Retail Arbitrage on Amazon: How to Start Reselling for Profit in 2025

Retail arbitrage is one of the most accessible ways to start an ecommerce business — especially if you're looking to avoid the complexity of launching your own brand. The idea is simple: buy products at a discount from retailers and resell them for profit on platforms like Amazon. And despite growing competition, this method of flipping products remains popular among beginners and experienced sellers alike.

In this guide, we’ll break down what retail arbitrage means, how to start reselling on Amazon, what tools and strategies can help, and whether it's still worth it in 2025.

Retail arbitrage is the process of buying discounted products from physical or online stores and reselling them at a higher price on Amazon or other ecommerce platforms. The price difference, minus fees and shipping, becomes your profit. Online arbitrage follows the same basic idea as retail arbitrage — buying discounted products and flipping them on Amazon — but the sourcing happens online instead of in physical stores. Think clearance websites, eBay, and marketplace apps.

Here’s how retail arbitrage works on Amazon:

1. You find a product at Walmart on clearance for $5.

2. The same item is selling on Amazon for $18.

3. You scan the barcode using the Amazon Seller App to confirm pricing, competition, and fees.

4. You list it on Amazon, ship it yourself or use FBA (Fulfillment by Amazon).

5. Once it sells, you earn the difference.

Unlike launching a private label brand, retail arbitrage doesn’t require creating a new product. Instead, you use existing listings, saving time and money while learning how Amazon FBA works.

Retail arbitrage is often compared to online arbitrage. While both follow the same basic model — buy low, sell high — the main difference is where you source your inventory. In retail arbitrage, you find deals in physical stores. In online arbitrage, everything happens through websites and apps. The tools and principles are similar, but the sourcing process and logistics can vary significantly.

While competition has grown, so has demand. More shoppers than ever are turning to Amazon for convenience and quick delivery, and sellers who stay agile can still find profitable opportunities.

Retail arbitrage works best when:

However, success isn’t guaranteed. You need to watch for gated brands (those restricted on Amazon), shifting rules, and the time investment needed to hunt for products and prepare shipments.

Here’s a basic step-by-step process:

1. Set up an Amazon Seller Account – You can choose between Individual (no monthly fee, but $0.99 per item sold) or Professional (monthly fee, no per-item fee, plus access to more tools).

2. Install the Amazon Seller App – Use this to scan products in-store and compare prices, fees, and estimated profits.

3. Source discounted products – Start with major retail chains like Walmart, Target, Ross, Marshalls, TJ Maxx, or outlets and clearance sales. Online options include eBay, Facebook Marketplace, and local deals.

4. Check product eligibility – Make sure the product isn’t restricted (gated). Some categories like beauty or toys may have limitations.

5. List the product on Amazon – Use clear titles, condition notes, and photos. Either ship yourself (FBM) or use Amazon’s FBA service.

6. Track performance – Use seller tools and reporting to see what’s selling well, where margins are highest, and when to restock.

Sourcing is the foundation of retail arbitrage. Most sellers start with retail stores such as Walmart, Target, and Home Depot — especially during clearance sales. Discount stores like TJ Maxx and Marshalls also offer rotating inventory that can be profitable if timed right.

For online retail arbitrage, eBay and Facebook Marketplace are go-to platforms for secondhand or discounted goods. Retailer websites and brand outlet stores often have regional or limited-time deals not found elsewhere.

Seasonal transitions, discontinued products, or location-specific markdowns can give you a sourcing edge — especially if you’re willing to visit multiple stores or explore overlooked product categories.

Choosing the right inventory is crucial. Before you buy, it’s important to assess whether the product is truly worth reselling. This includes analyzing margins, competition, and demand.

Retail arbitrage sellers often rely on a set of tools to make smarter decisions. The Amazon Seller App provides quick insights into profit potential and category restrictions. Keepa shows sales history and pricing fluctuations, while AMZScout and Jungle Scout offer deeper insights into market saturation and keyword trends. Helium 10 is useful for tracking search volume and product demand over time.

To check product-level demand before you buy, try using the Amazon Sales Estimator. Here’s how it works:

This simple step can help you avoid buying dead stock and prioritize items that are likely to move quickly.

Before diving in, it’s helpful to weigh the advantages and challenges. Retail arbitrage is flexible and low-cost to start, but it also comes with manual work and potential limits on scalability.

Retail arbitrage can be a smart way to get started with Amazon, but making it sustainable takes planning. It’s not just about finding deals — it’s about building systems and strategies around those deals.

Track your metrics: monitor margins, return rates, and sourcing channels to understand what works. Stay up to date on Amazon’s policies, especially gated brands and condition requirements.

Leverage tools like Keepa, Amazon Seller App, and Jungle Scout to refine your buying process. Always double-check BSRs, restrictions, and competition before buying in bulk. And as you build confidence, consider branching into wholesale or private label for more control and scalability.

Retail arbitrage isn’t just for beginners — but it’s one of the best ways to become familiar with Amazon’s selling ecosystem without a large initial investment.

Retail arbitrage remains a proven method to start selling on Amazon with minimal risk. It’s ideal for those looking to enter ecommerce without building a brand or investing heavily in inventory. With the right tools, discipline, and product selection strategy, it’s possible to earn a profit while learning the ins and outs of Amazon’s marketplace.

Whether you’re reselling items from local stores or flipping online deals, retail arbitrage offers flexibility, fast feedback, and room to grow. Just remember — success comes from research, consistency, and understanding how to source, evaluate, and scale wisely.