-risk, fast way for anyone to get into sales. As entire business success depends on other retailers to deliver the product, retail arbitrage is limited in its scope for growth.
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Retail Arbitrage for Beginners
Many people start their RA business, but only some have the opportunity to succeed. Few of them are always bothered in trying to find their first product, and the vast majority of people who do want to leave within a week or two and say to everyone that retail arbitrage is dead and that buying goods is impossible. Know online retail arbitrage.
As a beginner, you should know that although RA is a simple process, not so easy to perform. It requires a lot of hard work. As a beginner finding the best products to sell is very time-consuming. It would help if you had the right mindset and willingness to invest the time to make it succeed.
How to Get Started with Retail Arbitrage Sourcing
Getting your first product listed on Amazon for sale is a simple process. Follow the six simple steps to get started:
- Register for an Amazon Seller Account.
- Download the Amazon Seller App.
- Visit your local retail stores.
- Use the Amazon Seller App, scan the product’s barcode, and it will lend you to its Amazon listing. Check its ASIN, price, and profitability.
- Buy any that offer over $3 profit after fees and shipping.
- List them for sale on Amazon.
This process is simple to get started immediately. Now, you need to plan on the further process as soon as possible.
What Product You Should Sell Via RA? (Product Criteria)
What to look for in any product?
Before you know where to find the products and best product categories, You need to learn what makes a product ideal to sell via RA.
Here is what to look for in a product before purchasing.
Profit Margin
The general rule in retail arbitrage is that your product must have a profit margin of at least 40 percent after deducting all fees and expenses. If the profit is below 40 percent, you should not buy it. This is because online prices constantly fluctuate, and it will take about a week to get the item from the retailer’s website through FBA.
Not Too Expensive, Not Too Cheap
Researchers believe the cutoff between $10 and $30 for a retail arbitrage product is correct. Anything below that is subject to tiny margins, and if you want to buy multiple units of a product, you’re investing quite a bit of money at anything above that. The $10 minimum makes a profit margin of $4. Remember the 40 percent profit margin rule. Consider using Amazon product research tools to find profitable products.
Lightweight and Small
You can save on shipping costs for small and Lightweight products. When you go through FBA to create your UPS shipping mark, you’ll be asked to enter the weight and dimensions of any package you send. If your box is extremely big or heavy, you must pay extra.
Good Reviews on Amazon
It’s essential to look at the top-rated reviews for each product you are considering because Amazon people only buy products with good reviews and low-star rates. If you believe a product on Amazon that maintains low ratings, you’ll need help while marketing it. Ensure you have 4, 4.5, or 5 stars on your products. If it is not, you may find it challenging to sell your product. As a new seller you can have an Amazon virtual assistant which allows multiple services to take care of your online business.
Selling quickly on Amazon
A product that has received four- and five-star reviews over four years is an excellent overall product but could be a better retail arbitrage product. On each of the product pages we are considering, we need steady traffic and sales so that they sell out quickly when our units go up on the list.
Best Stores For Retail Arbitrage
Once you have done some essential product sourcing practices, you might know where to buy an inventory. Although you can pick any store you like, spending your time in the right store keeps the priority to prefer local stores while starting as a beginner.
You can try other nationwide and regional chains once you feel comfortable with your local stores.
Here are a few retail stores popular among Amazon sellers:
- Target
- Kohl’s
- Lowe’s
- Home Depot
- Best Buy
- Big Lots
- Ollie’s
- Tuesday Morning
- Ross
- TJ Maxx
- Kroger
- Meijer
- Safeway
- Publix
- H-E-B
- Trader Joe’s
- Staples
- Office Depot
The store’s list is enough to start product sourcing; some are specific to any part of the country.
Using Amazon FBA with Retail Arbitrage
There are many reasons why private label brands and Retail Arbitrage sellers use Amazon’s FBA services most. Why Amazon FBA? You can check out the Guide to Amazon FBA and How to Sell on Amazon?
Here are some advanced benefits of using Amazon FBA with retail arbitrage:
- Cost-effectiveness and Simplicity.
- Higher Scope for Business Growth and Development.
- World Class Customer Service and Easy Returns Facility.
- Multi-Channel Fulfillment.
- Time-saving process and provide growth capabilities every time.
Best Categories for Retail Arbitrage
Here are the eight best categories to source products and sell them with retail arbitrage.
- Toys
- Home and Kitchen
- Baby and Nursery
- Books
- Clothing and Shoes
- Handbags
- Phone Accessories
- Lifestyle
Now let’s discuss What Products You Should Sell by Retail Arbitrage?
15 Trending and Best Products to Sell by Retail Arbitrage
Whether for Retail Arbitrage or building your brand on Amazon and selling goods, finding the right products takes a lot of work. Here’s a list of large-scope products for this year that you can sell by retail arbitrage along with a good profit margin. Check out the products:
1. ENAMEL PINS
Enamel pins are like those market trends that arise every couple of years; this time, it’s turned out in full effect. These pins are again popular because they are easy to design and customize, making them appealing to businesses and consumers. It can be an ideal accessory for fashion because they beautify any outfit by pinning on bags, jackets, t-shirts, etc. You may also want to build strong marketing campaigns around them to sell these in high volumes in lifestyle groups, charitable causes, or pop culture niches.
2. FITNESS LEGGINGS
Fitness leggings are another fantastic product to sell. These have been popular for a couple of years now, and they appear to be going nowhere soon due to the looks of this growing market. Fitness leggings are built for several niche markets, making them a flexible product for any brand that focuses on developing a fashion, fitness, or athletics company. You can also sell fitness leggings in all seasons due to their versatility, such as loungewear during the cold months and fitness clothing during the warmer ones.
3. TITANIUM RINGS
Titanium rings perfectly match aesthetic appeal and manhood, which can be a crucial combination when a man’s accessories market creates successful products. As we know, titanium is a premium material. Still, it’s relatively cheaper than other precious metals, so if you can find the right supplier, it’s a fantastic product to get started with.
4. BAMBOO TOOTHBRUSHES
Minimalism has become a rising lifestyle choice for many people and is a trend that continues to develop with the younger generations. This, coupled with the fact that customers are looking for more sustainable product alternatives and consciously making such choices, has also put products such as bamboo toothbrushes on the trend list.
5. NOVELTY SOCKS
Novelty socks are also a great product to sell online. It’s thin, lightweight, not gender-specific, can be printed with various designs, and more. Socks are one of those evergreen products which are trending almost always. Even though it is a standard product which is just a regular everyday item, it can catch the eye of consumers with a few minor design details.
6. NIGHT FACE MASKS
Selling in the Amazon beauty category can be profitable. The beauty and skincare industry may always be around as a “trending market,” which is why it attracts innovators to it all the time. Night masks are one of the new trends in the market.
7. PLUSH TOYS
Plush toys are also excellent for your kids, home, or lifestyle category. This product provides the perfect opportunity to combine it with other items from your inventory to upsell to your customers. These toys make perfect gifts and come in a range of unbranded choices offered by various craftsmen. They’ve been a “trending product” for a long time because of their success, and even adults are buying them to create Pinterest-worthy home decor setups.
8. UNICORN THEMED PRODUCTS
Such products are always attractive, innovative, and highly social media shareable, making them well-suited to creating a fun marketing campaign around them. A people’s niche market also likes everything to do with unicorns, so there’s a proven customer base ready to go.
9. PHONE ACCESSORIES
With the smartphone’s emergence, a new market has been created. This market also included a niche among top contenders such as home decor, fashion, etc., which has created a solid foundation for itself — phone accessories. These accessories can range from smartphone cases, screen guards, chargers, USB-type converters, stickers, and earphones. The further smartphones grow over time; companies will produce accessories to boost the products’ customer satisfaction.
10. ATHLEISURE
Athleisure is perfect for activewear, which can be worn as an everyday outfit rather than for athletic purposes only. It emphasizes comfort and durability, which is what consumers in clothing usually look for. As a retailer, athleisure is a perfect target market because you can sell many items, such as leggings, sweatpants, t-shirts, sneakers, boots, headbands, sports bras, and more.
11. SHAPEWEAR
It would be best if you were interested in shapewear with a projection of $5.6 trillion in sales by 2022. This product’s versatility allows sellers to categorize it into multiple niches/markets and sell it accordingly. Shapewear comes in several styles — some can be worn under clothes, some over, and others in lingerie shape. You can find nearly any style, color, and size to stock in your inventory and cater to your customers’ different needs.
12. BODY WIPES (“DUDE WIPES”)
Hygiene for men is a niche that needs the attention it deserves. More prominent manufacturers focus on wipes for the general hygiene segment, but smaller vendors have found that as men’s wipes for a niche market, there is great potential for them. This makes it possible for smaller vendors to form a customer base and include a range of hygiene items for people, not just wipes.
13. SILICONE MAKEUP SPONGE
The silicone makeup sponge is an egg-shaped sponge that can help spread the liquid foundation or concealer uniformly and help to blend it properly. As soon as this product hit stores, it began selling out it was a hit. This product got much attention online and has attained cult status.
14. ACCESSORIES OF ACCESSORIES
Speaking of accessories, this will be one of your most significant opportunities for many businesses to find the perfect product to sell by 2020. With customers gradually adding technological items to their everyday lives, there is more interest in accessorizing these devices to make them more fashionable, streamlined, and practical. These accessories can add elegance to the product itself, whether it’s a phone, computer, camera, drone, and so on, or these accessories can be a more trendy version of what you currently use in conjunction with devices such as docking stations, power banks, cables, chargers, etc.
Some popular accessories include the iRing, which adds functionality to the iPhone, AirPod Skins, which add style and safety to the Apple Airpods; and drone sweaters and Airpod floss stickers.
15. ESSENTIAL OIL DIFFUSERS
Essential oils have various benefits, such as lavender relaxation, tea tree oil being antimicrobial, peppermint oil relieving common cold symptoms, etc. An essential oil diffuser explicitly designed for emitting essential oils into the air is a simple and easy way for consumers to implement them into their everyday lives.
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Conclusion
With the above article, we have covered everything you need about Retail Arbitrage. If you want to make some extra cash on the side, this might be a great way to start a side hustle. Still, if you’re looking to build a business from scratch and consider taking up Retail Arbitrage, it might be something you’ll experiment with early to gain some experience and then move on. You can also hire a professional Amazon consulting agency for strategic guidance and solutions to fulfill your brand needs.
Retail Arbitrage is not a flexible business model that, even in the long run, can make you a profitable business owner; it’s more designed to fit bootstrapped business owners who want to keep their companies small.
