Retail Arbitrage: Buying stuff at Walmart clearance and selling it on Amazon/eBay for a profit. Is it a business, or is it just being a glorified personal shopper?
I arrived at Walmart. The "Scanner Bros" were already there. These are guys with Bluetooth barcode scanners who look like they haven't slept in weeks. They scan everything.
I went to the Toy Aisle. The goal: Lego. Lego is gold. It stores value better than the US Dollar.
I found a "Star Wars Advent Calendar" marked down to $25.00 (Retail: $45.00). There were 4 left.
I scanned it on the Amazon Seller App.
Amazon Price: $44.99
Fees: $11.50
Shipping: $6.00
Net Profit per Unit: $2.50.
Wait. $2.50? That's barely a cup of coffee. I put them back.
I moved to the Clearance aisle (the place where dreams go to die). I found a stack of "Nerf Fortnite Blasters."
Clearance Price: $15.00
eBay Recent Sold: $45.00 + Shipping.
Now we're talking. I bought all 6 of them.
STORE #5492
I got home. I took photos. I listed them on eBay.
"NERF FORTNITE BLASTER - RARE - NEW IN BOX - FAST SHIPPING"
Now, I wait.
It happened. Someone in Florida bought one.
Sale Price: $45.00 (+ $12 Shipping paid by buyer).
I packed it. Since I don't have a perfectly sized box, I had to Frankenstein two Amazon boxes together with a mile of tape. It looked ugly, but it worked.
I drove to UPS. Calculated shipping was $12. Actual shipping was $14.50 because of "dimensional weight." I ate the $2.50 difference.
Buyer #2 messaged me: "The box has a dent in the corner. I am a collector. I want a partial refund."
I refunded him $10 to make him go away. Profit margin destroyed.
FINAL PROFIT BREAKDOWN
Total Invested: $100.48
Total Sales (Sold all 6): $270.00
eBay Fees (13%): -$35.10
Shipping Overages: -$15.00
Partial Refunds: -$10.00
Cost of Goods: -$100.48
NET PROFIT: $109.42
Hours Worked: 8 Hours (Driving, Listing, Packing, Shipping)
Hourly Wage: $13.67/hr
> ANALYSIS_LOG
Is Retail Arbitrage dead? Not dead, but it's not "Passive Income." It is active, sweaty labor.
You are essentially working as a decentralized logistics hub for Amazon/eBay. You take on all the risk (storing inventory, returns) for a relatively small margin.
If you like hunting for treasure, it's fun. If you want to get rich, go build software.