MyDataProvider » Blog » Is Retail Arbitrage Sourcing Slowly Dying?

Is Retail Arbitrage Sourcing Slowly Dying?

  • by

This has been a topic of discussion on the internet for about eight years now. People want to know if they can get into the business of buying merchandise in retail stores at a lower price then reselling them at a profit on Amazon. But they question whether Retail Arbitrage sourcing is dead. After all, who wants to invest time and money in a business that is destined to fail?

I have been using RA sourcing and I’m not about to stop anytime soon.

There are four main reasons why people seem to think that Retail arbitrage sourcing is dead. Let’s look at them as I try and give you reasons why I disagree with that notion.

IP and Copyright Infringement

Concern has risen over the years that RA sourcing will lead to some infringement notices stating that you shouldn’t sell certain brands or items on Amazon.

This happens sometimes though it isn’t too common. When it does happen though, it is frustrating and can be a nuisance to resolve. There are ways to overcome it so do not panic.

Sadly, these notices are sent not by the brand owners but by a seller you are in competition with. There are sellers who will stoop very low to harm their competition. Because it isn’t easy to know which notices are a sham and which are legit, it’s important to take them all seriously and carefully handle each notice. Contact Amazon immediately and confirm that you have permission to sell the brand(s) in question. If no restrictions are in place, go right ahead and sell the items,

Another way you can deal with these situations beforehand is by becoming an approved brand reseller. Get an account with the brand owner and sell without restriction.

Price Drops

Demand and supply are the two things that have always governed pricing. When there is low demand, prices go up. With high demand prices go down, right?

Keeping a keen eye on this trends will, therefore, guide you when conducting business. There are free websites, RA sourcing apps and free online tutorials that will help you with price prediction. So, rather than focusing only on the current price of items, learn how to make better buying decisions using the resources that are readily available to guide you.

Amazon Seller Restrictions

Restrictions for brands, specific ASINs and categories can be a cause of concern for those who want to get into retail arbitrage sourcing.

It is wise to try and get approved in as many Amazon categories as possible. It will take you time but it would be good for you in the long run.

There are videos online that give you a tutorial on just how to make this happen.

Most people think that when they find unique items for which they have no Amazon approval, they have no choice but to let these prized possessions go. That isn’t always the case. You would be surprised at just how fast some amazon approvals can be, I have had some of my approvals go through while I’m at a store going through the items on an isle!

Get the amazon approvals, and though some may take some time, others you can get instantly.

Be patient with the process and you will find that as your approvals increase you will sell more and continue to grow your business.

 Increase in Competition

With an increase of sellers joining the platform, a concern is on the rise. People tend to think that the market is flooded. Competition is also on the rise. Strange thing is that this fear has been going on for many years now but the competition or influx of sellers doesn’t negatively affect the situation. RA remains a great way to make money if you source for your merchandise wisely.

Most new sellers do not keep at it for long. They find that it isn’t as easy as they thought it was and more often than not, they give up.

There is another reason why more sellers do not faze me. The Amazon catalog has increased in size. Some categories have moved from 18 million up to 86 a million items in barely five years! So you see? There is no shortage of items to sell! We can all sell comfortably. And besides, a little competition isn’t bad for anyone, is it?

Retail arbitrage sourcing isn’t dead. There are numerous for RA sourcing. It can earn you great profits especially when done correctly. So, turn a blind ear to the naysayers and if you have an interest, get into RA sourcing.