How to Really Make Money Online

2017-09-18

There are thousands of websites out there promising you quick and easy profits in just a couple of steps. Although it is never as easy as that, there are ways to make money online. How much you can make depends on how much time you are willing to spend, what the scale of your operation is going to be, and whether you want this to be your main source of income or just another job on the side that you can do in your spare time.

In any case, one viable option that has given results to many is buying wholesale merchandise or liquidation stock and selling it on Amazon or eBay. By doing this you can make sales and profit even when you are asleep.

So, here are a few steps to follow if you want to setup an online sales business.

Establishing, Sourcing, and Selling Merchandise Online

Online sales are a rapidly developing market. Taking only the United States into consideration, where more products are sold online than in physical stores, sales are expected to reach over $684 billion by 2020.

Sales platforms like Amazon and eBay draw over 290 million unique visitors per month from the United States alone. These numbers are growing each year and any market in the world can be accessed online, giving you greater competition but also a better chance to find a market that fits you.

Once you have completed all the legal requirements of starting up a business, there is one step that plays a major role in the success of your online business, and the amount of money you could make. Researching market behavior, the correlation between supply and demand in specific markets, is what you have to look at in order to pinpoint a niche market that is undersupplied and where there is not much supplier competition. This undersupplied market segment is your starting point, no matter what your preferred market segment may be. Whether it is seasonal clothing, electronics, or appliances, or any other, every segment has its own customers and suppliers.

Once you find the market, it is time to source the goods. The traditional way is to look for wholesale suppliers that are capable of delivering the products you require on a regular basis. The availability of merchandise is of great importance as you don’t want to end up short of supply while the customer demand for a certain product is at its peak. When choosing the suppliers, make sure you compare prices, check merchandise availability and services, and look for customer reviews. Happy customers mean the supplier is reliable and safe.

The other option you have is to turn to liquidation companies. These companies serve as a bridge between end customers and the retailers and manufacturers looking to get rid of customer returns, overstock or old unsold models in order to free up shelf space and make any kind of profit on these products. Unlike wholesale suppliers, who buy merchandise by the truckload and sort it into pallets, and sell it on with a slight markup. Liquidators don’t buy the merchandise but rather provide a sale service to retailers and manufacturers. This results in lower merchandise prices, providing you with a chance to be even more competitive in any market. You can buy liquidation merchandise directly, or through liquidation auctions that will see you bid against other buyers.

If you have done your research properly, you must have noticed that prices of single items on eBay or Amazon are very close to wholesale, making the market very competitive, especially if you look at the electronics segment, which is often the most competitive one.

This is why finding an undersupplied niche is important, as it allows you more flexibility when setting your prices. Also, you are entering a market that already has a healthy demand, giving you more chances of success.

However, as a word of advice, don’t be too greedy and try to make every single sale the best sale ever. The goal is to sell every item you buy in wholesale pallets and calculate your profits once all is done, accumulating profits over the whole lot.

To help you on your way to setting up a successful resale business on Amazon, we have written a step-by-step Ultimate Guide to Selling on Amazon, which will lead you through the process from the start of your venture to listing your products online.

Liquidation Merchandise Quality

Questions have often been raised about the quality of the merchandise sold through liquidation companies. In order to build their reputation up even more, top liquidators are working with top-tier retailers and manufacturers under strict and exclusive contracts that, among other things, guarantee that items listed on liquidation auction websites are high-quality merchandise.

It is true that a lot of merchandise sold through liquidation auctions are customer returns and refurbished merchandise. However, both manufacturers and liquidators are keen to sell products and not see them returned. That is why each product is reviewed and put through a series of strict tests ensuring they are back to their best condition and ready for resale. In addition, every top liquidator will provide you with a full manifest, a list of merchandise contained in a lot or a wholesale pallet. These lists will help you decide whether to buy or not, especially when it comes to pallets of mixed merchandise, that could contain smartphones, clothing and toys all mixed in one pallet.

To be on the safe side, make sure you check the manifest, or request a manifest from your supplier. It will show you the number of certain products as well as their condition. If a supplier withholds information, does not provide you with a full manifest or declines to provide you with any sort of information on a pallet, it is time to part ways and look for a new source. Buying blind increases your chances of ending up with damaged or completely broken merchandise you will not be able to sell anywhere.

Henley Johnson

Henley 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 Henley is here to help you grow your business.

View Henley’s Bio on YouTube.