Being invested in wholesale buying and setting up sales using the internet, through websites like Amazon, can be extremely profitable. If you’re looking to venture into the rapidly growing business of liquidation merchandise, and the buying and selling of wholesale pallets and their contents, you will need to know a few tricks of the trade.
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Online businesses are easy to set up and have many benefits. You can continue doing your regular job and have an online business as a second stream of income. An online resale business does not have a limit in terms of time you have to spend at your computer, it is a business that goes on even when you are asleep, since the orders can be made from any corner of the world at any given time.
Besides the legal considerations, you have the market dynamics to look at, but more on that later. First of all, you need to decide what kind of products you are going to sell. There are products you like and products you are comfortable with but deciding on the market you want to enter based on your preference can be a bad choice.
Additionally, you have to consider where you will source the merchandise. If you look at the prices of single units online, they are nearly at the wholesale levels. This means you have to buy in bulk to keep the prices of single units low, but you also have to try and find merchandise that is sold below wholesale.
Luckily there are sources that will provide you with the quality and the type of merchandise you need to stay not only afloat but at the top of competition: these are liquidation platforms. A number of retailers, the likes of Amazon, Walmart and Target are using liquidation platforms to liquidate their merchandise and sell it directly to smaller buyers, avoiding the wholesale suppliers and keeping the prices well below wholesale in the process.
Just make sure you are working with a reputable liquidator, like Direct Liquidation. Direct Liquidation has all these large retailers onboard using its services to reach a world-wide audience and liquidate their merchandise. Now, before jumping into buying pallets of liquidation products, there are a few things to learn.
Some of the terms you need to be familiar with regarding the products you’re looking to buy are, tested and working, untested, refurbished, and new. Each describes, or is at least a good indicator of the quality and condition you can expect the items to be in.
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The tested items will usually be the ones which customers have returned to the company and will show signs of some wear and tear but will be fully functional. These can be labeled as used or simply ‘returns’ and be sold at a lower price by you on Amazon, etc. However, retailers nowadays have dedicated departments that make sure refurbished items are functioning as new and they will add extended warranty to these products and slap on a new money-back guarantee.
Untested items, on the other hand, you should be wary of as they haven’t been tested and are sometimes defective. However, even these can be sold, either labeled as damaged or as parts. Unboxed and new will be your best bet in this case, as such products will be in prime condition, but won’t have as deep a discount on them as compared to the others.
But if you fancy taking a risk, buying a pallet of untested merchandise can sometimes be a win. This sort of merchandise is heavily discounted and can be bought for pennies on the dollar. However, it is not unusual for you to find a brand new, fully functioning item in the pallet that can fetch more on resale than what you’ve paid for the whole pallet. Sometimes the risk pays of, but don’t go buying unsorted customer returns at any given chance, be smart.
Reputable liquidators will give you the tools to play it smart. Not only do you have the grading system that shows you the condition of the merchandise advertised, you are also able to request a manifest. This is a packing list showing you the contents of each pallet, their descriptions, the quantity as well as the condition. This means you will always know what you are buying and in what condition that merchandise is.
Assuming you have bought all that you’re looking to sell, what can you do next to make sure that the items sell quickly, and you aren’t left with any unsold stock or a negative balance?
Firstly, it’s imperative that you research market trends and are positive that whatever you’re selling is in demand and doesn’t just have a weeklong craze that’s already passed. So, you might want to stick with items like clothing, electronics, and books, which consistently sell well.
Equally important is calculating your profits and final cost before putting up the items for sale. Be sure to include shipping and restoring costs, or any other expenses on your part when fixing a price point.
Many forget that the appeal of selling out of an item bought from liquidation sales is directly linked to the way it is presented. Since all the transactions will take place on your store page, make sure your products are being showcased in the best way possible. You should take flattering photos of the product from several angles, including close-ups and all the details and defects (if any) mentioned alongside, clearly – you don’t want any returns yourself.
Furthermore, if you want your customers to trust and have confidence in you, it is recommended to always have a good return and warranty policy.
The risks are low, and the profits can be considerable when selling goods from liquidation auctions over the internet, as a small business. You need to work with patience and have some common sense. So, if you regularly research and analyze the trends, make sure you place yourself in the best possible position in terms of stock, and don’t let orders get on top of you, you have every chance of success.
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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 or check out his latest liquidation deals.
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