If you are in the reseller community you have probably heard the term retail arbitrage. This just means buying an item from a retail store and selling it for a higher price. This is a great strategy to utilize if you sell items online because you don’t have to dig through piles of clothing, shoes, or other items in order to find a few great things. Your initial investment into the item is going to be higher than it would be if you were to buy it at the thrift store. Although your initial price is higher you will be able to get a higher dollar amount for items because they come NWT (new with tags). You do have to do some work in order to find these items because you need to find them at a low enough price in order to make it worth your time. Many people will go to stores when they are having huge sales and buy items that are on mega clearance. I will give you guys a couple examples and some pictures for each example to explain in depth on each one!
1. Nordstrom Rack
One example would be going to Nordstrom Rack when they have their sale. I went when they had their last shoe sale. I think all of their shoes were an additional 20% off of the clearance price. This turned out great and I have sold almost every single pair of shoes I bought that day. I will show you a few pairs of the shoes that I had purchased last year at the Nordstrom shoe sale! I won’t be sharing how much I paid, but you will able to see how much I sold each pair for!
I actually just sold these shoes a couple weeks ago. They were my size and I was really tempted to keep them, but I decided to just sell them and take a profit. I sold the box along with the shoes.
I loved these shoes! I thought they were so cute and I would’ve kept them if they were in my size. I am a sucker for pretty much anything Sam Edelman.
Hunter boots would have to be on a list of my favorite things to sell. I have only sold this one pair, but they sold almost immediately!
TJMaxx is another place I go to purchase items. I hardly ever look through the regular price section because I’m always on the hunt for a great deal so you can always find me in the clearance section. I don’t shop at TJMaxx often because I find it hard to find great items for a low price, but I have some amazing deals! Most of the items still have the brands tags attached which is perfect for the resell value.I find a lot of Free People at my TJMaxx, but for me it doesn’t sell as well as it it used to. I won’t be sharing what I paid, but you will be able to see what I sold each item for!
This is the cutest baby Adidas swimsuit I have ever seen! I saw someone else post about these swimsuits at TJMaxx a few months ago and I went there and bought all the ones my store had! This is a collab Adidas did with Mini Rodini.
I hadn’t really heard of the brand Chaser much before, but I had heard Jenna (AKA Emtyhanger) talk about it ion her Instagram story. I was shopping one day and found a couple pairs of these sweatpants and decided to trust what Jenna said and I bought them! I sold all 3 pairs within a few weeks!
It had taken me a while to sell this Kate Spade purse and I think I paid too much for it honestly, but it finally sold after about 6 months of me having it for sale. I still made a little profit, but it taught me a lesson on what to pay for items. Always make sure you learn from your mistakes!
1. Be Aware Of Comps
When you are buying retail arbitrage items your initial cost per item will most likely go up. This means you need to do your research on comps before you decide to spend the extra money on the items. For example if you are debating on purchasing an item for $10, but the comps online are only $20 you would end up only making a profit of $6 after fees ($20- 20%= $16-$10= $6). You are still turning a profit, but it all depends on what your business strategy is. For many people this would be a no brainer and they would purchase every item in stick, but for others they would decide not to buy. I might try this item out, but only purchase a few so if I end up loosing money I don’t loose too much. It all depends on what your comfort level is at at the moment.
2. Work Smarter Not Harder
If you have multiples of the same item you can combine all of them into one listing on Poshmark. This makes it easier on you because you have 10 of the same product in all different sizes and only have to make 1 listing. When I am doing retail arbitrage and I find an amazing item I look for it in all sizes in order to make the most profit I possibly can! I did this recently with the Adidas swimsuit up above. I bought this in 4 different sizes (12M, 18M, 3T, and 4T). There is only one left for sale, but I earned my money back after selling 2 of these swimsuits. This is a great strategy to use and apply to your business especially if you don’t have a lot of time to devote to photographing and listing!
3. Be Diligent
Places like TJMaxx, Nordstrom Rack, and Marshalls are discounting new stuff all the time. Make sure you are checking back at least once a week to see if there are any new items on the clearance racks. A lot of the times they won’t be able to keep up to date on the new clearance prices either so sometimes an item will only marked down to $13, but it will be clearanced out in the system to $10. This has personally never happened to me before, but I have heard it happens quite often!
Thank you guys for reading my post about retail arbitrage. I hope you learned somethings about it and how to implement it into your business!