The 3 Ways To Use Retail Arbitrage To Make Extra Money
Everybody is looking for a bargain. Thanks to the internet, these bargain hunters have a great way to find deals for items that they have been looking for. If you’re looking for a great side hustle, then targeting these people is the best way to make some extra money for yourself while providing a great deal for them. The system to use is called retail arbitrage.
This is when you either clear out your garage and sell the items online or look for items for sale that you can buy and sell for a profit. There are so many different types of products to sell so it just takes understanding how to make a profit. In this article, we will go over several ways to make money from retail arbitrage.
1. Pick a platform
There are many different online platforms where you can sell things and each has its specialty. For example, if you have items in the original box then you could send those to Amazon and have them sell them for you for a fee. This works really well because there are millions of people there shopping every day. With some research, you can find the types of products that sell well and focus your energy on finding them to buy for cheap.
For more niche items, there are a whole host of platforms that cater to people with a particular hobby or passion. For instance, there are a lot of people that collect second-hand records. One of the best places to buy records online is a website called Vinyl Records Direct. You can sign up for a free seller account and sell all of your old records or ones that you buy at estate sales or flea markets.
2. Figure out the ideal pricing strategy
Once you have picked a platform and know the types of products that you can sell you’ll need to figure out how to profit. This involves setting up a strategy to find the ideal price to charge and make a profit. Since you are not buying wholesale, the price you are paying for things is already marked up.
Do some research to find what the same item is selling for on various sites. This will give you an idea of how much to charge. Subtract what you pay for the item plus the cost to ship and any fees the site charges. What’s left is your profit.
If this number seems too low for it to be worth it then you’ll need to find another product since if you price it too high it won’t sell.
3. Save money on shipping
Shipping is going to cut a big chunk out of your profits if you aren’t careful. There are ways to save on shipping to bring the price down. For instance, you can do flat rate shipping so you always know the price ahead of time based on the size of the box.
You may also want to wait until you have multiple items to send in at the same time to save money on packaging.