Retail Arbitrage vs Wholesale: When to Switch
Arbitrage is easy to start but hard to scale. Wholesale needs more money and paperwork but gives repeatable supply and proper invoices.
How they differ
- Arbitrage: one-off buys, retail receipts, no minimum order
- Wholesale: repeat orders from a distributor or brand, proper invoices, minimum orders
Why sellers move to wholesale
- Invoices from authorized distributors are what marketplaces ask for when they question authenticity
- You can reorder a winner instead of hoping the clearance comes back
- Less driving
Why sellers stay with arbitrage
- Lower cash needed
- Higher margin per unit on a good find
- No account applications
A sensible path
Use arbitrage to learn which products sell and to build cash. Move your steady sellers to wholesale supply once you can meet a minimum order.