Last updated: February 2026
TL;DR
- The best sourcing method depends on your budget, location, and category — there's no single "best" way
- Thrift stores and garage sales remain the highest-ROI methods for beginners with low capital
- Liquidation pallets and wholesale scale better but require more upfront investment and storage space
- Online arbitrage and retail arbitrage have tighter margins but offer more consistency
- The resellers making the most money use 3-4 sourcing methods simultaneously
- Speed matters — the faster you can evaluate an item in the field, the more ground you cover
The Sourcing Problem Every Reseller Faces
You know what sells. You know how to list. You know which platforms convert. But none of that matters if you can't find inventory.
Sourcing is the bottleneck for most resellers. The ones making $10K, $20K, or $50K per month aren't necessarily better at listing or shipping — they've built reliable sourcing pipelines that keep inventory flowing consistently.
Here are 15 methods, ranked by accessibility, with real talk about what each one actually looks like in practice.
1. Thrift Stores
Starting capital needed: $20-100
Average ROI: 200-1,000%+
Time investment: 4-8 hours/week
Best for: Clothing, shoes, housewares, electronics, books, vintage items
Thrift stores are where most resellers start, and for good reason — the margins are insane. Where else can you buy something for $3 and sell it for $75?
How to Thrift Effectively
- Have a route: Hit 3-5 stores on a regular schedule. Learn which days they restock.
- Know your categories: Don't try to scan everything. Pick 2-3 sections you know well and focus there.
- Speed matters: Experienced thrift sourcers spend 30-45 minutes per store, not 3 hours. They know what to grab and what to skip.
- Check the glass cases: Jewelry, watches, collectibles, and electronics behind the counter are often underpriced because staff doesn't research everything.
Pros and Cons
✅ Lowest cost of entry
✅ Highest margins of any sourcing method
✅ Available everywhere
❌ Inconsistent — you might find gold one day and nothing the next
❌ Competitive in popular areas (other resellers are doing the same thing)
❌ Time-intensive for the volume you get
2. Garage Sales and Yard Sales
Starting capital needed: $20-200
Average ROI: 300-2,000%+
Time investment: Saturday mornings (4-6 hours)
Best for: Everything — especially tools, electronics, vintage items, toys, games
Garage sales are arguably the single highest ROI sourcing method because sellers are motivated to get rid of stuff. They're not checking eBay comps — they just want the driveway empty by noon.
Pro Tips
- Get there early. The best stuff goes in the first hour. Some resellers negotiate with the seller to come before the official start time.
- Bring cash in small bills. $1s and $5s. Makes negotiating easier and you'll often get better deals.
- Ask "Do you have any...?" Sellers often have items that didn't make it to the tables — electronics in the garage, clothes in bags, stuff they forgot to put out.
- Negotiate bundles: "I'll take all of this for $20" works way better than haggling item by item.
- Use Facebook Marketplace and Craigslist to find sales the night before and plan your route. [link to sourcing route guide]
Pros and Cons
✅ Highest possible margins
✅ Negotiation-friendly — most sellers will take reasonable offers
✅ Can find high-value items dirt cheap
❌ Seasonal (spring through fall in most areas)
❌ Saturday mornings only (usually)
❌ Hit or miss — you might drive to 10 sales and find nothing
3. Estate Sales
Starting capital needed: $100-1,000
Average ROI: 100-500%
Time investment: 4-8 hours per sale
Best for: Vintage items, jewelry, coins, tools, furniture, art, collectibles, electronics
Estate sales are a step up from garage sales in both quality and price. A professional estate sale company has typically organized and priced everything, so prices are higher than garage sales but often still well below market value.
How to Work Estate Sales
- Sign up for email lists from estate sale companies in your area. EstateSales.net and EstateSales.org list upcoming sales.
- Preview photos: Most companies post photos before the sale. Identify what you want before you show up.
- Go on the last day: Prices typically drop 25-50% on the final day. The trade-off is selection — the best stuff is gone.
- Bring a buddy: Some estate sales limit the number of items you can carry. A partner doubles your capacity.
Pros and Cons
✅ Higher-quality items than thrift stores
✅ Can buy in volume (entire collections)
✅ Less competition than thrift stores in many areas
❌ Prices are higher (estate sale companies research some items)
❌ Often cash-only
❌ Can be competitive for high-profile sales (lines at 6 AM)
4. Liquidation Pallets and Returns
Starting capital needed: $200-2,000+
Average ROI: 50-200%
Time investment: Research + processing time
Best for: Electronics, home goods, clothing, toys, general merchandise
Liquidation is buying customer returns or overstock from major retailers in bulk. Companies like Liquidation.com, B-Stock, BULQ, and Direct Liquidation sell pallets and truckloads from Target, Amazon, Walmart, and others.
The Reality of Liquidation
This sounds amazing in theory — buy a $500 pallet of Target returns "valued at $3,000." In practice:
- Expect 30-40% of items to be damaged, missing parts, or unsellable
- Manifested pallets (with item lists) are safer but more expensive
- Unmanifested pallets are cheaper but a gamble
- The real money is in volume — one pallet might break even, but 10 pallets averaged together are profitable
Pros and Cons
✅ Consistent, scalable inventory source
✅ Known brands and products
✅ Can be done remotely (pallets shipped to you)
❌ Requires significant upfront capital
❌ Storage space needed
❌ High percentage of unsellable items in returns pallets
❌ Processing time (testing, cleaning, photographing) is substantial
5. Wholesale
Starting capital needed: $500-5,000+
Average ROI: 30-100%
Time investment: Setup + ongoing ordering
Best for: New items in consistent demand — phone accessories, beauty products, trending items
Wholesale means buying new products at bulk pricing and reselling at retail. Lower margins than thrift sourcing, but infinitely more scalable and consistent.
Getting Started
- Get a resale certificate (sales tax permit) from your state — most wholesale suppliers require one
- Start with platforms like Faire, Tundra, or direct manufacturer outreach
- Focus on items with proven demand — check eBay sold listings and Amazon BSR before placing orders
- Start small and test before committing to large orders
Pros and Cons
✅ Consistent, repeatable inventory
✅ New items = fewer returns and complaints
✅ Scales easily — just order more
❌ Lower margins than used/vintage
❌ Competition with other wholesale resellers and retail stores
❌ Requires upfront capital and storage
6. Retail Arbitrage
Starting capital needed: $100-500
Average ROI: 30-100%
Time investment: 4-10 hours/week
Best for: Toys, electronics, beauty products, clearance items
Retail arbitrage is buying clearance and sale items from retail stores and reselling them online for a profit. Think: Target clearance toys at 70% off resold on Amazon at full price.
How It Works
- Walk into a retail store (Target, Walmart, TJ Maxx, Marshalls, HomeGoods)
- Scan items with the Amazon Seller app or eBay app to check resale prices
- If the profit margin is there after fees and shipping, buy it
- List it online
Best Stores for Retail Arbitrage
- Target: Clearance endcaps, seasonal items, toy clearance
- Walmart: Clearance aisles, rollback items
- TJ Maxx / Marshalls / HomeGoods: Designer items, kitchen appliances, home décor
- CVS / Walgreens: Beauty products, seasonal clearance
- Five Below: Trending items that sell for more on eBay
Pros and Cons
✅ New, brand-name items with receipts
✅ Available year-round
✅ Low risk — you can return unsold items (usually)
❌ Tight margins after platform fees
❌ Time-intensive scanning
❌ Some stores restrict reseller purchasing
7. Online Arbitrage
Starting capital needed: $200-2,000
Average ROI: 20-80%
Time investment: 4-8 hours/week
Best for: New items, especially for Amazon FBA
Online arbitrage is the same concept as retail arbitrage, but done from your computer. You find deals on one website and resell on another.
Common Sources
- Amazon deals and Warehouse deals
- Walmart.com clearance
- Brand websites with sales
- Discount sites like Woot, Meh, and daily deal sites
- Cashback portals to stack savings
Pros and Cons
✅ No driving around — source from your couch
✅ More deals available than any single store
✅ Easy to scale with software tools
❌ Thin margins — everyone has access to the same deals
❌ Shipping costs on both ends eat into profit
❌ Price race to the bottom on popular items
8. Facebook Marketplace Sourcing
Starting capital needed: $50-500
Average ROI: 100-500%
Time investment: Daily browsing + pickup trips
Best for: Electronics, furniture, sporting goods, tools, anything local
Facebook Marketplace is an incredible sourcing channel because sellers often price things to sell fast, not for maximum value. People moving, downsizing, or decluttering will practically give things away.
How to Source on Marketplace
- Set up saved searches with keyword alerts for items in your categories
- Respond fast — good deals get 20 messages in 10 minutes
- Be the easiest buyer: "I can pick up today with cash" wins over "is this still available?"
- Sort by "Just Listed" to see new deals first
Pros and Cons
✅ Great deals from motivated sellers
✅ Can preview items before buying (local pickup)
✅ No shipping costs to acquire inventory
❌ Requires driving to pick up items
❌ Flaky sellers (no-shows, ghosting)
❌ Time-consuming messaging and negotiating
9. Goodwill Outlets (Bins)
Starting capital needed: $20-100
Average ROI: 500-5,000%+
Time investment: 4-8 hours per visit
Best for: Clothing, shoes, vintage items, books, random finds
Goodwill Outlets — commonly called "the bins" — are the final stop before items are recycled or trashed. Items are sold by the pound (typically $1-2 per pound), not individually priced.
What to Expect
- Items dumped into large bins, unsorted
- You dig through everything — it's messy, competitive, and sometimes gross
- But the finds can be extraordinary: vintage tees, designer bags, rare books, valuable electronics
- New bins are rotated out regularly (every 30-60 minutes at busy locations)
Pros and Cons
✅ Absolute lowest cost per item
✅ Highest possible ROI
✅ Volume — you can leave with bags full of inventory for $20
❌ Physically demanding and dirty
❌ Very competitive (regulars camp for new bins)
❌ Time-intensive sorting and cleaning
10. Storage Unit Auctions
Starting capital needed: $100-1,000+
Average ROI: Highly variable (can be negative or 1,000%+)
Time investment: Auction attendance + processing
Best for: Mixed inventory — you never know what's inside
Storage Wars made this famous, but the reality is less glamorous. Most units contain household items, old furniture, and boxes of random stuff. Occasionally, you find gold.
Platforms for Online Auctions
StorageTreasures.com, SpareFoot, and local auction houses now run most storage auctions online. You can bid without showing up in person for many auctions.
Pros and Cons
✅ Potential for incredible finds
✅ Exciting (if you like gambling)
❌ Extremely inconsistent
❌ You're buying blind
❌ Requires transportation for large items
❌ Processing time to sort and list everything
11. Library Sales
Starting capital needed: $10-50
Average ROI: 100-500%
Time investment: A few hours per sale
Best for: Books (obviously), but also DVDs, CDs, vinyl records, vintage magazines
Library book sales are massively underrated. Books are typically $0.50-$2, and textbooks, niche non-fiction, and vintage books regularly sell for $15-100+ on Amazon or eBay.
Pro Tips
- Bring your phone: Scan ISBNs with the Amazon Seller app or ScoutIQ
- Focus on non-fiction and textbooks — most fiction isn't worth reselling
- Check for first editions — valuable first printings are mixed in regularly
- Don't skip the media section — vinyl records at $1 each can be worth $20-80
Pros and Cons
✅ Extremely cheap inventory
✅ Low competition from other resellers (in many areas)
✅ Books are easy to list and ship (media mail)
❌ Seasonal (most libraries do 2-4 sales per year)
❌ Low average sale price for most books
❌ Volume needed to make meaningful income
12. Flea Markets
Starting capital needed: $50-500
Average ROI: 100-400%
Time investment: 4-6 hours per visit (usually weekends)
Best for: Vintage items, tools, collectibles, antiques, clothing
Flea markets are like permanent garage sales with more variety. Prices are higher than garage sales but lower than retail, and negotiation is expected.
Tips
- Go early for the best selection, or late for the best deals (vendors want to pack less)
- Build relationships with vendors — regulars get first dibs on new inventory
- Some vendors don't know the resale value of their items, especially for niche categories
- Ask vendors if they have more inventory at home — many only bring a fraction of their stock
Pros and Cons
✅ Wide variety of inventory
✅ Negotiation-friendly
✅ Regular schedule (weekly/monthly)
❌ Prices higher than garage sales
❌ Early mornings
❌ Some vendors know their prices (especially for collectibles)
13. Dumpster Diving
Starting capital needed: $0
Average ROI: Infinite (free inventory)
Time investment: Variable
Best for: Electronics, retail overstock, store fixtures, books
Yes, really. Retailers throw away returned items, damaged packaging (but intact products), seasonal items, and overstock. Some resellers make thousands per month from dumpster-sourced inventory.
The Reality
- Legality varies by location — check local ordinances
- Best spots: retail store dumpsters (electronics stores, game stores, bookstores)
- Items often need cleaning, testing, or minor repair
- Not for everyone (literally and figuratively)
Pros and Cons
✅ Free inventory = infinite ROI
✅ Surprising quality finds
❌ Legal gray area in some jurisdictions
❌ Dirty, physically demanding
❌ Socially stigmatized
❌ Inconsistent
14. Alibaba and Overseas Sourcing
Starting capital needed: $500-5,000+
Average ROI: 50-200%
Time investment: Significant (finding suppliers, sampling, logistics)
Best for: Private label products, phone accessories, trending items, bulk supplies
Alibaba connects you directly with manufacturers, mostly in China. This is how you can get products made or buy them at factory prices.
When It Makes Sense
- You've identified a product with consistent demand
- You want to create a private label version (your brand)
- You need bulk packaging supplies (poly mailers, boxes, tissue paper)
- You're selling on Amazon FBA where private label is king
When It Doesn't Make Sense
- For one-off or vintage items (obviously)
- When shipping times matter (ocean freight takes 30-60 days)
- When you haven't validated demand first
Pros and Cons
✅ Lowest possible per-unit cost
✅ Custom branding options
✅ Massive scale potential
❌ High minimum order quantities (often 100-500+ units)
❌ Long lead times
❌ Quality control issues
❌ Requires significant upfront investment
15. Retail Clearance Racks
Starting capital needed: $50-300
Average ROI: 50-200%
Time investment: Integrated into regular shopping
Best for: Clothing, shoes, toys, home goods, seasonal items
This overlaps with retail arbitrage but deserves its own mention because clearance-specific sourcing is a strategy unto itself.
Best Times for Clearance
- January: Holiday items, winter clothing
- April/May: Spring items, Easter clearance
- July: Summer items, back-to-school prep
- November (post-Black Friday): Electronics, toys, general merchandise
Stores With the Best Clearance
- Target (yellow and red stickers — 30%, 50%, 70% off)
- Kohl's (clearance racks in every department)
- Macy's (clearance events are legendary)
- Old Navy / Gap (end-of-season clearance)
- Nike Outlets (clearance wall)
Pros and Cons
✅ Known brands at steep discounts
✅ New items with tags — easy to list and sell
✅ Predictable seasonal cycles
❌ Margins thinner than thrift/garage sale finds
❌ Everyone else is checking the same racks
❌ Storage needed for seasonal holds
How to Evaluate Items Quickly in the Field
Speed is everything when sourcing. Here's how to evaluate an item in under 60 seconds:
- Identify it: Brand, model, what is it?
- Check condition: Any damage, missing parts, does it work?
- Check comps: Pull up eBay sold listings on your phone (filter: Sold, sort: recent)
- Calculate profit: Sale price minus (cost + fees + shipping) = profit. Is it worth your time?
- Decide: If the math works, buy it. If not, put it back. Don't deliberate.
Best Apps for Scanning
- eBay app: Check sold comps instantly by searching or scanning barcodes
- Amazon Seller app: Scan barcodes for Amazon selling price, sales rank, and FBA fees
- Whatnot app: Check recent sold prices for collectibles and cards
- Google Lens: Identify items you can't find by searching text
The faster you can run this process, the more ground you cover and the more inventory you find. The best sourcers can evaluate an item in 15-20 seconds. [link to pricing guide]
Building Your Sourcing Pipeline
Don't rely on a single method. The most resilient reselling businesses use multiple sources:
- Primary source (60% of inventory): Your highest-ROI, most reliable method
- Secondary source (25%): A different method that fills gaps
- Opportunistic (15%): Estate sales, Facebook Marketplace deals, random finds
As you scale, your sourcing shifts from "I go find stuff" to "stuff comes to me." Build relationships with estate sale companies, thrift store managers, and other resellers. Let people know what you're looking for. Over time, your network becomes your best sourcing pipeline.
Found something but not sure what it's worth? Snap a photo with SnapList and get instant sold data from eBay, Amazon, and more. Know your profit before you buy — every time. Try it free and never second-guess a sourcing decision again.