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Now, it’s time to talk more specifically about retail arbitrage. This is a very exciting business model for FBA. You are going to buy products for low prices in your local area or online and then resell them on Amazon for a higher price. You’re taking advantage of the low supply on Amazon and the high demand for certain products.

There are certain tools we’ll talk about again that will really help you when it comes to profiting with retail arbitrage. Note that this can take a lot of legwork. You aren’t going to be able to walk into a store and come out with thousands of dollars worth of profitable items in 10 minutes as a newbie. You will need to diligently scan items for profitability and make intelligent decisions based on the available data. That will help you determine if a product is a good purchase or not.

Ideally, you’ll eventually find products that are in high demand on Amazon but in low supply, and that you can readily get for low prices in your area so you can replenish your stock.

This can be a very profitable and fun business model, especially if you are of the personality that loves to find a great deal, loves to hit the clearance sections of your local stores, and takes joy in trying and testing many different products to see how much you can profit.