Is Sourcing Products From Retail Stores Profitable?

A question I get asked all the time as an eBay and Amazon Consultant “Is sourcing products from retail stores profitable?” The answer I always give is It depends on what you are sourcing, and where you are sourcing and what price you buying the item for. Remember in retail selling either online or offline you make your profit when you buy the item not when you sell the item.

What do I mean, when I say this…….. You make your profit when you buy and not when you sell. Well if you buy your item too high, there will not be the opportunity to flip the product on either Amazon or eBay and make a healthy profit. So you need to buy as cheaply as possible, which will then give you the opportunity to flip on Amazon and eBay for a higher price.

When you source remember, you need to take into account the Amazon or eBay / PayPal fees. Amazon fees as a general rule are 30% and eBay / PayPal are 15% together. Now while the eBay fees may look cheaper and yes they are, you got to ask is that the right place to sell your items. Also remember that you are paying Amazon to store the items for you and then to pick, pack and ship them out to your customers.

So once we have identified products we like the look of and scanned them with an app on our phone if doing offline arbitrage or used extensions on our computer for online arbitrage and we have find a good item we need to work out how many do we buy. To start only buy a few of each item take your money and go wide not deep. You are far better buying many different products than just a large quantity of one or two items. (Once you find good sellers then you can buy larger amounts and then move into wholesale) But for now we will just do the Retail Arbitrage side of the business.

So is sourcing products from retail stores profitable the answer is using the right tools on your phone. buying small quantities of each item the answer is a big yes.

Easy Steps To Help You Get Started.

  • Use an app such as the Amazon Sellers App which is free for iPhone and Android
  • Source from retail stores both online and offline
  • Go for all types of stores not just the large brand name stores. Very often some of the small retail shops have great offers and closeout items
  • Go wide and not deep
  • Look out for offers such as Buy one get one free, three for two, Buy one get one half price, and look out for sales and clearance items.

Just keep those eyes and ears open and you will start to see products all over the place that you can buy to resell.

Andrew Milburn has been selling on eBay and Amazon for many years
and is now helping many others from around the world learn the
freedom of selling on Amazon and eBay can bring. Andrew is currently
working with Jim Cockrum and Skip Mcgrath as an Amazon Consultant  and eBay Consultant and offers coaching through their coaching programs. For further information please fill out the box to the left.

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