Retail Arbitrage: How to Use Your Resale Certificate at Major Stores

Retail arbitrage—buying discounted products at retail stores and reselling them online—is a popular business model. One key to maximizing profits? Using your resale certificate to avoid paying sales tax on inventory purchases.

This guide covers how to use your certificate at major retailers and get the most out of your sourcing trips.

Retail Shopping

What Is Retail Arbitrage?

Retail arbitrage (RA) involves:

1. Finding products at retail stores below their online value
2. Purchasing those products
3. Reselling them online (usually Amazon, eBay) at a profit

Why Use a Resale Certificate?

Without a certificate, you pay sales tax on every purchase. That eats into your margins:

That's 4x the profit on a single item—and it adds up fast.

Store-by-Store Guide

Target

Certificate acceptance: Yes, with enrollment

How to set up:

1. Create a Target business account at Target.com/business
2. Apply for tax exemption
3. Upload your resale certificate
4. Receive tax-exempt status on your account

In-store tips:

• Use your linked payment method for automatic exemption
• Guest Services can process tax-exempt purchases
• Call ahead for large clearance hauls

Walmart

Certificate acceptance: Yes

How to set up:

1. For in-store: Present certificate at checkout
2. For online: Apply through Walmart Business
3. Tax exemption can be applied at register

In-store tips:

• Customer service desk can process tax-exempt transactions
• Some locations are more familiar with process than others
• Ask for manager if cashier is unsure

Costco

Certificate acceptance: Yes (Business membership required)

How to set up:

1. Get a Costco Business Membership
2. Register for tax exemption program
3. Certificate on file for all purchases

Benefits:

• Business membership includes extra card
• Access to Costco Business Center locations
• Tax exemption applied automatically

Sam's Club

Certificate acceptance: Yes

How to set up:

1. Business or Plus membership recommended
2. Visit Member Services desk
3. Provide resale certificate
4. Exemption added to your membership

Big Lots

Certificate acceptance: Yes

In-store process:

• Present certificate at checkout
• Manager approval may be required
• Keep copy of completed form

Home Depot / Lowe's

Certificate acceptance: Yes, through Pro programs

How to set up:

1. Join Pro Xtra (Home Depot) or Lowe's for Pros
2. Add tax exemption to your account
3. Use account for tax-free purchases

Dollar General / Dollar Tree

Certificate acceptance: Varies by location

Tips:

• Call ahead to confirm
• Manager approval usually required
• Better for bulk purchases

Office Depot / Staples

Certificate acceptance: Yes

How to set up:

1. Create business account
2. Submit resale certificate
3. Tax exemption applied to orders

Best Buy

Certificate acceptance: Yes, for business accounts

How to set up:

1. Apply for Best Buy Business account
2. Submit tax documentation
3. Tax exemption on qualifying purchases

Tips for Successful Tax-Exempt Sourcing

Before You Go

1. Have copies ready - Bring physical and digital copies
2. Know your certificate number - Memorize or save it
3. Call ahead - Confirm store policy, especially for large purchases
4. Check clearance schedules - Each store has patterns

At the Store

1. Be prepared to explain - Not all cashiers know the process
2. Ask for a manager - If needed, politely request
3. Be patient - Process may take extra time
4. Get receipt - Verify tax was removed

Best Practices

Organizing Your Arbitrage Business

Inventory Management

As your business grows, tracking inventory becomes essential:

• What you bought - Store, date, cost
• Where it's stored - Home, prep center, FBA
• When it sold - Track velocity
• Profit per item - Know your numbers

Software tools like Raidframe can help you track inventory across multiple sales channels and sourcing methods.

Shipping and Fulfillment

For Amazon sellers, you have options:

Many arbitrage sellers use prep services or 3PLs like 3PLGuys to handle the tedious work of prepping and shipping to Amazon fulfillment centers.

Finding Profitable Products

What to Look For

• Clearance and markdown items
• End-of-season products
• Discontinued items
• Store exclusives
• Bundle deals

Tools to Help

ROI Targets

Experienced arbitragers typically target:

Record Keeping for Arbitrage

What to Track

For each purchase:

• Date and store location
• Items purchased
• Cost per item
• Tax status (should be $0 with certificate)
• Receipt/invoice

Why Records Matter

1. Audit protection - Prove purchases were for resale
2. Profitability analysis - Know what's actually working
3. Tax preparation - Accurate cost basis
4. Business decisions - Data-driven sourcing

Common Questions

"Can I use my certificate for items I might keep?"

No. Only use it for items you genuinely intend to resell. Using it for personal purchases is tax fraud.

"What if a store refuses my certificate?"

Stores can refuse. If it happens:

• Ask politely for a manager
• Offer to call your state tax office
• If still refused, pay the tax or shop elsewhere

"Do I need a certificate for each state I source in?"

Your home state certificate usually works in most states. Some states (California, Florida, etc.) require in-state registration.

"How do I handle products that don't sell?"

If you end up keeping unsold inventory for personal use, you technically owe use tax on those items. Keep records.

"Is retail arbitrage allowed on Amazon?"

Yes, but products must be authentic and you must be truthful about condition. Follow Amazon's policies.

Building Your Arbitrage Business

Scaling Strategies

1. Expand sourcing routes - More stores, more finds
2. Build relationships - Know store managers, clearance schedules
3. Hire help - Scale beyond your own time
4. Add online arbitrage - Source from home too

When to Outsource

Consider outsourcing when:

• You're spending more time shipping than sourcing
• Inventory is taking over your home
• You want to focus on what you do best (finding deals)

This is where prep centers and fulfillment services shine. A partner like 3PLGuys can receive your sourced inventory, prep it to Amazon standards, and ship to FBA—while you focus on finding the next great deal.

Getting Started

Ready to maximize your retail arbitrage profits? Get your resale certificate and stop paying sales tax on inventory.

Apply for Your Resale Certificate →

Questions about using your certificate for arbitrage? Contact us for help.