If you’re thinking about setting up a resale business or you’re already an established retailer who’s looking to branch out into reselling liquidated merchandise, it’s important you choose the model that’s right for your business. By that, we mean taking into account such factors as storage space, budget, your level of expertise, transportation and what markets you have access to.
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Buying merchandise wholesale from a top-tier online liquidation marketplace and selling it for a profit can be a very rewarding experience on many levels. But it’s important that you scale your business correctly to the right size so you don’t overreach yourself in your starting years. Here’s what you’ll have to take into account.
The size of your business will, of course, very much depend on the amount you have to spend on liquidated merchandise after other costs have been taken into account. Starting out, most resellers won’t have much money to play with, so it’s important to not only buy the right type of merchandise, but also buy it from the right supplier.
Top-tier liquidators such as Direct Liquidation work in partnership with some of the country’s biggest retail names such as Walmart, Amazon, Target and Lowe’s Hardware. This means they can supply resale businesses both large and small with the right amount of top-quality liquidated stock to suit all businesses. From single pallets containing small amounts of items to full truckloads of liquidated stock, top-tier liquidation specialists such as Direct Liquidation can supply any business, whatever their budget.
And, as your business’s profits increase, you can adjust your stock acquisition accordingly. Liquidators aligned with major retail partners have plenty of stock on offer for sale via liquidation auctions which take place on a daily basis. So whether you’re just starting out, scaling up or already running a large scale reselling operation, you can rely on the fact a top-tier liquidation specialist will have exactly the right amount of the stock your company needs as and when required.
Many resellers starting out will be lucky if they have anything over the size of a spare room or a garage to store the merchandise they purchase from a liquidator. What does this mean? Well, it’s fairly self-explanatory – the less space your have, the less merchandise you can feasibly store. Therefore, when purchasing wholesale merchandise from a top tier liquidation specialist such as Direct Liquidation, it’s important to make sure you buy with one eye on capacity.
As your reselling business grows, you’ll be able to scale up your storage as your profits rise. From humble beginnings in a spare room, you’ll be able to add capacity such as hiring storage space or even hiring or buying your own store. The important thing to remember is don’t go over your current capacity when purchasing liquidated merchandise.
As well as budget and storage, it’s also important you take your own level of expertise, your interests and your knowledge into account when thinking about what type of reselling business you want to set up.
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For example, if you have a keen interest in consumer electronics, you might want to turn your hobby into a business, specializing in buying and selling such things as refurbished laptops, wholesale phones and tablets and desktop PCs and monitors. Direct Liquidation’s relationship with big-name retailers such as Walmart and Amazon means they have a huge range of consumer electronics available to buy coming from some of the world’s most cutting edge tech companies such as Apple, Google, LG, Microsoft, HP and Samsung.
With names like that, you’ll be sure to attract plenty of customers, and thanks to the low prices you’ll pay by buying discount electronics in bulk wholesale from a liquidator instead of a wholesaler, you’ll be able to offer those electronics at very attractive prices.
Similarly, if you’re good with your hands, you might want to take a look at the ‘tested-not-working’ stock a liquidator carries on behalf of its retail partners. People with repair skills can turn this type of stock back into working units. So if you’re a dab hand at fixing things, ‘tested-not-working’ products could provide your reselling business with a lucrative secondary revenue stream.
Another thing to take into account when choosing your business model is transportation. If you own your own truck, you can transport the goods you buy from a liquidator at much less expense than if you don’t. If you don’t own your own truck and are planning on relying on a third-party courier to ship your goods, you’ll have to take into account additional costs such as shipping and fuel when considering your business model and act accordingly.
Of course, you could opt to let the liquidator handle the logistics for you. Direct Liquidation offers its own shipping service, and it’s worth checking it out in case it turns out it’s cheaper to let them do the heavy lifting for you.
Finally, when considering what business model is right for you, it’s important to research all the marketplaces available both in the real world and online. You might, for example, be considering starting out small by selling liquidated stock at your local flea market. You’ll have to find out what a stand at your local market will cost you, what sales taxes you’ll be liable for and what people in your area are most likely to buy. If you’re interested in opening your own store, again you’ll have to take into account things like monthly rent, overheads and the taxes you’ll need to pay.
If you’re interested in operating online, you’ll have to research which of the huge range of store hosting sites will fit your business. There’s more to selling online than listing goods on Amazon and eBay. Sites like Shopify, BigCommerce, and Wix offer resellers the chance to set up stores on their websites for a monthly or yearly fee. Best of all, most of these smaller eCommerce sites offer the chance of time-limited free trials, so you won’t have to lay out any of your business’s precious startup money while you explore if these sites are for you.
In conclusion, buying and selling liquidated merchandise from a liquidation sales expert such as Direct Liquidation can be a great way into the world of retail. What business model is best for you very much depends on many factors such as your budget, your business’s storage capacity, your transportation options, etc.
The most important thing to do is your research. Get that right and you’ll be taking advantage of the benefits of buying and reselling top quality liquidated merchandise in no time. Good luck!
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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 or check out his latest liquidation deals.
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