Start Your Own Business Reselling Liquidated Electronics
Selling wholesale merchandise online is a great way of earn an additional income in your spare time, and it isn’t even a bad option for a full-time job. But making a profit is not always as easy as it seems. The formula of ‘buy cheap sell high’ does not always work out. Unless you are putting an effort to market your products, advertise them and attract customers, you will be practically invisible in the sea of online sellers.
However, there are some products that offer an advantage over others. Wholesale electronics, or any electronic devices, don’t need much advertising, they fall into the group of products that advertise themselves. In terms of demand, online shoppers put books and electronics as two of the top sought after products online.
But with high demand comes tough competition because everyone wants a piece of that cake. So, in order to give yourself the best chance of success, you must source the merchandise as cheap as possible and sell at very competitive prices. But how do you achieve that?
How to Stock Up Your Online Business
Although buying electronics wholesale is the traditional way of sourcing merchandise, there are certain drawbacks to this method. While you are buying in bulk and keeping the prices of single products lower, the margin you are getting is not really enough for you to make a decent profit or stay competitive in what is essentially a hot and very competitive market.
This becomes apparent as soon as you look into your competition for reference prices. You will find that single products sold on websites like Amazon or eBay are priced close to wholesale. This makes it very hard to make any profit for someone who is sourcing electronics by purchasing wholesale pallet lots from various suppliers.
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If you are a long-term buyer, someone who has built relationships with various wholesalers, you may be able to negotiate better terms, lower prices and payment options. But eventually, you will realize that this barely makes any difference.
But if you do some research and look a bit deeper into the sourcing market, you will find that wholesale electronics sold through liquidation websites are priced very cheaply, leaving a larger profit margin and the chance to offer better prices for the customers.
The truth is that you have probably been purchasing liquidated electronics, sold at computer auctions or maybe through Amazon return auctions without actually being aware of it. Some wholesalers source their merchandise by buying truckloads of products liquidated by retailers. The actual buying power of wholesalers enables them to turn up with trucks and snap up the majority of merchandise being liquidated leaving scraps for small buyers.
However, over the recent years things have changed because the likes of Amazon, Walmart and Target have taken advantage of liquidation platforms to get rid of their overstock pallets without having to deal with traditional wholesalers. This gives you the opportunity to buy Amazon returns direct from the retailer at prices well below typical wholesale, providing you with the opportunity to make a decent profit on resale.
There are, however, several things you should pay attention to when buying through online liquidation platforms. First, make sure you are buying through a reputable liquidator. Second, make sure you know the retail prices of the single product in the wholesale lot you are trying to purchase. This will enable you to calculate the maximum bid and to keep the venture profitable.
Reputable Liquidators, High-Quality Electronics
Many will be concerned about using liquidation products, because the majority of merchandise sold is used, broken or complete scrap. When it comes to electronics, old or used merchandise is not really something that sells and used computer auctions might not really be something you are interested in. But the fact is that not all liquidated products are used or broken.
If you plan on buying Amazon returns you might actually be making a really wise business choice. The truth is that no matter their condition, the products that get returned are reviewed by dedicated departments. Especially when it comes to electronics, they are reviewed, refurbished (brought back to their original fully-working condition), repackaged and sorted into pallets.
Some products even get returned to the sellers unopened because the buyer did not like the color or the size of the product once it was delivered. Such products, although new, have to be liquidated and can’t be sold as new anymore. For you as a buyer, this means you are getting a brand new item for rock bottom prices.
In addition, when you are buying Amazon liquidation pallets you should be getting better quality merchandise for several reasons. First, both Amazon and liquidation platform, Direct Liquidation, have their reputations to look after. This bodes well for the quality of the merchandise sold.
Liquidators will often have exclusive contracts with retailers and manufacturers, setting very high standards for the products listed on liquidation websites. Top liquidators will also have their own departments that receive, review, refurbish and repack faulty products, and will usually offer at least a 90-day warranty on any of these items.
When it comes to retailers such as Walmart or Amazon, they will not only refurbish the products, but will also slap on an extended warranty and a full money-back guarantee that you can benefit from. This will ensure you are providing quality products to your customers as well as quality service.
And you can always check the manifest attached to each pallet. This is essentially a packing list showing all the details regarding the products packed into a pallet. And if you want additional value, go for overstock pallets which are basically pallets of brand new products that never even made it to the store shelves.
Also, you might want to look at the vast network of distribution centers Direct Liquidation has, because you can always find distribution centers near you with the merchandise you need which will result in lower delivery costs, securing you an even bigger profit margin.
To conclude, if you are looking to make it in the wholesale electronics resale business, make sure you check out liquidation auctions as your potential source. Playing your cards right will get you a big advantage over the competition.
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.