Buying Liquidated Electronics by the Pallet for Resale Online
It is hard enough running a liquidated electronics business and keeping the costs low is key to turning profits and staying afloat. A potentially profitable way to launch a new electronics business is to buy liquidated electronics at bargain prices that you can then resell for a profit. Luckily, there are lots of opportunities to find other businesses that are looking to cash out and unload inventory at pennies on the dollar.
What is Liquidation?
Liquidation is the process of selling off a company’s inventory, typically at a big discount, to generate cash. In many cases, a liquidation sale is a precursor to a business closing. But often companies will sell off stock as part of their ordinary business activities, either because it exceeds their needs, it’s out of season, or consists of products returned by customers.
Whatever their origin and condition, these products need to be sold off for the companies to have their precious storage space available for new and much more valuable stock. That’s where liquidation companies, and especially online liquidation platforms like Direct Liquidation come in.
Where Can I Buy Liquidated Stock?
The best place to get your liquidated electronics is at an online liquidation platform like Direct Liquidation. At an online liquidation platform you will find lots of liquidated electronics from a variety of sources, in a variety of conditions and of various sizes, from pallets to full truckloads. What they all have in common is that they are all sold at very low prices.
Online liquidation platforms usually sell products via auctions. That means that you bid on the lots you are interested in, and the highest bidder wins. The starting bids are usually a fraction of the price the products would be sold for if they weren’t being liquidated. This means you’ll have many opportunities to make a tidy profit when you resell those products. But in many cases you also get the chance to skip the auction process, either by clicking the “buy now” button or by making an offer directly to the platform.
Buying Quality Products
Quality is not a major concern. Although many pallets may contain damaged products, this is always clearly stated and you should always consult the manifest to make sure that you know what you’re buying. But you will also find many pallets with products that are basically brand new or as new. These include overstock and shelf pulls, for example: products that were ordered in excess by the stores or were never actually sold. Besides these categories, you will find many pallets containing refurbished items. These were tested and repaired and put back into perfect working condition. This means that they work as new, but are sold at a fraction of the price.
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But there’s another reason why quality is not a major concern. Direct Liquidation is a top-tier electronics liquidation specialist which has partnered up with some of the biggest names in US retail such as Walmart, Lowe’s, Target and, of course, Amazon, bringing its business customers the very best range of top-quality electronics returns at the lowest possible prices to help their business customers maximize their profits. This means that a big chunk of what you will find at Direct Liquidation comes directly from major retailers, whose reputation you can trust.
Companies like Direct Liquidation, therefore, make it very easy and affordable for small retailers to source their inventory. For very little money, you get brand name goods on these platforms at wholesale rates. As a reseller, you can take advantage of this opportunity by purchasing liquidated electronics from customer returns, shelf pulls, and overstock merchandise.
Tips On How To Start Your Own Liquidated Electronics Resale Business
1. Analyze The Market Carefully
Know all your costs since liquidation stock can be very time consuming to process and can tie up money for long periods of time. In order to have a good customer electronics resale business you need to develop a very good understanding of the electronics market and the direct or indirect costs which they can get for certain electronics. This requires a lot of research. Remember that most successful wholesale customer returns resellers have been in the business for at least ten years. As a result, they know and understand the target price and are aware of the profits which they will be able to achieve in return. This will be your competition, so you need to learn as much as you can about the business in order to be successful
2. Register for a Resale Certificate in Your State
You will need to get a resale certificate. In many states, this is a mandatory requirement. But it also gives you a very clear benefit: it exempts you from paying sales tax on the goods you buy for resale. This will help you boost your profits. Note, though, that not all states require or provide resale certificates. So one of the first things you need to do is find out what the process is to register for a resale certificate in your state.
3. Search for Pallets with Detailed Manifests
A manifest is a detailed list and description of the items for sale in a particular pallet or lot. You should analyze the manifest to get as much detail about the electronics you are buying as you can. Understand manifest variance because you may be entitled to some money back if the electronics vary significantly from the manifest. This manifest will include information such as the quantity, cost, and description of the electronics. Supplying a manifest is something reputable liquidation platforms will be as a matter of course. A supplier of liquidation electronics that does not give you a manifest is not to be trusted.
4. Consider Quality and Grading
Quality can vary widely from lot to lot. Some products are damaged and are missing parts, while others can be as good as new, for example, overstock and shelf pulls. Others still are refurbished and work perfectly, while others may have only cosmetic flaws. The condition of refurbished products and customer returns are usually indicated by a grade. A reputable supplier will give you all the information you need about the quality of the products in the manifest. It is important that you understand the different categories as well as the grading system so that you know what you are buying.
5. Plan the Logistics
After you get the lot you wanted at the auction, there’s a lot more that needs doing. You’ll need to have the products shipped to you. You’ll need to find space to store them. You’ll need to find ways to resell them, choosing both the methods and places. You will also need to find ways to communicate the value of your products to your potential customers through marketing and advertising. And finally, you will need to build a healthy relationship with your customers with good customer support. All this requires work and a lot of planning. Thankfully, Direct Liquidation can help you with some of these tasks, and especially with the shipping.
Building a business is not easy. But reselling liquidated electronics can become a lot easier when you find the right source for your products. And it is clear that the best source can only be an online liquidation platform like Direct Liquidation.
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.