How to Start Selling on Amazon with Retail Arbitrage (Step-by-Step Guide)

🛒 What Is Retail Arbitrage?

Retail arbitrage is one of the fastest and most affordable ways to start selling on Amazon — even if you’re brand new to eCommerce. In this guide, we’ll break down exactly how to get started, what tools you’ll need, and how to find profitable products that actually sell.

Retail arbitrage means buying products at a lower price from retail stores (like Walmart, Target, Ross, or Marshalls) and reselling them for a profit on Amazon.

For example:If you find a toy on clearance at Walmart for $10 and it’s selling on Amazon for $29.99, you can list it, ship it to an Amazon warehouse, and keep the difference after fees.

It’s simple in concept — but success comes down to knowing how to find the right products, calculate your profit, and manage your listings the smart way.

🧾 Step 1: Set Up Your Amazon Seller Account

Before you start scanning products, you’ll need a Professional Amazon Seller account.

Here’s how:

1. Go to sellercentral.amazon.com

2. Click “Sign Up” and choose Individual or Professional plan.

   • Individual: No monthly fee, but $0.99 per item sold

   • Professional: $39.99/month, with advanced tools (recommended if you plan to sell consistently)

3. Provide your business info, tax ID, and bank account details for payouts.

💡 Pro Tip: If you’re serious about scaling, start with the Professional plan — it unlocks bulk listing tools, advertising, and Buy Box eligibility.

🏷️ Step 2: Download a Scanning App

Your phone is your secret weapon in retail arbitrage. Apps like these let you scan barcodes in-store and instantly see how profitable the product could be on Amazon:

• Amazon Seller App (free) – shows price, fees, and rank

• ScoutIQ – great for books

• Scoutly or SellerAmp (SAS) – advanced analytics and profit tracking

When you scan an item, look at:

• Buy Box price (the main selling price)

• Sales rank (lower = faster selling)

• FBA fees (Amazon’s fulfillment & storage costs)

• ROI (Return on Investment)

Aim for at least 30% ROI after all fees.

📦 Step 3: Source Profitable Products

Start locally. You can find profitable products at:

• Walmart, Target, Kohl’s, Walgreens

• TJ Maxx, Marshalls, Ross, Burlington

• Dollar General, Ollie’s, Big Lots

Look for:

• Clearance or seasonal markdowns

• Discontinued items

• Brand-name goods with strong sales rank

💡 Hot categories: Toys, Home & Kitchen, Beauty, Pet Supplies, and Health.

Keep an Excel sheet or use a repricer tool to track costs, fees, and profits.

🚚 Step 4: Ship Products to Amazon (FBA)

Once you’ve found good inventory, send it to Amazon through Fulfillment by Amazon (FBA).

FBA Benefits:

• Amazon stores, packs, and ships your products

• You get Prime shipping eligibility

• Amazon handles customer service and returns

To ship:

1. Go to Seller Central → Inventory → Send to Amazon

2. Print Amazon’s FNSKU labels

3. Pack your items securely

4. Ship to the address Amazon assigns

💰 Step 5: Manage Pricing & Repricing

Prices on Amazon change constantly. Use a repricing tool to stay competitive and maintain profit margins.Popular options:

• BQool

• Seller Snap

• RepricerExpress

Set rules to automatically adjust prices within your profit range, ensuring you win the Buy Box more often.

📈 Step 6: Track Your Metrics & Scale Up

Once your first items start selling, it’s time to scale.

Watch your:

• Sell-through rate – how fast products move

• Profit per item

• Refund rate

• Buy Box percentage

Reinvest profits into larger or faster-moving products. As you gain experience, you can branch into online arbitrage, wholesale, or private label.

⚠️ Bonus: Avoid These Common Mistakes

• ❌ Buying products without checking restrictions or “gating”

• ❌ Ignoring Amazon fees (they add up fast)

• ❌ Selling damaged or open-box items as new

• ❌ Not checking for brand restrictions (some require approval)

🚀 Final Thoughts

Retail arbitrage is still one of the easiest entry points into Amazon selling — low risk, fast results, and tons of learning potential. You don’t need a massive budget to start; even $100 can get you your first test batch of inventory.

Start small, learn fast, and build up your capital. As your profits grow, you can move into wholesale or even launch your own brand.

🧠 Want to Learn More?

Check out our Amazon Seller Resources for free guides, profit calculators, and sourcing tools — or connect with our team to learn how funding can help scale your Amazon business faster.