Retail arbitrage is the strategy that investors use to earn more money by buying low and selling high. The retailers who are in retail arbitrage know how to make a profit from retail purchases and not every retailer can do this.
There are two types of retail arbitrage. There is the technical or fundamental arbitrage where the buyers and sellers are not confident about what they are buying. They can only offer a sales price for the merchandise and they don’t have confidence in whether or not the product will perform well or badly.
Other types of retail arbitrage are the quantitative arbitrage where the marketer uses charts and trend lines to make an educated guess of the value of the product or the shelf price. This can also involve a great deal of guesswork as the data sets used to make the determination can be extremely large.
Walgreens is one of the companies that includes retail arbitrage as part of their strategy. They buy wholesale products at a discount and resell them at a mark up.
One of the best places to find retail arbitrage opportunities is at Walgreens. Here you can find numerous stocks that fit the definition of retail arbitrage.
To begin with you should search for Walgreens shares. You should be careful though because not all of Walgreens stock is retail arbitrage stock. Many Walgreens shares are non-retail arbitrage shares.
Walgreens stores are typically large, often chain stores that sell a variety of different types of products. Some of these include: hair products, baby products, makeup, eyewear, auto, health, vitamins, beauty products, dental, music, auto parts, natural health and energy. So basically any product category that Walgreens can offer.
What makes this company unique is that they offer retail arbitrage stock. It is like a lottery ticket but instead of winning the jackpot you win shares of Walgreens stock. These shares come at a discount compared to regular Walgreens shares so they are worth pursuing.
While you can buy Walgreens shares through stock brokers you can also find them for sale at several websites that specialize in selling stock. Some of these sites allow you to bid on the shares and get them at a discount so you can resell them for a profit.
Once you decide which shares to sell, you will then pay a commission to an online broker who will buy your shares and sell them for you. This helps to offset the commission you pay your broker and therefore makes it easier to make money.
Once you get the share price you want and then put it on sale, you just need to wait for the stock to go to the highest bidder. You should be able to make some money here since the total amount of money you have invested will go down.
When you are investing in retail arbitrage, you can expect to earn from profit to loss. You can also potentially make a significant profit if you look for a company with high demand for the stock you are selling.