Make Money Reselling Liquidated Goods In The United States
If you’re considering jumping into the world of online or offline retail (or, indeed, a mixture of the two), you’re probably wondering what’s the best route to take. Back in the day, the easiest way to start your own retail business was to buy a small amount of wholesale merchandise from a local supplier, add a mark up and sell on to the public via flea markets, classified ads and possibly your own store.
This startup model worked for many retailers for years. Unfortunately, the model has been somewhat broken both by the emergence and eventual dominance of eCommerce, and by the ever-rising price in the cost of wholesale merchandise that has led to that merchandise being sold at near to retail prices, thus cutting down the amount of profit a retailer can expect to make to pretty much zero.
So, what’s the best way to make money in the modern retail environment? The answer is to resell liquidated goods sourced from a reputable, Better Business Bureau-accredited top-tier liquidation specialist such as Direct Liquidation.
What Is A Top-Tier Liquidation Specialist?
Liquidators differ from traditional wholesalers. Whereas wholesalers buy pallets of wholesale merchandise, break them up into smaller parcels and then sell those parcels on to resellers after adding their own premiums and oftentimes creaming off the best stuff to be sold separately, liquidators operate completely differently.
Liquidators such as Direct Liquidation work directly with some of the country’s biggest retailers, offering them spaces on their online liquidation websites through which the retailers can sell their unwanted customer returns, overstock and closeouts directly to resellers. This cuts out the wholesaler who is nothing more than an unnecessary middleman, and it also crucially cuts out the wholesalers’ markup, meaning the goods bought from liquidators are sold at a considerably cheaper price than a wholesaler can offer.
Every year, national retailers such as Walmart, Amazon, Best Buy and Target find themselves in possession of huge amounts of unwanted stock that, were they to do nothing about it, would quickly clog up valuable warehouse space. This stock comes in three main forms:
These are products brought back or sent back by customers. The reasons goods are returned vary from the products not working, the products bearing slight or very noticeable damage to either the packaging, the products or both, or customers simply changing their minds and returning fully working, brand new products back to the stores. Whatever the reason for customers returning products, they are no longer classed as new, even if they are, and are therefore of no interest to big name retailers who specialize in selling new, full price merchandise.
The term ‘overstock’ refers to merchandise that has either been over-ordered or is seasonal merchandise that is surplus-to-requirements now the season the stock pertains to has been and gone. Ordering isn’t an exact science, which is why national retailers find themselves with more products than they can expect to sell. This particularly applies to wholesale electronics, which are very quickly superseded by new models.
Closeouts are usually products that the retailer is looking to dispose of after closing or restructuring a store. Closeouts are usually brand-new products that are simply surplus to retailers’ requirements.
All of the above-mentioned unwanted surplus stock must be disposed of quickly, which is where top-tier liquidators such as Direct Liquidation step in. They sell this unwanted merchandise on their retailer partners’ behalf via live online liquidation auction or for a fixed or negotiated price. And because this is surplus stock the retailers wish to dispose of in as fast a time as possible, they’re willing to take a hit on what they can reasonably expect to sell it for, meaning the liquidated stock a company such as Direct Liquidation sells will always be sold well below its MSRP value.
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What Can A Liquidator Do For You?
Because liquidators deal with some of the biggest names in US retail, they have a constant supply of top-quality liquidated goods on offer on their retail partners’ behalf on their online liquidation marketplaces.
Take Direct Liquidation for example. Direct Liquidation’s partners include Walmart, Amazon, Target and Lowe’s Hardware. This means whatever type of reselling business you’re thinking of setting up, you’ll more than likely find exactly what you need on Direct Liquidation’s online auction and sales platform.
You’ll find wholesale merchandise from some of the world’s biggest brands such as Microsoft, BOSCH, Black & Decker, LEGO, Apple, Sony, Nike, Beats by Dre, Samsung, Fisher Price, DeWalt and many, many more.
You’ll also find great-quality own brand products such as Walmart’s ever-popular Mainstays home and lifestyle range and the company’s Blackweb electronics brand. On top of this, Direct Liquidation also sells a huge range of refurbished products. These are products that have been brought back up to factory spec, come in either the original or plain packaging with all accessories and documentation present. Plus, refurbished products also come with a 90-day warranty for extra peace of mind.
All of the above can be bought in either boxloads, pallets or truckloads via live liquidation auction or for a fixed or negotiated price once you sign up for a free account. This will require a valid reseller’s license on sign up, after which you’ll be free to buy as much or as little liquidated stock as and when your burgeoning retail business needs it.
Making Money Reselling Liquidations In The United States
So, now you know where to buy top-quality liquidation wholesale merchandise, how do you make money from your purchases? Most people starting out are tempted to jump straight into setting up a store on eBay or Amazon. While this is a great way to make money, it is a rather crowded marketplace for beginners, and there are fees to take into consideration that will eat into your profits.
A better solution for those resellers looking to sell liquidated goods online is to try out smaller online store hosts such as Wix and Shopify. These have the advantage of being much less crowded marketplaces, and many offer free trials so you can see if they’re the right fit for your new business without the need to spend any money up front.
Another good way of making money when you’re just starting out is to stay local. Placing ads on sites such as Craigslist and in the local classifieds will bring local customers to your door. This will cut out the expense of paying for postage and packaging while spreading word of mouth in your local area that there’s a new retailer in town with great, brilliantly-priced products to sell.
You should also check out the price of a stall in your local flea market. The price you’ll pay when sourcing liquidated stock from a company such as Direct Liquidation means you’ll be able to compete with other stallholders. Thanks to a liquidator’s retail partners, you’ll always have the very best stuff to sell, attracting many more customers and making more money. If your ambition is to eventually own your own store, flea markets are a great training ground while you build up the capital and the knowledge required to take that next step.
Starting a small reselling business can be a daunting prospect in today’s ferociously competitive retail environment. However, if you buy in bulk for resale from a top-tier liquidation specialist and choosing the best place to sell your goods, you’ll soon find you’ve built up a loyal customer base, you’ll be staying one step ahead of the competition. Crucially, you’ll be making money that can be plowed back into your reselling business as it grows and grows. If you’re looking to start a reselling business, check out what a liquidator such as Direct Liquidation can offer you. You won’t be disappointed.
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.
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