Reselling can feel overwhelming at first. This guide breaks the process into clear steps you can actually follow.

Flipping clearance items is a classic retail arbitrage strategy: you buy deeply discounted products at stores

and resell them online for a profit. With major retailers constantly cycling out inventory, savvy sellers can

find great deals. Here’s how to turn clearance hunting into a profitable side hustle.

What is Clearance Flipping?

Clearance flipping means buying items marked down (clearance, overstock, or seasonal sales) and

reselling them for more than your cost. This often happens through: - In-store clearances (major retailers

reduce unsold stock with big discounts). - Online clearance events. - Liquidation sales.

For example, you might snag a toy at Walmart for $10 (clearance) and resell it on Amazon or eBay for $25.

The difference (after fees) is your profit. Retail arbitrage experts emphasize that “most well-known stores like

Walmart, Target, Home Depot have clearance sections where you can find products that you can resell” . It’s

legal and common – you’re simply buying at retail price and selling elsewhere.

Where to Find Clearance Deals

Some of the best places to scout clearance items include:

-

Big Retailers: Walmart, Target, Home Depot, Lowe’s, Best Buy, Walgreens, CVS. These often have

seasonal clearance (e.g. holiday decor after Christmas).

-

Discount Stores: Marshalls, Ross, TJ Maxx, Big Lots. They sometimes carry overstock from other

retailers and mark it down.

-

Grocery and Drug Stores: Check the clearance aisle in grocery chains or health stores for overstock

items.

-

Outlet Stores: Factory outlet shops clear out last season’s stock.

-

Home Improvement: Places like Home Depot or Ace Hardware clear tools, garden items in off-

season.

-

Warehouse Clubs: Costco or Sam’s often rotate inventory; sometimes a bargain is hidden there.

-

Local Sources: Estate sales, yard sales, flea markets can yield brand-new or like-new items at low

cost.

-

Online: Sites like Craigslist or Facebook Marketplace themselves – some people sell clearance finds

locally.

A reselling blogger lists dozens of sources: Marshall’s, Ross, Home Depot, TJ Maxx, Staples, Gamestop, Big Lots,

and even local outlet shops . Diversify your locations – what one person misses, another might find. Tools to Help You Scan and Evaluate

Flipping profitably requires knowing quickly whether an item will sell:

-

Scanning Apps: Use the Amazon Seller app, eBay app, or specialized scanners (Profit Bandit,

Scoutify) in-store. Scan barcodes to see the current selling price online. If the resale price is much

higher than the clearance price, it’s a candidate.

-

Amazon/Keepa: Check the scanned product on Keepa (price history) or CamelCamelCamel to see if

it sold at that higher price before.

-

eBay Completed Listings: Search the item on eBay and filter for “Sold” to see if it moves.

-

Profit Calculators: Input prices, fees, shipping to know exact margin. SellerLogic notes that “retail

arbitrage typically yields 20–50% profit margins” , so aim to beat those benchmarks.

-

Check Restrictions: On Amazon, ensure the brand isn’t gated or the item isn’t restricted (to avoid

suspension).

If an item passes your checks (good margin, strong sales rank, no gating), it’s time to buy.

Tips for Successful Clearance Flips

1.

Focus on High-Margin Items: Not all clearance is worth flipping. Look for items that historically

resell well (e.g. toys, electronics, brand-name home goods). Consumables and fast-moving items

often yield quicker flips.

2.

Buy Multiple Units of Winners: When you find a great deal, don’t hesitate to stock up. Many

resellers double or triple on a hot item to maximize profit.

3.

Use Coupons and Rewards: Combine clearance with coupons or store discount stacks (if allowed).

For example, Target REDcard discounts or Manufacturer coupons can increase margins.

4.

Check for Hidden Discounts: Sometimes items rung up at full price despite clearance stickers.

Politely ask a manager if they can apply the clearance price. Many resellers do this to “price match”

the clearance tag.

5.

Remove Extra Stickers: Once home, remove clearance stickers/markings if possible. This avoids

confusing or deterring online buyers. (One reselling tip: “always take off any clearance stickers –

stickers should be removed” to present a clean product .)

6.

Consider Shipping or Local Sale: Large items might not fit Amazon (size limits) – consider selling

them on Facebook Marketplace for local pickup. Smaller items fit well in FBA or media mail.

7.

Be Mindful of Fees: Remember FBA fees, eBay fees, shipping costs. Use a profit calculator before

finalizing the flip. Retailers might also charge tax; keep your resale certificate ready to save on that

upfront cost.

8.

Time It Right: Seasonal items sell best at the right time. A sled in June will not move – hold on and

list when buyers want it (like fall).

Example: Flipping a Toy from Walmart Clearance

To illustrate, here’s a quick flip example (inspired by a reselling blog experiment ):

-

You walk into Walmart for one thing, notice a display of children’s toys on clearance (red sticker). You

scan a Peanuts fleece blanket for $5 (clearance price).

-

Online, the same item sells on Amazon for $20. You confirm it’s the exact same ASIN. -

You buy 3 blankets at $5 each (budget $15).

-

After fees and shipping, your net profit per blanket is about $12 (approximately 150% ROI).

-

You list them via Amazon FBA, pay a small inbound fee.

-

They sell within a month (holiday season toy demand).

-

Total profit: ~$36 on $15 invested (a 240% return).

This scenario shows how clearance deals, even on everyday items, can quickly become profits .

Staying Safe and Smart

Clearance flipping is legal and legitimate, but do keep these in mind: - Stay Ethical: Don’t cause scenes in

stores. It’s fine to buy multiple of a discounted item, but hoarding or aggressive tactics could get you

banned (rare but possible). - Brand Permissions: If flipping on Amazon, ensure you’re not violating MAP

(Minimum Advertised Price) policies of brands or other rules. The rules on reselling are generally lax, but be

aware of counterfeit or copyrighted items (only sell authentic products). - Payment and Taxes: Use your

seller or business account. Report profits, and if needed, set aside money for taxes (especially if you’re

selling a lot).

Flipping clearance takes effort – you’ll spend time in stores scanning and hunting. But as one blogger noted,

they earned about $40/hr flipping after a couple of hours of work (you might not always hit that, but it

shows potential). Start small, learn as you go, and scale up as you find what sells well.

With practice, you’ll spot great deals faster. Clearance flipping can be a lucrative way for beginners to make

money, or for experienced sellers to supplement their income.

If you want to keep leveling up, browse more guides on ResellerStartKit and use the calculators in our Tools section to sanity-check every deal.