Being in this business is strange because it looks easy and people are never sure whether to believe that you can buy things at scale and sell them into the hundreds of thousands. I started with a small rainy day fund of a few grand, and actually, I started at Costco. Since then I’ve branched into multiple different brands and categories. But what is retail, wholesale or online arbitrage?
arbitrage (/ ˈ ɑːr b ɪ t r ɑː ʒ The practice of taking advantage of a price difference between two or more markets
Finding deals that you can buy low and sell high isn’t that complicated but it does take work. Like anything else, scaling business is difficult, and finding supply is scarce when it comes to finding retail merchandise at a discount. That’s why many people find wholesale to be more profitable and scalable.
Costco is a nice taste of wholesale arbitrage in a retail setting. All you need is a membership, and that only costs $60 per year. Last year I spent well over $100K, mostly on merchandise for resale.
As a matter of fact, that is really where I got started because I bumped into someone else looking to clear them out and send stuff off to Amazon FBA or Wallmart.com or sell via Ebay. I was curious about the opportunity, and, combined with Gary Vee’s “2017 Flip Challenge” I decided to go all in and try to make a living. So far I’ve been successful at that.