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Two ways to source, two different logics. Here's how to choose based on your time and budget.
Retail arbitrage
Buying in physical stores (clearance, closeouts, local promotions).
- Pros: sometimes huge price gaps, little online competition, immediate cash flow.
- Cons: time-consuming, not scalable, location-dependent.
Online arbitrage
Buying online (websites, B2B wholesalers).
- Pros: scalable, repeatable, automatable, no travel required.
- Cons: more competitive, sometimes thinner margins, shipping delays.
Which one should you choose?
- Little budget, plenty of time → retail arbitrage to learn the ropes.
- Aiming to scale → online arbitrage + wholesale.
The natural progression
Many sellers start with retail arbitrage to understand the market, then move to online/wholesale to industrialise. Multi-source comparison tooling then becomes essential.