Retail arbitrage is a popular way to make money online. It’s also legal in Australia and easy to get started. In this post, we’ll cover everything you need to know about retail arbitrage (including what it is, how it works and how to get started with your own business). So if you’re interested in building an extra income or starting a side hustle that lets you buy things for cheap and sell them for more, read on!
What is Retail Arbitrage?
Retail arbitrage is buying items from stores at lower prices and reselling them on Amazon for a profit.
It works like this: you identify an item selling for less than its price online. You buy it in-store and then resell it online (usually on Amazon).
Because anyone can do retail arbitrage with access to a computer and internet connection, there are two main ways you can get started:
- Buy your products from local retailers or online stores like eBay and sell them through Amazon FBA or Shopify. This requires self-supply chain management skills such as sourcing products locally, packaging them well for shipping using bubble wrap, delivering these packages safely to Amazon warehouses, managing inventory levels & sales velocity, etc.
What Can You Buy at Retail?
Retail arbitrage is buying products at retail prices and selling them for a profit on Amazon. You can do this with any product, but there are some things to consider when choosing which products to buy.
When deciding what you want to sell through retail arbitrage, you need to figure out what your customer wants and what they’re willing to pay for it. If you’re going for high-priced items like electronics or books, you’ll need enough sales volume for your money-back guarantee (MBG) fees to not eat up your profits. If you’re selling clothing or shoes on Amazon, an MBG fee might not matter as much because those items will sell quickly enough without a guarantee or return policy.
Can You Sell Wholesale?
- You can sell wholesale.
- You can sell at retail.
- You can sell at a profit.
- You can sell at a loss.
- You can sell for charity (not tax-deductible), and it’s an exempt sale, so you don’t need to pay GST on that sale. If the item is worth more than $75, you must apply for an ABN with the Australian Tax Office. This is just like applying for a business license, except no licenses or fees are involved. To apply, simply go to their website and fill out their short form with your details and information about how much money you intend to make each year. They will then send back an ABN number which takes about two weeks from when they receive your application form. Once this has been completed, all future sales of goods or services made through this account will be exempt from GST until it hits $75k in annual income and then becomes taxable once again.*You may also want not to include details of where these products were sourced from as most retails stores charge tax if their customers make purchases over $1000 but under $10 000 which is why most people who resell products online do so via eBay instead due to its lower barrier-to-entry threshold requirements.”
Retail Arbitrage is Legal in Australia?
Retail Arbitrage is completely legal in Australia. You can buy and sell products on eBay, Amazon or other online marketplaces. You can also sell in person at markets and garage sales. And you can also sell products on Facebook, Instagram and other social media platforms.
How to Get Started with Retail Arbitrage?
To get started with retail arbitrage, you’ll need the following:
- A smartphone and/or laptop with internet access
- An app that can help you find products to buy at a discount (I use an app called Paribus)
- A cashback card, so you get some of your money back when making purchases (I use this one)
Once you have these things in place, there are a few steps to take before purchasing anything from a store:
- Use your phone or computer to look for deals on the items you’d like to purchase. Try searching for “deals” or “discounts” as well as the name of the store where you plan on buying the item from (for example, if I wanted to buy something from Target, I’d search for “target clearance,” “target deals,” etc.). You should also set up price alerts through Google Shopping, so any time prices change at stores where you’re considering doing business with them later down the road (like Target), they’ll notify you via email, so it doesn’t slip past unnoticed! This can save us money since last-minute searches often yield lower prices than those listed on websites beforehand because many people forget about these deals when shopping online; being able to find out about them beforehand helps give us an edge over competitors.”
How to Find the Best Deals for Retail Arbitrage?
You’ll need to know where to look to find the best deals. The first place we recommend checking out is the clearance section of a store. This can be found at most retailers’ physical locations or online stores with an online presence (for example, Amazon). You should also check out the clearance section of your favorite retailer’s website at night—this is when they typically update their inventory with new items and mark down older ones.
Finally, it’s important that you consider all of your options when searching for deals. If there’s no sale at your local store, but one is happening online, then it might make more sense for you to purchase from Amazon instead!
Conclusion
Retail arbitrage is a great way to get started with e-commerce. It’s easy, it’s legal, and it can be profitable. There are many products on which to find the best deals, so all you need is time and patience. Remember that this is a long-term strategy, so try not to get too caught up in making money immediately. If you want more information about retail arbitrage, we recommend visiting our blog post: How Does Retail Arbitrage Work?