A Guide to Buying Seasonal Merchandise

Have you ever wondered what happens to the seasonal goods that get displayed in the stores during the summer and disappear as soon as the first leaves start falling? For you as a reseller, there may be an opportunity here.

Sourcing Seasonal Merchandise

If you look closely at liquidation auctions or wholesale supplier lots, a large portion of their merchandise are seasonal goods that have been taken off the shelves after each respective season. Many end up being liquidated, as retailers don’t have the space to store such goods for up to nine months. They need space for year-round products like electronics or tools as well as the merchandise that is now coming into season.

This means that liquidation wholesale suppliers are a great place to check out for merchandise after the turn of each season. These are valuable sources for cheap out-of-season goods that you can then sell on to your customers. However, you need to be aware of the yearly cycle of seasonal goods in order to make the most of these opportunities. Having a plan for the entire year is a smart way to organize and build your business.

Profiting from Seasonal Merchandise

So, if you have the space to store seasonal goods such summer or winter clothes, Christmas decorations, and other seasonal items, buying seasonal goods can be a fantastic way to make a profit.

The profit comes from the fact that seasonal goods are sold off at big discounts after their respective season is over as demand for these products drop. For example, summer clothes are marked down significantly during the winter, and the same goes for winter clothes in the summer. Additionally, buying Christmas decorations and other Christmas-related products just after the holiday and then storing them until next Christmas will allow you to profit significantly.

Seasonal Goods Need Planning

The main issue you might come across is the demand for seasonal goods. These products are by nature seasonal, meaning that they are usually only sought after during certain times of the year. To concentrate exclusively on just one type of product, say, Christmas decorations, would be a serious mistake, as you’d sell very little during most of the year.

To make the most of seasonal goods you should not stick to just one product line, one season or one brand. Rather, you should choose to diversify, carrying different kinds of products in demand during different periods of the year. You should look to plan for the whole year, focus on the demand points and make sure you have the right merchandise to cover the demand peaks.

Selling two or more types of product will allow you to operate the entire year around if you plan and chose these products carefully. The best tip is to have products that complement each other, that can share tools and equipment. As a result, you would have a healthy customer base that returns to your business regardless of the season.

For example, if you usually deal with Christmas themed products, branching out into a summer line goes a long way to increasing your year-round profitability.

Fostering Customer Relationships

In addition to being ready for the demand peaks, it is good to establish a customer base and a healthy relationship with your customers. This would enable you to contact them with great offers for the seasonal products you are selling just before the season for peak demand is about to start.

With the early announcements, make sure you add a personal touch to your client relationships. Promotional codes or an occasional free delivery to a returning customer will help you acquire a loyal long-term customer who will praise your service to other potential buyers, expanding your customer base as a result.

Never underestimate word-of-mouth reviews, particularly in the retail industry. These can be more powerful driving forces for building businesses compared with online reviews or testimonials.

Via: ReferalCandy

This could also be applied to you. Make sure you have a great business relationship with your wholesale suppliers or your liquidators that might offer you seasonal merchandise at the lowest prices.

Getting the Most from Seasonal Goods

To summarize, making money on seasonal goods is a matter of organization, logistics and patience.

You must buy the products as soon as they are off season, store them and put them back on the market some nine months later when the season is about to start again, for maximum markup.

You need to regularly check your suppliers around this time to find these products as soon as they are listed. Due to the steepness of the discounts on seasonal products, you may find competition on the best lots can be very active, especially on sites like Direct Liquidation that ship across North America.

Another possible strategy is to buy and sell products that complement each other in the off-season, or that can be repurposed, allowing you to sell seasonal products the entire year, without having to wait months for your target season to come back around. Think carefully about your niche, your customer base, and your businesses’ strengths when considering what other merchandise areas you may be able to best branch out into.

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