It’s never been easier to set up an online retail business, so it’s no wonder that so many people are thinking about doing it. However, without the right kind of stock to sell bought for the right price, any startup online retail business will be holed below the waterline before it’s ever had a chance to really get going.
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One of the best places to source stock is not, as a lot of people would automatically assume, from a local small-scale wholesale supplier. This type of supplier used to be a perfectly good source of wholesale merchandise, but with an increase in both the price of the merchandise and a refusal to lower their premiums to combat this, wholesalers are no longer offering goods at a price that small businesses can expect to make a profit from.
So, what is the best place to source wholesale merchandise from? For an increasing number of businesses, it’s a top-tier liquidation company offering goods that can be bought and resold. Here we will explain what a liquidator does, what type of stock you can expect to find on an online liquidation marketplace, how to set up a resale business and, most importantly, how to make money every day with a liquidations resale business.
A top-tier liquidator such as Direct Liquidation operates in a completely different way to a traditional wholesaler. Where a wholesaler will buy their merchandise from a supplier who in turn gets their merchandise from a manufacturer, larger wholesale supplier or retailer, thus turning the wholesaler into a middleman, a top-tier liquidation company deals directly with retailers, cutting out the middleman.
Here’s how it works. A top-tier liquidator enters into a partnership with a big-name retailer such as Amazon, Target or Lowe’s Hardware, offering them a place on their online liquidation marketplaces through which they can sell their unwanted returns, overstock and closeouts direct to resale businesses.
Big-name retailers wish to dispose of the closeouts, overstock, and returns in their possession as fast as they can to free up valuable warehouse and floor space for new, more financially-lucrative products. This means that the goods they sell through liquidators’ online liquidation sales marketplaces are sold direct to resale businesses at a fraction of their retail value.
That’s why resellers can get lots of top-quality branded, own brand and unbranded wholesale merchandise at prices they simply won’t find elsewhere, and therefore massively increase their chances of making large profits on merchandise bought this way.
If you’re looking to start up your own resale business, you’ll need great-quality products you can sell at eye-catching prices. This is how you’re going to attract customers in what can be a very overcrowded marketplace. That’s why it’s well worth checking out what a liquidator has to offer your budding business as the retail partners they work with have a huge range of stock in a variety of conditions coming from some of the biggest names in the world.
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In Direct Liquidation’s case, you’ll find customer returns, overstock and closeouts being sold direct to business customers by Amazon, Walmart, Lowe’s Hardware and Target. This means you’ll find just about anything you care to think of from the latest tech gadgets, toys and games, food and drink, and fashions, to home improvement products and even parts and accessories for the automotive retail sector.
Best of all for startup businesses who might not necessarily have the finances or storage capacity to buy large amounts of stock in bulk, Direct Liquidation offers merchandise that can be bought by the single box as opposed to the pallet or truckload, like the Amazon returns boxes the company sells on behalf of one of the world’s largest retailers. This means your business can get a small amount of top-quality stock without breaking the bank, paying large shipping costs or having to rent out expensive storage space.
Now you know the best place to buy your wholesale merchandise from, it’s time to set up your online retail business. First up, what is it you’re going to sell? This is where your own hobbies and interests come into play. If you’re a fashionista, you’ll naturally know what’s hot and what’s not, and know what type of merchandise to buy and sell accordingly. If you’re a tech whizz, buying and selling wholesale electronics products may be a better fit. You can not only bring your expertise to bear, but also use your repair skills to bring ‘tested-not-working’ products that typically make up a small percentage of each pallet of returns a liquidator sells back up to factory spec and therefore increase your profits.
Doing what you know best is key, as is doing your research to find out what products sell well and which ones don’t. Things like monitoring Amazon’s best sellers can help you with this, as can researching on social media – in particular, Instagram – to see what the influencers are talking about and what products are trending.
Once you’ve found your niche, you’ll need some stock. Buying liquidated merchandise from a company such as Direct Liquidation is easy. First, you’ll need a valid resellers license before you’re allowed to resell liquidated goods in your state or online; you’ll also need one when signing up for a free account with Direct Liquidation. Once you’ve done that, simply navigate to the section of the liquidator’s site containing the stock you’re interested in purchasing, or browse the vendor pages of individual retailers to see what they have on offer.
Once you’ve located the stock you’re interested in purchasing, you can either bid on it in a live liquidation auction, pay a fixed price. If you’re the haggling kind, make your own cash offer directly to the liquidator. Once you’ve purchased your stock, it’s then simply a matter of arranging shipping and you’re good to go.
When it comes to shipping, the optimum situation for a startup is to be near to a liquidator’s distribution center so they can cut down cost by picking up their purchases themselves. If this is not an option, be sure to see if the liquidator can handle the shipping cheaper than a third-party courier. In many circumstances, they can, meaning you’ll save even more money.
Now you have some top-quality wholesale liquidation stock to sell, it’s time to get selling it. Many startups make the mistake of thinking the best place to begin selling goods is by setting up shop on Amazon and eBay, but this is not always the best approach.
If you’re starting out small, you have to ensure that your business isn’t laying out unnecessary expenditure, and that might mean initially shying away from sites like Amazon and eBay who charge upfront and back end fees. By all means, go for these retailers if you have the budget for it, but for those looking to make savings, smaller store-hosting sites such as Shopify and Wix might be a better fit. These smaller sites usually offer free trials, meaning you can test the waters and see if they’re right for your business before you spend any money.
Of course, the best place to test the waters when starting out is to take advantage of sites like Craigslist and online local directories and classifieds. These will help you connect with your local customer base, helping you to build up a loyal following who, crucially, will come to you to collect purchases in most instances, thus cutting down on packaging and postal costs.
Finally, don’t ignore the power of social media. Facebook offers very attractive advertising packages that can target the exact audience you’re looking for a very small outlay. Instagram is a great place to show off your products and Twitter is there to help you spread the word far and wide. In this day and age, ignoring the advantages social media can bring to your business makes no sense.
By knowing your stuff, following a few rules, reaching out to the right customers and, crucially, sourcing your stock from a Better Business Bureau-accredited top-tier liquidator such as Direct Liquidation, you’ll soon be making money every day from the liquidated stock you buy in bulk wholesale. From small acorns do mighty oaks grow, as they say, so if you want to jump into the exciting world of liquidation reselling, check out what a liquidator has to offer you today.
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Diego works as a sales representative for Direct Liquidation helping businesses to source liquidation inventory from the world’s top retailers and manufacturers. Diego works with single pallet, LTL and truckload buyers directly to ensure they stay in stock with high quality inventory year round.
Schedule a sales callback with Diego right now and find out how he can help your business profit with liquidation merchandise.
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