In Part I of this Chris Green Retail Arbitrage series, we learned about his background, what separates him from the competition, and why retail arbitrage is a very profitable business to get into. Today we will dig in more on how he makes his money. First, let’s take a look at what Chris Green actually does. Retail arbitrage is when one retail outlet buys products from a supplier at a lower price than they are sold for in the marketplace.
Once the items have been purchased, they are put back on sale in the form of an auction online. A retail store with a large amount of inventory can often lower their price and sell their product at a much lower price than the auction listing is for to make a profit. This is called retail arbitrage and many stores use this strategy to increase their profits.
One of the most common mistakes store owners make is buying products at too low a price. They may think that they will be able to sell them at a profit later, but what usually happens is that they overpay and in most cases the product ends up sitting in their store unsold. If you are thinking about entering the world of retail arbitrage, there are a few things that you should know before you do so.
To start, you should definitely invest in training. Retail arbitrage can be a very competitive business, but you can’t just walk into it and expect to make a bunch of money overnight. Like any other business, you will need to learn about the market, you will need to learn about pricing, and you will absolutely have to research your competitors. If you don’t do all of these things properly, you could end up being left in the cold.
Another thing that you should know before getting into retail arbitrage is the type of product that you want to buy. Chris Green knows that it is very difficult to buy rare items at a good price. He does not recommend buying used merchandise. Instead, try to find a retailer who has a lot of inventory on their shelves. Chances are that they have a good profit margin, so you can make a lot of money this way.
Before you go shopping for the products that you will sell, you should definitely set up a website. This is how you will get your customers to view your online store. You will want to make sure that your website is professional looking, as well as easy to navigate. When you set up a website, you will also need to make sure that you have banner ads on it, or you will be losing sales to competitors.
In addition to having a website, you will also need to make sure that you stock up on the products that you will be selling. Chances are that you will not be able to keep all of the stock on hand, so you will have to look for a warehouse where you can store the items. When you are buying retail arbitrage, make sure that you are keeping in contact with the manufacturer of the items that you are buying. You will be able to find out when the items are coming in, and you will have a much easier time getting rid of expired inventory.
You may not think that you are good enough to become a high-quality retailer, but with a little hard work and ambition, you can make a business out of selling retail arbitrage items. You will need to be able to do a little bit of research, and you will have to be willing to take a chance. Once you get started, you will be surprised at just how good a job you can do. If you have dreams of starting your own business, then retail arbitrage is a great option for you.