Why Retail Arbitrage DOESN'T WORK: How to Buy Inventory for Your Online Business
- 4 years ago
Did you ever notice that if you look up your medical symptoms on Google you always find out that you're dying? Lol! Just how there's tons of bad medical advice, there is just as much horrid advice for product sellers. One of my current pet peeves happens to be the over-abundance of videos that convey a false narrative about “retail arbitrage”. So, today we will discuss "Retail Arbitrage" (Driving to stores to buy your inventory from Clearance Racks). In this video we discuss why this method does NOT truly work. So, without further dialogue, let's watch the video then continue reading.
Now let's discuss a few more things about Retail Arbitrage:
Is Retail Arbitrage it legal: YES!!!
Can you make money via Retail Arbitrage?: SURE! ABSOLUTELY YOU CAN!!
Can you sustain a REAL business? NO!!! IT IS NOT POSSIBLE LONG TERM!!
Are there people out there who have made successful businesses off driving to clearance racks? MAYBE... but define "success". If success is determined as "making $200 - $5,000 a month" in profit then I am sure there are plenty of people who have achieved success. HOWEVER, if you want to make a *legitimate* full-time living which I will define as making $50,000- 1 million+ a year, then this method WILL NOT WORK LONG-TERM... IT IS NOT POSSIBLE USING THIS METHOD.
2. The false narrative YouTubers push is "It's great to drive to stores because you can hand-select the exact items YOU like" - The truth is, if you hand-select items that only YOU like, you are never going to be genuinely successful because reality is that there are over 7 BILLION people in the world and only a small percentage of people share your exact taste. Even though YOU think an item is stupid / ugly / lame / etc, there are literally BILLIONS of people who like it. So the better option is to leave "market research" to the big companies who do it for a living. If Calvin Klein produces an "ugly" sweatshirt, trust me, they made it because they know it will sell, even if you or I would never wear it.
3. In closing, if you feel the best option for you is driving around, GO FOR IT and don't let anyone tell you otherwise. BUT, consider logging all of your hours spent driving, all of your gasoline and vehicle repairs in addition to all of your time shopping and waiting in line. At the end of a month add up all of these hours. Multiply the hours by minimum wage in your state. Add that number to the amount you spent on travel expenses. Now take that amount and determine how many of the items you purchased that you have to sell to cover just the expense of "Hunting and Gathering". You just may be surprised.
SOLUTION: Order your inventory online. Sites like BigBrandWholesale.com do all the work for you! We buy truckload and extra stock directly from designer stores so basically we do all the work for you.... then we ship it to your door FOR FREE (inside the USA). Check out our amazing selection of all your fav brands at http://BigBrandWholesale.com
Now let's discuss a few more things about Retail Arbitrage:
Is Retail Arbitrage it legal: YES!!!
Can you make money via Retail Arbitrage?: SURE! ABSOLUTELY YOU CAN!!
Can you sustain a REAL business? NO!!! IT IS NOT POSSIBLE LONG TERM!!
Are there people out there who have made successful businesses off driving to clearance racks? MAYBE... but define "success". If success is determined as "making $200 - $5,000 a month" in profit then I am sure there are plenty of people who have achieved success. HOWEVER, if you want to make a *legitimate* full-time living which I will define as making $50,000- 1 million+ a year, then this method WILL NOT WORK LONG-TERM... IT IS NOT POSSIBLE USING THIS METHOD.
2. The false narrative YouTubers push is "It's great to drive to stores because you can hand-select the exact items YOU like" - The truth is, if you hand-select items that only YOU like, you are never going to be genuinely successful because reality is that there are over 7 BILLION people in the world and only a small percentage of people share your exact taste. Even though YOU think an item is stupid / ugly / lame / etc, there are literally BILLIONS of people who like it. So the better option is to leave "market research" to the big companies who do it for a living. If Calvin Klein produces an "ugly" sweatshirt, trust me, they made it because they know it will sell, even if you or I would never wear it.
3. In closing, if you feel the best option for you is driving around, GO FOR IT and don't let anyone tell you otherwise. BUT, consider logging all of your hours spent driving, all of your gasoline and vehicle repairs in addition to all of your time shopping and waiting in line. At the end of a month add up all of these hours. Multiply the hours by minimum wage in your state. Add that number to the amount you spent on travel expenses. Now take that amount and determine how many of the items you purchased that you have to sell to cover just the expense of "Hunting and Gathering". You just may be surprised.
SOLUTION: Order your inventory online. Sites like BigBrandWholesale.com do all the work for you! We buy truckload and extra stock directly from designer stores so basically we do all the work for you.... then we ship it to your door FOR FREE (inside the USA). Check out our amazing selection of all your fav brands at http://BigBrandWholesale.com