Are you hoping to start your own new business? It’s a big step, but it’s also an important one. The only way to get ahead is to get a leg up on the competition, and you can do that by starting your own liquidation business. Here’s what you need to know to have a successful business.
What is it?
A liquidation wholesale business takes items that are in overstock or items that were returned, and sells them at a heavy discount. This benefits everyone involved. The original seller is able to offload stock, your company can provide inexpensive goods at a reasonable price, and customers can acquire quality items for far less than they would pay normally.
Stock for your business may come from places like Amazon, Walmart, or other big box stores or online sellers. These sellers auction off pallets of quality items that are either overruns or returns. And you can acquire them at huge discounts and resell them, making a solid profit along the way.
Who should I sell to?
This is a valid question, and the answer is that your customers could be anyone from individuals to B2B contacts. You might look for new business leads to be sure of regular customers and a steady revenue stream, or you might reach out to individual buyers.
As with any business, the key is meeting customer needs. When you buy items wholesale, understanding what you’re getting and what your customers need can be challenging. It’s worth the effort to build a battle plan that will keep your business moving in the right direction.
For your business to keep running without disruption, you’ll need a supplier you can rely on. There are plenty of online wholesale auction suppliers: you need the right one. The right supplier is one with plenty of content, a reliable flow of goods, and a good reputation.
You need to know that, once you buy, the items you’ve purchased will be on their way quickly. You also need assurance that the items will be as described. Look for a supplier with a good reputation that matches your needs, and don’t be afraid to ask questions.
How do I get a hold of these goods?
Whenever a big company like Walmart has a lot of stock or returns that they can’t sell, it’s in their best interest to move that stock along quickly as possible. These items take up valuable warehouse space that the company would rather use for something else.
When the companies in question no longer need goods, they sell them wholesale. Liquidation companies buy them up at deeply discounted prices and then pass those prices on to you. You are then free to sell quality goods to your customer at cheaper prices than they could find if they bought directly from the manufacturer.
Other questions to consider
As you hunt for the right online supplier, here are some questions to think about:
- What do you need? Does this supplier sell the goods that will benefit you?
- What are the prices like? Does the supplier consistently have goods within your price range?
- How easy is it to navigate their site? Can you register and get started with their online auction system quickly and easily?
- What are shipping costs like? Shipping can easily blow your budget, so know the system before you buy.
What is your selling platform?
As you build your business, one final important consideration is what platform you will use to sell your goods. Some companies choose to work through established online sellers like Ebay or Amazon, while others build their own sites and market directly to their target audience.
Whichever you choose, be sure you’ve thought through the pros and cons before you begin. Stay patient and work towards your end goal: when you get there, all the effort will have been worth it.