Tuesday, April 5, 2016

Turnover Tuesdays - Clearance is Your Friend

For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.

The Item - The Clearance Section

I'm not a big fan of Retail Arbitrage (RA).  I enjoy Online Arbitrage (OA) much more.  I discussed this is in Week 28 in detail but it mostly has to do with lazyness and time.  I'm lazy.  I'd rather sit in my apartment in my PJ's than have to go outside.  It also takes longer.  You have to drive there, find the item, checkout and drive back.  I need to be buying quite a bit to make the trip worthwhile

There is one benefit however of RA that OA does not have which is the clearance section.  Most stores have a clearance section and some are better than others but the clearance section is a wonderful place to source.

There is a clearance section for OA as well, but there is more access, and therefore more competition, to it online (anyone can see it rather than just someone who happens to be at the store).

The clearance section is a magical place that doesn't have to make sense.  If a store decides that something needs to go, they just mark it down to sell faster.

You have advantage over brick and mortal stores.  They have shelf space issues.  They have limited capacity of what can be displayed for sale so they try to stock only items that sell fast.  In addition,

Sometimes they just make up a price on the spot (I've had that a few times).  Just because a children's book doesn't' sell well at Staples has nothing to do with whether it will sell well on Amazon.

Here is a list of items which I've sold in the last week to two weeks from the clearance section.  I'm sure there are others I'm forgetting about and there are others still which will be sold soon, but they haven't sold yet.

Swingline Stapler - Bought for $2 - sold for $11 after fees.

Phillips Light Bulb - Bought for $5 - sold for $15 after fees

40 Key Cabinet with Combination lock - bought for $10 - sold for $35 after fees

DVD storage Cases - 25 pack colored - Bought for $2, sold for $17.50 after fees

DVD Storage Cases - 25 Pack Clear - Bought for $2 - sold for $16 after fees.

DVD Storage Cases - 50 Pack Clear - Bought for $2 sold for $21 after fees

Minnie Mouse Look and Find - Bought for $1 - sold for $5.50 after fees

Hockey Pucks - 6 Pack - Bought for $2 - sold for $6.50

Clearance is Not a Business Plan

You can't predict what will be at the clearance section and it is store specific.  One Target may be selling a toy well and the one 50 miles away has tons left (or ordered too many to begin with).  

You may go and there is nothing interesting there.

I don't go anywhere with the sole intentions of visiting the clearance section except right after the holidays, but if you are there anyways break out your FBA App and start scanning.

I was just at a clearance section on Sunday.  After 5 minutes of scanning I found about $40 worth of merchandise which I hope to flip for $115ish.  I think that's worth my time if I'm there anyways. 

Anyone else stalk the clearance section?  Find anything amazing?  Let us know in the comments