A small to medium-sized reselling business fueled by retail arbitrage sells goods and gadgets at a discount from retail prices. Almost every brand you love is being resold on eBay, Amazon, or Poshmark by third parties.

In liquidation markets, you’ll find the following categories:

• Clothing and accessories

• Electronics for consumers

• Home appliances

• Gardening and home improvement

• Home Furnishings

• Mobile

• Toys

• Sporting goods

Retail arbitrage vs. reselling – how do they differ? Throughout this article, we will examine the pros and cons of each option so you can make an educated decision.

A brief overview of reselling

Retail arbitrage is the basis of reselling. While the process of acquiring items at a lower price with the intention of reselling at a profit is the same concept, it is a much more efficient and effective way to turn a business into one that profits.

Retailers and flea market vendors will find Boswell Data Systems TX to be a helpful tool for buying in bulk. The concept of online resellers, for example, is that they purchase merchandise in bulk quantities. They then resell the items on commerce sites such as eBay, Craigslist, and Facebook Marketplace for a profit. BDSTX is a reliable source of inventory for brick-and-mortar stores to fill their shelves. (To learn more, check out The Facebook Marketplace Sellers Guide and Craigslist Seller’s Guide)

Buying in bulk and reselling: how do you do it? Below, we will discuss that in more detail.

The pros of reselling:

Liquidation pallets bulk buy the advantage of can sourcing more inventory at once for resale. If you can rapidly build up inventory, you can resell faster. We work with some of the world’s top manufacturers to offer liquidation pallets on our online auction platforms. Get tons of inventory at once by bidding on and buying liquidation pallets, LTLs (less than truckloads), at deeply discounted prices.

Expansion potential

As we mentioned earlier, reselling can quickly scale and become a full-time business. It is extremely profitable, even as a part-time gig. Employers and contractors can be hired, bulk lots can be purchased, and online reselling platforms can be expanded depending on the amount of time you can devote. It’s just a matter of reselling your liquidation inventory once you’ve figured out the receiving, sorting, listing, and reselling process!

 Reselling Cons:

Trends and seasonality

Seasonality and trends affect you more. The inventory you’re getting was likely not sold in stores. In Florida, you probably wouldn’t want a pallet of snow boots – by the way, the snow boot season is over. Don’t sit on bulk quantities of goods that will lose value over time! A product’s sale rate is determined by its seasonality/trends in the category it belongs to. There are some types of inventory that move more quickly than others. As people are usually looking for quick replacements, liquidation tools and appliances tend to move quickly.

Product discrepancies

The more you buy in bulk, the more likely you are to encounter discrepancies in products. For example, you find a pallet of mixed goods that is reasonably priced. It is possible for half of the merchandise to be damaged and half to be in good condition. 

There is no control over shipping

Moving things across the country or overseas is expensive! Make sure your buying budget includes shipping costs. Think of the mileage, manpower to load/unload pallets.

Overview

In retail arbitrage, a retailer buys products at a lower price and resells them for a profit. It is possible to sell the products at a much higher profit margin than the original discounted price if the process is done correctly.  Getting started is easy in this way, you’ll have less of a monetary investment.

 In this case, you do not have to pay for an entire pallet of liquidation goods in advance. Additionally, it’s easy to test out the concept on a small scale. Take the example of a store running a sale on a pair of headphones to illustrate this point. Originally, the item was worth $300, but it is now on sale for $250. Each pair of headphones in stock is bought by you. In this case, you can offer them for $275 on Facebook Marketplace (which will be a better deal than your customer going to the store themselves). Your profit per pair will be $25. Simple, isn’t it? Retail arbitrage at its finest!

With BDSTX, you can source inventory

It’s crucial to source high-quality inventory at the end of the day. Our liquidation, overstock, and customer returned merchandise are among the best in the business. Our private platforms are ideal for sourcing inventory from world’s leading manufacturers. Read the The BDSTX Auction Process Explained & Who Buys From Us for more details. Soon you will be able to run a thriving resale business driven by retail arbitrage!

Connect your brand to our global network of liquidation goods.