Starting a Liquidation Resale Business in Arkansas: What You Need to Know

If you’re interested in starting a liquidation resale business in Arkansas, there are several important factors to consider before taking the leap. A liquidation resale business involves purchasing surplus or overstock inventory from other retailers or wholesalers and then reselling it at a discounted price. This can be a lucrative business opportunity, but it requires careful planning, research, and hard work.

Arkansas has a thriving liquidation industry, with numerous opportunities to acquire inventory and a growing market of bargain-hunting customers. However, before starting your business, it’s important to understand the legal requirements for operating a business in Arkansas, as well as the best strategies for sourcing inventory, setting up your store, and marketing your business to potential customers.

In this article, we will provide a comprehensive guide to everything you need to know about starting a liquidation resale business in Arkansas. We’ll cover legal requirements, inventory sourcing strategies, store setup tips, marketing strategies, and more. With this information, you’ll be better equipped to turn your passion for bargain hunting and entrepreneurship into a successful liquidation resale business.

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Benefits of Starting a Liquidation Business

Starting a liquidation resale business can offer several benefits, including:

  • Low cost of inventory: Liquidation merchandise is often sold at a fraction of its original price, meaning you can purchase a large quantity of inventory at a lower cost.
  • Variety of inventory: Liquidation merchandise can come from various sources such as overstock, returns, or discontinued items, giving you access to a diverse range of products to sell.
  • Reduced risk: By purchasing merchandise at a low cost, you can reduce the risk of financial loss if the items don’t sell as well as expected.
  • Flexibility: A liquidation resale business can be operated in various settings, including online, brick-and-mortar, or mobile, allowing you to adapt to the changing market trends and customer preferences.
  • Environmental sustainability: By selling liquidation merchandise, you’re helping to prevent excess inventory from ending up in landfills, contributing to environmental sustainability.

Business and Demographic Statistics for Arkansas

Arkansas is Home to Major Retailers

Arkansas is a great location to start a liquidation business because it is home to major retailers such as Walmart, Dillard’s, and Tyson Foods. As the largest retailer in the world, Walmart has over 130 stores throughout Arkansas and employs over 32,000 people. Dillard’s, headquartered in Little Rock, Arkansas, operates over 250 stores across the US, while Tyson Foods, a leading global food company, has its headquarters in the state and employs over 122,000 people worldwide, generating annual revenue of $42.4 billion in 2020.

The presence of these major retailers in Arkansas presents an excellent opportunity for a liquidation business in Arkansas to source inventory, including returned, damaged or excess merchandise that can be purchased at a discounted price and resold for a profit. With its business-friendly environment, low cost of living, and thriving e-commerce sector, Arkansas is a perfect place for an entrepreneur to launch a liquidation business.

Sourcing Inventory

One of the key aspects of running a successful liquidation resale business is finding inventory to sell. Here are some strategies for sourcing inventory:

  1. Auctions: Attending auctions in person or online can be a great way to find inventory for your liquidation resale business. You can bid on items that are being sold in bulk or individually, often at a steeply discounted price.
  2. Estate sales: Estate sales are another good source of inventory for a liquidation resale business. They offer a wide variety of items, including furniture, electronics, clothing, and more.
  3. Store returns: Some retailers offer store returns at a discounted price or through liquidation marketplaces. These items may be customer returns or overstock items that can’t be put back on the store shelves. You can purchase these items in bulk and then sell them at your store or online.
  4. Overstock: Retailers sometimes have overstock items that they need to clear out. You can purchase these items at a discount and then sell them in your store or online.
  5. Online liquidation marketplaces: There are a variety of online liquidation marketplaces where you can purchase inventory for your liquidation resale business. Check out Direct Liquidation’s Arkansas listings and search for items that are being sold by the pallet.

When sourcing inventory for your liquidation resale business, it’s important to negotiate deals with suppliers and to develop relationships with reliable sources of inventory. You should also focus on finding high-quality inventory that will be attractive to your customers.

Setting Up an Online Liquidation Resale Business

Here are some tips to resell liquidation inventory online:

  1. Create an online store or use an existing platform: You can either create your own e-commerce website or sell on existing online marketplaces like eBay, Amazon, or Facebook Marketplace.
  2. Price the inventory competitively: Determine the price points for your products based on market research and your desired profit margins.
  3. Market your products: Promote your products through social media, email marketing, and paid advertising to reach potential customers.
  4. Fulfill orders and provide excellent customer service: Ship the products promptly and provide excellent customer service to ensure customer satisfaction and repeat business.
  5. Monitor and adjust: Monitor your sales and adjust your strategies as needed to optimize your profits.
  6. Build customer loyalty: Offer incentives and rewards to encourage repeat business, such as discounts, loyalty programs, and referral bonuses.

It’s important to note that reselling liquidation inventory online can be a competitive and challenging business, so it’s essential to do your research and stay informed about market trends and best practices.

Setting Up a Physical Liquidation Resale Business In Arkansas

A physical store can be a great option if you have a product or service that requires customers to see, touch, or try before they buy, such as reselling liquidated clothing or jewelry. A physical presence allows establishing a business identity in your community.

  1. Conduct market research: Identify the demand for liquidation products in Arkansas, determine the competition, and identify potential locations for your store that are within your budget, considering factors such as visibility, foot traffic, and accessibility.
  2. Develop a business plan: Create a business plan that outlines your target market, product offerings, pricing strategies, marketing tactics, and financial projections. This will help you decide on what liquidation inventory you need to buy, and in what quantities.
  3. Secure funding: Determine the startup costs and secure funding through loans, grants, or investors in the area. See business startup grants in Arkansas.
  4. Customize your store layout: design, and signage to create an attractive and welcoming atmosphere.
  5. Develop a marketing plan: Develop a marketing plan that includes traditional advertising, digital marketing, and local outreach to attract customers.
  6. Hire staff: Hire and train staff who can provide excellent customer service and assist with inventory management.
  7. Establish operational procedures: Develop and implement standard operating procedures for inventory management, customer service, and financial management.
  8. Launch your business: Host a grand opening event to attract customers and generate excitement for your new business

Running a physical store or stall will come with much higher overheads including rent, so will not be an option for most new startups. Consider starting off selling at flea markets or garage sales to start developing income.

Marketing Your Liquidation Resale Business In Arkansas

Marketing is crucial for the success of your liquidation resale business in Arkansas. Here are some strategies to effectively market your business:

  1. Social media: Social media is an excellent platform to reach out to potential customers. Create a social media page for your business, post regularly and engage with your followers.
  2. Flyers and posters: Printing flyers and posters and distributing them in your local area is an effective way to increase brand awareness and attract new customers.
  3. Local newspapers and magazines: Advertising in local newspapers and magazines is a cost-effective way to reach out to local customers.
  4. Online directories: Listing your business on online directories, such as Google My Business, is a great way to increase your online visibility and attract more customers.
  5. Referral programs: Encourage your satisfied customers to refer their friends and family to your business by offering referral programs.
  6. In-store events: Organize in-store events such as discount days, promotions, and giveaways to attract more customers to your store.

By using these marketing strategies, you can increase the visibility of your liquidation resale business in Arkansas and attract more customers. Remember to stay engaged with your customers and listen to their feedback to continually improve your marketing efforts.

Legal And Regulatory Requirements

Before starting your liquidation resale business in Arkansas, it’s important to understand the legal and regulatory requirements. Here are some key things to keep in mind:

  1. Business License: You need to obtain a business license from the Arkansas Secretary of State’s office to operate a business in Arkansas.
  2. Sales Tax Permit: As a retail business, you are required to collect sales tax on taxable sales made in Arkansas. You can apply for a Sales Tax Permit with the Arkansas Department of Finance and Administration.
  3. Arkansas Resale Certificate: Referred to as a resale license, reseller permit, reseller license, or tax exemption certificate, is a tax-free document that enables businesses to procure goods from suppliers for the purpose of reselling them without incurring sales tax payments.
  4. Federal Employer Identification Number (EIN): If you plan to hire employees, you will need to obtain a Federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS).
  5. Business Insurance: Business insurance is crucial to protect your business from unforeseen events such as theft, fire, or other damages.
  6. OSHA Regulations: If you have employees, you must comply with the Occupational Safety and Health Administration (OSHA) regulations to ensure a safe working environment.
  7. Consumer Protection Laws: Arkansas has various consumer protection laws that govern retail businesses. Familiarize yourself with these laws to ensure that you comply with them.
  8. Zoning Regulations: Check with your local zoning department to ensure that your location is properly zoned for a retail business.

By understanding and complying with these legal and regulatory requirements, you can ensure that your liquidation resale business operates smoothly and avoids any legal issues.


Starting a liquidation resale business in Arkansas can be a great opportunity for entrepreneurs who want to turn a profit by buying and selling excess inventory. However, it’s important to do your research, understand the market, and comply with legal and regulatory requirements.

Start your business off on the right footing by sourcing your inventory from a reputable, local, established and affordable liquidation company. Check out Direct Liquidation’s Arkansas listings to see what we have available right now.

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