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August 23, 2019

#346 How does Retail Arbitrage work for Private Label Sellers?

Private Label Strategy (step 2 of 10)

What is Retail Arbitrage and how is that going to help me create a Private Label business?

It’s like buying apples from a fruit and veg stall in the East End for £0.10 each, then selling them for £0.50 each in a posh shop in Hampstead (Americans insert own cultural references here!)

Arbitrage, in general, is the basis of all successful trading, in fact – domestic or international.

Retail Arbitrage. Means buying a product in a retail store like Tesco, Argos etc. selling it on Amazon for a higher price and pocketing the difference.

But why do Retail Arbitrage if I want to build a Private label business?

I hear you.

While a lot of money has been made with Retail Arbitrage over the last decade, it’s getting hard to compete. You can’t create a sellable asset (ie you can’t sell your retail arbitrage business) either. You’re not learning to have products created, or to import.

Hear what I’m saying: Learn from arbitrage.  I’m only interested in it as training wheels. Others find they make good cash from it but that’s not our focus.

But it IS an excellent way to learn the basics of your Amazon skills – shipping to Amazon warehouses, navigating the backend of the website (Seller Central) – while risking only a few hundred or even a few tens of £/$/€. It’s the easiest, quickest and lowest-risk way to learn the skills needed. It gets you started.

Watch my discussion of How does Retail Arbitrage work for Private Label Sellers?

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Michael Veazey


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