What is Retail Arbitrage?
In eCommerce, Retail Arbitrage, also known as Amazon arbitrage, is buying products from traditional local retail stores, such as Walmart, at discounted prices and reselling them in another marketplace, such as Amazon, at higher prices to make profits.
Although the concept seems complicated, as you learn how to find profitable products for Retail Arbitrage, it will be straightforward.
If you want to know the differences between online arbitrage(OA) and retail arbitrage, here is a quick comparison of the two.
Feature |
RA |
OA |
Need for Physical Presence |
Yes |
No |
Product Analysis Time |
Faster |
Slower |
Competition |
Lower |
Higher |
Real-Time Inventory Control |
Better |
Weaker |
Shipping & Packaging |
Manual |
Often automated |
Why do some stores do wholesale instead of selling single products online?
Selling every single item online means starting a process. This -sometimes long and consuming- process includes dealing with customers, following up on the shipping, and doing an ongoing task. For sellers who want to sell in large quantities, it makes more sense to avoid too many ongoing tasks.
By doing wholesale, they outsource the single sales to someone else and make the profit anyway.
Best Stores for Retail Arbitrage Sourcing
Retail arbitrage is a selling activity whereby the seller searches for items from other retailer sources. There are two types of stores where you can source products for retail arbitrage: General selection stores & specialty stores.
Here are the best stores for retail arbitrage in General Selection Stores, which are popular among Amazon sellers as they have branches in several locations:
- Dollar Stores
Stores like Dollar General &Dollar Tree are good sources, especially for electronics, party supplies, toys, stationery, and groceries. But check the gated categories before listing products.
Usually offers its discounted products near the store’s entrance. During holidays or back-to-school season, on-sale products are more available.
- Liquidation Stores
They are excellent choices for retail arbitrage. Most of them have websites that help you see almost all of their inventory without tripping there. While shopping in these stores, always beware of gated categories and brands.
It has every piece of equipment you may require for your house, from gardening tools to grilling equipment to home decor; you can find everything there on sale.
- Thrift Stores
Thrift stores are by far the cheapest and even sometimes offer free items. In some towns, shop managers may be willing to negotiate prices with you (if there is such an opportunity, take it). They can provide many items for retail arbitrage. Stores like Salvation Army, Goodwill, Stuff, and Value Village are famous thrift stores.
It always has attractive products on its clearance rack. Using scanner apps helps you clear Walmart’s shelves faster. They also save you time.
You can’t imagine how profitable it could be to resell discounted products you bought from eBay on Amazon. This is one of the best strategies for finding items from the best store for retail arbitrage.
Click on the texts to find more information about Amazon seller scanner apps.
Below, we list the Specialty Stores where sellers can find lucrative products in each desired category. This list can help sellers to narrow down their niche into particular types.
Also has many things for home improvement, such as appliances, bathrooms, building supplies, lighting, and more.
Consumer Value Store is a drugstore and healthcare retailer where you can find the best health & beauty products on sale.
It is known as the second-largest pharmacy store in the USA, providing pharmacy, health & wellness, and photo products. You can find good deals among the wide selection of beauty & personal care.
Ross’s motto is “Dress for less.” As you have guessed, this chain sells clothing at a lower price. You can also find footwear, bedding, furniture, jewelry, beauty products, and even toys in Ross.
- 7dayshop (UK)
the categories on this site are pretty vast, and you can find anything from batteries, chargers, and tools to children’s clothes and even Home decor.
- gromitunleashedshop (UK)
this fun online store has everything “Wallace and Gromit” themed. Toys, Home decor, blankets, pillows, and figurines. An excellent shop for providing gifts.
- The nearest mall
Malls are classic shopping points where you can find almost anything. So why not go to a mall to find items for your retail arbitrage business? Each mall has at least 50 stores, and in particular times (like seasonal sales), everything is being sold for a lower price, a good opportunity for buying retail arbitrage products.
Also, take a walk around outlet malls, where shops are continuously on sale, and many people source their businesses from them. Clothes, kitchen and home products, decorative items, and skin care products are among the things you can find in every mall.
There are many other retailers that you can source for your Amazon business. Here, some of the best stores for retail arbitrage are categorized by the types of goods they offer:
Toys:
- Disney Store
- Mattel
- Fisher-Price
- Lego
- TV’s Toy Box
- Hasbro Toys
- Build A Bear
Shoes:
- 6PM.com
- Finish Line
Health & Beauty:
- Sally’s Beauty Supply
- Drugstore.com
- The Vitamin Shoppe
- Rite Aid
- GNC
- Ulta
- Bath and Body Works
- Vita Cost
Home:
- Ace Hardware
- TJMaxx
- Bargain Hunt
- Hobby Lobby
- Bealls Outlet
- Christmas Tree Shops
- Bed Bath & Beyond
- Big Lots
Sporting Goods:
- Bass Pro Shops
- Sierra Trading Post
- Dungarees.Net
- Academy Sports/Outdoors
- REI
Top Retail Arbitrage Stores by Category
Different categories on Amazon offer unique opportunities, and knowing the best stores to find profitable products can give you a competitive edge. Below are the top categories for retail arbitrage on Amazon and the best stores to source products for each:
1. Toys & Games
Toys and games are a popular retail arbitrage category, especially during the holiday season. Look for clearance deals and limited-edition items.
Best Stores to Source:
- Target
- Walmart
- Kohl’s
- Five Below
- GameStop
2. Home & Kitchen
Home essentials like small appliances, cookware, and decor have steady demand and good margins.
Best Stores to Source:
- HomeGoods
- IKEA
- Bed Bath & Beyond
- Costco
- Big Lots
3. Beauty & Personal Care
High-demand items like skincare, cosmetics, and hair care products can yield substantial profits.
Best Stores to Source:
- Ulta Beauty
- Sephora
- CVS
- Walgreens
- TJ Maxx
4. Electronics
Small electronics and accessories, like headphones or chargers, are great for high-margin opportunities.
Best Stores to Source:
- Best Buy
- Micro Center
- Staples
- Office Depot
- Walmart
5. Clothing, Shoes & Jewelry
Fashion items, especially name-brand products, are excellent for retail arbitrage, especially when sourced during sales.
Best Stores to Source:
- Macy’s
- Nordstrom Rack
- Marshalls
- Ross Dress for Less
- Burlington
6. Books
Books are an evergreen category, with high margins on rare, educational, and niche titles.
Best Stores to Source:
- Goodwill
- Half Price Books
- Library Sales
- Barnes & Noble (Clearance Section)
- Local Garage Sales
7. Sports & Outdoors
Equipment, accessories, and seasonal gear are consistently in demand, especially during peak seasons.
Best Stores to Source:
- Dick’s Sporting Goods
- Academy Sports + Outdoors
- REI (Clearance Section)
- Walmart
- Big 5 Sporting Goods
8. Baby Products
Baby essentials, including toys, diapers, and feeding accessories, enjoy steady demand.
Best Stores to Source:
- Buy Buy Baby
- Walmart
- Target
- Carter’s
- Baby Gap
9. Pet Supplies
Pet products like food, toys, and grooming tools are a profitable and growing market.
Best Stores to Source:
- PetSmart
- Petco
- Tractor Supply Co.
- Chewy (Clearance Section)
- Walmart
10. Health & Wellness
Fitness equipment, supplements, and health tools are in high demand, especially with growing wellness trends.
Best Stores to Source:
- GNC
- The Vitamin Shoppe
- Target
- Walmart
- Dick’s Sporting Goods
Best Retail Arbitrage Products
Selecting the right items for retail arbitrage is critical to success. Here there are some suggestions for the best retail arbitrage products:
- Clearance
Website linnworks.co believes that clearance racks in physical retail stores are like a gold mine for arbitrage sellers. Retailers often mark down certain products on clearance to clear out seasonal inventory, and these products can be a great first step for beginners to choose from.
For example,one arbitrageur say that” I once purchased a set of kitchen utensils from Walmart’s clearance section for $3 and sold them on Amazon for $17” . So, without overthinking the product type, clearance items are often suitable for resale. It mostly depends on the season, you might pick up holiday décor in January or summer items in the fall and list them when demand returns.
- Sporting goods
Although sporting Goods are non-essential, men, women, children, and casual athletes are fans of them. Weekend warriors use sporting equipment as well. Everybody buys sporting goods at different prices, even for an outdoor hobby such as fishing, hiking, or camping. REI and Bass Pro Shop are the best sports retailers.
For example, during the pandemic, home fitness equipment became more popular, and many savvy sellers took advantage of the soaring demand. Items like dumbbells and weights were resold at 3 to 6 times their original price. Popular brands such as Nike, Adidas, Under Armour, Wilson, Rawlings, and Callaway benefit from strong brand recognition and customer trust, which often leads to faster sales.
One important tip when picking sporting goods is to always look for big sales at retailers like Mass or REI, and pay attention to seasonality. For example, back-to-school season is great for team sports gear, while spring is ideal for outdoor and fitness products.
- Home items
Home Items such as accessories, home decor, and maintenance products are among the top products for reselling because of their mid to low-range price tag and constant market demand.
We know that everyone needs something for their home, but picking which items to sell depends on market trends, the season, and special events. For example, small kitchen appliances or popular home gadgets like air fryers can appreciate in value when supply runs short. Another real example is that a few years ago, the Instant Pot was so popular that certain colors sold out quickly, and resellers were able to flip them at higher prices on Amazon.
Seasonality is very important when selecting home products. For example, in January, organizers and cleaning supplies see a big spike in demand. Patio furniture and gardening items become very popular in spring, when many people are preparing their outdoor spaces.
- Puzzles
Many people like to do puzzles as therapy and social media is making jigsaw puzzles big again. Look for trendy designs and start selling them in your business.
During early 2020, market reports showed that puzzle sales increased by 300-400% year-over-year. This surge created big opportunities for sellers. If you can source popular design puzzles, for example, Disney puzzles or a meme-themed puzzle that has gone viral on TikTok, you can resell them at a higher price when they sell out in local markets.
As an arbitrage seller, it’s important to look for trendy designs or puzzles featuring famous artwork. Well-known brands like Ravensburger, Springbok, Buffalo Games and White Mountain produce high-quality, popular puzzles that customers trust. Puzzles are not heavily seasonal, but demand often spikes during New Year celebrations or in cold weather months, when indoor activities increase.
- Health and beauty
Health and beauty products that are sub-$20 items are known as the best for discounts and bulk purchasing.
One important reason for the popularity of health and beauty products is that you should always sell brands that customers already trust. This makes them much easier to resell quickly. Another key factor is seasonality. For example, near summer the demand for sunscreen is much higher, which can boost sales significantly.
- Toys & Games
Kids always need toys, but the demands increase drastically during holidays. Toys & Games are among the top 10 most popular items on Amazon. The number of sales is so attractive for arbitrageur companies that they even have specific sourcing lists for toys & games.
Popular games and toys sell especially well from October to December, so if you can source them before this time, you can sell them at higher prices during their peak season. In this category, it’s essential to stay on top of trends, monitor kids’ TV shows, movies, and even trending items on YouTube toy channels to keep track of seasonal swings and shifts in demand.
Pet supplies
The number of pet owners is increasing, and these people are always searching for products to improve their pet’s life. Food, toys, and accessories for pets are among the most wanted items.
For example, a premium dog food brand might be marked down during a store promotion; if the brand is popular among pet owners you can buy it at a low price and resell it on Amazon for a higher profit. Popular pet toys like the KONG brand for dogs, grooming tools and quality pet beds are always in high demand and sell well throughout the year.
You can also use online tools like Chewy’s online sales or BrickSeek to locate local stores offering pet items at discounted prices. For instance, you might find an aquarium filter system in a local store that can be sold on Amazon for nearly double the cost because it’s a genuine model with strong demand.
- Clothing & Shoes
Clothes are one of the most popular e-commerce categories in the U.S., and last year we saw that 43% of online shoppers bought clothes. The great thing about this category is that you can buy items in one season at a big discount and sell them later for a profit.
For example, you might buy winter coats at 70% off in spring and resell them near winter at full price. However, you should be aware that some clothing items are highly seasonal, like coats or summer swimwear, so timing is important. On the other hand, staples like jeans, t-shirts and socks are not dependent on the season and always have a steady demand.
Why Don’t You Try OA Leads List?
Retail arbitrage has always been a good choice for starting your own business. But remember that Amazon provides another opportunity that is as straightforward but, in many aspects, more effortless to establish: Online Arbitrage.
Online Arbitration is a practice like the one we have been discussing but with one important difference: the product sources are online in this business.
To make extra money, try online arbitrage alongside your current retail business. To get the best sourcing lists, you can use OABeans daily leads. By subscribing to one of the plans, we send you daily lists, including product price histories, purchase links, and discounts. Like retail arbitrage, everything is about making a benefit using this method. And that is exactly what OABeans helps you do.
Top Tips for Selecting Profitable Products from Stores
Analysis Plugins
Professional arbitrage sellers often use specialized tools to analyze and identify profitable products faster. These tools help save significant time when searching for winning items.
- One of the most popular tools is Keepa. By installin Keepa , you can instantly see the historical price of any item, how often it goes on sale, and its sales rank trends.
- Another powerful option is SellerAmp SAS, built for both online and retail arbitrage. You can use SellerAmp SAS as a mobile app, a web app, or a Chrome extension. It pulls current data from Amazon for any product you search. for example, estimated sales per month, competition levels, and any seller restrictions.
- BuyBotPro is another useful tool. It crunches numbers on price, competition and rank, calculates your ROI, and gives you a thumbs-up or thumbs-down for each deal. For more detailed insights, refer to our ByteTool review in 2025.
- Finally, BrickSeek is a great local inventory and deal-finding tool. Sellers can use it to search major retailers like Walmart, Target, or Lowe’s for clearance and discounted items.
Category |
Store |
Big Box Retailers |
Walmart |
Best Buy |
|
Target |
|
Marshalls |
|
TJ Maxx |
|
Ross Dress for Less |
|
Costco |
|
Sam’s Club |
|
Big Lots |
|
Toy Stores |
Disney Store |
Hasbro Toys |
|
Lego |
|
Mattel |
|
Steiff |
|
Build-A-Bear |
|
Hardware Stores |
Home Depot |
Lowe’s |
|
Pharmacies |
Walgreens |
CVS |
|
Video Game & Pop Culture Stores |
GameStop |
Hot Topic |
|
Barnes & Noble |
|
Dollar Stores |
Dollar Tree |
Dollar General |
|
Family Dollar |
|
Five Below |
|
Thrift Stores |
Goodwill |
Savers / Value Village |
|
Salvation Army |
|
St. Vincent de Paul |
|
Local Thrift Stores |
Final thoughts
Retail arbitrage is a fantastic way to make money on Amazon, especially for newbies. As one of the popular eCommerce business models, it demands an organized inventory management system. You can find great opportunities in-store. In this post, we list the best stores for retail arbitrage.
FAQ
Can I do retail arbitrage at clearance outlets and still sell on Amazon?
Yes, clearance outlets are great for finding high-margin products, but make sure the items are new, authentic, and not from restricted brands.
Do I need receipts from physical stores for retail arbitrage returns on Amazon?
Yes, always keep your original store receipts, as Amazon may request them if an authenticity or safety claim is made against your listing.
Are there restrictions on selling store-brand products from Walmart or Target?
Yes, many store-brand products like Equate or Up & Up are either restricted or prone to IP complaints, so they’re best avoided.
Can I get ungated using retail arbitrage receipts from stores like Ross or Marshalls?
No, Amazon does not accept receipts from discount retail stores for ungating purposes; you need wholesale invoices from authorized distributors.
What’s the best time of year to do retail arbitrage in physical stores?
Post-holiday clearance events in January and back-to-school sales in August typically offer the deepest discounts and best inventory rotation.
Is it legal to resell products purchased via retail arbitrage?
Yes, under the First Sale Doctrine in most countries, reselling legally purchased items is allowed, as long as they’re genuine and not restricted.
Can I use a scanning app to find profitable items in retail stores?
Yes, tools like Scoutify 2, SellerAmp, or the Amazon Seller App let you scan barcodes, check sales rank, and calculate ROI on the spot.
Are online receipts valid for retail arbitrage proof of authenticity?
No, Amazon rarely accepts online receipts as valid proof, especially from retailers like Walmart.com or Target.com—they prefer in-store receipts or wholesale invoices.
Do big-box retailers limit the quantity of items I can buy for arbitrage?
Yes, some stores like Walmart or Target may flag bulk purchases or resellers, so it’s best to vary your buying patterns and locations.
What happens if a retail arbitrage product triggers an IP complaint?
Your listing may be removed and your account performance impacted, so avoid known brands with aggressive IP enforcement unless you’re ungated or authorized.
11 replies on “Top Stores for Retail Arbitrage Sourcing”
With Amazon FBA, you can benefit from Amazon’s advanced shipping optimization algorithms, helping you get your products to customers faster and more efficiently.
This guide to Amazon online arbitrage is incredibly helpful!
Amazon online arbitrage can be a great option for people who are looking for a second income stream or a side hustle.
I love shopping for pet supplies on Amazon Marketplace – they have everything I need for my furry friend.
Your website is well-organized and easy to navigate, making it simple to find the information you need to improve your Amazon Marketplace performance.
Your website is one of the few reliable sources of information on Amazon online arbitrage that I trust. Your expertise on this topic is evident in the thoroughness and detail of your articles.
The scalability of retail arbitrage on Amazon allows you to start small and gradually grow your business, reinvesting profits to expand your product range and sales volume.
The advanced inventory management tools provided by Amazon FBA help sellers optimize their inventory levels, reducing storage costs and maximizing profitability.
Reselling on Amazon allows you to leverage the trusted Amazon brand and reputation, giving your products instant credibility and attracting more buyers.
Amazon’s fulfillment services, such as FBA, streamline the logistics of online arbitrage. It handles storage, packaging, and shipping, freeing up my time to source more products.
The reselling model on Amazon allows you to develop valuable skills in product research, pricing, inventory management, and customer service.