The primary challenge of this model is identifying profitable inventory. Expert sellers focus on clearance sections of major retailers like Walmart and Target , where items are marked down 50% to 90% to free up shelf space.
While the barrier to entry is low—requiring as little as $100 to start—the model is not without risks.
Retail arbitrage—the process of buying discounted products from physical stores and reselling them on Amazon for a higher price—is one of the most accessible entry points for modern e-commerce entrepreneurs. At its core, this business model leverages market inefficiencies, specifically the pricing gap between local clearance aisles and a global online marketplace. The Sourcing Hunt: Finding Hidden Gems
