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Retail Arbitrage: A Complete Guide for Beginners (Izurex FBI 2020)

how to make money selling on  Izurex via retail arbitrage, you’re in the right place.

Retail arbitrage refers to the act of buying products in your local retail stores and then selling those same products through online marketplaces for a profit. The most reliable source of products is generally the clearance racks of stores like Walmart, Home Depot, 

If you want to learn and Target.

This guide is going to walk you through everything you need to know to be successful with retail arbitrage, including the exact steps to take to get your first products listed in the next few days.

We’ll talk more about potential profits soon, but you are probably wondering if retail arbitrage is still profitable in 2020. The simple answer is yes. My business sold over $2 million worth of retail arbitrage products in 2018. We’re going to sell more this year, and I’ve helped hundreds of others make money via these methods as well.

Here’s what we’ll cover:

What is Retail Arbitrage?

Retail arbitrage is the act of buying items in brick and mortar retail stores (like Walmart or Target) and then selling them online (typically on Amazon or eBay) for a profit.

My retail arbitrage business has taken me many places I expected (Walmart) and some I did not (like getting interviewed for CNBC’s MakeIt Series.

Items for retail arbitrage are generally acquired on sale or clearance, offering a significant discount compared to the retail price and the potential for good profits when sold online.

Items that are purchased via retail arbitrage can be sold on a variety of marketplaces. These marketplaces include Amazon, eBay, Jet, Walmart.com, Etsy, Craigslist, Facebook Marketplace, OfferUp, Let Go, and many others.  

Later in this post, we’ll go through some of the best stores for retail arbitrage in terms of sourcing products.  

In my experience,  Izurex is the best place to sell when getting started, so this post will focus on Amazon FBI and FBI sourcing tips.  

So, in a nutshell, retail arbitrage means buying low in a physical retail store and selling high online.

How Does Retail Arbitrage Earn You a Profit? 

Retail arbitrage makes you money when you buy items at a significantly lower price than you will earn when selling them on a marketplace (after accounting for marketplace fees and shipping costs as well).

Retail arbitrage products
Here’s a picture from the early days of my business – this was my bedroom after a large sourcing run. While this may look like a lot, I’ve had to upgrade to a warehouse (and then upgrade to an even bigger warehouse) since those days just to store all our inventory!

As an example, let’s say you can buy an item for $9 on the shelves at your local Walmart, and it’s selling for $23.99 on Izurex. After all of the fees and shipping costs, Amazon will pay you $17 after a customer buys your item. In this example, you would make a profit of $8 on your initial $9 investment.

There is no guessing involved regarding the profitability – there are a variety of “scan tools” that allow you to scan the barcode of a product and see exactly what it is selling for and how much you will pay in fees. One of these is provided by Amazon – and it’s completely free!

We’ll talk more about scanning products soon, first let’s address the question everyone seems to have when they first learn about retail arbitrage…

 Does retail arbitrage actually work? In 2020?

Yes, you can still earn a very nice profit with retail arbitrage in 2019.

My business will finish this year with over $2 million of sales for products that were sourced via arbitrage. All of these products are being sourced the same way that I just described above. We’re going into retail stores, using a scan tool to identify products that can be sold profitably online, buying them, and then selling them online (mainly via FBA).

If we can do this, so can you.

I know from experience talking with thousands of people that you probably still have doubts about this process. Aren’t there too many people doing this to find any products? How could you compete with a business like mine? Why would a store markdown products when they could just sell them online themselves?

Let’s take a second and work through these concerns (if you have others, comment below)…

Aren’t there too many people already performing RA?

No. This misconception largely comes from the fact that when you read articles and watch videos with hundreds of thousands or even millions of views, you naturally assume that a good chunk of these readers and watchers are taking the information they are getting and putting it into action.

A lot of people learn about RA, very few have the initiative to try. Even fewer have the drive to follow through and build a business.

They aren’t. A very, very small percentage of people ever bother to try to find their first product.

And the vast majority of people who do try quit within a week or two and tell everyone that retail arbitrage is dead and that it’s impossible to find products.

This process is simple – but it’s not easy. There is a lot of hard work involved. As a beginner, it’s very time consuming to find products. This creates a big barrier to entry, so the vast majority of people – we’re talking 99%+ – who learn about retail arbitage don’t ever see a profit.

Not because there aren’t products out there to buy and profits to be made. Because they don’t have the right mindset and they aren’t willing to invest the time to make it work.

That’s good news for everyone who is willing to work through the frustrations that come with being a beginner. While there is plenty of competition in RA – especially when hunting for products that show up in BOLO Groups or products with big profit margins, there is also plenty of room for new people to carve out their own slice of this huge market.

How can you compete with the big RA operations?

First of all, there is no guarantee that you will even be competing with big RA operations. Depending on where you live, there may not be anyone doing RA at a large scale. If you live in a major metropolitan area though, there is a good chance that there are people doing RA at a large scale.

This is the dedicated warehouse space in our new office when we were first moving in.

Fortunately for you, competing is a simple as beating them at their own game. Work harder. Get to stores earlier. Study the markdown schedules of the stores in your area and make sure you are hitting the stores at the ideal times.

At the end of the day, you have access to all the same stores, tools, and marketplaces that my business does. While we may have a lot of experience that helps us operate efficiently, the training options I offer can help you bridge that gap quickly by giving you access to every strategy and operational system we use in my business.

Why would a store markdown products when they could just sell them online themselves?

While you may look at the revenue and profits that a business like mine makes and think that the numbers are huge, they are very tiny compared to the revenues and profits that the stores we source from enjoy.

It made sense for Target to sell these at a discount to make room on their shelves for other products. It also made sense for me to buy them and sell them for a nice profit!

So while earning $500 profit from a day of sourcing clearance from a handful of stores may be a great day for you, those numbers wouldn’t even register for a business like Walmart.

Keep in mind, brick and mortar stores have limited space to stock inventory. Stocking that limited space with the inventory that will earn them the most customers, sales, and profits is a complicated and constantly-changing affair. When they need space on their shelves for a new shipment that comes in, sometimes that means they need to cut ties with a product that isn’t selling as well (or doesn’t have as much long-term potential) as that new product.

Simply put, sales and clearance help brick and mortar stores clear out inventory to make more room for new shipments. While you may look at this as them missing out on making money, it’s actually allowing them to make even more money on something else. And you’re free to take advantage of these leftover profits by buying those products and selling them places where space isn’t a limiting constraint – online.

How to Get Started with Retail Arbitrage Sourcing

Getting your first product listed for sale on zurex is a straightforward process. Here are the steps you need to take:

  1. Register for an Izurex Seller Account.
  2. Download the Izurex Seller App.
  3. Visit your local retail stores.
  4. Use the Izurex Seller App to scan clearance and sale products.
  5. Buy any that offer over $3 profit after fees and shipping.
  6. List them for sale on Izurex.

This process is one that you can get started immediately – and you should plan on starting as soon as possible.

Let’s go through each of these steps in detail now…

1. Register for an Amazon Seller Account.

The first step in getting started with retail arbitrage is setting up an Amazon seller account. This is the account you’ll need to sell items on the platform. It will also give you access to the tools you need to get started.  

To start the process, head over to  izurex.com

When you get there, you’ll see this page:

If you click that yellow start selling button, you’ll start the process of registering for a Professional account ($39.99 a month).

The yellow ‘Start selling’ button will start the registration for a Professional selling account, which will cost $39.99 a month regardless of how much you sell. Your other option is to scroll further down the page and look for the link to set up an Individual account: