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Side Hustles for Debt: When They Help and Hurt

Quick Answer: Steve Rhode and Damon Day introduce their Penny Stupid project - a real-world experiment testing side hustles so listeners don't have to. This episode covers their Walmart retail arbitrage experience, buying clearance items to flip on eBay and Amazon FBA. They share honest results: after spending $300, they've made $22 in profit on Amazon while eBay has produced zero sales. The episode reveals the hidden costs, time investment, and learning curve of retail arbitrage, plus practical lessons like checking sold listings versus active listings, avoiding heavy items, and understanding Amazon's gated categories.

Listen to this episode:

Duration: 33 min

Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.

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Key Takeaways

  • Always check sold listings, not just active listings – items may be listed at $70 but actually selling for $1 or not selling at all
  • Shipping costs can destroy your profit margin – avoid heavy items like an 8-pound remote control car that would have cost more to ship than the profit earned
  • Amazon FBA requires $39/month plus referral fees and fulfillment fees that can cut your expected profit in half
  • Many Amazon categories are 'gated' or restricted for new sellers – you could buy inventory you can't even list
  • Once you send inventory to Amazon, you're committed – items that don't sell will incur storage fees or be destroyed
  • Making real money in retail arbitrage requires massive volume and automation – a few items making $5 each won't sustain a business

Full Transcript

Click to expand transcript

Hi, this is Steve Rhode, your get out of debt guy from getoutofdebt.org.
Moving forward, you’ll hear more podcasts from me about a project I’m working on named
Penny Stupid.
You see, getting out of debt can be tackled with several different approaches.
One is reducing what you owe, but another is increasing income to help pay down the debt.
This has taught me that a combination of both usually is the winning hand, but making extra
money is problematic when trying to do it through desperation rather than inspiration.
So we aim to change that for you by showing you the way.
My friend debt coach Damon Day and I are working together to find side hustles you can explore
to help make an extra $500 to $2,000 a month with your own side business or side hustle.
Look we’re not selling anything so don’t worry, the advice you will hear is unbiased.
We’re starting from scratch on the different side hustles so we can find the potholes and
you can avoid them.
As Damon once said, our side hustle is to try all the side hustles so you don’t have to.
When people are struggling with money and debt, I’ve found the stress of the debt often
leads to inaction, fear, and desperation.
Unfortunately this fear and anxiety have left people easy targets for scammers and uncertain
about what to do to make extra money.
This is nothing new and ever since I can remember people have had work from home scams like
envelope stuffing or many multi-level marketing schemes that have proven unsuccessful and
collapsed taking loads of their money with them.
The best side hustle allows you to increase extra income without adding on time consuming
work.
Time is the most precious asset we each have, so let’s not waste it.
If you’d like to discover more about this project, visit pennystupid.com and subscribe
to our email updates.
But you can stay tuned here and more updates will be shared on future Get Out of Debt Guy
podcast.
Oh, and you can also visit the project on Facebook if you’re into that sort of thing.
You can go to facebook.com slash pennystupid.
But today, here’s the latest audio update from a pennystupid.com video we just published.
I always wish you happiness, peace, and financial success because life is just too damn short
to suffer in dark, damp, depressing debt if you don’t have to.
Until next time, this is Steve Rhode, your Get Out of Debt Guy from GetOutOfDebt.org and
oh yes, pennystupid.com.
And now, the pennystupid update.
Hey, you’re listening to Damon and Steve or Steve and Damon on the Pennystupid podcast.
And this time, we’re doing an update about our Walmart experience.
So Damon, give us an update what’s happened.
So we’ve learned a hell of a lot and we have not sold a hell of a lot.
So that’s it in a nutshell.
Stay tuned.
We’ve made some sales.
So that’s good.
But I really think one of the biggest updates is we were starting from scratch.
We’re newbies doing this.
And so we’re just trying to figure this out just like you would as we’re getting going.
And it is melting my brain.
There is so much to try to figure out and learn.
Damon, there are all sorts of videos out there on YouTube.
I found a couple of gems, a couple of people that I really like.
And I’ll be sharing those in upcoming post because I want to share it with everybody.
But most of the stuff out there, it’s impossible to get through.
They’re all teasers to sell you something.
So I’m struggling.
Yeah.
And, you know, yeah, she’s right.
We’re brand new.
Like brand new.
Like I walked into Walmart without even the intention of buying anything.
I had a little honey-do list that, you know, a couple items that I went in and I just found
this massive clearance aisle all of a sudden in Walmart.
And I downloaded the eBay app right there and was like, hey, I can try flipping some
of this stuff.
And then I got home and before I knew it, I had 300 bucks of stuff and it was all over
my wife’s dining room table.
I called Steve the next day and said, hey, I think we should try flipping stuff and see
if we can make any money.
So that’s kind of how it started, but we haven’t taken any courses.
I mean, the most research we’ve done, well, up to that point was we’d seen the ads and
the videos like probably a lot of you have.
It’s easy.
Yeah.
And it’s like, oh, make a quarter million a year and just buy stuff.
So yeah, we just went hog wild with it and we’re 30 days in.
Steve’s doing a lot more of the research because that’s boring crap to me.
And we’re learning a lot.
But so far, Steve, you mentioned we have sold a couple things.
So we have.
Yes.
We have sold technically two different items.
One was a Ford Bronco remote control car, but I sold that on Facebook Marketplace local.
Yeah.
I did not sell that.
That’s a great example, though, because once we did the research, if we had known then
what we know now, you probably never would have bought the thing because what we found
out was it was going to be a money loser if we sold it online.
Well, it’s just, it was massive.
It was a big remote control car and it was going to cost, we’re going to lose all our
profit in shipping and Facebook fees or Amazon fees.
Amazon fees.
I mean, the damn thing weighed eight pounds.
So shipping was expensive.
And that’s one of the things that we’ve learned is try to keep your products small, try to
keep them light and stay away from electronics.
So we learned a lot all on that one Bronco thing.
And thank God you sold it in a parking lot on Facebook Marketplace.
So I have another one.
I haven’t sold the other one yet.
Okay.
Yeah.
But are you giving it away for Christmas or are you going to return it?
My kids are laying claim to like half my profit, man.
It’s like I get home with all this stuff and oh, I want this.
I want this.
You know, we’ve got these South Park things that we just, you know, sent over to Facebook.
So that could be something.
But the thing that we actually sold and made money on Steve, you take that because we actually,
when I put everything on eBay, that was my original plan.
I’m going to buy it on at Walmart and I’m going to list it on eBay and I was very diligent.
I had everything listed like the next night or that night I got home.
It was actually really easy to list things on eBay.
You scan the barcode and most of the stuff pre-populated everything with a picture of
it because, you know, it’s brand new in package, a description and everything.
So it was really quick, really easy.
I thought, man, I’m going to be making a whole bunch of money.
I ended up spending just under $300.
It was like, what was it, two, I wrote it down here.
In this very few notes that I took for this recording, I wrote it down.
My total was $299.16 of items that I bought.
And I listed everything on eBay and we just let it sit there for maybe a week, right?
I think something like that.
I think that describes the eBay experience so far.
It’s all just kind of sat there.
Yeah.
And after a week, I’m getting deflated like this sucks.
How long is the Walmart return policy, you know, and this stuff.
And not only have I not sold a damn thing on eBay, not one thing, I haven’t, I set everything
up as a buy now and I set it up to accept offers.
So people can even make offers if they don’t like my price.
Not even doing that.
I haven’t gotten a single offer on anything.
And eBay shows you like how many people are watching it, like maybe like, I guess, follow
would be the right word, but they say watching, like basically, I see that I’m interested.
Let me just like save it and see how it goes.
I have like maybe one or two people watching one or two of the items and some of the items
have zero views, like nobody’s ever even seen them.
So I’m sure maybe there’s a trick to that to like, you know, get eBay to show it to
somebody, but I don’t know how I can sell something if nobody’s ever seen it.
So there are some tricks.
Now, I’ve sold on eBay probably for 20 years.
Yeah, probably 20 years.
And I have been a registered Amazon seller for probably five years.
And one of the tricks with eBay is you got to promote the listing.
You got to pay to be at the top of the listing and is eating my profit.
I couldn’t do it. Couldn’t I know.
I know. But here’s the thing.
Here’s what you learned immediately.
I mean, you never should have promoted those things because one of the first things
that you that you learned was look, don’t look for what people are selling them for.
Right. What’s the magic place?
Sold listings.
Look at the solds.
Yeah, if you think you get excited when you look at the listings, it’ll really
deflate you when you look at the solds on a lot of these items.
Like I had one thing I bought six of the same item.
It was on clearance for $9 and it was a $27, $27 He-Man toy.
And I thought I was going to clean up.
I bought them all.
And then after I bought all that stuff, I learned how to check the sold section of eBay.
And I saw there’s guys that can’t even sell them for 99 cents.
So they got an auction at 99 cents starting bid.
And after seven days, zero fricking bids, I couldn’t even get a dollar.
So I’m going to those are going to get returned.
In fact, as a part of the update, I bought six of those He-Man figures.
I’ve already returned three to Walmart.
And I’m kind of I’m returning things in stages because I don’t want to be
that asshole that comes into Walmart with a full cart.
I’m returning all this shit.
So I’m just kind of dripping in as I go to Walmart.
I grab one or two more things that I haven’t even had any views on and doesn’t
look like they were a good purchase and I’m returning like two or three at a time.
Now, I fully intend to share with everybody exactly what the products
are that we purchased, but I I do not intend to share that until they all sell.
We don’t need any more competition on Amazon for things that we’re listing
until they’re sold.
But one of the things I don’t think the two people that see this video
are going to be a competition with us.
I mean, it’s not like this is getting out there.
Hey, I’m just stating what my policy is.
Seven subscribers on YouTube, baby.
Seven. All right.
Well, hey, I don’t need five, five competitors.
I’m working hard to move this stuff.
You’re only one more to sell.
Me and you, that’s four of the subscribers, probably.
Probably.
What do you see the list of email subscribers to the site?
I think I subscribed you.
Yeah, I subscribed you today.
You did because I had to I had to confirm that.
And I went, how did this happen?
Oh, Steve, most of us.
Yeah, I did it.
So I verified it.
So we’re one of the things that we’ve learned.
Well, thank God and everybody should go to the site, pennystupid.com.
Subscribe.
You’ll get instant updates when new posts come out.
But what we learned was we found one of the products that landed
in Damon’s cart that night with his.
Your would you call it your your sketchy shit shopping trip?
And it’s my very naive strategy of, you know, yeah, yeah.
Time to do some sketchy shit.
Yeah, yeah, we found one item that it was in the car.
He bought two of them and it was small.
It was I bought four.
Oh, oh, that’s right.
You bought four of them.
We sent two in initially, added them to my Amazon fulfillment
by Amazon account to see if we could get them listed, sell them,
make enough money and generate some profit.
You purchased it for, I think it was $19, right?
Nineteen dollars.
Nineteen dollars.
We sold the first two, I think, for fifty three, fifty five, some more in there.
And we made a eleven dollar profit after all the fees and shipping and everything else.
So each.
Yeah, so that was good.
We we had two that we sent it initially and we have sent the last one
that’s available because I think one of them has already been claimed
for the holidays or something.
My daughter claimed it and claimed it.
She’s my she’s my baby daughter.
I got two older boys and what daughter wants, daughter usually gives.
All right.
So that was that was moved out of inventory.
But the one is taking off the shelf.
The one that we just sent is now listed on Amazon available for sale
prime and it’s there.
So one of the things that we learned was
you’ve got to pay attention to which warehouse items that you’re sending are going
because the further from you that they go, the more expensive it is to ship it.
And also that it can take a week or so
after you ship it for it to get received by Amazon, processed by Amazon
before it ever hits the website.
So if you are impatient and you want to see results now,
maybe Amazon FBA isn’t for you.
There there are other avenues that are less successful.
Neither is eBay because eBay is not sell right now either.
No. And Facebook Marketplace is.
I mean, that can that can get a little sketchy sometimes.
You don’t necessarily shoot.
Yeah, and you don’t know number and a special code.
That right.
Scam, by the way, scam.
Don’t do that.
It seems like everyone that contacts has contacted you for the stuff
that you’ve listed is a scam.
I mean, I’ve sold some things, but that that truck, the Bronco truck
was the only thing that I sold from this experiment.
But, you know, personal used items and stuff like that.
I’ve I’ve actually had pretty good success on Facebook Marketplace.
Yeah. Do you want people coming to your house, though?
No, I do public meetup.
Yeah. So I’ve had a few people come to the house, but, you know,
you just kind of got to go with your gut.
But but we kind of jumped jumped ahead.
So when we started this experiment, it was the whole plan
was just flip everything on eBay.
So when it became apparent that, OK, this is not looking good and depressing,
Steve suggested, well, hey, I’ve got an old, you know, reseller account,
right? Because you had to reactivate it, didn’t you?
For Amazon, he wasn’t using it.
He’s like, let’s just try it because to get a reseller account on Amazon.
Steve, you have to pay how much?
Thirty nine dollars a month.
It’s thirty nine dollars a month.
So again, another expense.
You know, if you’re just doing this stuff kind of on the side,
you got a factor in all these other expenses.
So he reactivated it.
So so far, we have not made enough to cover the thirty nine dollars
that he had to pay to reactivate it.
And I’m pretty sure that thirty nine dollars is about to again, right?
Because it’s been close to a month since we originally.
So we’ve spent eighty dollars just in Amazon,
you know, be able to participate to get a ticket to the show.
And we’ve made twenty two.
So not great yet, but we learn.
But but I think this is a good example of the difference in our personalities.
You might have initially just sent everything to Amazon and let’s see if it sells.
Oh, I lost my ass.
Yeah. And I’ve been the one that’s been holding us back and going,
OK, hold on a second, let’s figure out what’s actually going to sell.
And that has caused a delay in us getting stuff listed.
But I’m only trying to get things there that are going to sell for a profit.
And that’s that’s why I move a little bit slower than Damon does sometimes.
Well, you’re older also.
So there’s that. Well, there’s that.
So so, Steve, tell everybody why you don’t want to just send air.
What happens if you pay the money?
You have you think you have a winner?
You send it to Amazon FBA and it doesn’t sell.
What happens? OK.
So now you’ve got depending on the size of the item,
you could be charged different storage fees by Amazon.
And if you’re not careful and you let things just sit there,
the Amazon has a new policy that can be automatically triggered
where they will either send you back stuff at your cost that hasn’t moved.
They will donate it to somebody else and you never get it back or they will destroy it.
So my point of view is I want to pay attention to my inventory.
Bigger sellers use third party inventory people to help them
where their stuff is all in the third party’s warehouse
and then it gets sent to Amazon as it needs to go.
I’m trying to manage sending the inventory at the right times
to sell on Amazon so that we don’t end up with any of those storage fees.
In fact, storage fees are due to go up next month, which is October,
because getting close to the holiday season, Amazon just gets buried
in people sending inventory and it gets a little bit more expensive.
So if your calculations are off or you are you overshoot
or you’re overly optimistic on what you think it will sell for
and you send it into Amazon, you’re committed.
You’re essentially committed to that deal.
Whereas when you do something on eBay or Facebook Marketplace,
especially if you buy it from a Walmart and you have a return,
they have a return policy, you can list it for free.
And if it doesn’t sell in 60, 90 days, you can take it back to Walmart
and get your money back.
Hey, no harm, no foul. I tried.
Didn’t work out.
The reason we just didn’t ship everything to Walmart, like Steve pointed out,
is we’re we’re committing to that.
Right.
Once we send it in there, good or bad, we have to take whatever happens.
If it has to drop to sell the price or to sell, we take a hit.
We take a loss because Amazon makes their fees no matter what.
Oh, yeah, any fees are going to come out of our profit.
So it either needs to sell or we’re going to lose money on that item.
Because by the time you send it to Amazon, there’s no shot,
even if you tell them to send it back, you’ve got no shot really
at getting it back and then trying to return it to the store.
So once you send it, you’re committed to that.
So there’s there’s definitely pros and cons to sending it in.
But so far, that’s the only success we’ve had is with Amazon FBA.
OK, we’ve we’ve talked about the cons of Amazon.
Let’s talk about the pros.
The pros are it’s the largest or next to largest marketplace,
online marketplace in America.
So you’ve got all the eyeballs that are there that are looking for everything.
And those people that might be looking for a product similar
to what you’ve got listed can land on it.
And you can end up being in the buy now box and somebody just clicks by now.
They’re already a prime member.
They know it’s going to arrive in a day or two and boom, sale done.
You don’t have to invest anything else.
You’re paying for Amazon’s marketing and their fulfillment and everything else.
They’re doing the shipping and you’re paying the fees for all of that stuff.
But I have had to ship stuff in the past when I’ve made online sales of items
and you become tied to wherever in your house that you’re shipping stuff from.
Right. You can’t go away or you’re going to be penalized
because you didn’t ship it in one day or two day as required.
Now you’ve got to get up every day and you got to box stuff together.
UPS doesn’t automatically come around.
You have to pay for them to come pick stuff up
unless you have a corporate account and you’re paying money.
The post office can come pick stuff up.
But they have lost so much stuff that I have sent
that I’ve refused to use post office anymore.
And it is complicated.
So while we’re paying fees at Amazon, we’re getting some benefits out of it.
Yeah, I love Amazon
you know, based on doing looking at eBay, like a Facebook marketplace.
If you’re going to look at this as a business and to me,
and again, this is just early on here, so I’ve got a lot more to learn.
But my biggest takeaways was if you’re going to like do this, do this.
You need to be looking at how do I do volume
because most of these things you’re only making five bucks, three bucks.
And some things you’re going to lose money if you’re if you’re wrong.
I mean, you know, this is a little bit of a guessing game, you know, on something.
So but with Amazon, it’s super convenient.
You need to do volume and you need to have it as automated as possible.
Yes, to make it, in my opinion, make it a viable thing to be able to do
because you can’t just be spending hours and hours and hours a day,
you know, shopping for things, you know, inventorying them at your house,
listing them, having to sell like Steve said, you become a slave to that very quickly.
And if you’re only making a couple of bucks per item in many of these cases,
you got to sell a shit ton of stuff in a year, you know, to have a viable business there.
So you really have to do volume and you really have to automate it
if you’re planning on making this like a full time gig that you can support a family on.
Here’s something that you learned, Damon, through this process is you learned
that that buy now box, what we call the buy box, doesn’t always have the cheapest price.
Right. You didn’t know that before you go to an item and you just click buy now.
But if you go down, there are other Amazon sellers that have a lower price.
They’re just not in the buy now box.
The biggest thing for me, like the kind of the paradigm shift,
as a consumer, I was always of the mindset, oh, Amazon’s going to be the cheapest.
So whatever I see in the store, I’m going to go to Amazon and just in my mind,
it was all it’s I don’t know how, where it came from.
But it was always like, if it’s on Amazon, it’s the cheapest.
And now that we’re on the other side, you know, the backside of this coin
from a seller standpoint, and we’re seeing them, but seeing these markups,
it was just like, you know, just blew my mind basically that it was like,
holy shit, there is so much markup on a lot of these Amazon products
that I feel like I’ve been getting ripped off all these years
because I just assumed that I was getting the lowest price, you know,
like, tell them about that South Park thing that we just sent in.
Yeah, so you pick those up for five bucks each, I think.
And dollars. Yeah.
And as of last week, the sale price on Amazon was about 70 bucks.
Right now, we got some dollars, some bastard that’s undercut us
and listing for twenty eight ninety nine.
But as soon as his inventory goes, we’ll be the next one up at sixty five bucks.
Yeah, I was that I have about four of these things.
And they’re just a little sheet.
I’m not going to explain exactly what they are, but they’re not worth seventy dollars.
I mean, you know, I mean, they might be worth five dollars.
I wouldn’t even pay twenty eight dollars for the thing.
But, you know, they were in the going to go back to the store.
But my oldest son claim wanted one of them,
but they were going to go back to the store otherwise.
And because they were not selling on eBay, no clicks, no nothing.
And then I think I happened to randomly look on the app.
The Amazon seller app that you showed me.
Yeah. And I scanned it in and somehow we missed it on the first scan
because initially we sat down when we decided to do those dull things with FBA.
Oh, but wait, wait. All the other stuff.
The first experience that we had trying to figure out what stuff was.
I mean, just getting used to the the Amazon app
or trying to figure out pricing and all that was Comedy Central
because you were taking pictures of barcodes and sending them to me.
And then I was scanning them with my phone and trying to find things.
But now we’ve kind of upped our game a little bit.
We’re getting a little bit more professional.
Well, a little because when we sold those dull things,
Amazon snaked in another fee that we didn’t even know about.
Yeah. Until after we sold it and our profit was almost half of what I expected
our profit to be because of that other the referral fee.
Tell me about that. That just showed up.
We’re like, where’s the rest of our money, Amazon?
Well, you have Amazon fulfillment fees and Amazon referral fees in some places.
It shows total Amazon fees with those things together.
But in other places, they’re separate and you’ve got to pay attention.
So we know it now.
I’m sure everybody who starts selling stuff on Amazon
has got some initial horror stories where they’ve lost money.
But here is why it’s important to ride with us as we figure this all out.
Because if you look at only the videos and you buy courses and all that stuff,
one of the things that you’ll hear is you can’t be successful in Amazon
unless you’re private labeling merchandise and you’re buying large quantities
and having it shipped to Amazon.
And if you don’t know what you’re doing, you could buy a thousand of something
that’s just going to be a dud.
So our approach is instead of having a lot of inventory at first,
we’re going to find deals and we’re going to sell them
and we’re going to learn, we’re going to pace ourselves
so that we can be the most successful.
In fact, yesterday I was working on that article for the first Walmart video
and in doing some research to show what it’s like looking for pricing.
I actually found some things at Walmart online that were pretty good deals.
We’re not going to break the bank.
We’re probably going to make like five bucks each on 10 of them.
And they’re already on the way.
So deals are there.
There are so many lessons to be learned.
And the biggest lesson I would want to share with you, if you’re brand new,
is just don’t go out and rush to buy something that’s a good deal
because if you want to sell it on Amazon, great marketplace.
I recommend it, but there are a large number of categories
that are restricted or gated, as they call them.
And newbies can’t sell in those categories.
So you can buy in a bunch of stuff that you can never sell on Amazon.
So now where are you going to sell it?
eBay, Facebook, next door.
Door to door.
So, Steve, the kids these days call it noobs.
Noobs. They’re not anymore.
Oh, noobs. Yeah, they’re noobs.
The next generation will call them.
Yeah, you’re such a noob.
What the hell is a noob?
So, no, anyway, so last night Steve’s looking at stuff online
and I get this text.
He goes, you got to go to Walmart.
The Walmart by your house has these Lilo and Stitch
make up kids things and they’re three cents.
Go buy all you can.
Like what?
I’ve never seen a tag that said three cents at Walmart.
So I spent two hours in Walmart up and down every damn mile.
I went to toy section, makeup section, clearance section.
I talked to two or three guys.
I had the barcode on my phone.
They’d scan it with their phone and they’d say,
yeah, it doesn’t have a location.
You just have to keep looking.
After two hours, I couldn’t find it,
but it wasn’t a total wasted trip
because I got a whole bunch of stuff
to start my new lift driving experience
that was supposed to start today.
But my damn background check hasn’t come back yet.
So.
Well, hopefully it will come back soon
because I can’t wait to start seeing those videos.
You know, the those Amazon things that we were looking for
at Walmart, the three cents each.
So using some of the online tools.
I I’m 90 percent confident that they’re in the store.
But Walmart is 100 percent confident.
They’re not in the damn store.
Well, they could be in the back.
That’s who’s the most experienced Walmart person you know.
Well, you are. You are.
But when you know everybody at that Walmart,
I know everybody. They love they know you by first name.
But when you search Walmart for store availability,
it specifically said your store,
not none of the other stores, only your store.
So something in the system was triggering that.
Who knows where they are?
And it is my store.
My wife calls me the mayor of Walmart.
She does. I’m there all the time.
Every night I’m there.
I’m usually patrolling the hordes of teenagers
trying to help the old guys corral them out of there because they’re
so just disrespectful punk asses.
I don’t know what it is about that generation,
but they come in in like bands of five or six
and they just start like throwing balls around in the aisles.
Well, that’s just obnoxious.
Just screwing off.
But it’s like you want to just like kick them in the ass, you know?
Like get out of here. You can’t do anything.
You just got to let them, you know, just destroy
whatever they’re going to destroy until they finally leave.
So my next thing is I’m going to do some more searching.
I’m going to look for your store.
I’m going to look for stuff that’s like four dollars minimum.
That might be on the clearance aisle.
What were those Lilo and Stitch things
saying they would sell for on Amazon?
The three cents if I could have found them.
Yeah, one of them was twenty one dollars.
One was fifteen and one was twelve.
Well, did you look at what our profit would be
after expenses and all that? Or did you get that far?
Yeah, it was like ten, seven and five.
It was something like that.
But the biggest thing was this was the first time that
you had gone looking for a three cent item at Walmart
that said it was available.
And so as I said to you yesterday,
I think the biggest experiment here is can you even find these things?
Yeah, I literally spent two hours and I didn’t find it.
Now, again, I had some other things I had to get.
So it wasn’t a total waste of trip, but, you know, and I looked at every
and I was digging that Walmart security cameras were on me.
I’m sure they were tracking me because my shopping made no sense.
The patterns and the things I was doing in that store,
I probably looked like a creeper.
I was hanging out in the girls doll section back and forth with your phone.
Yeah, I had my phone. Yeah.
They’re probably I’m sure security was zeroed in on me going.
What’s this old fat dude doing here in the girls section?
He was phone out an hour and a half.
Yeah, he’s going back and forth.
He’s not really buying anything.
What’s this guy doing in here?
So all right, I think we updated all the Walmart stuff.
No, we we I got sidetracked like I often do.
And I never saw the South Park story. Yeah. OK.
So we had these things.
We thought they were total duds. They weren’t selling all of a sudden.
Boom, someone’s selling them for $70 on Amazon.
So I boxed up those four.
We sent them to Amazon and we’ve been waiting what two weeks now.
Yeah, I don’t even for them to get listed.
Let me let me check right now there.
Amazon had them registered in process was shipping.
I’m not sure that they’ve even received them yet.
Yeah, and this was two weeks ago I sent them in.
So yeah, it takes it does take a while.
But this is why I say once you send them to Amazon, you’re committed.
So, you know, I spent 20 bucks buying those four little South Park things.
We spent what, five or six dollars mailing it to Amazon?
So if they don’t sell and I just tell Amazon to just get rid of them
because I’m not going to keep paying storage fees, then I’m out $25.
So, you know, even if you get some profit on some things,
if you were losing money on other things, it’s just I would I would lose
more money on those South Park items than we profited on those dull things.
So here’s here’s the thing that because
there’s a delay, if it says it’s selling for 70,
you want to get those things in and online right now.
Because in our case, somebody dropped the price to 28
during this whole shipping and processing phase.
They crossed the picket line.
Bastards, they’re dead to me.
Scabs.
So I think that does that give us all.
Let me check my notes.
Very, very long notes that say talk about learning curve.
Lots of time.
You’d have to do volume.
That’s all the notes I got.
All right. All right.
Well, let’s let’s say goodbye for this update.
And we’ll do another one very soon.
Damon, see you.
Bass.

Frequently Asked Questions

What is retail arbitrage and how does it work?

Retail arbitrage involves buying items at retail stores (often on clearance) and reselling them on platforms like eBay or Amazon at a higher price. You scan barcodes with apps to check resale prices, buy items with good profit margins, then list them online. The concept is simple but execution involves shipping costs, platform fees, and time investment that eat into profits.

The part the headline left out

Each weekday I send one short email: one story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.

In the latest issue (Oct 16): The check that looks like a scam may be real

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Or read a few issues first

Is Amazon FBA worth the $39/month fee for beginners?

For beginners, it's risky. Steve and Damon spent $80 on Amazon fees in two months while making only $22 profit. However, Amazon FBA offers advantages: massive marketplace exposure, Prime shipping, and they handle fulfillment. The key is having enough profitable inventory to justify the fees. Start small and track your numbers carefully.

Why didn't their eBay listings sell?

After listing $300 worth of items on eBay, they received zero sales and very few views. Issues included: not promoting listings (costs money), items having too much competition, and not researching sold listings before buying. Some items that looked profitable based on listing prices were actually selling for 99 cents or less in completed auctions.

What are 'gated categories' on Amazon?

Gated or restricted categories are product categories that new Amazon sellers cannot sell in without special approval. This means you could buy a bunch of inventory only to discover you can't list it on Amazon at all. Always verify you can sell in a category before purchasing inventory for that platform.

How much can you realistically make with retail arbitrage?

Most items only make $5-10 profit each after all fees. To make significant income, you need high volume and automation. The ads claiming $250K/year are misleading. Steve and Damon's real-world test shows a steep learning curve, significant time investment, and many products that don't sell at all or must be returned.

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Steve Rhode The Get Out of Debt Guy | Consumer Debt Expert
Consumer debt expert & investigative writer. Personal bankruptcy survivor (1990). Washington Post award-winning author. Exposing debt scams since 1994.

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