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Retail arbitrage

Buying items at stores, often on clearance, and reselling them on marketplaces like eBay, Mercari or Amazon, with money tied up in stock, platform fees and unpaid sourcing time.

Published Facts checked 28 sources
Where to sign upWhat you'd keep
On this page8 sections

eBay's final value fee is 13.6% of the total sale amount up to $7,500 per item, plus $0.30 per order of $10 or less and $0.40 above that. Mercari keeps 10% of the item price plus buyer-paid shipping. Amazon's referral fee in Home and Kitchen is 15% with a $0.30 minimum, before its $0.99 per-item or $39.99 monthly plan fee.

The only margin data covers all Amazon seller types, not retail arbitrage alone. In Jungle Scout's voluntary, self-reported survey, 57% of respondents reported margins above 10% and 13% said they were not yet profitable.

How retail arbitrage makes money

You buy an item in a store, list it on a marketplace and ship it when it sells. On eBay, the fee is a percentage of the total sale amount plus a per-order fee, and payout speed depends on when the buyer completes the order. The IRS figures tax on net profit, meaning income minus business expenses, so purchase cost counts.

Fees apply to more than the item price. Amazon applies its referral fee to shipping and gift wrap, and eBay's fee base includes shipping charged to the buyer, handling and sales tax.

What resellers actually earn

FigureWhat it is
$17.03/hrMedian wage, retail salespersonsBLS · May 2025
57%Amazon sellers with margins over 10%Jungle Scout · 2024-01
28%Amazon sellers with margins over 20%Jungle Scout · 2024-01
13%Amazon sellers not yet profitableJungle Scout · 2024-01

The BLS wage is for store employees and works only as a comparison for your time. No source reports a typical retail arbitrage profit per item or per hour.

What you'd keep per item sold on eBay

Prefilled from the sources below. Change any number to match your situation.

$
%

Use 0 for direct clients.

$

Travel, waiting, messaging.

You keep per item sold on eBay
$11.60
after $3.40 fee and costs
Per hour of all time spent
$12.65
including unpaid minutes
Per week
$116.00
for about 9.2 hours, before taxes

This is an example, not a prediction. Defaults: price from Example price, not a sourced figure: what one clearance item might sell for on eBay with free shipping.; fee from eBay's most-categories final value fee of 13.6%, plus a $0.40 per-order fee on orders over $10.; unpaid time is Assumption: sourcing, driving, photos, listing and packing time per item sold.; costs: Assumed purchase cost of $10 per item, plus shipping and supplies. Not a sourced figure.; 10 item sold on eBays a week is a starting point, not a typical workload.

Where the hours go

Sourcing trips, driving, photographing, listing and packing are unpaid until an item sells. How to calculate your actual hourly earnings shows the method.

What it costs to start

ItemCostNeeded?
Amazon Professional plan$40 a monthOptional
eBay listings past 250 free$0Usually
Mileage for sourcing tripsNot publishedUsually
Texas sales tax permitNot publishedOptional
Inventory purchase capitalNot publishedRequired

No source publishes a typical inventory amount. Mileage and any monthly plan fee recur.

Where to sell

PlatformWhat it keepsFirst paySign up
Amazon Seller Central15% referral fee, $0.30 minimum†Not publishedApply
eBay13.6% of sale up to $7,5007–8 daysApply
Mercari10% of item plus shippingNot publishedApply

First pay combines each platform's approval time and payout delay. Bank transfers can add a few days, depending on your bank and payout method. Full terms are on each platform's page. Checked Oct 27, 2026; confirm on the official page before you sign up.

† Reported by a third party; the platform doesn't publish it.

For local sales, see the Facebook Marketplace page.

Requirements and rules in the U.S.

Legality. Reselling genuine goods you bought is generally legal. A 2014 American Bar Association article says a buyer can generally resell a branded item in unchanged state. For books and DVDs, federal copyright law lets the owner of a lawfully made copy sell it without the copyright owner's permission.

Store limits. Walmart's terms let it limit quantities and prohibit sales to resellers. Target Circle's terms exclude resellers and allow Target to withhold rewards or end participation for resale purchases.

Taxes. The IRS says income from selling goods online is taxable even without a 1099-K. Sole proprietors report on Schedule C and pay quarterly estimated taxes, and self-employment tax applies from $400 of net earnings. The IRS decides hobby versus business on all facts, including your books and records.

Sales tax. Rules vary by state. Check your state's revenue department.

Risks and red flags

Mercari can limit or close accounts for prohibited items, conduct or multiple violations. The ABA article says reselling genuine product is not improper under trademark law, but infringement claims can still arise, for example when an item is materially different from the original.

For in-person sales, Fairfax County, Virginia advises meeting in public, using police safe exchange zones where offered, and avoiding large amounts of cash, wire transfers and money orders.

Who this fits, and who should skip it

Fits you if:

  • You can leave money tied up in stock and absorb items that never sell, which dog walking never asks of you.
  • You can drive to several stores on weekends or evenings.
  • You are comfortable shipping parcels and sending items back to buyers who ask.

Skip it if:

How to start

  1. Read the resale terms of the stores you plan to shop: Walmart's terms of use and Target Circle's terms.
  2. Pick one marketplace and read its fee page: eBay's selling fees or Mercari's fees. For Amazon, check its seller registration steps first.
  3. Work out profit per item and per hour with the hourly earnings guide before you buy anything.
  4. Buy a small batch of items in original, unchanged condition, since the ABA's 2014 article flags material differences as a risk.
  5. Set up payouts using eBay's getting paid page or Mercari's payout page.
  6. Track receipts and miles using the IRS standard mileage rates.
  7. Ask your state's revenue department about a sales tax permit or resale certificate.

Frequently asked questions

Sources

Government

Official platform and company pages

Research and surveys

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