Tips to start a retail arbitrage Amazon FBA business
Understand Retail Arbitrage: You buy discounted or clearance items from retail stores and resell them on Amazon for a profit.
Research Products
Use the Amazon Seller App to scan items in-store. Look for products with strong sales ranks, positive profit margins, and high demand.
Start Small: Test with a small inventory to minimize risk while learning the process.
Focus on Popular Categories
Categories like toys, electronics, beauty, and home goods often perform well, but always verify Amazon’s category restrictions.
Track Pricing and Fees
Use tools like Keepa or CamelCamelCamel to monitor price history. Factor in Amazon FBA fees and shipping costs when calculating profitability.
Visit Discount Retailers
Source products from stores like Walmart, Target, TJ Maxx, or outlet stores. Look for sales, clearance items, and store markdowns.
Check for Restrictions: Ensure you’re not selling gated products or brands requiring approval. Apply for ungating where necessary.
Optimize Listings
Create compelling titles, descriptions, and images for your products to stand out.
Stay Organized
Track expenses, profits, and inventory. Use tools like InventoryLab for streamlined management.
Build Relationships: Engage with store managers to gain insider tips on sales and restocks.
Consistency and research are key to scaling your business!