The Best of Liquidations: Electronics
Running a reselling business on any of the global retail platforms (for example, Amazone or eBay) can be very challenging. The competition is fierce, and with much of the merchandise sold on eBay at prices close to wholesale merchandise, finding cheap sources of quality products becomes ever more crucial.
The market is especially competitive in the case of electronics like smartphones, laptops and tablets. On the other hand, however, electronics are the kind of items that market themselves, because the demand is always there and that is the nature of the current market.
What you need to do is find a way to differentiate yourself from your competitors, and the best way to do so is by offering more competitive prices. And the best way to ensure that is by finding a cheap source.
The demand for electronics is huge. In the United States, together with books, electronics are the most bought items online. This makes these products a particularly attractive option for a reseller.
To stay competitive on eBay or Amazon you need to offer these products at prices that can attract a relatively large and loyal customer base. To do so, you need to find a source that can sell you these products cheap, without, however, compromising quality.
If this sounds to you like a very tall order, you are right. Traditional wholesalers, for example, are unable to fulfil these requirements, usually because their prices aren’t low enough to make it worth your while.
What you need is a source that sells at prices below wholesale. What you need is a reputable liquidation company like Direct Liquidation to source your electronics.
One of the main worries of people who are less than familiar with liquidation companies and how they work has to do with the quality of the products. Many fear that the reason why liquidation companies offer such low prices is that the products are damaged, faulty, or of very low quality.
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This, however, couldn’t be further from the truth. It is a fact that many of the items sold by liquidators are customer returns. But many, if not most, customer returns are only slightly used, if they were used at all. This is the case because there are many reasons for buyers to return their products. The products not working is only one of them. In many cases, it’s just a matter of buyer’s remorse or of customer taking advantage of favorable returns policies.
In any case, even if the returned product is basically new, it cannot legally be sold as new. So the price will naturally go down. At the same time, customer returns take up precious storage space. This means that retailers and manufacturers gain from getting rid of the product while recouping some of its value. And so they are motivated to sell these items at very low prices.
Other products, however, may be damaged or faulty. But even this shouldn’t worry you too much. Retailers, manufacturers and liquidators care very much for their reputations. Reputation is, after all, what keeps them in business. So they have no interest in selling and reselling damaged items. That’s why returned products are submitted to testing and are repaired and refurbished as needed.
These refurbished products are guaranteed to work as new. But they cannot be priced as new and so liquidators sell them at very reduced prices. When it comes to refurbished stock, if an item has been refurbished by the manufacturer you are most likely to get a warranty for the product.
It is the same with reputable liquidation auctions. The top tier liquidation auctions will have specialized departments that receive the items from wholesale suppliers of any other source and then unpack everything and review and grade it. On top of refurbishing the product, a buyer receives at least a 90-day warranty on wholesale electronics item refurbished by the liquidation auction.
Advantages of Buying from a Liquidator
There are other advantages to buying at liquidation auctions besides the price. At liquidation auctions, you have a large variety of lots to choose from. You will know exactly what is in each lot because a reputable liquidator like Direct Liquidation will always provide you with a manifest. This is a document that tells you what is in each lot, as well as the condition of the items, the quantities and other relevant information.
Reputable liquidators will have a large number of lots up for auction at any given time. This gives you a lot of flexibility. Even if you don’t win this specific lot, you can be sure to find another one soon enough that will fulfill your needs. This ensures that you will get a steady stream of merchandise to sell to your customers.
On top of this, a liquidator like Direct Liquidation provides excellent customer support. You will get all the assistance you need from a team of expert auction specialists. They will give you all the information you need and help you with paperwork and to arrange shipping, if necessary.
Making Money on Wholesale Electronics
As we have seen, in order to make money on wholesale electronics on eBay and other major platforms, you must source the items very cheap.
Liquidation auctions are a perfect source for your merchandise because wholesale lots sold at these auctions can be as cheap as 90 percent off retail price and certainly well below the normal wholesale price.
If you end up buying a wholesale lot of electronics at an auction, your goal is to purchase electronics at these liquidation prices and mark them up enough to make a significant profit, but well below retail prices so you stay competitive. Be careful, however, not to price your merchandise too low. This may actually scare off potential customers, who may suspect the quality of the products you are selling.
Remember that your goal is not to make one huge sale to return your investment, but a series of sales that will add up to one solid profit. So patience, careful planning and budgeting, and good customer support are crucial for your success in this business.
Direct Liquidation is a goTRG company.
Jordan currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Jordan is here to help you grow your business.
Schedule a sales callback with Jordan right now.