Risk: High

Retail arbitrage involves buying products at a lower price from retail stores and selling them at a higher price for a profit. Beginners may risk losing money due to initial investment in inventory, potential unsold stock, and unforeseen expenses. Some beginners have spent money on products that didn't sell, resulting in losses. Startup costs for retail arbitrage can range from $100 to $1000 or more, and there's a possibility that these costs may not pay off if products don't sell as expected. Online discussions mention instances of failing or losing money due to incorrect pricing, competition, or market changes.