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Retail Arbitrage: Making A Profit Selling Limited Edition Items

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Submitted 2012-04-11 02:42:08

Every year, toy and collectible corporations make a fortune off of limited edition toys such as action figures, dolls, trading cards, candy, and even costumes and clothing. These items, which are advertised as being available only for a short time, bring collectors out in droves to snatch them up of the shelves. When they are gone, they then show up on Internet auctions, where they are sometimes bought for even twice or even three times their original retail price in mad bidding wars between collectors who missed out the first time but are now determined to own them. Supply and demand is what drives profit, and retail arbitrage, the business of buying cheap and then selling when the demand is high, can be extremely profitable in the world of limited edition collectibles.

Buying cheap

The best time to buy limited edition collectibles is when they first come out. Many stores will have them at a reduced price in order to sell them out quickly. Buying as many pieces as possible will build you a solid inventory, and once the items start to vanish, checking warehouse stores for reduced-cost items will also save you money. Some collectibles will remain extremely hot sellers, no matter how much time passes because thanks to the Internet, movie and television show fandoms generate interest year after year. You may have to hold onto some items in order to make the biggest gains, such as when movies are released and a whole new generation of fans are born, or the next big movie in a franchise is set for theatrical release, but be patient because hardcore fans are always looking for that rare item.

The best times to sell

The best time to sell limited edition collectibles for the highest profit is when the supplies in online auction sites are very low or non-existent. You wonít make much of a profit on your collectible if ten or fifteen people are selling the same thing, so track your genre on the auction sites daily. When supplies run out and the genre is hot, you can make a bundle by being the only supplier on the site with a limited edition collectible for sale. In some cases, some limited editions arenít so limited, and you may have to wait until the demand for them rises again. Pick and choose your collectibles carefully, remember what endures and what sells, and youíll be making a profit at retail arbitrage in no time.

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