Retail Arbitrage vs Wholesale Arbitrage : Brutal Comparison

wholesale vs retail arbitrage


Both models let you buy low and sell high on Amazon or eBay. One is a hustle, the other is a business. Here’s the honest comparison.

1. Start Cost  

Retail: £100–£1,000 — buy small quantities.  

Wholesale: £5,000–£20,000 — minimum orders required.

2. Sourcing  

Retail: Clearance from Walmart, Target, online stores.  

Wholesale: Bulk from brands or distributors.

3. Profit Per Item  

Retail: £5–£30 (higher percentage).  

Wholesale: £3–£15 (lower percentage but volume makes up for it).

4. Time Per Week  

Retail: 10–30 hours hunting deals.  

Wholesale: 5–10 hours managing orders.

5. Scalability  

Retail: Hard — limited stock.  

Wholesale: Easy — reorder forever.

6. Risk  

Retail: Low — buy what sells fast.  

Wholesale: Higher upfront money.

7. Best For  

Retail: Beginners testing the market.  

Wholesale: Serious sellers aiming for £10k+/month long-term.

8. Monthly Profit Potential  

Retail: £1,000–£5,000.  

Wholesale: £5,000–£50,000+ with scale.

9. Inventory Risk  

Retail: Low — small buys.  

Wholesale: Higher — big orders.

10. Verdict  

Start with retail to learn what sells with low risk. Once you make £2,000–£5,000 profit, switch to wholesale and scale. Retail is quick cash. Wholesale is real freedom.

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