Retail arbitrage can produce some of the fastest and most consistent profits in reselling.

But only if you know what to look for.

Walking into a store without a sourcing plan leads to emotional purchases, low ROI items, slow movers, and money tied up in dead inventory.

A sourcing checklist keeps you disciplined, focused, and profitable.

This guide gives you a complete step by step checklist for finding high ROI retail arbitrage deals that move quickly, maintain margin, and support long term scaling.

Why You Need a Sourcing Checklist

Sourcing feels exciting and spontaneous, which is exactly why many resellers make bad buying decisions.

Without a checklist you risk:

• Overpaying for inventory
• Buying slow moving categories
• Ignoring fees and shipping costs
• Guessing instead of analyzing
• Purchasing emotionally
• Stockpiling items that never sell

A checklist gives you a clear set of rules so every purchase supports your profit goals.

Pre Sourcing Preparation (Before You Enter the Store)

Preparation is where most deals are won or lost.

Step 1: Check your sell through rate

If inventory is not moving, you should not buy more.

Step 2: Review your fast movers

Source more of what already works.

Step 3: Analyze recent sold listings

Look for categories trending up.

Step 4: Set your target ROI

Most resellers use:

• Minimum 40% ROI
• Prefer 70% and above
• Exceptional deals at 100% and above

Step 5: Bring your tools

• Barcode scanner app
• ROI calculator
• Phone charger
• Notebook or Google Sheets
• Storage totes for large hauls

You should walk in with clarity, not hope.

The Essential In-Store Sourcing Checklist

Once inside the store, follow this checklist item by item.

Checklist Item 1: Scan Everything That Looks Promising

Look for:

• Clearance tags
• Hidden clearance
• End caps
• Seasonal markdowns
• Overstock items
• Toys and collectibles
• Electronics
• Housewares

Do not guess. Scan.

Checklist Item 2: Confirm Sales Rank or Sell Through Rate

High ROI means nothing if the item never sells.

On Amazon:

• Check sales rank
• Compare to category averages
• Look for a consistent sales history

On eBay:

• Check the last 10 sold listings
• Confirm the sell-through rate is above 50%

Sell-through determines whether the item is worth buying.

Checklist Item 3: Check Buy Cost vs Profit After All Fees

Use this formula:

Net Profit = Sale Price minus (Buy Cost plus Tax plus Fees plus Shipping plus Packaging)

If net profit is below your threshold, skip the item.

Checklist Item 4: Evaluate Competition

On Amazon:

• How many sellers?
• Are they FBA or FBM?
• Is Amazon on the listing?

On eBay:

• How many active listings?
• How quickly have recent items sold?

Too much competition kills ROI.

Checklist Item 5: Look for Variations With Strong Demand

Some size or color variations sell more frequently.

Examples:

• Large sizes in plush toys
• Rare variants of Funko Pops
• Popular characters in action figure lines

Scan variations to find hidden winners.

Checklist Item 6: Examine Condition Carefully

Avoid:

• Damaged boxes
• Broken seals
• Missing parts
• Dented packaging
• Toys with creases

Condition impacts price and sell-through.

Checklist Item 7: Check for Restrictions or Gating (Amazon)

Some brands require:

• Invoices
• Approval
• Brand authorization

Always check before buying large quantities.

Checklist Item 8: Test Pricing Sensitivity

Check:

• Average sold price
• Median sold price
• Lowest sold price

You want consistency, not volatility.

Checklist Item 9: Confirm Shipping Weight and Size

Oversized shipping can destroy profit.

Check:

• Actual weight
• Dimensional weight
• Packaging options

Some items look profitable until shipping costs appear.

Checklist Item 10: Review Seasonal Demand

Some categories move fast only during certain months.

Examples:

• Toys in November and December
• Fitness gear in January
• Outdoor gear in summer

Buy with the season in mind.

When to Walk Away From a Deal

Knowing when not to buy is more important than finding deals.

Walk away if:

• ROI is below threshold
• Sales rank is weak
• Sell-through is low
• Competition is saturated
• Condition issues exist
• Shipping kills margin
• Price history is unstable
• Storage space is limited

Disciplined sourcing protects your cash flow.

Build a Scoring System for Faster Decision Making

Score each product from 1 to 5 in these categories:

• Profit margin
• Sales rank or sell-through
• Competition
• Condition
• Storage and shipping ease

Items that score 4 or 5 in all categories are strong buys.

Track Your Best Stores and Patterns

Every store has predictable patterns.

Track:

• Days of the week clearance starts
• Categories that go on markdown often
• Seasonal inventory cycles
• Hidden clearance zones

This helps you find deals faster and reduce wasted time.

Case Example: Finding a High ROI Toy Deal

Scenario

You find a LEGO set on clearance for $19.99.

After research:

• Sold listings show consistent sales at $45 to $50
• Sell through rate is strong
• The condition is perfect
• No strong competition
• Shipping cost is $6.85

Net profit estimate:

$45 – ($19.99 + $6.85 + $5 fees + $0.40 packaging)

Net profit = $12.76

ROI = $12.76 / $19.99 = 63.8%

This is a strong buy.

FAQs

Q: How often should I source?

Once or twice per week, depending on sell-through and inventory needs.

Q: Should I buy all units of a profitable product?

Only if the market is stable and not saturated.

Q: What ROI should I aim for?

Minimum 40 percent, ideally 70 percent or higher.

Q: Should I buy seasonal items out of season?

Yes, but only if the price is deeply discounted and demand is predictable.

Actionable Takeaways

✅ Use a sourcing checklist for every trip

✅ Confirm sell through rate before buying

✅ Compare the buy cost against the true net profit

✅ Scan every variation, not just the main product

✅ Track competition and avoid saturated listings

✅ Know your ROI threshold before entering the store

✅ Walk away from low-margin or slow-moving items

High ROI deals are not found by luck.

They are found with a checklist, discipline, and data driven sourcing.