Although my FBA business has transitioned to become more focused on wholesale over the past couple of years, retail arbitrage (RA) is still one of my top methods of sourcing. I’ve shared some of my favorite RA sourcing strategies with you in blog posts in the past:
Today I want to give you my top 5 RA tips that don’t really relate to buying, but have everything to do with success.
1. Retail arbitrage is not illegal, so source with confidence.
Sometimes new Amazon sellers can be timid when sourcing in retail stores. They are shy about scanning items in public and worry they could get in trouble for what they’re doing. Now, some stores frown upon resellers, so the store policy might prevent you from scanning freely — but retail arbitrage is not illegal. You are not doing anything against the law by scanning inventory in a retail store, so scan with confidence. Respect the store policy, but don’t be afraid that you’re breaking the law.
2. Just tell the truth if another customer asks you questions.
If customers ask you why you’re scanning items or why you have a cart full of toys, don’t be afraid to briefly and truthfully answer their questions. You don’t have to elaborate if you don’t want to, but you can always give a short statement like, “I have an online store, and I’m buying toys to sell on Amazon.” There is no reason to be deceitful; sometimes people are just curious, not judgmental. A short, truthful answer is much better (and less suspicious!) than acting weird, evading the question, or just running away and hiding.
3. Be open with store employees about what you are doing.
The same thing goes with employees — if a store employee asks what you’re doing, give them a short, honest answer. Again, some stores are not reseller-friendly, so be careful about sourcing in those stores. Many stores, however, are more than open to the idea of Amazon sellers sourcing their inventory from their shelves. Many times I’ve had a store employee ask what I’m doing, and when I answer that I’m looking for deals to sell on Amazon, I get the answer, “Oh, we have more stuff in the back you can look at.” They actually help me find even better deals!
4. Develop good relationships with store employees and managers.
Along the same lines as the last point…
If you make it a habit to be truthful and friendly with store employees and managers, you will begin to develop relationships with them and have even more opportunities to buy amazing RA deals. I’ve had store managers ask for my contact information so they can let me know when a new round of clearance is coming up. I’ve had opportunities to ask store managers if they can give me an even better discount on already low clearance prices if I buy out all of a certain item. Being friendly and personable can go a long way in this business!
5. Leave the store better than you found it.
Believe it or not, a little kindness can go a long way when you’re sourcing in retail stores. Some stores don’t like resellers because they come in and trash the clearance aisle, and store employees have to clean up after them. Don’t be that way! Always straighten up after yourself, and offer to help organize inventory or clean up an aisle if you see an opportunity. Whether you get anything out of it or not, it’s just the right thing to do to be helpful and not destructive.
Hopefully these tips will help you have a more successful and pleasant experience the next time you are out doing some RA sourcing for your FBA business.
Again, I do want to mention that there are a few stores out there (Target and Kohl’s come to mind) that are not reseller friendly. In these types of stores, you could still discreetly make purchases in small amounts, but you wouldn’t be able to use your tax exempt certificate as a reseller. Personally, I don’t spend a lot of time in stores that aren’t reseller friendly because I’ve found too many other stores in my area that love for me to come and buy up lots of inventory at a time.
What tips would you add to my list above? Have you found some strategies that help you have a great day of RA sourcing, tips that don’t necessarily relate to actual buying decisions but can make all the difference in your long-term success? We would love to hear from you in the comments!
If you’re ready to finally get serious about your Amazon FBA business, then I invite you to check out JumpStart Amazon: Build a Successful Amazon FBA Business.
JumpStart Amazon is a combination video course and ebook. The ebook is over 220 pages filled with the content and graphics you need to start a successful Amazon business from scratch. The video course features 5 main sections, 19 content-packed modules, and over 40 videos adding up to over 10 and a half hours of video training. This training is set up to help you build a solid foundation and then know how to find growth and success on top of the basics. This course is packed with more results-focused knowledge than any other ebook out there centered around starting an Amazon business. For more information on JumpStart Amazon, click here.