🛍️ Retail Arbitrage: How to Make Money with Just £150
Are you looking for a way to make some extra cash? Have you ever heard of retail arbitrage? It's a simple concept that involves buying products at a low price and then selling them for a profit. In this article, we'll show you how to do retail arbitrage with just £150. We'll take you through our journey as we head out to the shops and see what we can find. We'll also provide you with some tips and tricks to help you get started.
🚗 Heading Out to the Shops
Before we get started, let's talk about what retail arbitrage is. Retail arbitrage is the act of buying products at a low price from a retail store and then selling them for a profit on a different platform. In our case, we'll be buying products from physical stores and selling them on Amazon.
We've only got £150 to spend, so we're going to be heading out and about and seeing what we can find. That is £150 on products only, so that doesn't include any of our software costs, shipping into Amazon, or anything else. It is purely just our product costs. But we hope it gives you an idea of what is possible with actually quite a small amount of money.
We just parked up at the first shop, and we're heading into B&M. We'll be spending 45 minutes to an hour in there, so let's run the footage.
🏬 B&M: Finding Hidden Gems
We spent 45 minutes in B&M and actually found three products today. Let's run you through them.
In the Night Garden Toy
First up, we found this In the Night Garden toy. We purchased three of these, and here's the data:
- Listing sells 34 to 52 units a month
- Profit of £11.86 per unit
The toy cost £25 each, and we purchased three of these, so it's £75 in total. As you can see on the screen, it was selling for £42.99 at the time. That would make us a revenue of £128 and our profit per unit was £11.86. So our total estimated profit is around £35.
KRX Moisture Plus
Next up was this KRX Moisture Plus, which we purchased 10 of these. It was only a small profit because it was such a cheap item, but it was £0.67 per unit, and the return on investment is 37%.
Johnson's Bedtime Bath
Finally, we found this Johnson's Bedtime Bath. It cost £1.59, and we purchased 10 of these. It's selling on Amazon for £5.84, with a 59% return on investment and a profit of £1.06.
Not too bad overall, right? We're now back in the office, so we can run you through the full profit for the products we purchased from B&M.
💰 Profit Analysis
First up, we had the In the Night Garden toy. These were £25 each, and we purchased three of these, so it's £75 in total. As you can see on the screen, it was selling for £42.99 at the time. That would make us a revenue of £128, and our profit per unit was £11.86. So our total estimated profit is around £35.
Then, the next product was this Johnson's Bedtime Bath. We purchased 10 of these in total, and they're £1.59 per unit. The sale price is £5.84, so that's going to return as revenue of £58.40. With a profit per unit of £1.06, that's going to give us a profit of £10.60.
Finally, the third and final product from B&M was this KRX Moisture Plus shower cream. We purchased 10 of these, also £1.59, so £15.90 in total. The sale price was £5.50, so it's going to return us hopefully around £55 in revenue. This was a smaller profit, so only a £0.67 profit per unit, given a £6.70 total profit if we're able to get the sale price we're hoping to get.
🛒 Tesco Superstore: Slim Pickings
We're now parked up at our next shop, and it is Tesco Superstore. We'll probably be in here quite a while just because they've got so many products.
We spent about an hour in Tesco, and we only actually found one product. It was a Sizzler's delicious meaty treat. We purchased 10 of these in total, and the profit is £1.51.
🛍️ Wilko: One Product Wonder
Wilko was our final shop, and we only actually found one product in here. It was this Viacal lime scale remover. We purchased five of them, and the profit per unit after fees is £2.69. Our estimated total profit will be about £13.45 for this item.
💸 Summing Up the Totals
In total, we spent £146.80. We're hoping our revenue back is going to be around £369.70, but it could be slightly lower. We're hoping for a total profit of around £81. Not too bad for just a couple of hours' work.
📈 Pros and Cons of Retail Arbitrage
Pros
- Low start-up costs
- Can be done in your spare time
- Can be very profitable
Cons
- Can be time-consuming
- Requires a lot of research
- Can be risky
🤔 FAQs
Q: Is retail arbitrage legal?
A: Yes, retail arbitrage is legal. However, some stores may have policies against it, so it's important to check before you start.
Q: How much money can you make with retail arbitrage?
A: It depends on how much time and effort you put into it. Some people make a few hundred pounds a month, while others make thousands.
Q: Do you need any special skills to do retail arbitrage?
A: No, you don't need any special skills. However, it does require a lot of research and patience.
Q: Can you do retail arbitrage online?
A: Yes, you can do online arbitrage, which involves buying products from online retailers and selling them on Amazon.
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