Wholesale Merchandise: How to Stock Your Online Business

Buying wholesale merchandise for personal use might not be a smart move, according to market analysts, but buying wholesale merchandise to resell online could be a great way to make some extra cash on the side. You could make reselling wholesale merchandise online a spare-time job, a hobby, or turn it into a full-time business.

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It will not bring you piles of money overnight as many other business options advertised online promise, but if done correctly it is certainly something that could bring you a steady income.

Buying wholesale merchandise to sell on websites like Amazon or eBay is a tried and tested method. Here are some tips to help you get on the right track and set up your wholesale merchandise reselling business.

Analyze the Wholesale Market

The online sales market is expanding very fast with more products being sold online than in physical stores every day in the United States and sales expected to hit $684 billion by the year 2020. Amazon and eBay combined draw in over 290 million unique US visitors each month, which is a huge market to serve. And if you look at the global scale, the number of potential customers is huge.

The good part is that the market is growing each day and there is certainly place for every seller. However, it is not just the case of buying wholesale merchandise and placing it on the two mentioned websites, there is a lot of research and hard work to be done before the money starts coming in.

To stay on the right track, first you have to comply with all the legal requirements in your state. The second thing is the market research. This will not only show you the current trends, market dynamics but will also show you where the undersupplied markets are. These markets are the key to starting your business successfully, for a number of reasons.

Buy into a Niche Market

First, if you are only starting in the business and would like to make money online, there is no sense in jumping into a saturated market. You are highly likely to shut up shop and be swallowed up by your established competition. This is not because the products or the services you offer are bad, but simply because the competitors have already built a name for themselves, a loyal customer base and know the ropes of the business, something which can overwhelm you when you are only starting up.

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So an undersupplied, or niche market gives you several advantages. The demand in such markets is not met with adequate supply levels, and although the market itself may not be huge, it allows you to make a steady income while learning the ways of running a business in an environment that is less competitive and not as fast moving as some other more popular markets.


Also, filling such a market and providing quality products and services will give you good reviews from the customers, building your reputation and enabling you to target other market segments and grow and expand your business. What this means is that you will have the chance to build a following or a loyal customer base that will make a connection, an attachment to you and that would follow you to any market you decide to venture in. And you will already be prepared for the new market because the model is the same, it is just the scale that increases.

Sourcing Wholesale Merchandise for your Online Business

Buying wholesale merchandise is the best way to source adequate quantities of merchandise for a lower price per unit. This allows you to earn on the markup. The traditional way of doing this is by purchasing from a wholesale supplier. Wholesale suppliers sell merchandise by the pallet, which means you buy in bulk, thereby paying less per unit.

However, if you compare your purchase price and the lowest selling price you can offer to your customers that will make your effort worth it, you are way beyond what your competition can do. There is a simple explanation, they don’t source through wholesale suppliers. See, what you should be looking at are liquidation auctions and liquidation websites that provide liquidated merchandise.

Before you scroll through to the bottom, or close the page, read this paragraph. Liquidations are not what they were a few years back. Yes, the majority of liquidated merchandise is still used, broken or scrap. But things are starting to look up with retailers and brands such as Walmart, Target or Onn partnering up with liquidation websites to clear their overstock pallets. You are also able to find Amazon return pallets sold through these online platforms.

With such names in play, quality is of major concern because they have a reputation to look after. The liquidated merchandise is usually the customer returned stuff that can’t be put back into retail no matter what condition it is in, new or used. The likes of Walmart and Target have set up their liquidation departments that go over these customer returns, reviewing, refurbishing and repacking them. The confidence in the quality of these products is at such a level that retailers will offer renewed money-back guarantees and extended warranties for these refurbished products.

Additionally, when you work with reputable liquidators, you are able to consult a manifest. This is a packing list attached to every pallet or lot of liquidated merchandise on offer. It shows you the details on the merchandise within the pallet such as the descriptions, type, quantity, and quality or the condition grade. This means you can only buy the products your customers demand, at a quality they demand.

Reselling Your Merchandise

And best of all, the prices are well below wholesale. This shows you how the competition can afford to keep their prices of single products so low. And now that you know that liquidations companies are the best source for your merchandise, you can do the same and beat your competitors at their game.

There is one simple rule for selling: do not get greedy. Make sure you follow the market and offer prices that are competitive. Hoping for one large sale to cover your expenses is not the way to go. It is a combination of many smaller sales that add up to a profit. So be patient and reasonable and the profits will come.

Direct Liquidation is a goTRG company.

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