Wholesale Electronics: Buying Pallets from Online Liquidators
You have been mulling over an option of selling electronics online, phones, tablets, or laptops. However, from what you can see on sites such as eBay or Amazon, the products sold at these sites are close to wholesale prices. With the competition in the electronics resale market being so strong, it is hard to make any profit.
Buying online has become very popular, with over 220 million buyers in the United States alone, and electronics are in huge demand. So it is obvious that the potential for profit is there. The thing is you have to know where to buy wholesale electronics and or wholesale lots containing electronics that you can then sell online one by one.
Choosing a Market
Before looking for wholesale products or wholesale suppliers, you must first decide what type of electronics you want to sell. While you can find all sorts of electronics for sale online, you should consider the competition you will have to face on the market. This means you need to research the market before starting your business so that you know beforehand what you will have to deal with once you start.
Often the best option is not to compete directly in an oversaturated market. There is a lot of demand for electronics, to be sure, but there are also a lot of businesses supplying this market. So perhaps the best option for you is to find a niche market that is undersupplied. In the case of electronics, you could opt to enter the market for electronics accessories.
Where to Look for Wholesale Electronics?
Whatever your choice may be, it is now time to start looking for products to buy and sell. In order to make a profit, you need to attract clients. Clients want low prices, but they also want to buy quality products. At first sight, this might look like a contradiction. Think of it more like a challenge for you, a challenge that you can win by choosing the right supplier.
To sell quality merchandise at low prices, you need to find a supplier that will offer you quality merchandise at even lower prices. The traditional route is to buy electronics in bulk at wholesale suppliers. However, this still does not leave you any room for profit, because retail prices nowadays tend to be so low thanks to competition, that they are barely above wholesale.
So, your goal is to buy wholesale electronics, below wholesale prices. Is this at all possible? It is if you buy at liquidation auctions.
The Benefits of Liquidation Auctions
The greatest benefit is the price. Liquidation auctions offer lots of electronics at very low prices. How can they do that? Liquidation companies work as platforms for retailers and manufacturers to dispose of their excess stock and customer returns.
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When a product is not sold at a store, it is returned by the customer, or the company has closed down or is moving, and the merchandise has to be sold quickly, that is when liquidation auctions come in.
Top tier liquidation auctions usually have contracts with retailers, distributors, and manufacturers that liquidate such merchandise directly at liquidation auctions. Direct Liquidation, for example, has contracts of this kind with retail giants like Walmart, Target Lowe’s, and even Amazon.
Prices could start at 95 percent off the retail price, meaning that, if you play your cards right at the auction, you can end up with a wholesale lot of electronics that you can sell for a significant profit.
However, you might have noticed that many products have been refurbished and you don’t want to be buying faulty merchandise that will be returned to you quickly after the sale. This is not something you need to worry about, however.
Any refurbished item will have been reviewed, repaired (as needed), and tested to ensure that they are in perfect working condition. This is often done by the manufacturers or retailers themselves. If that’s not the case, top liquidation auctions have specialized departments that will refurbish, test and sort the merchandise before packing it up and shipping it to the seller.
Another reason why you don’t need to worry about quality is that refurbished items also come with a warranty. This warranty is often issued by the retailer or the manufacturer, but many top liquidation auctions will also offer their 90-day guarantee.
Furthermore, any reputable liquidation platform will provide you with a manifest detailing the quantity and quality of all the items contained in each lot. This way, you always know what you are buying.
All this ensures that you are always getting top quality products at rock bottom prices, leaving you enough room for a significant profit.
How do Liquidation Auctions Work?
To take advantage of all these benefits, you only need to register at your liquidator’s website. For this, you will need a reseller’s license (which is a legal requirement). Once this is done, you can browse freely and choose the lots that fulfill your business needs.
Then you have several choices. You can bid on the lots up for auction. This works like any other online auction: once the time is up, whoever placed the highest bid above the reserve price gets the lot.
But there are other options. Many lots come with a “buy now” option. So, if you prefer not to deal with the uncertainty of an auction, you just need to click that button and buy the lot for the price displayed. Another option is to contact customer support and make an offer. If the liquidator accepts, you get the lot for that price.
The liquidator can also help you with shipping if you decide not to arrange that yourself. In any case, it’s always worth asking for the liquidator’s shipping rate, as these may be cheaper than the ones charged by third-party companies.
Liquidation auctions can be a great source of wholesale merchandise for someone starting up an online sales business or someone who is looking to buy stock for their online store.
But it is imperative that you make sure you are working with a reputable company that will definitely provide the services they promise. Currently, there is a whole industry dedicated to scam you out of your money.
Do proper research and find the most reputable liquidation auction to work with, and you’ll take advantage of the many benefits these companies have to offer.
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.