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Retail Arbitrage with Toys

By Aron Hsiao  on May 01, 2012

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Terapeak is a phenomenal tool for helping you source hot products. Today we explore arbitrage opportunities with the classic children's toys from Playmobil. Playmobil has been releasing toy sets for over 30 years now and as a result they have become highly collectible and a great target for arbitrage. If you are unfamiliar with the concept of arbitrage it can be easiest explained as taking advantage of the differences in pricing of a product between market places. Today we will look at how I used Terapeak to identify a valuable set to purchase while at London Drugs . I can sell this item on eBay for profit, and my investment is very low. Here's how it worked: While I was out doing some shopping I came across a bunch of Playmobil sets on clearance at the checkout. I looked a few of them up using Terapeak on my iPhone. I found this Playmobil Fire House set. Terapeak showed me that it was discontinued and worth around between $70-$100. The item isn't listed very often so it is best suited for a fixed price or store listing so you can price it and wait for the right buyer to come along instead of gambling on a bid auction. Stores often clear out older and discontinued product because it takes up valuable space. These discontinued items frequently sell at a premium online to the right buyer. You, the arbitrageur take advantage of these inefficiencies often at a great profit.

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