An explanation of retail arbitrage may best be introduced by an explanation of the word, arbitrage.
The word, arbitrage, essentially refers to the buying and selling of an asset in order to produce a profit by taking advantage of price differentials between markets. If you can buy an asset that is selling at a reduced price in one place, and resell that same asset in a different market at a higher price, you are able to create a profit. It boils down to the phrase, “buy low and sell high.”
While the concept of arbitrage is most commonly applied to the world of financial instruments, stocks, and securities – it can also be readily applied in other areas as well.
In the present case, some clever side-hustlers have found a way to make the concept work in the reselling of physical goods, and somewhere along the way the phrase, retail arbitrage, was coined.
The basic model of retail arbitrage involves buying discounted merchandise at retail stores and reselling that same merchandise through various online marketplaces such as eBay or Amazon.com.
When the price differential is large enough, it is possible to earn a profit based on the higher amount earned through the online marketplace. If this process is repeated over and over again with a large number of items, the profits can be quite high. In fact, you can read my personal story of earning over $30,000.00 in profits in less than four months by reading my earlier post about retail arbitrage and Amazon FBA.
For folks getting started with retail arbitrage, there are a lot of great online resources and groups which you can become involved in to learn more. When you start to learn more about the subject, it’s amazing how many people are having success with this business model.
If you’d like to read the exact steps I took to go from zero to $30K with retail arbitrage, I invite you to check out my book, Retail Arbitrage Money Machine, in the Amazon store. This book describes the specific how-to’s of retail arbitrage right along with my personal story of learning this process from the ground up.
While I’ve been quite happy with my part time side hustle of retail arbitrage that earns my girlfriend, Robin, and me about $2,000.00 extra a month, there are a number of people out there who are able to earn full-time, six-figure incomes strictly through retail arbitrage!
For me, however, a few days a month of product sourcing at my local stores to earn that additional couple thousand is perfect. It’s kind of like earning money while you’re shopping – instead of coming home with bills, you’re coming home with future profits!
I’ve personally been having success with retail arbitrage since late 2014, and I can tell you from personal experience that it really works. If this is something you’d like to pursue for some additional side-hustle income, I encourage you to look through the posts on this site, check out my book, and if you don’t want to waste any time, check out my page that discusses my most-recommended retail arbitrage training program.
Retail arbitrage is definitely a real opportunity, if you take the time to learn how to do it, and have access to plenty of retail stores in your area!