How to Do Retail Arbitrage in the UK
Retail arbitrage is one of the easiest and most accessible ways to start a side hustle in the UK. Whether you’re looking to make a few hundred extra pounds a month or grow a scalable business, this guide will walk you through everything you need to know.
✅ What Is Retail Arbitrage?
Retail arbitrage involves buying discounted products from local or online retailers and reselling them at a higher price — usually on marketplaces like Amazon, eBay, Facebook Marketplace, or Vinted.
Example: Buy a toy from Tesco clearance for £5 and resell it on Amazon for £15.
Why the UK Is Great for Retail Arbitrage
Frequent sales at UK retailers (Tesco, B&M, Argos, etc.)
Big price differences between in-store and online
High demand for certain products on Amazon UK & eBay
Lower competition compared to the US market
How to Start Retail Arbitrage in the UK
1. Research What to Sell
Google Trends UK
Amazon Best Sellers
eBay Trending Products
2. Visit UK Retail Stores for Deals
B&M, Home Bargains – Toys, gadgets, household
Argos – Clearance and end-of-line deals
TK Maxx – Branded items at discount
Poundland – Bundle items and resell in packs
3. Scan and Analyse Prices
Amazon Seller App (free) – Scan barcodes and check profitability
Profit Bandit – Advanced scanning with FBA calculator
BuyBotPro or SellerAmp – Power tools for serious sellers
4. Buy the Products
Start with a small budget (e.g., £50–£100).
Stick to items you understand or use yourself (to avoid waste if it doesn’t sell).
5. List the Items Online
Amazon UK – Ideal for fast-moving, branded products
eBay UK – Great for toys, electronics, collectibles
Facebook Marketplace / Vinted – For local, quick sales
Tips:
Include delivery time and return info
Use clear photos
Write UK-optimised descriptions
6. Ship the Orders
For eBay & Facebook:
Use Royal Mail, Evri, or local drop-off options
For Amazon:
- Use FBA (Fulfilment by Amazon) or FBM (Fulfilled by Merchant)
FBA is easier long-term, but has upfront costs (storage fees, etc.)
Online Arbitrage
Online arbitrage is one of the most beginner-friendly ways to make money online in the UK. With just a laptop, Wi-Fi, and a small starting budget, you can source discounted products from online UK retailers and flip them for a profit on platforms like Amazon and eBay.
✅ What Is Online Arbitrage?
Online arbitrage involves buying products at a low price from online retailers, then reselling them for a higher price on marketplaces like:
Amazon UK
eBay UK
Facebook Marketplace
How to Start Online Arbitrage in the UK
🧠 1. Choose a Product Category
Toys & games
Electronics
Beauty products
Home & kitchen
🛒 2. Find Discounted Products Online
Argos.co.uk – Clearance deals & seasonal offers
Tesco Direct – Seasonal reductions, clubcard prices
Very.co.uk – Discounted tech and fashion
Boots.com – Personal care and beauty
John Lewis – Branded home goods
eBay Outlet Stores (UK) – Branded outlet sellers
📲 3. Analyse Profit Margins
Amazon Seller App (Free) – Scan or search to check selling prices
Keepa (Free & Paid) – See Amazon price history and sales trends
BuyBotPro or SellerAmp (Paid) – Deep analysis of fees, ROI, and demand
Target minimum:
30% ROI (Return on Investment)
At least £5 profit per item
🛍️ 4. Buy Products Online
Order from the retailer to your home (or prep centre if using Amazon FBA)
Keep proof of purchase (screenshots, invoices) for return or tax reasons
Avoid buying from marketplaces (eBay, AliExpress) unless reselling on another platform
📦 5. List the Products for Sale
✅ Amazon UK
Use Fulfilment by Amazon (FBA) for hands-off shipping and Prime eligibility
Need to create a UK Seller Account
Watch for brand restrictions and gated categories
✅ eBay UK
More flexibility, less competition
Great for items with variable pricing or unbranded goods
✅ Facebook Marketplace / Vinted / Depop
Good for quick local flips or used/refurbished items
🚚 6. Handle Fulfilment
For Amazon FBA, ship bulk items to Amazon’s UK warehouse
For FBM or eBay, ship items yourself using:
Royal Mail
Evri
DPD Local
⚖️ Is Online Arbitrage Legal in the UK?
Yes, it is 100% legal, but here’s what you must know:
HMRC considers it a business if you do it regularly
You should register as a sole trader or limited company when earning consistently
Track all income, expenses, and profits for tax purposes
Consider using accounting tools like QuickBooks or Xero