Buying Clearance And Selling On Amazon
It seems too easy to be true that you could make millions by raiding the clearance aisle at your local Walmart or Target and then selling your haul on Amazon. But that's exactly what 30-year-old Ryan Grant is doing.
buying clearance and selling on amazon
And, those sales figures have only continued to grow, as Grant recently told CNBC Make It that he expects his business to reach roughly $8.5 million in annual revenue by the end of 2019 (sales are up almost 45% over last year). Over the past couple of years, Grant says, the fastest-growing aspect of his business has been the part focusing on wholesale arbitrage, which involves Grant buying products in bulk directly from brands or manufacturers before selling them online.
An easy and "low-risk" way of getting some experience in the world of online retail arbitrage, Grant says, is to simply start with a few items you already own, but rarely use, and try to sell them online through Facebook Marketplace, Craigslist, eBay, or even Amazon. From there, you can take your profits and reinvest them by buying items from "a garage sale, or thrift store, or even a retail store on clearance" before selling those items online, as well. Repeating that same formula over and over again for several years, while reinvesting profits in the business, is essentially how Grant grew his multimillion-dollar business.
Unfortunately, I had no luck at Big Lots. Some cheap bracelets at Walmart admittedly stood out to me, but most of what I purchased came from Target: red sticker clearance items are great places to start reselling.
A question about selling as new vs used. I have a plan to buy 2 bedspreads from Amazon (both new). I will then cut one of them and sew a patch (say 3 foot by 4 foot) from the second bedspread onto the top of first full size bedspread. The two amazon sellers will notice I was a buyer of theirs reselling. If they put in a complaint in to Amazon which requires my POA, what is my best strategy? Should I list as slightly used to avoid their complaints?
Before we even go looking at clearance items, you need to determine your buying criteria. This includes your expected profit margin, sales rank, and minimum return on investment. If you do not have these determined for your online arbitrage business, do not even head to an online store.
Once you have the buying criteria in order, you need to create a list of stores and websites where you can find clearance items. Although most sites have a clearance section, some have a better selection of products than others.
Soon, Grant learned the basics of business by buying low, listing on Amazon, selling high and repeating. Using this plan, he left his accountant job and started a part-time gig that he says now generates almost $4 million dollars in revenue.
There are 20 of these stylus pens on clearance at Target. The good news is that it might be possible that you could go to more Targets and find even more. The bad news is that if this item is on clearance at every Target, then many other resellers will also find these and join you in selling. More competition and the possibility of that competition lowering prices are something to consider.
A big concern for potential arbitrageurs is the possibility that you are doing something illegal, wrong, or untoward. Somehow, buying items at a low price and selling them at a higher price feels like getting away with something.
Thank you for your informative article. I needed some clarification on the FBA fee section when you are scanning a product on the seller app and it tells you your cost for FBA, does that take into consideration the storage fees and shipment fees for the product you are sending in? Also, what happens when you product or listing is not selling, do you ask for your product back? or continue to keep it with amazon. What about if you are only selling one or two items of the same product or listing, do you see that as a profitable idea or should I buy a lot of the items. Sorry for the many questions, but I am new to this, and I am barely doing my research on this business. Also what is a ppc, FNSKU, and ASIN?
The term seems to be having a moment. In December, according to Google Trends, searches for "retail arbitrage" spiked on YouTube, where aficionados post videos of their shopping and reselling sprees. (One reseller, who has more than 52,000 YouTube subscribers, filmed his 22-hour buying binge through 17 Walmarts. He filled his trunk with 182 Monopoly games and flipped most of them in one night for $2,500.)
The process of buying clearance items from Walmart and reselling them on Amazon is fairly straightforward. First, individuals need to identify which items are being sold at a discount. This can be done by visiting their local Walmart store or by checking Walmart's website for clearance items. Many resellers will use tools like ScoutIQ to scan products on their phone, which allows them to see if the item is profitable and how often it sells on Amazon. Once the items are identified, individuals can purchase them and then list them for sale on Amazon.
One of the biggest advantages of buying clearance items from Walmart and reselling them on Amazon is the potential profit margin. Walmart frequently discounts items that are not selling well in their stores or are being discontinued. This means that individuals can often purchase these items at a significantly lower price than they would normally sell for on Amazon. They can then sell these items at a markup, allowing them to make a profit.
However, there are some potential pitfalls to buying clearance items from Walmart and reselling them on Amazon. One major issue is that not all clearance items will sell well on Amazon. Some items may have limited demand, meaning that individuals may not be able to sell them at a profitable price. Additionally, there may be a lot of competition from other Amazon sellers, making it harder to sell items at a markup.
There are also ethical concerns that some people may have with this business model. Some may argue that buying up clearance items from Walmart and reselling them on Amazon takes advantage of the retailer's discount pricing, potentially depriving other consumers of the chance to purchase these items at a lower price. Additionally, there are concerns that this practice may contribute to Amazon's dominance in the retail market, potentially harming smaller businesses.
Overall, buying clearance items from Walmart and reselling them on Amazon can be a legitimate and profitable business model for those who approach it correctly. It requires research, patience, and a good eye for identifying items that will sell well. However, individuals should also be aware of the potential pitfalls and ethical concerns associated with this practice. As with any business venture, it is important to carefully weigh the pros and cons before getting started. I am always writing about Side Hustles. Click Here so you never miss a Side Hustle post.
Retail arbitrage is a larger catch-all for buying discounted products through a retailer. This can include purchasing from a retail store in person or online, marking up the price, and selling it on Amazon.
Reselling manufacturer-made products also allows businesses to have private labels on their products for resale or unique branding. Manufacturers usually only set up bulk buying accounts, so upfront capital and storage space is also needed for this method. 041b061a72