Arbitrage Pivot Strategy v2 💰

Updated: 2026-01-25

The Pivot

Old approach: Look at eBay prices → Try to find cheaper sources → Thin margins
New approach: Find deeply discounted sources → Sell across multiple channels → Better margins

Source-First Model

Primary Sources (20-40% of retail)

#### 1. B-Stock Auctions
- URL: bstock.com (Amazon, Walmart, Target, Best Buy storefronts)
- What: Truckloads and pallets direct from major retailers
- Typical discount: 70-90% off retail
- Best categories: Electronics, appliances, tools

#### 2. Liquidation.com
- URL: liquidation.com
- What: Mixed pallets, manifested lots, overstock
- Typical discount: 60-85% off retail

#### 3. Direct Liquidation
- URL: directliquidation.com
- What: Amazon customer returns
- Good for: Beginners (transparent manifests)

#### 4. Wholesale Central / Doba
- Dropship-style wholesale
- Lower margins but no inventory risk

What to Look For

- Items at 20-40% of retail value
- Brands with strong resale demand
- Categories that work on TikTok (see below)

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Multi-Channel Selling

Channel 1: Amazon FBA

- Best for: Brand-name products, Prime demand
- Fees: ~15% + FBA fees
- Pros: Massive traffic, trust, Prime shipping
- Cons: Brand gating, strict requirements

Channel 2: eBay

- Best for: Used/refurbished, unique items
- Fees: ~13%
- Pros: Easy to start, less restrictions
- Cons: Lower prices, more competition

Channel 3: TikTok Shop 🔥

- Best for: Viral products, demos, impulse buys
- Fees: ~8% (lower than others!)
- Pros: Viral potential, video-native, younger audience
- Cons: Need video content, newer platform

Channel 4: Facebook Marketplace

- Best for: Local sales, no shipping
- Fees: 5% or free local
- Pros: No shipping, instant cash
- Cons: Limited reach

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TikTok Shop Strategy

Why TikTok Shop?

- Lower fees (~8% vs 13-15%)
- Video content drives sales
- Viral potential = massive volume
- Younger audience loves deals/finds

Requirements (USA)

- 18+ years old
- Valid US ID (driver's license, passport)
- US bank account
- US address
- W9 tax form

Best Categories for TikTok

1. Gadgets/Electronics — Unboxing videos, demos
2. Beauty/Skincare — Before/after, tutorials
3. Kitchen gadgets — Cooking demos
4. Fitness equipment — Workout demos
5. Home organization — Satisfying transformations

Content Strategy

- Short unboxing videos (15-30 sec)
- Product demos showing value
- "I found this for $X" discovery content
- Live shopping streams

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Google VEO Integration 🎬

What is VEO?

Google's AI video generation model. Can create 8-second HD product videos from text prompts.

Access

- Gemini API: ai.google.dev (developer access)
- Vertex AI: cloud.google.com (enterprise)
- Google AI Studio: Quick testing

Use Cases for Arbitrage

1. Product demos — "Show iPhone 15 Pro being unboxed"
2. Lifestyle shots — "Show person using wireless headphones in coffee shop"
3. Before/after — "Show messy desk transforming to organized with desk organizer"

Pricing

- Pay per generation
- ~$0.05-0.10 per 8-second video (estimate)
- Scale to dozens of videos cheaply

Workflow

1. Source product from liquidation
2. Generate VEO video with product description
3. Post to TikTok Shop
4. Link to listing
5. Profit

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Execution Plan

Phase 1: Setup (This Week)

- [ ] Create TikTok Shop seller account
- [ ] Set up Gemini API access for VEO
- [ ] Register on B-Stock, Liquidation.com
- [ ] Watch 10 auctions, learn pricing

Phase 2: First Source (Week 2)

- [ ] Find liquidation lot under $500
- [ ] Focus on TikTok-friendly category (gadgets, beauty, kitchen)
- [ ] Items should be 20-40% of retail

Phase 3: Content + List (Week 2-3)

- [ ] Generate VEO videos for top items
- [ ] List on TikTok Shop
- [ ] Cross-list on eBay/Amazon

Phase 4: Optimize (Ongoing)

- [ ] Track which channels convert best
- [ ] Double down on winners
- [ ] Automate video generation

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Target Numbers

| Metric | Target |
|--------|--------|
| Buy price | 20-40% of retail |
| Sell price | 60-80% of retail |
| Gross margin | 40-60% |
| Net after fees | 25-45% |
| Min profit/item | $50-100 (lower threshold, higher volume) |
| Monthly goal | $2,000-5,000 profit |

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Tools Needed

Already Built

- ebay-scanner.sh — Price checking
- deal-scanner.sh — Deal monitoring
- pallet-roi-calculator.py — ROI estimation

To Build

- [ ] Liquidation monitor — Alert on auctions matching criteria
- [ ] VEO video generator — Script to batch-generate product videos
- [ ] Multi-channel lister — Post to TikTok/eBay/Amazon from one place
- [ ] Profit tracker — Track buys, sells, margins

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This strategy prioritizes finding cheap sources first, then leveraging TikTok's lower fees and viral potential.