Can You Buy Dollar Store Items to Sell on Amazon?

Posted by Madison on October 8, 2015

More than a few readers have asked if you can buy dollar store items to sell on Amazon. And will it turn a profit? Shockingly, the answer is yes. As a consumer, it’s a bit startling to realize that you’re overpaying for a dollar store item and the convenience to have it shipped to you in two days via Amazon Prime.

However, as an entrepreneur, it’s an arbitrage opportunity that exists, so you might as well make money off of it. As many of you know, I like to make a few extra dollars selling on Amazon. Last year I Made $100,000 Selling on Amazon.

Can You Buy Dollar Store Items to Sell on Amazon?

I just finished my overview on How to Make Selling on Amazon this Holiday Season Even Better. One of my key steps is to review profitable items from the past and buy more or expand on them.

I thought you’d enjoy the fact that a very profitable toy I had came directly from the Dollar Store!

If you are looking for things to start selling on FBA at a very low price of entry, items that cost one dollar aren’t much of an investment!

I like to highlight Examples of Profits from Selling on Amazon to give you ideas about profitability and finding things to sell. Here’s the breakdown on the dollar store item.

Profits Selling a Dollar Store Item

Ty Lil One Hello Kitty Easter Bunny:

  • Purchase price: $1.00
  • Selling price: $9.99
  • Amazon fees: -$4.17 (Commission: -$1.50, FBA fulfillment fee: -$2.04, FBA weight fee: -$0.63)
  • Inbound Shipping: $.65
  • Overhead: $0.10
  • Net profit: $4.07
  • Profit/cost return: 407%

Tips When Buying at the Dollar Store

Buy in Volume to Multiply Profits. Now, $4 per item isn’t much profit for a single item. I bought 33 of the Easter dolls for an easy $134 profit. However, what if you bought 100? or more?

Do Research. The point in time sales rank right now on this item isn’t very spectacular. However, there are no FBA sellers, which makes a huge difference. In addition, it’s seasonal, the sales rank improves twice per year, at Easter and at Christmas. I thought these dolls would sell around Easter since it’s a doll with an Easter Bunny. They sold at Easter, but they also sold during Christmas! Something to keep in mind is that a point in time sales rank doesn’t tell you the whole picture. I use Camel Camel Camel to review the sales rank over time. Even if you are buying an item for a dollar, you still need to do your research!

Don’t Buy Junk. Obviously, not everything at a dollar store will sell for more on Amazon. It’s important to Cut Your Losses Selling on Amazon and dump terrible products. Or better yet, be more careful when you purchase them to make sure they’re going to be a great product. Would you buy the item on Amazon at the price you’re planning to sell it?

Maximize Secondary Profits

In addition to maximizing the profit on the item I’m buying, I like to maximize my earnings on indirect profits (including things like credit card cash rewards and online cash back if I’m buying online).

For example, if I purchased the dolls using the BankAmericard $200 Sign Up Bonus I mentioned last week, I could earn 21.5% of my purchase back in bonuses and points.

While it might be easy to forget the secondary profits when you are buying an item that only costs a dollar, another 21 cents profit on every item can really add up if you are buying multiples!

I’m still working on meeting my spending requirements for my latest $4,420 Credit Card Application Spree. Buying items to sell on Amazon is an easy way to Meet Spending Requirements for Sign Up Bonuses.

Getting Started Selling on Amazon

Here’s How to Get Started Selling on Amazon. When I started out a few years ago I found these two books helpful: Selling On Amazon: How You Can Make A Full-Time Income Selling on Amazon and Retail Arbitrage. Last year, I also read Online Arbitrage.

More on Amazon Selling

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Comments to Can You Buy Dollar Store Items to Sell on Amazon?

  1. I just started reading your blog and appreciate your tips about selling on Amazon. Thanks!
    Did you account for the sales tax you paid when purchasing the item at the dollar store under the “overhead” section?
    Where can you buy items using your seller’s permit so that you don’t have to pay sales tax?


  2. Thanks for the great tips!
    Where can you use a seller’s permit to buy items for resale without paying sales tax?
    Is it only from wholesale places, or do retail stores accept it also?


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