What is Retail Arbitrage

What is Retail Arbitrage?

What is Inventory Arbitrage?

Enterprising individuals have found ingenious ways to leverage differences in perceived value.

Inventory or retail arbitrage is when you buy a product from a retail store such as Walmart and then resell the product on your own or mainstream e-commerce platforms at a profit. As an e-commerce business model, retail arbitrage is one of the best ways to launch an online store or Amazon business as it doesn’t require a lot of inventory to get started.

If you want to start retail arbitrage, you have to put the time into finding good deals or sales, then buy the products cheaper to sell at a profit.

The obvious question here is why would people pay more for your product?

Mainly because people are typically not as informed about places they can find the product at a better price. In other words, not everyone takes the time to shop around. They’ll see your product online and add it to the cart without doing a lot of research.

Is Repackaging a Product Legal

Is Repackaging a Product Legal?

If you have a generic product that is unbranded, it is completely legal to repackage a manufacturer’s product and put your brand on it. If your product has another business’s branding somewhere on it, however, repackaging is illegal and you may be slammed with a copyright or trademark infringement.

Many manufacturers specialize in producing white-label products that sellers can buy to resell as their own branded products. These products can include everything from coffee, to silicone coasters, to healthy food supplements.

When it comes to retail arbitrage, it is important to remember although repackaging a manufacturer’s product may be legal in some cases, it may not always help to boost your sales, especially if other sellers are selling the exact same product in a crowded marketplace.

In order to boost your sales from branding, you have to make sure that you differentiate your product or service to the buyer in some way that it hard to imitate by competitors.

What is Arbitrage in Economics?

Arbitrage refers to the act of simultaneously buying and selling a product or any other asset with the objective of profiting from the difference in the buying and selling price. This profit is due to the difference in two similar financial instruments in two different markets.


Demand and supply, for example, is the exact same concept in two different states, but the demand for a product may be lower in one of them, which means that the market price in the two states differs. Exploiting this price difference means that you can make a profit.

What is an Example of Arbitrage?

An example of retail arbitrage is when you find a fur coat for sale in Texas at, say, $45. You buy the coat and have the retailer send it to your third-party prep center in Kansas. You then list the fur coat on an e-commerce website for $120. Someone in Alaska sees the listing and buy the coat.

The demand for fur coats in Alaska is much higher than it is in Texas and, even if the supply is more or less the same, it means that the market price for fur coats is higher.

lifestyle brands

Why We Like the Brands and Products We Like

Businesses always try and figure out how people gravitate to products and brands they have an affinity for. As they are trying to figure out what it is their brand or product needs to be that go-to brand for their audience, it’s also interesting to know why we like the things that we like! Let’s take a look at why people seem to always go towards the lifestyle brands or products that they have an affinity for:


Even though you might not even think about it, you seem to unconsciously stick with a brand based off of its reliability. Even if you haven’t seen anything significant, if that brand didn’t cause any problems for you or affect anything negatively, people have a tendency to just stick to that brand of product. For example, if you decide to buy your first bottle of shampoo after you move into your first home, and that shampoo made your hair feel fantastic, you are most likely going to buy that same brand again when you run out! In some way or form, that product or brand has made you rely on its performance.


Whether you realize it or not, we rely on the brands or product that was most effective. If the product was ineffective and caused no results or caused any problems, which is most likely not a product you would go back too. With that said, we tend to always gravitate to the service or product that already passed our test. Sometimes these decisions aren’t even made on hard proof!


Price always goes a long way, if we didn’t care about money, we would all probably be using the same expensive product! Sometimes our go-to choices are based on the price, not necessarily the cheapest one, but one that fits more comfortably in our budget. Say you love the way brand A protein supplement tastes, but it’s twice as much as brand B but holds the same results. You are most likely going to always stick to brand B, if the price is one of your influences. It’s a known fact, we tend to gravitate towards the same brands we can afford.

If It’s Worked Before It Will Work Again!

The number one thing we do is keep sticking with a product or brand that has worked for us before. We think, “why should I stop using something that has already been working for me?”. This is the case for many people whether they notice it or not. It doesn’t mean you’re reluctant to try a product you do not have an affinity for, but you wouldn’t gravitate toward it over your regular (or normal) brand or product.

Passed Down

If your momma used it, you’re bound to use it too! Whether your parent had a favourite sauce, go-to car shop, or favourite grocery store, you’re bound to continue on their traditions because it is what you are used to.

Strengthen your own brand with the finest quality products for your particular market, contact us today at!