Retail arbitrage is buying products in physical stores, often on clearance, and reselling them on Amazon for more than you paid. You profit from the gap between the store price and the Amazon price, after Amazon's fees.
How retail arbitrage works
A product sells for $10.49 at a store near you and for $33.49 on Amazon. Buy it, send it to an Amazon warehouse, and Amazon ships it to the customer when it sells. That's the whole model: find a price gap, check the fees, and buy only what still makes money.
- Scan products in a store with an app that shows the Amazon price and fees.
- Buy the ones with enough profit and sales, usually 30% ROI or more.
- Send them to Amazon (FBA) or ship them yourself (FBM).
- Get paid by Amazon every two weeks, minus fees.
Is retail arbitrage legal?
Yes. Reselling products you bought legitimately is legal in the US and the EU. What you need to watch is Amazon's own rules: some brands and categories are gated, and some brands file complaints against resellers.
Check before you buy. In Seller Central, search the product and see if Amazon lets you list it. Profit Mate has a one-tap link for this on every product.
What it costs to start
You can start with a few hundred dollars of inventory. The fixed costs are small:
| Cost | Amount | Notes |
|---|---|---|
| Amazon Individual plan | $0.99 per sale | Good while you sell under 40 items a month |
| Amazon Professional plan | $39.99 / month | Needed for the Buy Box in most cases |
| Scanner app | $8.33–$14.99 / month | Profit Mate yearly or monthly |
| First inventory | $200–$500 | Start small and learn what sells |
A real example, with every fee
Here's a toy we scanned in November 2026. The store price looked like a $23 profit. After Amazon's fees it's $7.43, which is still a good deal at 57% ROI. Try your own numbers:
Your first 30 days
Spend the first week scanning without buying. You'll learn what sells, which categories are gated and what a realistic profit looks like. Then buy small: two or three units of each winner, never twenty.
Frequently asked questions
Do I need a business to start retail arbitrage?
In the US you can start as an individual. In Spain you'll usually need to register as autónomo once it's a regular activity.
How much can you make?
It depends on how many hours you scan and how much you reinvest. Track ROI per product, not total sales.
Is online arbitrage better?
Online arbitrage scales better but competition is higher. Many people start in stores, where clearance deals are local.