How Resellers Can Source Inventory: A Practical Guide

Discover practical sourcing methods for resellers to find profitable inventory, from local markets and retail arbitrage to wholesale and dropshipping.

For resellers, sourcing inventory is half the battle. You can have great listings, fast shipping, and solid customer service, but if you don’t have products people want to buy at the right price, it’s hard to grow. Whether you’re selling on eBay, Whatnot, Amazon, or your own site, finding inventory that turns a profit is key. And while there are dozens of ways to source, the best methods depend on your time, capital, and business goals.

This guide walks through some of the most common and effective ways resellers source inventory today, from weekend treasure hunts to full-scale bulk buys.

Start with What’s Around You

One of the easiest ways to get started is by source inventory locally. Thrift stores, garage sales, and estate sales are popular options for resellers, especially those focusing on vintage, collectibles, books, or apparel. The cost of entry is low, the variety is endless, and you don’t need a huge upfront investment. It’s also a great way to build your knowledge of different product categories and develop a sense of what sells well.

Garage sales are especially good for negotiating, and estate sales often have higher-quality items. Categories like home décor, tools, and antiques tend to do well here. You might have to dig through a lot of things to find that one valuable item, but many resellers enjoy the hunt. Over time, you’ll start to develop instincts about what to look for and which categories are worth your time.

Local Marketplaces

Online local marketplaces like Facebook Marketplace, Craigslist, and OfferUp also offer plenty of sourcing opportunities. People often list items they want gone quickly, especially when they’re moving or cleaning out a space. You’ll find everything from furniture and electronics to clothing and baby gear. Many sellers are open to bundle deals, and if you’re quick to respond, you can beat other buyers to the best listings.

This method works well for resellers selling on eBay or Whatnot, where individual items can be listed with photos and descriptions. You can get decent margins, especially on items that are bulky or not easy to ship, since local sellers are often just trying to clear space.

Retail Arbitrage

Retail arbitrage is a strategy where you buy new products from retail stores at a discount and resell them for a profit. This works especially well on Amazon, where many sellers use Fulfillment by Amazon to handle shipping and customer service. You might find toys, beauty products, small appliances, or home goods marked down at big box stores like Walmart, Target, or Kohl’s.

Clearance aisles are key. Seasonal markdowns, discontinued products, or even store-exclusive items can present solid opportunities. The trick is knowing how to check the resale value. Apps like the Amazon Seller app or the eBay app can help you scan barcodes to see what similar items are currently selling for online.

Retail arbitrage also works on eBay, especially if you specialize in hard-to-find items or popular categories with limited availability. While this method does require upfront investment, it can be a reliable way to build inventory quickly.

Online Arbitrage

Online arbitrage follows the same idea as retail arbitrage, but everything happens on your computer. Instead of driving to stores, you browse online retailers for deals, discounts, and mispriced items you can resell on platforms like Amazon or eBay.

This approach saves time and opens the door to more scalable sourcing. You can use tools to track price drops, get alerts, or scan for profitable flips. Coupon codes, cashback programs, and browser extensions can help reduce your cost even further.

The challenge is competition. Prices can change fast, and hot deals often get shared among resellers. You also can’t inspect items in person before buying, so you’ll need to be cautious with new suppliers and double-check product descriptions.

Liquidation and Closeout Lots

For resellers ready to move large volumes, liquidation is one of the fastest ways to source inventory. These lots come from retailers and brands that are clearing out customer returns, shelf pulls, or unsold overstock. You can buy inventory by the case, pallet, or even truckload, depending on your budget and space.

Liquidation can be especially useful for categories like general merchandise, clothing, home goods, or electronics. Some items will be new and sealed, while others may be open-box or slightly damaged. It’s important to set up a workflow to inspect, clean, or repackage inventory before listing it.

Resellers on eBay and Whatnot often use liquidation to feed consistent inventory into their storefronts. Whatnot’s live selling format is especially effective for moving volume quickly, since buyers can see the products in real time and ask questions on the spot. Amazon sellers can also do well with liquidation, especially if they specialize in used or refurbished goods.

Finding good liquidation sources can take time, and not all sellers are reputable. That’s where platforms like Reseller Source come in which connects resellers with reliable brands and suppliers who offer overstock, customer returns, and closeouts that are ready for resale. It helps reduce the guesswork and gives resellers access to trusted inventory without having to rely on blind auctions.

Wholesale Sourcing

As your reselling business grows, you might want more control over your inventory. Wholesale sourcing allows you to buy products directly from manufacturers or distributors at discounted prices. This route is ideal if you’ve identified a niche that sells consistently and want to restock the same SKUs over time.

Wholesale makes it easier to build systems around your listings and scale your operations. You know exactly what you’re getting, in what condition, and often with proper documentation that may be helpful on platforms like Amazon. It also opens the door to exploring private label products if you want to sell under your own brand name.

The tradeoff is that wholesale usually comes with minimum order quantities, higher upfront costs, and the need to maintain good relationships with suppliers. But for resellers aiming to grow, it offers long-term stability that other sourcing methods may lack.

Dropshipping

Dropshipping removes the need to carry inventory altogether. You list a product for sale, and when someone buys it, a third-party supplier ships it directly to the customer. This model is popular among new sellers who want to test ideas without tying up capital in unsold stock.

Dropshipping is usually best for resellers running their own websites rather than selling on marketplaces like Amazon or Whatnot. Those platforms have strict rules around shipping times and order handling, which can be difficult to meet when relying on third-party suppliers.

Margins are thin, and you have little control over fulfillment, so it’s critical to work with reliable suppliers. If a customer receives the wrong product or shipping is delayed, your reputation takes the hit. Still, for those who want to explore product categories or test demand before committing to bulk orders, dropshipping can be a low-risk option.

Partnering with Brands and Retailers

Many small brands, DTC companies, and local retailers have excess inventory, returned merchandise, or discontinued SKUs they don’t want to sell through traditional channels. These companies may be open to working directly with resellers who can discreetly move inventory without hurting their public pricing.

Building relationships with these sellers takes time. You need to be professional, communicate clearly, and demonstrate that you can handle the products responsibly. In return, you can get first access to fresh inventory and build a pipeline that gives you a competitive edge.

Some resellers even specialize in working with brands to handle their customer returns, seasonal inventory, or open-box items. This type of sourcing may not be as simple as scanning a clearance rack, but it can offer better pricing and less competition.

Wrapping Up

There’s no single best way to source inventory. Some resellers make a living flipping thrift store finds. Others grow through liquidation, wholesale, or direct brand partnerships. The most successful resellers usually mix a few sourcing strategies based on what works for their niche, platform, and available capital.

If you’re selling on eBay, Whatnot, or Amazon, your sourcing needs will shift depending on seasonality, competition, and how much inventory you want to move. What matters most is consistency. Treat sourcing as part of your business operations, not just a side activity.

When you take time to develop a system, vet your sources, and learn from experience, sourcing becomes less of a struggle and more of a growth engine. Start small, stay organized, and look for suppliers you can work with over the long term.