If you want to start a liquidation business, there are a few key points to keep in mind. Getting started doesn’t require a lot of money. It is actually possible to start with a relatively small amount of capital. In addition, brand-name liquidation inventory can be found at low prices. You can find pallets of goods to fit your budget with different lot sizes and conditions. Lastly, you can easily turn a profit when you have the right resources in place. To start a liquidation business, we’ll explain what you need to know and the steps you need to take.
Liquidation Business: The Steps to Get Started
Are you familiar with retail arbitrage? Essentially, it involves buying goods at a discount and selling them at a higher price for a profit. This business model is used by many independent practitioners, but it is also used by entire companies such as flea markets and off-price stores, like TJ Maxx and Ross. It will help you to start acquiring inventory and to begin your liquidation reselling business, whether you want to sell online, open a discount store, or sell at flea markets.
Liquidation vs. Wholesale: make a decision
When searching for inventory for a liquidation business, you’ve probably encountered the term ‘wholesale.’ Although liquidation and wholesale share many similarities, there are some key differences. Wholesale, for example, is the sale of goods and merchandise to businesses and resellers. As a rule, wholesale prices are fixed, but the amount of product can vary significantly. In contrast, liquidation is the process of turning excess, overstock, or obsolete goods into cash as quickly as possible. There has never been a better time to buy liquidation merchandise for resale. Online auctions, such as BDSTX Wholesale Auction, that connects businesses directly with returned and excess merchandise, bypassing traditional liquidation methods. As a result, big and small buyers can compete equally for inventory. In addition, most of the inventory is a fraction of what MSRP is.
Look for liquidation sites or wholesalers that are reputable
Investigate liquidation and wholesale inventory companies. Determine whether you prefer to buy direct from a liquidator or from a wholesaler. Identify the type of merchandise you want to source as well. Are you interested in selling goods from a specific category (home & garden, home appliances, consumer electronics, etc.)? Do you want to specialize in a particular condition (for example, brand new/overstock, refurbished, salvage parts)?. This article compares top liquidation sites when it comes to finding inventory options.
Register as an authorized reseller
To source liquidation inventory, you must first become a legitimate company. You need a resale certificate once you have registered your business. By purchasing the goods to resell with this certificate, you are exempt from paying taxes. A resale certificate is required to purchase pallets of goods from almost every reputable liquidation or wholesale company.
Online Selling: How to Get Started
Your merchandise is moving and you’re reselling it online successfully – that’s awesome! Are you making a profit? We need to talk about liquidation business strategy to make sure you aren’t just breaking even. To help your bottom line, do these nine things:
Develop a business plan
Knowing your business costs is critical. Expenses like inventory acquisition, shipping, equipment purchase, extra staff, etc., should be considered.
Analyze the market
Identifying your customers requires some market research. Market to your audience based on their needs.
Find out what options you have for selling
Make sure you are familiar with the rules, processes, fee structure, etc. of each platform you intend to sell on.
Acquire new skills
Boost your sales by learning things like online marketing, photography, and SEO.
Conduct a competitive analysis
Look at what they’re charging for similar or identical products. In order to move your inventory, you need to be competitive.
You’ll get good reviews if you provide a great customer experience! Consistently responding to people’s needs and engaging them will make them want to buy from you.
Ads can be used to promote your business. Facebook boosted posts starting at $1 per day are a great way to get your message out, or you can put out a radio spot that covers your local area.
Make sure your return policy is clear
Customers are more likely to return to a business with a return policy. Despite mistakes happening, a solid return policy will keep you from getting caught off guard.
Would you like to buy wholesale liquidation merchandise for your business?
Worth the look for new resellers. Why not?