What Is Retail Arbitrage? A Plain Guide for Canadians
Retail arbitrage means buying discounted products from stores and reselling them online for more. Here is how it works in Canada.
The idea in one paragraph
You buy a product at a store for less than it sells for online, list it on a marketplace, and keep the difference after fees and shipping. The discount usually comes from clearance, a flyer sale, a price error or a regional markdown.
Why it works
- Stores clear stock to free up shelf space, not because demand is gone
- Online prices are set nationally, while store markdowns are local
- Many shoppers pay for convenience instead of hunting for the lowest price
What you need to start
- A seller account on a marketplace
- A small budget you can afford to tie up for a few weeks
- A way to check the real selling price and fees before you buy
The catch
Margins are thin and mistakes are easy. Gated brands, wrong fee estimates and slow sellers eat profit quickly. Read how to calculate ROI before your first trip.