In arbitrage, timing is everything. Knowing when to source products is just as important as knowing what to source. With key shopping events and seasonal changes, there are several critical periods where demand spikes, and great deals are available. Let’s dive into some of the most profitable times coming up for your retail arbitrage business, along with tips on how to leverage them effectively using SellerAmp.
Early September: Labor Day Sales
Labor Day marks the unofficial end of summer, and for retailers, it’s a golden opportunity to clear out their summer stock. Early September brings a wave of Labor Day sales that offer discounts on a variety of products. This is a prime time for arbitrage sellers to source summer clearance items and start listing those early fall products.
Why It’s a Great Sourcing Opportunity:
- Clearance Prices: Retailers are eager to make room for Q4 inventory, so you’ll find great deals on summer items.
- Back-to-School Sales: School supplies, clothing, and electronics often see markdowns, which can be profitable for reselling.
- Home Improvement: With the end of summer, home improvement stores often discount patio furniture, grills, and gardening tools.
SellerAmp Tip: Remember, the more popular the category, the more competitive, and margins usually are lower. Use SellerAmp to see how well a product sells compared to other products in the same category. The Top 0.5%-1% categories are good places to start.
Mid-September: Sports Gear & Fall Clothing Trends
As we move into mid-September, the focus shifts to sports gear and fall clothing. Soccer, Football and Volleyball seasons are in full swing, driving demand for related equipment and apparel. Additionally, fall fashion trends start to emerge, with consumers looking for cozy sweaters, boots, and jackets.
Why It’s a Great Sourcing Opportunity:
- Seasonal Demand: Sports gear for school and recreational activities see a surge in demand. This is also when fall clothing trends start gaining traction.
- New Arrivals: Retailers begin showcasing their fall collections, meaning last seasons items are likely to be marked down.
- Holiday Prep: Early shoppers start preparing for Halloween and even Thanksgiving, increasing demand for themed products and decor.
SellerAmp Tip: The key is patience and perseverance when it comes to reselling for maximum profit. Sourcing at the right time often means planning months in advance, well before sales start to surge. You’ll likely want to sell out in a month, but that can be far from reality. Analyze historical sales figures of trending items with SellerAmp; this will help you capitalize on the season’s hottest products and identify where the sales’ peaks are.
Early October: Prime Day & Competing Retailer Deals
Early October is all about Amazon’s Prime Day—one of the biggest online shopping events of the year. If Amazon follows the same trends as previous years, expect Prime Big Deal Days 2024 to take place from October 8th through October 9th – however these dates haven’t been confirmed by Amazon yet. This year’s Prime Day is expected to be just as massive, with tons of deals across every category imaginable. But don’t limit your focus to Amazon alone. Other major retailers like Walmart, Target, and Best Buy often run competing sales during this period to capture some of the Prime Day excitement. If you’re in the UK, check Tesco, Asda, and Aldi’s middle isle too!
Why It’s a Great Sourcing Opportunity:
- Massive Discounts: Prime Day offers significant discounts, and other retailers often match or exceed these deals.
- Electronics Bonanza: This is a great time to source electronics, smart home devices, and other tech products as people start to spend more time indoors.
- Early Holiday Shopping: Consumers start their holiday shopping early, meaning you can find and resell items that will be in high demand come December.
SellerAmp Tip: Don’t try to outsmart or compete with Amazon. If they’re selling the product already, there’s a very likely chance they will win the Buy Box, nearly every time. Use the SellerAmp Mobile App to quickly analyze clearance items and determine their profitability if you’re doing retail arbitrage to find a bargain. SellerAmp’s profit calculator can help you identify the best deals with the highest potential returns. Remember: Markets change quickly and can be unpredictable. Rushing can hurt growth, so it’s best to choose your product carefully and take your time.
October 31st: Halloween Clearance
Halloween marks the end of October, and it’s not just about costumes and candy. The day after Halloween, retailers slash prices on everything from costumes to decorations. This is a great time to stock up on items that will be in demand again next year or even products that can be repurposed for other occasions.
Why It’s a Great Sourcing Opportunity:
- Huge Discounts: Post-Halloween clearance sales can offer up to 90% off on seasonal items.
- Costume & Decor: Costumes, party supplies, and themed decor are deeply discounted and can be stored for resale during the next Halloween season. Note: Amazon FBA (Fulfilment by Amazon) may charge you additional fees should your stock be lingering for longer than usual.
- Repurpose Potential: Many Halloween items can be repurposed for other events or holidays, increasing their resale value. Think fancy-dress or spiced candles.
SellerAmp Tip: Don’t make a large investment all at once. You may think that everyone will want that pumpkin-spice scented candle, but test the product by selling a few first before making a bulk purchase. Focus on positive feedback first, rather than risk large number of over-stock.
Final Thoughts
Timing your sourcing efforts around these key dates can significantly boost your retail arbitrage business. Keep these dates in mind as you plan your sourcing strategy for the upcoming months. If you have the space, hold on to that out-of-season stock and list it when the time is right! Don’t forget the early November deals, Sunday (24th Nov 2024) just before Thanksgiving (28th Nov 2024), Black Friday (29th Nov 2024) and Cyber Monday (2nd Dec 2024) either!
