Making Profits Online with Wholesale Liquidation Electronics
When most people think about wholesale or liquidation buying, they imagine that it is done only by large companies that purchase huge quantities of merchandise. However, buying surplus inventory, customer returns, refurbished items and even brand new merchandise through liquidators and liquidation auctions is gaining more and more in popularity for a few good reasons, among which are the low prices and high quality of the products.
These two factors make wholesale liquidation merchandise ideal for small business owners and people starting their own small businesses that aim to resell merchandise online on websites like Amazon or eBay.
It is understandable that many small business owners try to grab a share of that market since eBay and Amazon draw in at least 290 million unique users each month from the United States alone. This means there is a lot of potential in e-commerce, and that is especially so in the case of electronics like smartphones, laptops, and tablets.
So, how exactly can someone who is just starting their business profit from wholesale liquidations?
Doing market research is the first step on the path to success, an action that makes those that follow a lot easier. You need to learn the market conditions to come up with a practical and realistic business plan. It’s not easy running a business, even a small one. The more you know, the better conditions you will have to be successful in the long run.
When you research the market, the goal should be finding niche segments that are undersupplied. Why is this important? Markets like smartphone and laptop sales are at the top of the buyers’ interest list. The pie, as we have seen, is huge, but there’s a lot of people fighting for their piece of it. The competition is fierce, and the number of suppliers available makes it harder for a newcomer to succeed.
Finding an undersupplied niche market gives you two advantages: healthy demand and less competition. This will provide you with a much better chance of succeeding in this market.
Once you have found a niche market that suits you and you feel comfortable working in, it is time to find a reputable liquidator to work with.
Finding the Right Liquidator
As the next step of your journey to selling products online, finding the right liquidator is critical. This does not only mean to find a liquidation company with the lowest prices. You need low prices paired with the quality of merchandise and service.
If you think this is an impossible task, think again. You will really find sources that combine these two advantages. These are liquidation auctions, the perfect source of cheap top quality electronics for a beginner business owner.
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But you shouldn’t just find any ordinary liquidator. Choosing your supplier is a crucial decision, one that could make or break your business. So you also need to research the liquidators available and find one that has a strong reputation and a long line of satisfied customers. You can do this by finding as many customer reviews as possible and learning from their experiences.
Once you find the right wholesale liquidator, it is time to source the merchandise.
Sourcing the Goods
No matter what product you choose to sell it, you are sure to find it on offer at a top liquidation auction. This is because top tier liquidators have exclusive contracts with top retailers and manufacturers. For example, Direct Liquidation has exclusive contracts with retail giants like Walmart, Target, Lowe’s, and even Amazon. This ensures that you will never run out of stock.
The prices these products go for are very low. That’s because the lots sold at the liquidation platform are overstock, shelf pulls or customer returns. This means that this is excess stock, products the retailers want to dispose of because they cannot sell them as new, even though many of them, in effect, are new. So they are willing to sell them for a fraction of their value to recover some money and to free up precious storage space for other merchandise.
In effect, you will be bidding on wholesale lots, with the further advantage of these lots being priced even below wholesale.
The exclusive contracts between liquidators and manufacturers often include clauses that set the minimum quality standard for the merchandise that can be listed, and these standards are very high, ensuring you high-quality merchandise.
Another reason why you won’t need to worry about the quality of the products is that many of the products have been refurbished either by retailers or manufacturers themselves, or else by the liquidators. This means that the products are reviewed, repaired (when necessary), and tested to ensure you only get electronics in perfect working condition.
Furthermore, many of the electronics you buy at the liquidator come with a warranty directly from the retailer or manufacturer. In many cases, you get a 90-day guarantee from the liquidator as well.
Finally, when you’re dealing with a top liquidator like Direct Liquidation, you can be sure you’ll know exactly what you’re getting each time you buy a new lot of electronics. That’s because you are always provided with a manifest detailing exactly what each lot contains, including the condition of the items.
With quality products from retail giants in your stock, you are sure to attract the clients you need. Because you bought these products at very low prices, you can then price them very competitively. Finding cheap quality items ensures that you will get a healthy profit margin on resale while making your name in the market of your choice.
In conclusion, if you want to make profits by selling electronics online, there are two things you really need to do. One of them is to find an undersupplied niche market and then find a reputable liquidation auction to supply you with the merchandise you need. These will enable you to earn money while staying competitive in a tough market environment.
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.