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Yes, it does work. The buy/sell arrow trick is well documented and quite profitable.
In Valeia: Buy/sell Arrow +1 from the warriors guild. The profit is not the greatest but it will put you well on your feet
In Ishad N'Ha and Brimloch: Buy/Sell Taketchu (spelling) arrow from the Dojo. You can buy a pack of 10 arrows for about 350 gp and sell them for close to 2000gp. If you have the merchant trait, you can make up to 3000gp.
The ultimate arrow trick: Get the Dragon Arrow and have your ranger clone it using his fletchery trait. Give one arrow to Torin and get the quest ... Just keep cloning the remaining arrow. At first, spend all you can in Blessing (up to level 12). Then, start blessing your arrow. Put all in one area of blessing... that maximises the value of the arrows.
With 12 blessings, 10 arrows are worth MANY million GP.
Enjoy.
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