Where do retail arbitrage sellers find inventory?
Physical retail stores
Big-box stores like Walmart, Target, and Costco often have clearance sections where items are marked down 50–75% off. Discount chains such as TJ Maxx, Marshalls, Ross, and Burlington sell brand-name goods at below-retail prices, which can be flipped online.
Dollar stores (Dollar Tree, Family Dollar) and drugstores (CVS, Walgreens) sometimes have seasonal clearance that resells well. Garage sales and estate sales are also popular for unique or vintage items.
- Walmart, Target, Costco clearance
- TJ Maxx, Marshalls, Ross, Burlington
- Dollar Tree, Family Dollar, Dollar General
- Garage sales, estate sales, flea markets
Online and wholesale sources
Online arbitrage involves buying from websites like Amazon, eBay, Walmart.com, and AliExpress and reselling on another platform. Liquidation websites (e.g., Liquidation.com, B-Stock) sell pallets and truckloads of customer returns or overstock, but quality can be hit-or-miss.
Some resellers use wholesale distributors or attend trade shows to buy in bulk at lower prices. Dropshipping and print-on-demand are different models but also count as sourcing methods for some.
Common mistakes
- Assuming all clearance is profitable—many items are cleared because they don't sell, and online competition may already be fierce.
- Buying liquidation pallets without checking the manifest or return rate, leading to unsellable junk.
- Forgetting to factor in travel costs and time when sourcing from physical stores.