Thursday 29 September 2016

10 Ways to fail at Retail Arbitrage


 

Retail arbitrage (buying products from local stores to resell online) has gotten tougher (=more competitive). Significantly more so than 2+ years ago.
Thus, I'm seeing many Amazon/eBay sellers running for the hills (or panicking by buying shiny-object 'systems' for $4,000+ that promise to alleviate their sourcing problems). I love quitters because they clear the deck for me (and other persistent online sellers who are in it for the long haul)
I know you're not a quitter. But if you know a quitter, hand them this list on how to fail fast at retail arbitrage:
1.) Scout at only 1 big-box store, once a month.
2.) Ignore mom and pop (independent) stores. They never have clearance
3.) Only look for big 'clearance' signs. (Don't bother looking in every aisle)
4.) Beg the thrift store manager (without paying him/her a token amount) to tip you off when great products come in
5.) Visit only Goodwill thrift stores.
6.) Stay sexy: Don't source products in a an embarrassing environment (or one that makes your nose turn up.)
7.) Spend thousands on sourcing training/"coaching". Ignore the incredibly cheap, instantly downloadable training from experts
8.) Pay top price for retail products. Money-saving apps and discounted gift cards are a complete waste of time.
9.) Stay sexy part II: Scout for only products you like. Toys are for kids, groceries have expiration dates. Impress your friends with your fancy, low margin electronics (you know, the category fraught with fraud and returns.) "Cool factor" first, profits second!
10.) Source holiday-themed products right before the holiday, and then expect them to sell out. (Ignore my strategy, where I buy items right after the holiday at 90% off, and sell them for full retail+ almost a year later when they're 'hot' again).
Want to add anything here? C'mon!
-Jordan

- Remember, these are mistakes so do the opposite! :D

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